Author: Arthur W. Rovine**
Published: October 1990
Description: On October 29, 1990, the United Nations Security Council adopted Resolution 674, inviting States to collect relevant information regarding their claims, and those of their nationals and corporations, against Iraq. The international legal community has since begun to consider, much as it did at the time of the Iranian revolution in 1979, how to structure and fund a claims program for the individuals, corporations, and governments that suffered losses in Iraq and Kuwait from and after August 2, 1990, the date Iraqi armed forces invaded Kuwait. Having been decisively defeated in the Gulf War, Iraq has accepted the obligation to pay reparations and claims. At the time of writing, the UN Security Council (“Council”) was considering further details of a claims system.
On April 3, 1991, the Council adopted — and Iraq subsequently accepted — Resolution 687, one part of which was devoted to reparations and claims. The Council reaffirmed Iraq’s liability under international law for losses, including those suffered by foreign governments, nationals, and corporations, as a result of the invasion and occupation of Kuwait. To pay compensation for claims, the Council ordered the creation of a fund based on a percentage of Iraq’s oil revenues, and the establishment of a commission to administer the fund. Resolution 687 further directed the Secretary-General to develop and present to the Council, no later than May 2, 1991, recommendations for a claims program, including the size of Iraq’s contribution, the process by which funds are to be allocated and paid, and procedures for evaluating losses, for determining the validity of claims, and for resolving disputed claims.
**Partner, Baker & McKenzie, New York, and first United States Agent to the Iran-U.S. Claims tribunal in The Hague, 1981-1983.