http://www.chron.com/cs/CDA/printstory.mpl/business/3184968By DAVID IVANOVICH
Copyright 2005 Houston Chronicle Washington Bureau
WASHINGTON - Houston's BayOil played a key role in helping Saddam Hussein's government purchase cluster bombs during Iraq's bloody war with Iran, Democrats on a Senate panel contend.
These oil-for-arms deals, Senate investigators say, helped cement a relationship that would later enable the little-known oil trader to emerge as the largest supplier of Iraqi crude to the U.S. market under the United Nation's oil-for-food program.
BayOil's Iraqi oil trades are at the heart of the controversy over the United Nation's handling of the humanitarian program. The Senate's Permanent Subcommittee on Investigations is scheduled to hold a hearing today on these issues.
In a report made public Monday night, Democratic investigators on the subcommittee traced BayOil's relationship with Saddam's regime back to the mid-1980s, during the brutal, 8-year Iran-Iraq War. The United States provided support for Iraq during the war because of fears about Iran's growing power in the region.