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awb knows nothing Saturday November 12, 2:31 PM

AWB denies Iraq wheat order cancelled


Wheat exporter AWB says it knows nothing about reports that Iraq has cancelled all future orders for Australian wheat.

It has been reported in a national newspaper that the Iraqi Grain Board has halted trade with Australia, until the AWB repays hundreds of millions of dollars used as kickbacks to prop up Saddam Hussein's regime.

A United Nations investigation concluded money paid by wheat exporter AWB to a trucking company to transport its grain to Iraq went directly to Saddam's regime.

The trading claims have allegedly come from Iraq's Deputy Prime Minister Ahmed Chalabi, who is visiting the United States.

But a spokesman for the Australian wheat exporter says it is in the early stages of delivering a major contract to Iraq, and everything is operating as normal.

The Federal Government is investigating the reports that Iraq has cancelled all future orders.

Foreign Affairs Minister Alexander Downer says he would be disappointed if the claims were true.

"There's no doubt about the principle decision Australia has taken against Saddam Hussein and his regime and obviously that is enormously appreciated by the Iraqi Government, we've heard nothing to the effect that wheat sales are going to be disrupted, I can't confirm that at all," he said.

Meanwhile, Prime Minister John Howard says he will not be making a statement until the Federal Government finds out whether or not the story is true.

"We will always act in the interests of Australian wheat growers," he said.

"Australian wheat growers are entitled to the strong support of the Government in pursuing export contracts.

"But at this stage that report is not confirmed.

"AWB has told the Government it's not been told."