DATE=1/7/98 TYPE=CORRESPONDENT REPORT NUMBER=2-224932 TITLE=IRAQ OIL (L-ONLY) BYLINE=JESSICA JONES DATELINE=CAIRO CONTENT= VOICED AT: INTRO: IRAQ HAS STARTED PUMPING OIL AGAIN INTO ITS NORTHERN PIPELINE, MOVING BAGHDAD ONE STEP CLOSER TO BEGINNING THE THIRD PHASE OF THE UNITED NATIONS SPONSORED OIL-FOR-FOOD PROGRAM. DETAILS FROM JESSICA JONES IN OUR MIDDLE EAST BUREAU. TEXT: IRAQI OIL MINISTER AMIR MUHAMMAD RASHEED TOLD REPORTERS IN THE CAPITAL BAGHDAD WEDNESDAY THAT HIS COUNTRY HAS RESUMED PUMPING OIL INTO THE IRAQI-TURKISH PIPELINE. HE SAID IRAQ EXPECTS TO BEGIN SELLING ITS OIL ON THE INTERNATIONAL MARKET EARLY NEXT WEEK. INTERNATIONAL OIL PRICES FELL TO 30-MONTH LOWS IN RESPONSE TO THE NEWS. ON THURSDAY, MEMBERS OF THE U-N SECURITY COUNCIL ARE EXPECTED TO APPROVE A PRICING FORMULA FOR IRAQI OIL SALES IN ACCORDANCE WITH THE UNITED NATIONS MONITORED OIL-FOR-FOOD PROGRAM. MR. RASHEED SAYS AFTER THE PRICING FORMULA IS APPROVED, IRAQ WILL START SIGNING CONTRACTS TO SELL ITS OIL. ON MONDAY, U-N SECRETARY-GENERAL KOFI ANNAN APPROVED A NEW FOOD DISTRIBUTION PLAN FIRST FORMULATED BY A TEAM OF UNITED NATIONS AND IRAQI OFFICIALS. LAST MONTH, BAGHDAD SAID IT WOULD NOT SELL OIL UNDER THE THIRD PHASE OF THE U-N APPROVED OIL-FOR-FOOD PROGRAM UNTIL U-N OFFICIALS CONSENTED TO A BETTER PLAN FOR DISTRIBUTING FOOD, MEDICINE AND OTHER GOODS IN THE COUNTRY. IRAQI OFFICIALS HAVE COMPLAINED THAT SUPPLIES WERE DELIVERED TOO SLOWLY DURING THE FIRST TWO PHASES OF THE OIL-FOR-FOOD PROGRAM. UNDER THE NEW PLAN, BAGHDAD IS ALLOWED TO SELL LIMITED AMOUNTS OF OIL IN ORDER TO BUY FOOD, MEDICINE, AND HUMANITARIAN SUPPLIES. IT IS THE ONLY EXCEPTION TO U-N SANCTIONS FIRST IMPOSED ON IRAQ SEVEN YEARS AGO, AFTER SADDAM HUSSEIN'S FORCES INVADED KUWAIT. U-N INSPECTORS ARE IN IRAQ IN AN ATTEMPT TO VERIFY THAT THE COUNTRY HAS DISMANTLED ALL ITS WEAPONS OF MASS DESTRUCTION. THE U-N SAYS THAT UNTIL IRAQ COMPLIES WITH ITS DEMANDS, THE SANCTIONS WILL NOT BE LIFTED. (SIGNED) NEB/JJ/PCF 07-Jan-98 11:09 AM EST (1609 UTC) NNNN Source: Voice of America .