ACCESSION NUMBER:00000

FILE ID:97090902.NNE

DATE:09/09/97

TITLE:09-09-97  SECURITY COUNCIL CONSIDERING IRAQI OIL SALE EXTENSION



TEXT:

("Technical fix" intended to help humanitarian programs) (520)

By Judy Aita

USIA United Nations Correspondent



United Nations -- Britain, France and the United States on September 9

presented a draft resolution to the Security Council that would give

Iraq more time to sell oil to purchase humanitarian supplies.



The move by the three governments was prompted by concern over the

impact Baghdad's decision not to sell oil in June and July would have

on needy Iraqi civilians dependent on humanitarian supplies the oil

profits provide.



The resolution "deals with the technical problem that arose by virtue

of the fact that Iraq decided not to sell any oil for a couple of

months" after the Security Council renewed the oil-for-food program in

June 1997, said British Ambassador Sir John Weston.



Calling it a "technical fix," the ambassador explained that the draft

would extend the first oil sale period of 90 days to 120 days to

provide extra time for Iraq to sell the first $1,000 million worth of

oil and shorten the second three-month period to two months.



"So that we end up with the same terminal date in December for the

ending of the 180-day period over which a total of ($2,000 million)

worth can have been sold by Iraq," he said.



"The purpose of this resolution is to enable humanitarian goods to be

brought to those in need throughout Iraq," Sir John said.



U.S. Ambassador Bill Richardson said that the United States is

supporting the British text because "we believe that the rationale is

humanitarian and that is a solid one."



The draft resolution takes note of the Iraqi Government's decision not

to sell oil for two months and expresses concern about the

humanitarian consequences of that decision.



In a written report to the council on the oil-sale scheme, Secretary

General Kofi Annan said that "owing to the delayed resumption in the

sales of petroleum, it appears that the total revenue generated for

the first 90-day period will be about $5000 million below the 90-day

objective of ($1,007 million including the pipeline fee) if current

prices remain unchanged."



"In view of the adverse consequences for the humanitarian program and

the United Nations capacity to carry out its observation and

implementation responsibilities, the council may wish to consider an

appropriate mechanism for the shortfall to be met," Annan said.



As of August 31, a cumulative total of 1,831,101 tons had reached Iraq

and 1,516,378 tons had been distributed to governorates. But the

secretary general also said he was concerned about the adverse impact

of delay in the arrival of humanitarian goods on Iraqi civilians.



On June 4 the council approved the extension of the "oil-for food"

plan which allows Iraq to sell $2,000 million of crude oil over a

period of six months under strict U.N. supervision in order to buy

needed food, medicine, and other humanitarian supplies for Iraqi

civilians affected by the seven-year-old economic embargo.

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