
DATE=11/21/1999 TYPE=CORRESPONDENT REPORT TITLE=IRAQ/SANCTIONS (L) NUMBER=2-256412 BYLINE=SCOTT BOBB DATELINE=CAIRO CONTENT= VOICED AT: INTRO: Iraqi leaders are rejecting a draft resolution before the U-N Security Council aimed at ending international sanctions in exchange for a resumption of weapons inspections. The Security Council has been split over the draft resolution, and as a result has extended the Iraqi oil-for-food program for two-weeks. Correspondent Scott Bobb reports from our Middle East Bureau in Cairo. TEXT: The Iraqi News Agency says a Cabinet meeting chaired (Sunday) by President Saddam Hussein issued a categorical rejection of the draft U-N resolution, even with the modifications under discussion. A statement by the Cabinet said the draft aims neither to suspend international sanctions against Iraq nor to lift them in the future. As a result, it called for Security Council members to reject the draft and stick to what it called -- a just position toward Iraq. Security Council members have been trying to agree on a resolution aimed at easing economic sanctions against Iraq in exchange for a return of U-N weapons monitors. The monitors left one-year ago, complaining of a lack of cooperation by Iraqi authorities. Their withdrawal led to five nights of bombing raids by U-S and British warplanes. The Iraqi government says it has complied with U-N demands and has dismantled its weapons of mass destruction. As a result, it says, all sanctions should be lifted. The sanctions issue has divided the U-N Security Council, which is under pressure from many governments in the Middle East to end them. The Russian government reportedly is seeking a gradual phase-out of the sanctions on one hand, while the U-S government wants them lifted only after a resumption of the weapons inspections program. Despite the Iraqi government's rejection of the latest U-N proposals, diplomatic sources in the region report Iraqi oil exports are continuing normally. Iraq has been allowed to export five-billion-dollars' worth of oil every six-months and use some of the funds to import food, medicine and other humanitarian goods. Iraqi officials complain that many humanitarian supplies are withheld or delayed because they must be approved by a special U-N committee. The U-S and British governments accuse the Iraqi government of diverting some of the funds to non-essential projects. Some U-N officials have called for humanitarian programs to be detached from the weapons monitoring program, leading to a rift within the world body and a continuing stalemate over Iraqi policy. (SIGNED) NEB/SB/ALW/RAE 21-Nov-1999 11:20 AM EDT (21-Nov-1999 1620 UTC) NNNN Source: Voice of America .