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.