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Syria, Iraq in gas talks and dues feud

DAMASCUS, Syria, March 22 (UPI) -- Syria wants to develop Iraqi natural gas fields for export to European markets, but is urging Baghdad to pay a bill incurred under Saddam Hussein's rule.

"Iraq and Syria will cooperate to develop gas fields discovered in Iraq and the transfer of raw gas to be processed in the Syrian labs in Deir Al-Zour area on the boreder between the two countries in order to be transported across the Syrian network to Syrian consumers or exported toward Turkey and Europea," said Ali Abbas, director general of the Syrian Gas Co.

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SGC is a division of the Syrian Ministry of Oil.

Abbas said Syria and Iraq are in talks on the developments of a 311-mile pipeline linking the two countries. Iraq and Syria are also in talks to re-establish an oil pipeline that was in operation for two years prior to U.S. bombing in 2003.

Iraq insists Syria do more to stop insurgents from crossing its border and says any deal will come after the security situation improves.

According to Iraq Directory, Syrian Finance Minister Mohammed al-Hussein wants Iraq to pay dues to Syrian traders who sold Saddam Hussein goods under the oil-for-food program.

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