DATE=12/9/96

TYPE=CORRESPONDENT REPORT

NUMBER=2-207252

TITLE=IRAQI OIL DEAL - UPDATE (S & L)  

BYLINE=ELAINE JOHANSON

DATELINE=UNITED NATIONS

CONTENT=

VOICED AT: 



INTRO:  UNDER TIGHT UNITED NATIONS SUPERVISION, LIMITED 

QUANTITIES OF IRAQI OIL WILL ENTER THE WORLD MARKET SHORTLY -- 

FOR THE FIRST TIME IN SIX YEARS.  SECRETARY-GENERAL BOUTROS 

BOUTROS-GHALI GAVE THE GO-AHEAD FOR A SPECIAL OIL-FOR-FOOD 

OPERATION  MONDAY IN A LETTER TO THE SECURITY COUNCIL.  VOA 

CORRESPONDENT ELAINE JOHANSON REPORTS THE DEAL GOES INTO EFFECT 

ONE MINUTE AFTER MIDNIGHT MONDAY -- NEW YORK TIME:      



TEXT:  IRAQ WILL BE ALLOWED TO SELL TWO BILLION DOLLARS WORTH OF 

OIL OVER SIX MONTHS TO RAISE MONEY FOR FOOD AND MEDICINE.  IF THE

OPERATION GOES WELL, THE DEAL CAN BE RENEWED.



THE U-N SAYS 150 MONITORS ARE IN PLACE INSIDE IRAQ TO MAKE SURE 

HUMANITARIAN GOODS REACH ALL SEGMENTS OF THE IRAQI POPULATION.  

ANOTHER 32 INSPECTORS WILL OVERSEE THE IMPORTS.  THREE OF THE 

FOUR OVERSEERS  -- FROM FRANCE, THE UNITED STATES AND RUSSIA -- 

WHO WILL APPROVE THE OIL CONTRACTS ARE ALREADY IN NEW YORK.  THE 

FOURTH, A NORWEGIAN, IS EXPECTED TUESDAY.



SECRETARY-GENERAL BOUTROS-GHALI GAVE FINAL APPROVAL FOR THE OIL 

DEAL WHEN HE WAS ASSURED THAT METERING STATIONS INSIDE IRAQ ARE 

FUNCTIONING.  MOST OF THE OIL WILL FLOW THROUGH A TWIN-PIPELINE 

FROM NORTHERN IRAQ TO TURKEY.



IRAQ WILL BE ABLE TO SELL NEARLY 600-THOUSAND BARRELS A DAY, 

COMPARED TO THE THREE MILLION BARRELS IT EXPORTED BEFORE THE 1991

GULF WAR.



                          //REST OPT//



THE PRESIDENT OF THE SECURITY COUNCIL HAS INFORMED THE OTHER 

MEMBERS THAT HE HAS INDEED RECEIVED THE ALL-CLEAR SIGNAL FROM MR.

BOUTROS-GHALI.  NO VOTE IS REQUIRED.



IRAQ HAS BEEN UNDER STRICT U-N SANCTIONS -- INCLUDING AN EXPORT 

BAN -- SINCE IT INVADED KUWAIT IN AUGUST, 1990.  U-N AGENCIES 

HAVE REPORTED INCREASING POVERTY AND HEALTH PROBLEMS AMONG IRAQI 

CIVILIANS, ESPECIALLY CHILDREN.



IN ANNOUNCING THE GO-AHEAD FOR THE OIL DEAL, U-N SPOKESWOMAN 

SYLVANA FOA SAID THE SECRETARY-GENERAL BELIEVES THE OPERATION IS 

A HUMANITARIAN EMERGENCY:



                           //FOA ACT//



         HE SAID WHERE WE STAND NOW IS A VICTORY FOR THE POOREST 

         OF THE POOR IN IRAQ -- FOR THE WOMEN, FOR THE CHILDREN, 

         FOR THE SICK AND DISABLED. AND THAT HE HOPES THAT THE 

         HUMANITARIAN DIMENSION WILL ALWAYS PREVAIL IN THE WORK 

         OF THE UNITED NATIONS.



                           //END ACT//



THE PUSH TO GET THE OIL-FOR-FOOD DEAL MOVING WAS FREQUENTLY 

COLORED BY THE POLITICAL TENSIONS BETWEEN BAGHDAD AND WASHINGTON.

AFTER MONTHS OF NEGOTIATIONS, U-S AMBASSADOR MADELEINE ALBRIGHT 

HELD FIRM DURING THE LAST STRETCH THAT IRAQ FORMALLY ACCEPT ALL 

U-N CONDITIONS BEFORE THE OPERATION BEGINS.  BAGHDAD FINALLY DID 

LAST MONTH.



DIPLOMATS ACKNOWLEDGE IRAQ MAY HAVE BEEN HOLDING OUT FOR THE 

COMPLETE LIFTING OF THE U-N EMBARGO.  BUT THE SECURITY COUNCIL IS

NOT INCLINED TO CHANGE THE SANCTIONS PROGRAM WHILE QUESTIONS 

PERSIST ABOUT IRAQI WEAPONS OF MASS DESTRUCTION.  U-N INSPECTORS 

ARE NOT CONVINCED BAGHDAD HAS COOPERATED COMPLETELY. (SIGNED)  



NEB/EJ/KL 



09-Dec-96 1:37 PM EST (1837 UTC)

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Source: Voice of America

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