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POWELL: We must ask ourselves: Why would Iraq suddenly move equipment of this nature before inspections if they were anxious to demonstrate what they had or did not have?

Remember the first intercept in which two Iraqis talked about the need to hide a modified vehicle from the inspectors. Where did Iraq take all of this equipment? Why wasn't it presented to the inspectors?

Iraq also has refused to permit any U-2 reconnaissance flights that would give the inspectors a better sense of what's being moved before, during and after inspectors.

POWELL: This refusal to allow this kind of reconnaissance is in direct, specific violation of operative paragraph seven of our Resolution 1441.

Saddam Hussein and his regime are not just trying to conceal weapons, they're also trying to hide people. You know the basic facts. Iraq has not complied with its obligation to allow immediate, unimpeded, unrestricted and private access to all officials and other persons as required by Resolution 1441.

The regime only allows interviews with inspectors in the presence of an Iraqi official, a minder. The official Iraqi organization charged with facilitating inspections announced, announced publicly and announced ominously that, quote, ``Nobody is ready to leave Iraq to be interviewed.''

Iraqi Vice President Ramadan accused the inspectors of conducting espionage, a veiled threat that anyone cooperating with U.N. inspectors was committing treason.

Iraq did not meet its obligations under 1441 to provide a comprehensive list of scientists associated with its weapons of mass destruction programs. Iraq's list was out of date and contained only about 500 names, despite the fact that UNSCOM had earlier put together a list of about 3,500 names.

Let me just tell you what a number of human sources have told us.

Saddam Hussein has directly participated in the effort to prevent interviews. In early December, Saddam Hussein had all Iraqi scientists warned of the serious consequences that they and their families would face if they revealed any sensitive information to the inspectors. They were forced to sign documents acknowledging that divulging information is punishable by death.

Saddam Hussein also said that scientists should be told not to agree to leave Iraq; anyone who agreed to be interviewed outside Iraq would be treated as a spy. This violates 1441.

In mid-November, just before the inspectors returned, Iraqi experts were ordered to report to the headquarters of the special security organization to receive counterintelligence training. The training focused on evasion methods, interrogation resistance techniques, and how to mislead inspectors.

Ladies and gentlemen, these are not assertions. These are facts, corroborated by many sources, some of them sources of the intelligence services of other countries.

For example, in mid-December weapons experts at one facility were replaced by Iraqi intelligence agents who were to deceive inspectors about the work that was being done there.

POWELL: On orders from Saddam Hussein, Iraqi officials issued a false death certificate for one scientist, and he was sent into hiding.

In the middle of January, experts at one facility that was related to weapons of mass destruction, those experts had been ordered to stay home from work to avoid the inspectors. Workers from other Iraqi military facilities not engaged in elicit weapons projects were to replace the workers who'd been sent home. A dozen experts have been placed under house arrest, not in their own houses, but as a group at one of Saddam Hussein's guest houses. It goes on and on and on.

As the examples I have just presented show, the information and intelligence we have gathered point to an active and systematic effort on the part of the Iraqi regime to keep key materials and people from the inspectors in direct violation of Resolution 1441. The pattern is not just one of reluctant cooperation, nor is it merely a lack of cooperation. What we see is a deliberate campaign to prevent any meaningful inspection work.

My colleagues, operative paragraph four of U.N. Resolution 1441, which we lingered over so long last fall, clearly states that false statements and omissions in the declaration and a failure by Iraq at any time to comply with and cooperate fully in the implementation of this resolution shall constitute--the facts speak for themselves--shall constitute a further material breach of its obligation.

POWELL: We wrote it this way to give Iraq an early test--to give Iraq an early test. Would they give an honest declaration and would they early on indicate a willingness to cooperate with the inspectors? It was designed to be an early test.

They failed that test. By this standard, the standard of this operative paragraph, I believe that Iraq is now in further material breach of its obligations. I believe this conclusion is irrefutable and undeniable.

Iraq has now placed itself in danger of the serious consequences called for in U.N. Resolution 1441. And this body places itself in danger of irrelevance if it allows Iraq to continue to defy its will without responding effectively and immediately.

The issue before us is not how much time we are willing to give the inspectors to be frustrated by Iraqi obstruction. But how much longer are we willing to put up with Iraq's noncompliance before we, as a council, we, as the United Nations, say: ``Enough. Enough.''

The gravity of this moment is matched by the gravity of the threat that Iraq's weapons of mass destruction pose to the world. Let me now turn to those deadly weapons programs and describe why they are real and present dangers to the region and to the world.

First, biological weapons. We have talked frequently here about biological weapons. By way of introduction and history, I think there are just three quick points I need to make.

First, you will recall that it took UNSCOM four long and frustrating years to pry--to pry--an admission out of Iraq that it had biological weapons.

Second, when Iraq finally admitted having these weapons in 1995, the quantities were vast. Less than a teaspoon of dry anthrax, a little bit about this amount--this is just about the amount of a teaspoon--less than a teaspoon full of dry anthrax in an envelope shutdown the United States Senate in the fall of 2001. This forced several hundred people to undergo emergency medical treatment and killed two postal workers just from an amount just about this quantity that was inside of an envelope.

POWELL: Iraq declared 8,500 liters of anthrax, but UNSCOM estimates that Saddam Hussein could have produced 25,000 liters. If concentrated into this dry form, this amount would be enough to fill tens upon tens upon tens of thousands of teaspoons. And Saddam Hussein has not verifiably accounted for even one teaspoon-full of this deadly material.

And that is my third point. And it is key. The Iraqis have never accounted for all of the biological weapons they admitted they had and we know they had. They have never accounted for all the organic material used to make them. And they have not accounted for many of the weapons filled with these agents such as there are 400 bombs. This is evidence, not conjecture. This is true. This is all well-documented.

Dr. Blix told this council that Iraq has provided little evidence to verify anthrax production and no convincing evidence of its destruction. It should come as no shock then, that since Saddam Hussein forced out the last inspectors in 1998, we have amassed much intelligence indicating that Iraq is continuing to make these weapons.

One of the most worrisome things that emerges from the thick intelligence file we have on Iraq's biological weapons is the existence of mobile production facilities used to make biological agents.

POWELL: Let me take you inside that intelligence file and share with you what we know from eye witness accounts. We have firsthand descriptions of biological weapons factories on wheels and on rails.

The trucks and train cars are easily moved and are designed to evade detection by inspectors. In a matter of months, they can produce a quantity of biological poison equal to the entire amount that Iraq claimed to have produced in the years prior to the Gulf War.

Although Iraq's mobile production program began in the mid-1990s, U.N. inspectors at the time only had vague hints of such programs. Confirmation came later, in the year 2000.

The source was an eye witness, an Iraqi chemical engineer who supervised one of these facilities. He actually was present during biological agent production runs. He was also at the site when an accident occurred in 1998. Twelve technicians died from exposure to biological agents.

He reported that when UNSCOM was in country and inspecting, the biological weapons agent production always began on Thursdays at midnight because Iraq thought UNSCOM would not inspect on the Muslim Holy Day, Thursday night through Friday. He added that this was important because the units could not be broken down in the middle of a production run, which had to be completed by Friday evening before the inspectors might arrive again.

This defector is currently hiding in another country with the certain knowledge that Saddam Hussein will kill him if he finds him. His eye-witness account of these mobile production facilities has been corroborated by other sources.

A second source, an Iraqi civil engineer in a position to know the details of the program, confirmed the existence of transportable facilities moving on trailers.

A third source, also in a position to know, reported in summer 2002 that Iraq had manufactured mobile production systems mounted on road trailer units and on rail cars.

Finally, a fourth source, an Iraqi major, who defected, confirmed that Iraq has mobile biological research laboratories, in addition to the production facilities I mentioned earlier.

POWELL: We have diagrammed what our sources reported about these mobile facilities. Here you see both truck and rail car-mounted mobile factories. The description our sources gave us of the technical features required by such facilities are highly detailed and extremely accurate. As these drawings based on their description show, we know what the fermenters look like, we know what the tanks, pumps, compressors and other parts look like. We know how they fit together. We know how they work. And we know a great deal about the platforms on which they are mounted.

As shown in this diagram, these factories can be concealed easily, either by moving ordinary-looking trucks and rail cars along Iraq's thousands of miles of highway or track, or by parking them in a garage or warehouse or somewhere in Iraq's extensive system of underground tunnels and bunkers.

We know that Iraq has at lest seven of these mobile biological agent factories. The truck-mounted ones have at least two or three trucks each. That means that the mobile production facilities are very few, perhaps 18 trucks that we know of--there may be more--but perhaps 18 that we know of. Just imagine trying to find 18 trucks among the thousands and thousands of trucks that travel the roads of Iraq every single day.

It took the inspectors four years to find out that Iraq was making biological agents. How long do you think it will take the inspectors to find even one of these 18 trucks without Iraq coming forward, as they are supposed to, with the information about these kinds of capabilities?

POWELL: Ladies and gentlemen, these are sophisticated facilities. For example, they can produce anthrax and botulinum toxin. In fact, they can produce enough dry biological agent in a single month to kill thousands upon thousands of people. And dry agent of this type is the most lethal form for human beings.

By 1998, U.N. experts agreed that the Iraqis had perfected drying techniques for their biological weapons programs. Now, Iraq has incorporated this drying expertise into these mobile production facilities.

We know from Iraq's past admissions that it has successfully weaponized not only anthrax, but also other biological agents, including botulinum toxin, aflatoxin and ricin.

But Iraq's research efforts did not stop there. Saddam Hussein has investigated dozens of biological agents causing diseases such as gas gangrene, plague, typhus (ph), tetanus, cholera, camelpox and hemorrhagic fever, and he also has the wherewithal to develop smallpox.

The Iraqi regime has also developed ways to disburse lethal biological agents, widely and discriminately into the water supply, into the air. For example, Iraq had a program to modify aerial fuel tanks for Mirage jets. This video of an Iraqi test flight obtained by UNSCOM some years ago shows an Iraqi F-1 Mirage jet aircraft. Note the spray coming from beneath the Mirage; that is 2,000 liters of simulated anthrax that a jet is spraying.

In 1995, an Iraqi military officer, Mujahid Sali Abdul Latif (ph), told inspectors that Iraq intended the spray tanks to be mounted onto a MiG-21 that had been converted into an unmanned aerial vehicle, or a UAV. UAVs outfitted with spray tanks constitute an ideal method for launching a terrorist attack using biological weapons.

POWELL: Iraq admitted to producing four spray tanks. But to this day, it has provided no credible evidence that they were destroyed, evidence that was required by the international community.

There can be no doubt that Saddam Hussein has biological weapons and the capability to rapidly produce more, many more. And he has the ability to dispense these lethal poisons and diseases in ways that can cause massive death and destruction. If biological weapons seem too terrible to contemplate, chemical weapons are equally chilling.

UNMOVIC already laid out much of this, and it is documented for all of us to read in UNSCOM's 1999 report on the subject.

Let me set the stage with three key points that all of us need to keep in mind: First, Saddam Hussein has used these horrific weapons on another country and on his own people. In fact, in the history of chemical warfare, no country has had more battlefield experience with chemical weapons since World War I than Saddam Hussein's Iraq.

Second, as with biological weapons, Saddam Hussein has never accounted for vast amounts of chemical weaponry: 550 artillery shells with mustard, 30,000 empty munitions and enough precursors to increase his stockpile to as much as 500 tons of chemical agents. If we consider just one category of missing weaponry--6,500 bombs from the Iran-Iraq war--UNMOVIC says the amount of chemical agent in them would be in the order of 1,000 tons. These quantities of chemical weapons are now unaccounted for.

Dr. Blix has quipped that, quote, ``Mustard gas is not (inaudible) You are supposed to know what you did with it.''

We believe Saddam Hussein knows what he did with it, and he has not come clean with the international community. We have evidence these weapons existed. What we don't have is evidence from Iraq that they have been destroyed or where they are. That is what we are still waiting for.

Third point, Iraq's record on chemical weapons is replete with lies. It took years for Iraq to finally admit that it had produced four tons of the deadly nerve agent, VX. A single drop of VX on the skin will kill in minutes. Four tons.

The admission only came out after inspectors collected documentation as a result of the defection of Hussein Kamal, Saddam Hussein's late son-in-law. UNSCOM also gained forensic evidence that Iraq had produced VX and put it into weapons for delivery.

POWELL: Yet, to this day, Iraq denies it had ever weaponized VX. And on January 27, UNMOVIC told this council that it has information that conflicts with the Iraqi account of its VX program.

We know that Iraq has embedded key portions of its illicit chemical weapons infrastructure within its legitimate civilian industry. To all outward appearances, even to experts, the infrastructure looks like an ordinary civilian operation. Illicit and legitimate production can go on simultaneously; or, on a dime, this dual-use infrastructure can turn from clandestine to commercial and then back again.

These inspections would be unlikely, any inspections of such facilities would be unlikely to turn up anything prohibited, especially if there is any warning that the inspections are coming. Call it ingenuous or evil genius, but the Iraqis deliberately designed their chemical weapons programs to be inspected. It is infrastructure with a built-in ally.

Under the guise of dual-use infrastructure, Iraq has undertaken an effort to reconstitute facilities that were closely associated with its past program to develop and produce chemical weapons.

For example, Iraq has rebuilt key portions of the Tariq (ph) state establishment. Tariq (ph) includes facilities designed specifically for Iraq's chemical weapons program and employs key figures from past programs.

That's the production end of Saddam's chemical weapons business. What about the delivery end?

I'm going to show you a small part of a chemical complex called al-Moussaid (ph), a site that Iraq has used for at least three years to transship chemical weapons from production facilities out to the field.

In May 2002, our satellites photographed the unusual activity in this picture. Here we see cargo vehicles are again at this transshipment point, and we can see that they are accompanied by a decontamination vehicle associated with biological or chemical weapons activity.

POWELL: What makes this picture significant is that we have a human source who has corroborated that movement of chemical weapons occurred at this site at that time. So it's not just the photo, and it's not an individual seeing the photo. It's the photo and then the knowledge of an individual being brought together to make the case.

This photograph of the site taken two months later in July shows not only the previous site, which is the figure in the middle at the top with the bulldozer sign near it, it shows that this previous site, as well as all of the other sites around the site, have been fully bulldozed and graded. The topsoil has been removed. The Iraqis literally removed the crust of the earth from large portions of this site in order to conceal chemical weapons evidence that would be there from years of chemical weapons activity.

To support its deadly biological and chemical weapons programs, Iraq procures needed items from around the world using an extensive clandestine network. What we know comes largely from intercepted communications and human sources who are in a position to know the facts.

Iraq's procurement efforts include equipment that can filter and separate micro-organisms and toxins involved in biological weapons, equipment that can be used to concentrate the agent, growth media that can be used to continue producing anthrax and botulinum toxin, sterilization equipment for laboratories, glass-lined reactors and specialty pumps that can handle corrosive chemical weapons agents and precursors, large amounts of vinyl chloride, a precursor for nerve and blister agents, and other chemicals such as sodium sulfide, an important mustard agent precursor.

Now, of course, Iraq will argue that these items can also be used for legitimate purposes. But if that is true, why do we have to learn about them by intercepting communications and risking the lives of human agents? With Iraq's well documented history on biological and chemical weapons, why should any of us give Iraq the benefit of the doubt? I don't, and I don't think you will either after you hear this next intercept.