Under U.N.-imposed peace terms after the Gulf War, Iraq must pay 5 percent of oil income to its smaller neighbour as compensation for invading and annexing Kuwait under Saddam Hussein in 1990.
A US-led coalition drove Iraqi forces out of Kuwait in the six-week Gulf War the following year.
Dabbagh said Prime Minister Nuri al-Maliki made the case for reducing the payments at a meeting with Kuwait's Emir Sabah al-Ahmad al-Sabah at a conference of Iraq's neighbours in Kuwait.
"The emir expressed his good intention to review the matter," Dabbagh said. "We're about to form bilateral committees with Kuwait."
Earlier on Tuesday Dabbagh said Iraq wanted to cancel the compensation outright, but if that proves to be impossible, to at least reduce the payments from 5 percent of oil income to 1 percent.
"A barrel (of oil) used to be $20 but now it is $100. We have been paying five-fold over the past 10 years," he said.
"We need strong international support. If the other countries don't approve a cancellation the other proposal would be to reduce payments to 1 percent."
Any change in the payments would have to be approved by the U.N. Security Council in New York, which enforces the compensation programme.
Last Mod: 22 Nisan 2008, 16:24