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DATE=1/14/99 TYPE=CORRESPONDENT REPORT NUMBER=2-244192 TITLE=U-N / U-S / IRAQ (L) BYLINE=MAX RUSTON DATELINE=UNITED NATIONS CONTENT= VOICED AT: INTRO: THE UNITED STATES PROPOSED TO THE UNITED NATIONS SECURITY COUNCIL TODAY (THURSDAY) THE LIFTING OF SOME TRADE RESTRICTIONS ON IRAQ. U-S OFFICIALS SAY THE PROCEEDS FROM THE CHANGES MUST BE MONITORED AND USED ONLY FOR MEDICINE AND RELIEF SUPPLIES. V-O-A'S UNITED NATIONS CORRESPONDENT MAX RUSTON HAS THE STORY. TEXT: THE UNITED STATES IS PROPOSING THE ELIMINATION OF A CEILING ON IRAQI OIL EXPORTS, PROVIDED THE PROCEEDS ARE USED FOR HUMANITARIAN RELIEF. THE PROPOSAL APPEARS TO BE A RESPONSE TO GROWING INTERNATIONAL CONCERN OVER THE IMPACT SANCTIONS IMPOSED AFTER THE GULF WAR ARE HAVING ON ORDINARY IRAQI PEOPLE. IF THE U-S PROPOSAL IS ACCEPTED, IT WOULD MODIFY THE UNITED NATIONS' EXISTING OIL-FOR-FOOD PROGRAM, WHICH ALLOWS LIMITED OIL EXPORTS IN RETURN FOR RELIEF SUPPLIES. U-S REPRESENTATIVE TO THE UNITED NATIONS PETER BURLEIGH SAYS WASHINGTON SHARES THOSE CONCERNS BUT BLAMES THE IRAQI GOVERNMENT FOR FAILING TO UTILIZE EXISTING OFFERS OF ASSISTANCE. /// BURLEIGH ACT /// THE BASIC PROBLEM CONTINUES TO BE THE GOVERNMENT OF IRAQ'S UNWILLINGNESS TO MANAGE THIS OIL-FOR-FOOD PROGRAM IN AN EFFICIENT AND TIMELY MANNER. I THINK YOU ALL WOULD BE AWARE OF RECENT REPORTS THAT THERE ARE ENORMOUS NUMBERS OF MEDICINES FOR EXAMPLE THAT ARE IN STORAGE INSIDE IRAQ. THESE ARE NOT PENDING APPROVAL HERE IN NEW YORK. THESE ARE NOT SHIPS THAT ARE BRINGING MEDICINES TO IRAQ ON THE SEAS NOW. BUT THEY HAVE ARRIVED IN IRAQ AND ARE NOT BEING DISTRIBUTED. /// END ACT /// THE U-S PROPOSAL WOULD ALSO ALLOW IRAQ TO BORROW MORE FUNDS FOR RELIEF PROJECTS AND PERMIT IT TO ACCEPT DONATIONS FOR THE SAME PURPOSE. IRAQ HAS BLAMED THE SANCTIONS FOR HUNDREDS-OF-THOUSANDS OF DEATHS, MANY OF THEM CHILDREN. MR. BURLEIGH SAYS IRAQ HAS BEEN DRAMATIZING ITS PROBLEMS AND TAKING ADVANTAGE OF ITS OWN PEOPLE FOR PROPAGANDA PURPOSES ... CHARGES IRAQ HAS IN THE PAST DENIED. THE SECURITY COUNCIL IS ALSO CONSIDERING A PROPOSAL FROM FRANCE FOR CHANGES IN THE U-N SYSTEM FOR MONITORING THE DISARMAMENT OF IRAQ. ON WEDNESDAY, FRANCE PROPOSED SUBSTANTIALLY REFORMING OR REPLACING THE U-N WEAPONS INSPECTION COMMISSION, UNSCOM, AND GRADUALLY LIFTING SANCTIONS. U-S REPRESENTATIVE PETER BURLEIGH SAYS WASHINGTON IS CONTINUING TO STUDY THE FRENCH PROPOSAL BUT REMAINS A STRONG SUPPORTER OF UNSCOM. RUSSIA HAS VOICED SUPPORT FOR THE FRENCH PROPOSAL. IRAQ HAS REITERATED ITS DEMAND FOR THE FULL AND IMMEDIATE LIFTING OF ALL SANCTIONS AND SAYS IT WILL NOT ALLOW ANY MORE WEAPONS INSPECTIONS. DIPLOMATS AT THE UNITED NATIONS SAY IT COULD TAKE SEVERAL WEEKS TO DEVELOP A CONSENSUS ON WHAT TO DO NEXT ABOUT IRAQ. (SIGNED) NEB/UN/MPR/LSF 14-Jan-99 1:40 PM EST (1840 UTC) NNNN Source: Voice of America .