BLOGDIAL : We are the best

Dr. Schlesinger: I have a question if no one else does.
You mentioned Shell as perhaps almost as enlightened as British Petroleum. Could you
comment upon the performance in Nigeria on the part of Shell which has at least aroused some
local problem?
Also you commented on American oil companies and the ones you referred to are all former
ARAMCO partners. One wonders whether they did not learn in Saudi Arabia that to accommodate
the government was a necessity to preserving their access to the oil.
Mr. Soros: I think excellent questions. I think that what happened in the Delta in Nigeria
has had a big impact on changing Shell's attitude. It was a very painful lesson for Shell, what
happened there. They are having difficulties now also. But I think the attitude has changed on the
part of Shell. I think your point about ARAMCO actually reminds me of a point that I should have
made in my remarks. That really, it is in the interests of the United States, and this government really ought to pay a lot more attention to this issue than it is, and it ought to exert some pressure on the oil companies to be equally sensitive. Because we have had a terrible experience with doing business the way we were doing when having control of the oil was the major consideration of our policy in those countries. We were very happy to have repressive governments that kept the lid on so they could fulfill their obligations.
We had one painful lesson in Iran and to some extent that made us then complicit in Saudi Arabia spreading the Wahabi creed to counteract the militancy of the Shia. Then we had the 16 out
of the 20 or how many of the terrorists coming from Saudi Arabia.
So we should really learn from that, and we are now becoming, we are diversifying our oil
supplies and it becomes very important that countries like Angola and should actually have better
governments. The same applies to the central Asian governments. So it is really in our national
interest, and I think that some elements in the government are aware of it but it's not getting enough attention.
Question: Campion Walsh, Dow Jones.
Regarding your comments on the importance of U.S. handling of oil revenue management in
Iraq, I wonder if you have a preference for multilateral oversight through the UN, and also whether
there needs to be a balancing with the hopes that there will be rapid self-government in Iraq? How
would you balance that with international oversight of their most important industry?
Mr. Soros: There's no doubt that I'm in favor, and I think everybody has to be in favor of
international, multinational supervision. I think that if the same entity that is in charge of distributing
is also in charge of exercising oversight, then I think there is something wrong in the institutional setup. So clearly.
And the other issue as to the formation of an intermediate government is a little, it's too tricky an issue to be able to answer it in a few words. I'd have to give a different speech which I have done in other places to address that issue.
Question: Kate Watters with Crude Accountability.
You've talked about the role that you see for governments, for companies, and even for international governments in the role of oil funds and overall the exploitation of natural resources in
the Caspian. I wonder if you could comment a little bit on the role that you see for international
finance institutions which are providing substantial loans to Western corporations that are then working in the region with these governments.
Mr. Soros: I think it's a very good point and I should have really included them because they also have a great responsibility and a great interest. And in that context it's very interesting now to see what's going to happen in Iraq. I personally would be very happy to see the old creditors of Iraq not getting paid. That would send a signal to the financial markets that it's dangerous to deal with oppressive regimes because the regime may be overturned and then you don't get paid. So I think this would be a very healthy sort of financial innovation. [Laughter]