DATE=3/17/99
TYPE=CORRESPONDENT REPORT
NUMBER=2-246772
TITLE=SENATE-IRAQ OIL(L-ONLY)
BYLINE=DAVID SWAN
DATELINE=CAPITOL HILL
CONTENT=
VOICED AT: 

INTRO:  THE CLINTON ADMINISTRATION IS TELLING CONGRESS IRAQ CAN 
BE ALLOWED TO SELL MORE OIL FOR FOOD WITHOUT DEPRESSING OIL 
PRICES OR HURTING U-S INTERESTS.  BUT THE IDEA HAS ENCOUNTERED 
SHARP OPPOSITION FROM LAWMAKERS WHO SAY IT ONLY PROPS UP AN 
OUTLAW  STATE.  CORRESPONDENT DAVID SWAN HAS DETAILS.

TEXT:  THE UNITED NATIONS "OIL FOR FOOD" PROGRAM IS MEANT TO 
BRING RELIEF TO THE IRAQI PEOPLE WHILE KEEPING POST-GULF WAR 
SANCTIONS ON THEIR GOVERNMENT.  THE SYSTEM ALLOWS BAGHDAD TO SELL
ABOUT FIVE-BILLION DOLLARS WORTH OF OIL EVERY SIX-MONTHS, FOR 
FOOD AND MEDICINE.  

THE UNITED STATES HAS PROPOSED LIFTING THAT CAP.  AT A SENATE 
HEARING (WEDNESDAY) ENERGY SECRETARY BILL RICHARDSON SAID THE 
PLAN SHOULD NOT SHAKE UP THE MARKET BECAUSE IRAQ IS ALREADY 
PRODUCING OIL AT FULL CAPACITY.

                      // RICHARDSON ACT //

         THE OIL-FOR-FOOD PROGRAM HAS NOT ADVERSELY AFFECTED 
         INTERNATIONAL OIL PRICES TO THE POINT WHERE OUR DOMESTIC
         OIL PRODUCERS SHOULD BE CONCERNED.  IRAQ IS NOT A SWING 
         (MAJOR) PLAYER.  IT AFFECTS, MARGINALLY, WORLD OIL 
         PRICES.

                          // END ACT //

OFFICIALS SAY SUSTAINING AND EXPANDING "OIL FOR FOOD" IS THE ONLY
WAY TO PRESERVE THE OVERALL SANCTIONS REGIME, WHICH A NUMBER OF 
U-S ALLIES WOULD RATHER RELAX OR LIFT.  MR. RICHARDSON ARGUES THE
SYSTEM IS WORKING AND SHOULD CONTINUE. 

                      // RICHARDSON ACT //

         SADDAM HUSSEIN IS CONTAINED.  HE IS FURTHER ISOLATED.  
         WE HAVE INFLICTED CONSIDERABLE DAMAGE ON HIS MILITARY 
         WITH THE BOMBING THAT TOOK PLACE.  HE IS RIGHT NOW A 
         PARIAH.

                          // END ACT //

BUT AS THE HEARING MADE CLEAR, THE ADMINISTRATION VIEW HAS LITTLE
IF ANY SUPPORT AMONG REPUBLICANS.  SENATE ASSISTANT MAJORITY 
LEADER DON NICKLES BLASTED THE PRESIDENT'S POLICY AS WEAK AND 
INCONSISTENT.

                        // NICKLES ACT //

         WE HAVE RISKED U-S LIVES TIME AND TIME AGAIN.  WE HAVE 
         KILLED IRAQIS, ON OCCASION SAYING "YOU ARE GOING TO HAVE
         TO COMPLY (WITH THE UNITED NATIONS)".  THE NET RESULT IS
         IRAQ CAN PRODUCE ALL THE OIL THAT THEY WANT AND WE HAVE 
         NO ARMS CONTROL (IN IRAQ).  SO THIS ADMINISTRATION'S 
         POLICY HAS BEEN APPEASEMENT.

                          // END ACT //

THOUGH MANY OF THE CRITICS COME FROM OIL-PRODUCING STATES, THEY 
QUESTION BOTH THE STRATEGIC AND ECONOMIC EFFECTS OF THE PROGRAM. 
ALASKA REPUBLICAN FRANK MURKOWSKI SAYS A HARDLINE APPROACH WOULD 
EVENTUALLY BRING BETTER RESULTS -- INCLUDING THE END OF PRESIDENT
SADDAM HUSSEIN'S GOVERNMENT.

                       // MURKOWSKI ACT //

         BUT IF YOU CUT OFF HIS OIL FLOW, HE CAN NOT BUILD 
         WEAPONS OF MASS DESTRUCTION.  HE CRUMBLES.  AND THERE 
         WILL BE, IN BAGHDAD, A CHANGE.  NOW THE PEOPLE WILL 
         CERTAINLY SUFFER.  BUT THEY ARE SUFFERING ANYWAY.

                          // END ACT //

EVEN SOME DEMOCRATS ACKNOWLEDGE THE PROGRAM MAY BE DIFFICULT TO 
JUSTIFY.  OTHERS SAY IT IS STILL NEEDED ON HUMANITARIAN GROUNDS. 
(SIGNED)

NEB/DS/PW/RAE

17-Mar-99 2:35 PM EST (1935 UTC)
NNNN

Source: Voice of America
.