DATE=12/29/97

TYPE=CORRESPONDENT REPORT

NUMBER=2-224596

TITLE=U-N / IRAQ OIL (L - ONLY)

BYLINE=MAX RUSTON

DATELINE=NEW YORK

CONTENT=

VOICED AT: 



INTRO:  THE UNITED NATIONS EXPECTS TO AUTHORIZE IRAQ TO RESUME 

OIL EXPORTS THIS WEEK, UNDER THE U-N OIL-FOR-FOOD ARRANGEMENT.  

V-O-A'S MAX RUSTON REPORTS FROM NEW YORK.



TEXT:  THE UNITED NATIONS SECRETARY-GENERAL'S OFFICE SAYS IRAQ 

APPEARS TO HAVE SUBMITTED ALL THE NECESSARY PAPERWORK TO RESUME 

OIL EXPORTS.  U-N SPOKESMAN FRED ECKHARD SAYS THE PAPERWORK, 

WHICH INCLUDES IRAQ'S AID DISTRIBUTION PLAN, WAS DELIVERED TO U-N

OFFICIALS IN BAGHDAD DURING THE WEEKEND.  HE SAYS IT SHOULD BE 

POSSIBLE TO APPROVE THE APPLICATION BEFORE THE END OF THE WEEK.



                         /// ECKHARD ///



         WE WOULD HOPE TO BE ABLE TO SEND THEM ON TO THE 

         SECRETARY-GENERAL, WITH A RECOMMENDATION TO HIM, BY LATE

         WEDNESDAY.  BUT AS THAT IS NEW YEAR'S EVE, TO BE SAFE, I

         THINK I WILL SAY THAT BY THE END OF THIS WEEK WE WOULD 

         HOPE THAT THE PACKAGE COULD BE APPROVED BY THE 

         SECRETARY-GENERAL.



                         /// END ACT ///



IF APPROVED, THE OIL-FOR-FOOD ARRANGEMENT, WHICH BEGAN ONE YEAR 

AGO, WILL MOVE INTO ITS THIRD PHASE.  DURING EACH OF THE FIRST 

TWO PHASES, IRAQ WAS ALLOWED TO EXPORT TWO-BILLION DOLLARS OF OIL

IN EXCHANGE FOR FOOD, MEDICINE AND OTHER HUMANITARIAN SUPPLIES.  

IRAQI OIL SALES ARE OTHERWISE BANNED BY INTERNATIONAL SANCTIONS 

IMPOSED AFTER IRAQ'S 1990 INVASION OF KUWAIT.



                      /// REST OPTIONAL ///



IRAQ IS PERMITTED TO USE ABOUT 65 PERCENT OF THE MONEY EARNED 

FROM OIL EXPORTS FOR THE PURCHASE OF HUMANITARIAN SUPPLIES.  THE 

REMAINDER GOES TOWARD GULF WAR REPARATIONS AND OTHER COSTS.  THE 

U-N SECURITY COUNCIL IS EXPECTED TO HOLD TALKS BEFORE THE END OF 

JANUARY ON PROPOSALS TO INCREASE THE AMOUNT OF OIL IRAQ IS 

ALLOWED TO EXPORT.



IRAQI OIL MINISTER AMIR MUHAMMAD RASHEED SAYS FRANCE, RUSSIA AND 

CHINA WILL RECEIVE TOP PRIORITY IN ITS OIL EXPORT CONTRACTS.  ALL

THREE COUNTRIES HAVE ADVOCATED EASING SANCTIONS AGAINST IRAQ.  

(SIGNED)



NEB/NY/MPR/LSF/RRM



29-Dec-97 2:04 PM EST (1904 UTC)

NNNN



Source: Voice of America

.