DATE=2/25/99
TYPE=CORRESPONDENT REPORT
NUMBER=2-245973
TITLE=U-N / IRAQ / OIL (L - ONLY)
BYLINE=MAX RUSTON
DATELINE=UNITED NATIONS
CONTENT=
VOICED AT: 

INTRO:  A SENIOR UNITED NATIONS OFFICIAL URGED THE U-N SECURITY 
COUNCIL THURSDAY TO FIND NEW WAYS TO BOOST IRAQ'S OIL PRODUCTION,
IN ORDER TO MEET THE COUNTRY'S BASIC HUMANITARIAN NEEDS.  V-O-A 
CORRESPONDENT MAX RUSTON REPORTS FROM OUR UNITED NATIONS BUREAU.

TEXT:  THE CALL CAME FROM THE HEAD OF THE UNITED NATIONS' 
SO-CALLED "OIL-FOR-FOOD" PROGRAM, BENON SEVAN.  MR. SEVAN TOLD 
THE SECURITY COUNCIL THAT LOW OIL PRICES AND THE POOR CONDITION 
OF OIL-PRODUCTION FACILITIES IN IRAQ HAVE SUBSTANTIALLY REDUCED 
IRAQ'S OIL REVENUES.  THAT, IN TURN, HE SAYS, IS MAKING IT 
DIFFICULT TO GAIN REVENUES NEEDED TO MEET TARGETS FOR 
HUMANITARIAN AID AND OIL-INDUSTRY REPAIRS.

                       /// SEVAN ACT /// 

         WE WERE SUPPOSED TO GAIN REVENUES OF UP TO 
         FIVE-POINT-TWO-BILLION DOLLARS, WHICH WOULD HAVE GIVEN 
         THREE-POINT-FOUR-BILLION DOLLARS FOR THE HUMANITARIAN 
         PROGRAM.  WHAT HAS HAPPENED, IN FACT, NOW, IS THAT WE 
         EXPECT LESS THAN THREE-BILLION DOLLARS REVENUES TOTAL IN
         SIX MONTHS.  THEREFORE AFTER YOU DEDUCT [PRODUCTION 
         COSTS], YOU RECEIVE ABOUT ONE-POINT-EIGHT-BILLION 
         DOLLARS FOR THE PURPOSE OF THE HUMANITARIAN PROGRAM.  
         AND IN FACT WHEN YOU DEDUCT 300-MILLION DOLLARS FOR 
         SPARE PARTS AND 180-MILLION DOLLARS FOR OIL PIPELINE 
         FEES, IN FACT YOU ARE BACK TO SQUARE ONE WHERE THE 
         PROGRAM USED TO BE WHEN THE REVENUES WERE SUPPOSED TO BE
         TWO-BILLION DOLLARS.  SO THEREFORE WE ARE REALLY  NOT  
         MOVING FORWARD.

                         /// END ACT ///

MR. SEVAN SAYS IT IS TIME FOR THE SECURITY COUNCIL TO FIND WHAT 
HE CALLS "BOLD, IMAGINATIVE AND PRAGMATIC ALTERNATIVES FOR 
INVESTMENT IN IRAQ'S OIL INDUSTRY."

THE OIL-FOR-FOOD PROGRAM BEGAN IN 1996.  IT ALLOWS CAREFULLY 
REGULATED EXCEPTIONS TO SANCTIONS IMPOSED ON IRAQ AFTER THE GULF 
WAR, IN ORDER TO PROVIDE HUMANITARIAN ASSISTANCE TO ORDINARY 
IRAQI PEOPLE.  LAST YEAR, THE COUNCIL RECOGNIZED THAT THE LEVEL 
OF HUMANITARIAN ASSISTANCE REACHING ORDINARY IRAQI PEOPLE WAS  
NOT  SUFFICIENT, AND AGREED TO RAISE THE LIMIT ON OIL REVENUES TO
FIVE-POINT-TWO BILLION DOLLARS.  MR. SEVAN SAYS SUCH INCREASES 
ARE PURELY ACADEMIC, IF MEASURES ARE  NOT  TAKEN TO IMPROVE THE 
EFFICIENCY OF ALL ASPECTS OF THE PROGRAM.   (SIGNED)

NEB/UN/MPR/LSF/WTW

25-Feb-99 4:54 PM EST (2154 UTC)
NNNN

Source: Voice of America
.