DATE=2/29/2000
TYPE=CORRESPONDENT REPORT
TITLE=U-S / IRAQ OIL (L)
NUMBER=2-259685
BYLINE=KYLE KING
DATELINE=STATE DEPARTMENT
CONTENT=
VOICED AT: 


INTRO:  A new U-S government report says Iraqi 
President Saddam Hussein is spending billions of 
dollars on luxury palaces and imported whiskey, while 
at the same time complaining about a lack of food and 
medicine for his people.  From the State Department, 
V-O-A's Kyle King has this report.

TEXT:  The State Department report relies on newly 
declassified spy satellite photos that show how much 
progress has been made on several large palaces.

Officials say five of nine major palace complexes are 
located near Baghdad, and feature elaborate gardens, 
man-made lakes and waterfalls.

State Department spokesman James Rubin says more than 
two-billion dollars has been spent on palace 
construction in Iraq since the gulf war.

            /// Rubin Act ///

      In these types of palaces, they feature marble 
      floors, crystal chandeliers, and according to 
      eyewitnesses, gold plated faucets and other 
      excesses.

            /// End Act ///

Mr. Rubin also accused Iraqi authorities of importing 
tens of thousands of bottles of whiskey and other 
luxury goods each week, while failing to buy enough 
food and medicine for its people.

            /// Rubin Act ///

      Food is exempt from (U-N) sanctions, and these 
      goods are classified as food, so Baghdad is 
      importing all of this legally.  The important 
      point here, is that the regime is getting drunk 
      while it claims its people don't have enough to 
      eat.

            /// End Act ///

Under U-N sanctions and the U-N - run oil for food 
program, the profits from Iraqi crude oil sales can 
only be spent on food, medicine and approved 
equipment.

But U-S officials say Iraq is illegally smuggling 
about 100-thousand barrels of oil a day out the 
country from a refinery in Basra.

Declassified photos show ships lining up near the 
refinery.  U-S officials say they are looking at ways 
to tighten controls on the ships that often hug the 
Iranian coast and then off-load the oil to other 
vessels in the Persian Gulf.

U-S and other ships enforcing the U-N sanctions have 
inspected more than 28-thousands vessels in the Gulf.  
About 700 were found to be carrying illegal cargo, but 
officials confess they do not know how much is 
sneaking though. (signed)

NEB/KBK/JP




29-Feb-2000 16:28 PM EDT (29-Feb-2000 2128 UTC)
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Source: Voice of America
.