In June 1919, aboard an Allied warship en route to Paris, sat Damat Ferid Pasha, the Grand Vizier of a crumbling Ottoman Empire. The elderly statesman, donning an iconic red fez and boasting an impeccably groomed mustache, held in his hands a memorandum that he was to present to the Allied powers at the Quai d'Orsay. The negotiations on postwar reparations started five months earlier, but the Ottoman delegation was prepared to make the most of its tardy invitation to the talks. As he journeyed across the Mediterranean that summer toward the French shore, Damat Ferid mentally rehearsed the list of demands he would make to the Allied powers during his last-ditch effort to hold the empire together.
He began with a message, not of reproach, but of inculpability: "Gentlemen, I should not be bold enough to come before this High Assembly if I thought that the Ottoman people had incurred any responsibility in the war that has ravaged Europe and Asia with fire and sword." His speech was followed by an even more defiant memorandum, denouncing any attempt to redistribute Ottoman land to the Kurds, Greeks and Armenians, asserting: "In Asia, the Turkish lands are bounded on the south by the provinces of Mosul and Diyarbakir, as well as a part of Aleppo as far as the Mediterranean." When Damat Ferid's demands were presented in Paris, the Allies were in awe of the gall displayed by the Ottoman delegation. British Prime Minister David Lloyd George regarded the presentation as a "good joke," while U.S. President Woodrow Wilson said he had never seen anything more "stupid." They flatly rejected Damat Ferid's apparently misguided appeal -- declaring that the Turks were unfit to rule over other races, regardless of their common Muslim identity -- and told him and his delegation to leave. The Western powers then proceeded, through their own bickering, to divide the post-Ottoman spoils.

Under far different circumstances today, Ankara is again boldly appealing to the West to follow its lead in shaping policy in Turkey's volatile Muslim backyard. And again, Western powers are looking at Turkey with incredulity, waiting for Ankara to assume responsibility for the region by tackling the immediate threat of the Islamic State with whatever resources necessary, rather than pursuing a seemingly reckless strategy of toppling the Syrian government. Turkey's behavior can be perplexing and frustrating to Western leaders, but the country's combination of reticence in action and audacity in rhetoric can be traced back to many of the same issues that confronted Istanbul in 1919, beginning with the struggle over the territory of Mosul. The Turkish Fight for Mosul The Turks, in no shape to bargain with London and mired in a deep internal debate over whether Turkey should forego these lands and focus instead on the benefits of a downsized republic, lost the argument and were forced to renounce their claims to the Mosul territory in 1925. As far as the Brits and the French were concerned, the largely Kurdish territory would serve as a vital buffer space to prevent the Turks from eventually extending their reach from Asia Minor to territories in Mesopotamia, Syria and Armenia. But the fear of Turkish expansion was not the only factor informing the European strategy to keep northern Iraq out of Turkish hands. The Oil Factor Since the days of Herodotus and Nebuchadnezzar, there have been stories of eternal flames arising from the earth of Baba Gurgur near the town of Kirkuk. German explorer and cartographer Carsten Niebuhr wrote in the 18th century: "A place called Baba Gurgur is above all remarkable because the earth is so hot that eggs and meat can be boiled here." The flames were in fact produced by the natural gas and naphtha seeping through cracks in the rocks, betraying the vast quantities of crude oil lying beneath the surface. London wasted little time in calling on geologists from Venezuela, Mexico, Romania and Indochina to study the land and recommend sites for drilling. On Oct. 14, 1927, the fate of Kirkuk was sealed: A gusher rising 43 meters (around 140 feet) erupted from the earth, dousing the surrounding land with some 95,000 barrels of crude oil for 10 days before the well could be capped. With oil now part of the equation, the political situation in Kirkuk became all the more flammable.
The British mostly imported Sunni Arab tribesmen to work the oil fields, gradually reducing the Kurdish majority and weakening the influence of the Turkmen minority in the area. The Arabization project was given new energy when the Arab Baath Socialist Party came to power through a military coup in 1968. Arabic names were given to businesses, neighborhoods, schools and streets, while laws were adjusted to pressure Kurds to leave Kirkuk and transfer ownership of their homes and lands to Arabs. Eviction tactics turned ghastly in 1988 under Saddam Hussein's Anfal campaign, during which chemical weapons were employed against the Kurdish population. The Iraqi government continued with heavy-handed tactics to Arabize the territory until the collapse of the Baathist regime in 2003. Naturally, revenge was a primary goal as Kurdish factions worked quickly to repopulate the region with Kurds and drive the Arabs out. Even as Kirkuk, its oil-rich fields and a belt of disputed territories stretching between Diyala and Nineveh provinces have remained officially under the jurisdiction of the Iraqi central government in Baghdad, the Kurdish leadership has sought to redraw the boundaries of Iraqi Kurdistan. After the Iraqi Kurdish region gained de facto autonomy with the creation of a no-fly zone in 1991 and then formally coalesced into the Kurdistan Regional Government after the fall of Saddam Hussein, Kurdish influence gradually expanded in the disputed areas. Kurdish representation increased through multi-ethnic political councils, facilitated by the security protection these communities received from the Kurdish peshmerga and by the promise of energy revenues, while Baghdad remained mired in its own problems. Formally annexing Kirkuk and parts of Nineveh and Diyala, part of the larger Kurdish strategy, would come in due time. Indeed, the expectation that legalities of the annexation process would soon be completed convinced a handful of foreign energy firms to sign contracts with the Kurdish authorities -- as opposed to Baghdad -- enabling the disputed territories to finally begin realizing the region's energy potential.
Then the unexpected happened: In June, the collapse of the Iraqi army in the north under the duress of the Islamic State left the Kirkuk fields wide open, allowing the Kurdish peshmerga to finally and fully occupy them. Though the Kurds now sit nervously on the prize, Baghdad, Iran, local Arabs and Turkmen and the Islamic State are eyeing these fields with a predatory gaze. At the same time, a motley force of Iran-backed Shiite militias, Kurdish militants and Sunni tribesmen are trying to flush the Islamic State out of the region in order to return to settling the question of where to draw the line on Kurdish autonomy. The Sunnis will undoubtedly demand a stake in the oil fields that the Kurds now control as repayment for turning on the Islamic State, guaranteeing a Kurdish-Sunni confrontation that Baghdad will surely exploit. The Turkish Dilemma The modern Turkish government is looking at Iraq and Syria in a way similar to how Damat Ferid did almost a century ago when he sought in Paris to maintain Turkish sovereignty over the region. From Ankara's point of view, the extension of a Turkish sphere of influence into neighboring Muslim lands is the antidote to weakening Iraqi and Syrian states. Even if Turkey no longer has direct control over these lands, it hopes to at least indirectly re-establish its will through select partners, whether a group of moderate Islamist forces in Syria or, in northern Iraq, a combination of Turkmen and Sunni factions, along with a Kurdish faction such as Kurdistan Regional Government President Massoud Barzani's Kurdistan Democratic Party. The United States may currently be focused on the Islamic State, but Turkey is looking years ahead at the mess that will likely remain. This is why Turkey is placing conditions on its involvement in the battle against the Islamic State: It is trying to convince the United States and its Sunni Arab coalition partners that it will inevitably be the power administering this region. Therefore, according to Ankara, all players must conform to its priorities, beginning with replacing Syria's Iran-backed Alawite government with a Sunni administration that will look first to Ankara for guidance.
However, the Turkish vision of the region simply does not fit the current reality and is earning Ankara more rebuke than respect from its neighbors and the West. The Kurds, in particular, will continue to form the Achilles' heel of Turkish policymaking.
In Syria, where the Islamic State is closing in on the city of Kobani on Turkey's border, Ankara is faced with the unsavory possibility that it will be drawn into a ground fight with a well-equipped insurgent force. Moreover, Turkey would be fighting on the same side as a variety of Kurdish separatists, including members of Turkey's Kurdistan Workers' Party, which Ankara has every interest in neutralizing.
Turkey faces the same dilemma in Iraq, where it may unwittingly back Kurdish separatists in its fight against the Islamic State. Just as critical, Turkey cannot be comfortable with the idea that Kirkuk is in the hands of the Iraqi Kurds unless Ankara is assured exclusive rights over that energy and the ability to extinguish any oil-fueled ambitions of Kurdish independence. But Turkey has competition. Iraqi President Jalal Talabani's Patriotic Union of Kurdistan is not willing to make itself beholden to Turkey, as did Barzani's Kurdistan Democratic Party, while financial pressures continue to climb. Instead, the Patriotic Union of Kurdistan is staying close to Iran and showing a preference to work with Baghdad. Meanwhile, local Arab and Turkmen resistance to Kurdish rule is rising, a factor that Baghdad and Iran will surely exploit as they work to dilute Kurdish authority by courting local officials in Kirkuk and Nineveh with promises of energy rights and autonomy.
This is the crowded battleground that Turkey knows well. A long and elaborate game of "keep away" will be played to prevent the Kurds from consolidating control over oil-rich territory in the Kurdish-Arab borderland, while the competition between Turkey and Iran will emerge into full view. For Turkey to compete effectively in this space, it will need to come to terms with the reality that Ankara will not defy its history by resolving the Kurdish conundrum, nor will it be able to hide within its borders and avoid foreign entanglements.  Reva Bhalla is vice president of Global Analysis. Turkey, the Kurds and Iraq: The Prize and Peril of Kirkuk is republished with permission of Stratfor.