Tuesday, July 11, 2006

What next?

From the ABC

"Last Update:
Tuesday, July 11, 2006. 10:11am (AEST)

A civil lawsuit has been lodged against wheat exporter AWB in the United States by a group of American wheat farmers.

Lawyers in the United States are seeking more than $1 billion in damages against the AWB for allegedly keeping North American farmers out of lucrative wheat markets in Iraq, Pakistan and Indonesia.

The AWB is alleged to have paid almost $300 million in kickbacks to Saddam Hussein's regime in Iraq, with details of the deals emerging at the Cole inquiry.

The US farmers' spokesman, Bill Fletcher, says the lawsuit has been filed in the District of Columbia, under laws designed to crackdown on criminal gangs.

"There'll be many more details about the specific actions about the AWB and how they effectively cornered and dislocated the international wheat market," he said."

Pete's Points:

I have to say I am not surprised. Americans being as litigious as they are.

When this story really breaks it is likely to play into the hands of those who are currently engaged in the leadership 'non' battle (Howard vs Costello) that will no doubt break into open warfare soon. The current leadership of the Australian government has been accused of complicity and there is currently a commission of inquiry into the wheat scandal.

Let's not debate whether there is any truth to the allegation that the current leadership of the Commonwealth government is complicit up to its eyeballs in this deal and let's also not debate whether or not there is any truth to the allegation that one of the agreements between the US and Australian governments about support for the invasion of Iraq and subsequent military presence was that the US turn a blind eye to Australian interests and/or irregularities in Iraq - especially in the area of wheat and live sheep exports etc.

Let's assume nothing - just ask a different questions
  • how will the innuendo + law suit play in the current "non battle" for the leadership in Australian politics and how will it play in the American leadership stakes?
  • A billion dollars may be small beer for governments, but given the plight of Australian farmers - what with a five year drought - how will it play with their situation?
Watch this space - the ride is likely to be rough, but memorable.

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