DATE=11/24/98
TYPE=CORRESPONDENT REPORT
NUMBER=2-242102
TITLE=IRAQ / OIL-FOR-FOOD (L - ONLY)
BYLINE=MAX RUSTON
DATELINE=UNITED NATIONS
CONTENT=
VOICED AT: 

INTRO:   THE UNITED NATIONS SECURITY COUNCIL RENEWED ITS 
OIL-FOR-FOOD PROGRAM WITH IRAQ TODAY (TUESDAY), WHICH ALLOWS THAT
COUNTRY TO EXPORT LIMITED QUANTITIES OF OIL IN EXCHANGE FOR 
HUMANITARIAN SUPPLIES.  V-O-A'S UNITED NATIONS CORRESPONDENT MAX 
RUSTON REPORTS.

TEXT:   THE COUNCIL VOTED UNANIMOUSLY TO RENEW THE PROGRAM FOR AN
ADDITIONAL SIX MONTHS.  IRAQ WILL BE PERMITTED TO EXPORT MORE 
THAN FIVE BILLION DOLLARS IN OIL.  THE PROCEEDS FROM THOSE SALES 
WILL BE CAREFULLY REGULATED BY THE UNITED NATIONS, AND USED ONLY 
FOR HUMANITARIAN ITEMS AND SOME SPARE PARTS FOR IRAQ'S OIL 
INDUSTRY.  THE EXPORTS ARE APPROVED AS EXCEPTIONS TO 
INTERNATIONAL SANCTIONS IMPOSED ON IRAQ AFTER THE GULF WAR IN 
1991.

DIPLOMATS SAY THAT LOW INTERNATIONAL OIL PRICES AND THE POOR 
STATE OF IRAQ'S OIL INDUSTRY WILL PROBABLY MAKE IT DIFFICULT FOR 
BAGHDAD TO EXPORT THE ENTIRE AMOUNT ALLOWED UNDER THE PROGRAM.  
THEY SAY IRAQ IS EXPECTED TO SELL ABOUT THREE BILLION DOLLARS OF 
OIL OVER THE NEXT SIX MONTHS.

IRAQ HAS ACCUSED THE U-N SECURITY COUNCIL OF INTENTIONALLY 
SLOWING DOWN THE PROCESS OF APPROVING SPARE PARTS FOR ITS OIL 
INDUSTRY, THEREBY PREVENTING IT FROM EXPORTING THE FULL AMOUNT 
ALLOWED UNDER THE OIL-FOR-FOOD PROGRAM ... A CHARGE COUNCIL 
MEMBERS DENY.  U-S AMBASSADOR PETER BURLEIGH SAYS THERE HAVE BEEN
SOME PROBLEMS WITH EFFICIENCY, BUT THEY HAVE NOW BEEN CORRECTED. 
HE SAYS REMAINING PROBLEMS IN THE PROGRAM ARE THE RESPONSIBILITY 
OF THE IRAQI GOVERNMENT. 

                      /// BURLEIGH ACT ///

         THERE ARE STILL PROBLEMS WITH REGARD TO THE DELIVERY TO 
         THOSE WHO ARE SUPPOSED TO BENEFIT FROM THE PROGRAM, 
         INCLUDING SOME OF THE DISADVANTAGED GROUPS IN IRAQ.  
         THOSE PROBLEMS ARE ALMOST ENTIRELY NOW THE 
         RESPONSIBILITY OF THE GOVERNMENT OF IRAQ AND HAVE 
         NOTHING TO DO WITH PROBLEMS IN IMPLEMENTATION OF THE 
         PROGRAM.

                         /// END ACT ///

IRAQ ONLY REQUESTED A TWO-MONTH EXTENSION OF THE OIL-FOR-FOOD 
PROGRAM, IN ORDER TO ENABLE IT TO EXPORT THE FULL AMOUNT ALLOWED 
UNDER THE PREVIOUS SIX MONTH PERIOD.  IT HAS BEEN RELUCTANT TO 
SUPPORT THE FULL SIX-MONTH EXTENSION, AS IT SEES THAT AS 
UNDERMINING ITS CALLS FOR AN IMMEDIATE END TO SANCTIONS.  
(SIGNED)

NEB/UN/MPR/LSF/PT

24-Nov-98 2:54 PM EST (1954 UTC)
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Source: Voice of America
.