DATE=11/20/98
TYPE=CORRESPONDENT REPORT
NUMBER=2-241964
TITLE=U-N / IRAQ OIL / AID (L - ONLY) 
BYLINE=MAX RUSTON
DATELINE=UNITED NATIONS 
CONTENT=
VOICED AT: 

INTRO:  UNITED NATIONS SECRETARY-GENERAL KOFI ANNAN IS ASKING 
(FRIDAY) THE U-N SECURITY COUNCIL TO EXTEND THE SO-CALLED 
"OIL-FOR-FOOD" PROGRAM FOR IRAQ, WHICH ALLOWS BAGHDAD TO EXPORT 
LIMITED QUANTITIES OF OIL IN EXCHANGE FOR HUMANITARIAN SUPPLIES. 
V-O-A CORRESPONDENT MAX RUSTON REPORTS FROM THE UNITED NATIONS.

TEXT:  IN A REPORT TO THE SECURITY COUNCIL, MR. ANNAN RECOMMENDS 
THE EXTENSION OF THE OIL-FOR-FOOD PROGRAM FOR 180 DAYS.  THE 
PROGRAM, HE SAYS, HAS IMPROVED CONDITIONS FOR ORDINARY IRAQI 
PEOPLE.  BUT HE SAYS LOW WORLD OIL PRICES, AND OTHER FACTORS, 
HAVE PREVENTED IT FROM BEING AS EFFECTIVE AS IT SHOULD HAVE BEEN.

U-N SPOKESMAN FRED ECKHARD:

                       ///ECKHARD ACT ///

         IN HIS CONCLUSIONS THE SECRETARY-GENERAL NOTES THAT THE 
         LOW PRICE OF OIL HAS CAUSED A SIGNIFICANT SHORTFALL IN 
         FUNDING.  THERE IS ROUGHLY ONE BILLION DOLLARS LESS FOR 
         THE HUMANITARIAN PROGRAM THAN ENVISAGED IN THE 
         DISTRIBUTION PLAN.  HE HIGHLIGHTS THE SITUATION OF 
         CHILDREN, NOTING THERE HAS BEEN AN IMPROVEMENT IN THE 
         THREE NORTHERN GOVERNATES.  BUT IN THE REMAINDER OF THE 
         COUNTRY CHILD MALNUTRITION, WHILE NO LONGER GETTING 
         WORSE, REMAINS A GRAVE CONCERN.

                         /// END ACT ///

THE SECURITY COUNCIL IS EXPECTED TO FOLLOW MR. ANNAN'S 
RECOMMENDATION ALLOWING IRAQ TO SELL MORE THAN FIVE BILLION 
DOLLARS IN OIL OVER THE NEXT SIX MONTHS.

THE OIL-FOR-FOOD PROGRAM WAS STARTED IN DECEMBER 1996.  IT 
PERMITS EXCEPTIONS TO INTERNATIONAL SANCTIONS IMPOSED ON IRAQ 
AFTER THE GULF WAR IN ORDER TO ALLEVIATE THE SUFFERING OF 
ORDINARY IRAQI PEOPLE.  FUNDS FROM THE OIL SALES ARE USED 
PRIMARILY FOR FOOD AND MEDICINE.  SOME OF THE PROCEEDS ARE ALSO 
USED FOR PURCHASING SPARE PARTS FOR IRAQ'S OIL INDUSTRY.

IRAQ HAS ASKED FOR A TWO-MONTH EXTENSION OF THE OIL-FOR-FOOD 
PROGRAM.  IRAQI OFFICIALS SAY THEY WANT SANCTIONS LIFTED BY THAT 
TIME.  BUT SECURITY COUNCIL MEMBERS SAY IRAQ REMAINS A LONG WAY 
FROM MEETING THE REQUIREMENTS FOR LIFTING SANCTIONS.  THOSE 
REQUIREMENTS INCLUDE VERIFICATION THAT IRAQ NO LONGER HAS THE 
CAPABILITY TO PRODUCE WEAPONS OF MASS DESTRUCTION.  (SIGNED)

NEB/UN/MPR/LSF/JO

20-Nov-98 3:19 PM EST (2019 UTC)
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Source: Voice of America
.