The U.S. Export-Import Bank:

No Evidence of Financing Restricted Chemical Exports to Iraq

NSIAD-91-284: Published: Sep 30, 1991. Publicly Released: Sep 30, 1991.

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Pursuant to a congressional request, GAO reviewed U.S. Export-Import Bank (Eximbank) transactions involving chemicals exported to Iraq from January 1987 to August 1990, focusing on: (1) whether there was evidence that Eximbank financed the export of dual-use chemicals to Iraq; and (2) the Eximbank role in monitoring and controlling exports.

GAO found: (1) according to an Eximbank Engineering Division evaluation of the 8 pesticides exported to Iraq and a GAO review based on the Department of Commerce's restricted export list of 50 dual-use chemicals it was unlikely that the pesticides could have been used to produce chemical weapons, and therefore no evidence indicated that Eximbank financed the export of dual-use chemical weapons to Iraq; (2) since Eximbank has no official role in controlling or monitoring exports, it has no written policy for monitoring or controlling exports; and (3) Eximbank has recently developed specific procedures to review applications for financing chemical exports.

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