I. The origin of the Iraq issue

The Iraq issue refers to a series of problems triggered by Iraq's invasion of Kuwait.

1) The Gulf Crisis and Gulf War

On August 2nd, 1990, 100,000 Iraqi armed forces crossed the border of Kuwait and occupied the whole territory of Kuwait in no time, thus triggering the Gulf crisis. The Gulf crisis was the result of intensification of Iraq-Kuwait disputes. The major reasons include:

i) Oil Policy

Iraq accused Kuwait of overproducing oil together with the United Arab Emirates. As a result oil price fell and Iraq suffered a loss of 14 billion US dollars.

ii) Territorial Disputes

Along the 120-kilometer land boundary between Iraq and Kuwait there was a section of desert area rich in oil still undemarcated. Iraq accused Kuwait of illegally extracting oil worth 2.4 billion Us dollars in the southern part of the Rumaylah oil field which belongs to Iraq. But Kuwait claimed it was part of Kuwait's territory as the southern part of the oil field extends into Kuwait's boundaries.

iii) Disputes Over Debt

During the Iraq-Iran War, Iraq owed a debt of 30 billion Us dollars to Kuwait, the United Arab Emirates and other Gulf countries. Iraq demanded that the debt of about 15 billion US dollars owed to Kuwait be formally remitted since Iraq's fighting against Iran had protected the Arab nationality. But kuwait, the United Arab Emirates and other countries deemed it unacceptable.

The international community reacted strongly to Iraq's invasion of Kuwait, condemning Iraq's occupation of Kuwait and demanding the immediate withdrawal of Iraqi troops.

On November 29th, 1990, the UN Security Council adopted Resolution 678, which fixed January 15th, 1991 as the deadline for Iraq to withdraw its troops from Kuwait, otherwise the international community has the right to take any necessary measures.

On the early morning on January 17th, 1991, the multi-national troops launched the "Operation Desert Storm". On February 27th, Iraq announced that it would unconditionally accept the UN Security Council's 12 resolutions regarding the Gulf crisis. And the Gulf War came to an end.

2）Remaining Issues of the Gulf War

After the outbreak of the Gulf Crisis in August, 1990, the UN Security Council adopted Resolution 661, deciding to impose compulsory economic sanctions and arms embargo on Iraq. In April, 1991, the UN Security Council adopted Resolution 687 on the formal cease-fire of the Gulf War, which demanded the formal demarcation of Kuwait-Iraq boundary and also made compulsory stipulations regarding war reparations, destruction of weaponry, and the long-term monitoring of Iraq's arms production. The UN Security Council would deleberate the development in sanctions against Iraq every 60 days so as to decide whether or not to relax the sanctions depending on Iraq's compliance with the provisions in the UN resolutions.

i) The issue concerning arms inspection

According to the provisions in the UN Security Council Resolution 687, the UN established a Special Committee aimed at destroying Iraq's weapons of mass destruction, which together with the IAEA has conducted 8-year-long inspection and destruction of Iraq's weapons of mass destruction since 1991. During inspection, the two sides had constant disagreements and conflicts, which brought about arms inspection crisis for many times and ultimately led to the "Desert Fox" military operation against Iraq launched by the US and the UK in December, 1998. Iraq presently announced that it would terminate its cooperation with the Special Committee. And the Iraq issue got bogged down. After prolonged consultation lasting nearly one year, the Security Council adopted Resolution 1284 on Dec.17, 1999, deciding to establish the United Nations Monitoring Verification and Inspection Commission (UNMOVIC) to replace the Special Commission. It is stipulated that if Iraq gives cooperation within 120 days, the Security Council intends to suspend the restrictions on Iraqi import and export for periods of 120 days each, remove the ceiling put on Iraq's oil export, and simplify the procedures for contract approval; However, it is not stipulated explicitly as to how to start the procedure to suspend sanctions against Iraq. On Jan. 26, 2000, Mr. , former director general of IAEA, was appointed chairman of UNMOVIC. At present, the personnel composition and system of operation of UNMOVIC is under deliberation.

ii) The "Oil-for-Food" Program.

In order to ease the increasingly worsening humanitarian disasters in Iraq, the UN Security Council adopted Resolution 986 in April, 1995, which allowed Iraq to export oil worth 2 billion US dollars every six months under the supervision of the UN. This agreement was formally launched in December, 1996. In February, 1998, the UN Security Council adopted Resolution 1153, expanding Iraq's oil export quota to 5.2 billion US dollars every half year. On December 17, 1999, the Security Council adopted Resolution No.1284 and decided to remove the ceiling put on Iraq's oil export.

iii) The Question Concerning Iraq-Kuwait Boundary

Disputes over the Iraq-Kuwait boundary are left over by history. After the Gulf War, the UN established the Iraq-Kuwait Boundary Demarcation Committee according to the Security Council Resolution 687.The Committee redemarcated the Iraq-Kuwait boundary in accordance with the agreement reached by the governments of Kuwait and Iraq in 1963. In August, 1992 and May, 1993, the UN Security Council adopted respectively Resolution 773 and Resolution 883 on recognizing the work done by the Iraq-Kuwait Boundary Demarcation Committee, and finally defined the boundary line on land and sea between Kuwait and Iraq. In November, 1994, Iraq acknowledged in its announcement the Iraq-Kuwait boundary demarcated by the UN.

iv) The Question Concerning Returning Kuwait's Property and Releasing the Captured and Missing Personnel of Kuwait

The Security Council Resolution 686 demands Iraq to return the property plundered from Kuwait, to immediately release Kuwaitis and third-party citizens detained in Iraq and return the remains of the dead under the charge of the International Red Cross Society or Iraqi Red Crescent Society, and to provide the namelist of those detained in Iraq and facilitate the International Red Cross Society in looking for those missing. At present, Kuwait accused Iraq of still detaining more than 600 Kuwaiti POWs and missing personnel and still failing to completely return Kuwait's property plundered during the Gulf War.

v) The Question Concerning War Reparations

In April,1991, the UN Security Council adopted Resolution 687 and established the UN Reparations Committee to take charge of matters concerning claims of foreign governments, citizens and companies that suffered from loss, damage or injury as a result of Iraq's invasion and occupation of Kuwait. At present the indemnities are paid in the reparations fund under the Iraqi "Oil-for-Food" Program.

vi) The Question Concerning the Establishment of "Security Zone" and "No-fly Zone"

In April, 1991, the US, the UK and France defined the three provinces in northern Iraq ( to the north of Latitude 36 N.) as a "security zone" and demanded the withdrawal of Iraqi troops and administration institutions under the excuse of preventing Iraq from suppressing domestic minority nationalities. In fact there are no such provisions or demands in the Security Council Resolutions. The "no-fly zone" in southern Iraq was also set up by the US under the pretences of protecting the Iraqi Shiite Muslims in August, 1992. In early September,1996, the US launched retaliatory strikes against Iraq as Iraqi troops entered the "security zone" in northern Kurdish area to crack down the Kurdish pro-Iranian anti-government armed forces. The US also announced that the "no-fly zone" be expanded from Latitude 32 N. to Latitude 33 N..

In March,1997, France announced its withdrawal from the reconnaissance flight operation in northern Iraq launched by the US, the UK and France. After the US and the UK launched the "Desert Fox" military operation in December,1998, Iraq reiterated that it would not recognize the southern and northern "no-fly zones" illegally set up in Iraq's territory by the US and the UK. Iraq also shelled and intercepted British and American planes patrolling in the "no-fly zone", while the US and the UK time and again bombed the targets in or even outside the "no-fly zones" in Iraq.

II China's Stand on the Iraq Issue

After the breakout of the Gulf crisis, the Chinese government issued a statement opposing Iraq's invasion and occupation of Kuwait, demanding Iraq's immediate and unconditional withdrawal of troops from Kuwait and maintaining that the disputes between the two countries be resolved through peaceful political means, rather than resorting to force.Based on this stand, china cast affirmative votes on the UN Security Council's resolutions on demanding Iraq's unconditional withdrawal of troops from Kuwait, restoring the independence, sovereignty, territorial integrity and legal government of Kuwait, and imposing sanctions on Iraq, etc. As to the UN Security Council Resolution 678 which warrants the adoption of "any necessary means", the Chinese government abstained from voting in View of China's constant stand of striving for peaceful solution.

On the Iraq issue China has consistently maintained that UN Security Council's resolutions regarding the Iraq issue should be implemented comprehensively and practically. China also maintains that as a sovereign state, Iraq's sovereignty and territorial integrity should be respected by the international community. Iraq's compliance with UN Security Council's relevant resolutions should be given fair and objective assessment and sanctions against Iraq should be gradually eased until finally removed. Chins opposes the use of force against Iraq and holds that the Iraq issue be settled through peaceful means. In regard to the question of "no-fly zone", China believes that the practices of the US and the UK to set up "security zone" and "no-fly zone" in Iraqi territory violate the UN Charter and norms of international relations and are in defiance of and trampling on Iraq's sovereignty. China expresses its condemnation towards such practices.

The Cooperation Council for the Arab States of the Gulf (GCC)

1. A brief introduction of GCC

DATE OF ESTABLISHMENT On May 25th of 1981, the heads of states of the six Gulf Arab countries, i.e., the United Arab Emirates, the Sultanate of Oman, the State of Bahrain, the State of Qatar, the State of Kuwait and the Kingdom of Saudi Arabia, met in UAE, announced the establishment of the Cooperation Council for the Arab States of the Gulf (GCC), and signed the Charter of GCC.

OBJECTIVES To effect coordination, integration and inter-connection between Member States in all fields in order to achieve unity between them, to deepen and strengthen relations, links and areas of cooperation between their peoples, to promote the development of industry, agriculture, science and technology, to establish scientific research centers, to establish joint ventures and to encourage economic and trade cooperation by the private sector.

SECRETARY-GENERAL Jamel Ibrahim Al-Hojeiran, citizen of Saudi Arabia, appointed Secretary-General in December 1995, took office in April 1996 and renewed in December 1998.

HEADQUARTERS The Secretariat-General of GCC is in Riyadh, Capital of Saudi Arabia.

ORGANIZATIONS (1)The Supreme Council: the highest authority, composed of heads of member states. Its presidency is rotatory yearly in the Arabic alphabetical order of the names of the member states. The president of this year is Fahd bin Abdul Aziz, King of Saudi Arabia. (2)The Ministerial Council: composed of the Foreign Ministers of the member states or other delegated Ministers. The Council's Presidency is rotatory yearly in the Arabic alphabetical order of the names of the member states. (3)The Secretariat-General: taken charge by a Secretary-General and three Assistant Secretaries-General in charge of political, financial and military affairs respectively. The position of the Secretary-General is rotatory in the Arabic alphabetical order of the names of the member states and appointed by the Supreme Council during the summit meeting with a term of 3 years in office .

MAIN ACTIVITIES Ever since the establishment of GCC, the Supreme Council held its meeting yearly in November or December rotatorily in the capitals of the six member states. Altogether 20 summit meetings have been held by the end of 1999.At the end of 1998, it was decided at the 19th summit meeting that an annual unofficial consultation summit meeting be held during the interval of the annual summit meeting. Ministers of Foreign Affairs, Defense, Interior, Oil and Finance of the six states also held the Ministerial Council meetings regularly or if necessary. The meetings mainly discuss important political, economic, foreign, security and military affairs faced by the six states or the Gulf and Middle East region, exchange information, coordinate stances, seek common policy and adopt concerted actions.

On May 10, 1999, the first consultation summit meeting was held in Jidda, Saudi Arabia. The heads of states from Saudi Arabia, Kuwait, Bahrain and Qatar, Crown Prince of Abu Dhabi from UAE, Deputy Prime Minister in charge of cabinet affairs from Omen and the Secretary General of GCC were present at the meeting. This meeting was held in accordance with the decision made on the 19th summit meeting in December 1998 in Abu Dhabi to establish a semi-annual summit consultation mechanism. The conference exchanged views on issues such as Middle East peace process, in particular the establishment of the state of Palestinian, the relationship between GCC member states and the two countries of Iran and Iraq, with Iran in particular, and the integration of GCC internal tariff, etc. The heads of states and representatives from various countries present at the meeting also had contact on bilateral issues.

The 20th summit meeting was held in Riyadh, capital of Saudi Arabia, from November 27th to 29th, 1999. Heads of States of Omen, Kuwait, Saudi Arabia, Qatar, Bahrain, Vice President and Prime Minister of UAE and GCC Secretary-General Hojeiran attended the meeting. Presided over by King Fhad of Saudi Arabia who is holding the rotating presidency, the meeting held discussions on issues such as current international economic and oil market situation and GCC states countermeasure, further development of GCC economy, process of military integration, Middle East peace process, Iraq issue, relationship between GCC member states and Iran, disputes over the three islands, anti-terrorism, establishment of middle east nuclear and weapon of massive destruction free zone, situation in Chechnya, etc. The meeting reached consensus on the ratification of unified tariff agreement, and decided to implement unified tariff from March 1,2005; emphasized that the military cooperation between the six countries will continue; agree to give more time to the three party committee comprised by Saudi Arabia, Qatar and Omen which was established in June to conduct good offices between UAE and Iran to solve the disputes over three islands through dialogue; reaffirmed the demand that Iraq implement the relevant resolutions of UN Security Council comprehensively and unconditionally, stop producing and destroy weapon of massive destruction, stop threatening neighboring countries, release PQW and return the property of Kuwait as soon as possible, and at the same time lift the economic sanction on Iraqi people; The meeting also emphasized its persistent position on Middle East peace process, anti-terrorism campaign and the establishment of middle east nuclear and weapon of massive destruction free zone; expressed concern over the development of situation in Chechnya, and called on all parties to cease fire and solve disputes through peaceful methods. The Final Communiquéand the Declaration of Riyadh was released at the end of the meeting.

FOREIGN POLICY The six GCC countries adopt neutral and non-aligned foreign policies, their measures moderate and practical. Facing the present new world situation, the six countries of GCC more and more show a tendency of participating in international and regional affairs as a whole, developing pluralistic foreign relationship and emphasizing more on achieving equilibrium between major powers. On significant world and regional affairs, they adopt a unified stand and play a collective role, reflecting the unity and integrity of the foreign policies of the six countries.

2. China's relationship with GCC

(1) Political relationship.

On May 27, 1981, just two days after the establishment of GCC, Huang Ha, Foreign Minister of China sent a telegram of congratulations to GCC Secretary-General Abdullah Bishara. Since then, China has established ties with the organization. From 1990 on, the Foreign Minister of China met together every year the Foreign Ministers or their representatives of the six GCC countries during the UN General Assembly in New York, exchanging views on Sino-GCC relationship and international and regional affairs of mutual interest. On September 27, 1996, Chinese Vice Premier and Foreign Minister Qian Qichen met the Foreign Ministers (or Deputy Foreign Ministers) of the six GCC countries and the GCC Secretary-General in New York. Both sides decided to establish a bilateral periodical consultative mechanism in political and economic fields and to hold consultations each year rotatorily in Beijing and Riyadh, where the headquarters of GCC is located. A news bulletin was published in this regard. Chinese Deputy Foreign Ministers Tian Zengpei and Ji Peiding held two rounds of consultative meetings with GCC Secretary-General Hojeiran respectively in January 1997 and June 1999 during their visits to Saudi Arabia. China supports GCC's policy of unified self-improvement and common development and appreciates and encourages the active role played by GCC in pushing the Middle East peace process, restoring the Arab unity, maintaining the peace and security of Gulf region and promoting regional economic cooperation. The 66th meeting of the GCC Ministerial Council in March 1998 wrote for the first time in its resolution articles to develop relationship with China. On November 1, 1999, President Jiang Zemin met with GCC Secretary-General Hojeiran while visiting Saudi Arabia. Both sides positively appraised the friendly and cooperative relationship between China and GCC, and exchanges views on Middle East, Gulf and othe regional issues.

(2) Economic and trade relationship

TRADE Gulf region is the largest commodity market in the Middle East. China's trade with the six GCC countries develops quite fast. The bilateral trade volume of 1999 was US$4.6 billion (of which China exported $2.61 billion while imported $1.99billion). China mainly exports textile, clothing, mechanical and electrical products, light industry products and food etc. while imports petroleum and petro-chemical products.

LABOUR SERVICES CONTRACT Chinese labour services companies entered Gulf market in 1979. By the end of 1998, China has signed with the six GCC countries 1992 contracts of labor services worth US$ 2.25 billion, of which $1.32 billion were completed. Chinese labours in GCC countries reached 10,000 in 1998.