Pressure on Australia over Iraq stance

Australian wheat farmers are concerned about losing their entire trade with Iraq

CANBERRA, Australia (CNN) -- Pressure is mounting on the Australian government to rein in its rhetoric on Iraq as the Gulf nation makes good its threats to cut wheat purchases.

Iraq has confirmed it has cancelled an order for 500,000 tonnes of Australian wheat and is threatening to abandon entirely its $450 million (Aust. $830 million) trade with Australia.

As well, four shiploads of Australian wheat currently in Iraqi ports are being blocked from unloading because of what Iraqi officials describe as "contamination" problems.

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Australia sells about 17 million tonnes of wheat to overseas markets each year, worth $2.35 billion (Aust. $4.33 billion) in 2001.

Australia has been vocal in its support for action against Iraq to force it to allow the resumption of United Nations inspections for weapons of mass destruction.

It also supports the U.S. position on seeking a regime change in Iraq with Prime Minister John Howard saying recently: "I think everybody would like to see another more benign, more democratic ruler than Saddam Hussein".

While Australia has not committed itself to providing military support for any U.S. strike on Iraq, the nation was one of the first to offer troops for the action in Afghanistan.

Australian navy vessels in the Persian Gulf are also instrumental in enforcing trade sanctions against Iraq, an action which prompted a call this week from the Iraqi regime to the U.N. to halt U.S. and Australian "piracy" in the region.

Iraq has protested to U.N. Secretary General Kofi Annan over what it describes as "aggressive acts perpetrated by the American and Australian navy in the Arab Gulf against ships that convey civilian goods inside and outside Iraqi territorial water", Iraq's official news agency reports.

Provocative acts

Prime Minister John Howard says Australia will not be blackmailed by Iraq

"The American and Australian navy intercept civilian ships and attack crews and sometimes seize these ships with their crews for a long time.

"Iraq holds America and Australia fully responsible for such provocative acts that endanger civil marine navigation in the Arab Gulf," a telegram to Annan reportedly said.

At the weekend, Iraq's envoy to Australia, Dr Saad Al Samarai, accused Howard government ministers, including Foreign Affairs Minister Alexander Downer, of using "iron language" against Iraq and going further than the US in their condemnation of his nation.

And earlier this week, the Grains Councils of Australia questioned why the Australian government "seems to be leading the world in its criticism of Iraq at this stage."

The president of the council, Keith Perrett, told radio listeners the government needed to be "very considered, very responsible" in its statements and policy decisions concerning Iraq.

Iraq uses oil revenues to buy food under a United Nations oil-for-food program which is renewed each six months.

Deal with reality

Under that arrangement, the Arab nation buys about two million tonnes of Australian wheat a year, the bulk of which is milled and used to make bread.

Prime Minister Howard, and other senior government ministers, have defended their statements, however, saying Australia would not be blackmailed by trade threats from Iraq.

Howard told radio listeners Monday Australia was not "out ahead of everyone else" on Iraq but the issue of Iraqi non-compliance on U.N. Security Council resolutions was coming to a head.

"We put ourselves in a position to be aware and abreast of American thinking and developments in America on this issue ... we are not out in front of America. We have not made any commitment (on military action in Iraq)," the prime minister said.

While Australia would prefer that no military action be required, "we have to deal in reality. And the reality is that so far Iraq has, with great impudence, ignored the resolutions of the Security Council," Howard said.