The border with Iran has been a continuing source of conflict and was partially responsible for the outbreak in 1980 of the present war. The terms of a treaty negotiated in 1937 under British auspices provided that in one area of the Shatt al Arab the boundary would be at the low water mark on the Iranian side. Iran subsequently insisted that the 1937 treaty was imposed on it by "British imperialist pressures," and that the proper boundary throughout the Shatt was the thalweg. The matter came to a head in 1969 when Iraq, in effect, told the Iranian government that the Shatt was an integral part of Iraqi territory and that the waterway might be closed to Iranian shipping.

Through Algerian mediation, Iran and Iraq agreed in March 1975 to normalize their relations, and three months later they signed a treaty known as the Algiers Accord. The document defined the common border all along the Shatt estuary as the thalweg. To compensate Iraq for the loss of what formerly had been regarded as its territory, pockets of territory along the mountain border in the central sector of its common boundary with Iran were assigned to it. Nonetheless, in September 1980 Iraq went to war with Iran, citing among other complaints the fact that Iran had not turned over to it the land specified in the Algiers Accord. This problem has subsequently proved to be a stumbling block to a negotiated settlement of the ongoing conflict.

In 1988 the boundary with Kuwait was another outstanding problem. It was fixed in a 1913 treaty between the Ottoman Empire and British officials acting on behalf of Kuwait's ruling family, which in 1899 had ceded control over foreign affairs to Britain. The boundary was accepted by Iraq when it became independent in 1932, but in the 1960s and again in the mid-1970s, the Iraqi government advanced a claim to parts of Kuwait. Kuwait made several representations to the Iraqis during the war to fix the border once and for all but Baghdad has repeatedly demurred, claiming that the issue is a potentially divisive one that could enflame nationalist sentiment inside Iraq. Hence in 1988 it was likely that a solution would have to wait until the war ended.

In 1922 British officials concluded the Treaty of Mohammara with Abd al Aziz ibn Abd ar Rahman Al Saud, who in 1932 formed the Kingdom of Saudi Arabia. The treaty provided the basic agreement for the boundary between the eventually independent nations. Also in 1922 the two parties agreed to the creation of the diamond-shaped Neutral Zone of approximately 7,500 square kilometers adjacent to the western tip of Kuwait in which neither Iraq nor Saudi Arabia would build permanent dwellings or installations. Beduins from either country could utilize the limited water and seasonal grazing resources of the zone. In April 1975, an agreement signed in Baghdad fixed the borders of the countries. Despite a rumored agreement providing for the formal division of the Iraq-Saudi Arabia Neutral Zone, as of early 1988 such a document had not been published. Instead, Saudi Arabia was continuing to control oil wells in the offshore Neutral Zone and had been allocating proceeds from Neutral Zone oil sales to Iraq as a war payment.

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Source: U.S. Library of Congress