
DATE=3/14/2000 TYPE=CORRESPONDENT REPORT TITLE=U-N / IRAQ REPORT (L ONLY) NUMBER=2-260178 BYLINE=BRECK ARDERY DATELINE=UNITED NATIONS CONTENT= VOICED AT: INTRO: U-N Secretary-General Kofi Annan says Iraq's oil industry is in decline and is in urgent need of repair to meet that country's humanitarian needs. VOA Correspondent Breck Ardery reports from the United Nations. TEXT: In a report to the U-N Security Council, Mr. Annan says Iraqi oil production has been declining in recent weeks because of a lack of spare parts. The secretary-general is concerned that the falling rate of production will jeopardize the "oil-for-food" program that allows Iraq to sell oil to raise money for food, medicine and other humanitarian purposes. The report has not yet been officially released but has been widely circulated at U-N headquarters. The report calls on the Security Council to double, from 600 million dollars to one-point-two billion dollars, the amount of money Iraq is allowed to spend for oil industry maintenance and rehabilitation. However, many non-humanitarian products Iraq has ordered have been blocked by the United States and Britain on the grounds that the items could be used for military as well as civilian purposes. In his report, Mr. Annan describes the blocking of those orders as "excessive." The United States maintains that money from the "oil- for-food" program is sufficient to meet humanitarian needs if the Iraqi government appropriates it and other funds wisely. The Security Council is expected to discuss the Secretary-General's report at a meeting next week. Russia's U-N ambassador, Sergey Lavrov, says a public discussion is needed. /// LAVROV ACT /// We expect this report will provide us with an opportunity to have an open and frank discussion of the Iraqi humanitarian problem in the Security Council. There are too many countries that are concerned about what is going on in Iraq that the Council can not just discuss this in a closed session and should really have it in the open. /// END ACT /// The Council has decided it will discuss the humanitarian situation in Iraq in both closed and open sessions. U-N Secretary General Kofi Annan, who is currently in London, did not comment directly on his report but he did tell reporters the sanctions against Iraq had hurt the Iraqi people. He went on to point out there is now discussion within the Security Council on the issue of so-called "smart sanctions," which would target individuals rather than entire populations. (Signed) NEB/UN/BA/LSF/ENE/KL 14-Mar-2000 14:26 PM EDT (14-Mar-2000 1926 UTC) NNNN Source: Voice of America .