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DATE=3/24/2000 TYPE=CORRESPONDENT REPORT TITLE=UN IRAQI OIL (L ONLY) NUMBER=2-260581 BYLINE=BRECK ARDERY DATELINE=UNITED NATIONS CONTENT= VOICED AT: INTRO: The United States today (Friday) introduced a resolution in the U-N Security Council that would substantially increase the amount of money that Iraq is allowed to spend on its oil industry. V-O-A Correspondent Breck Ardery reports from the United Nations. TEXT: U-S representative James Cunningham told the Security Council the United States agrees that the Iraqi oil industry is in need of more spare parts. Under the U-N's oil-for food program, Iraq sells oil to raise money for humanitarian purposes. Mr. Cunningham said the U-S supports a recommendation from the U-N secretary-general that the amount of money Iraq can spend on spare parts be doubled from 300-million dollars to 600-million dollars every six months. A U-S-sponsored resolution to do that is expected to be approved within a week. But Russian ambassador Sergey Lavrov questioned whether the increase will do any good if the United States continues, through the U-N's Iraq sanctions committee, to block certain shipments to Iraq. The United States says those shipments that are blocked are those containing items that could be used in weapons or shipments with insufficient information on what they contain. Speaking through an English translator, Mr. Lavrov said doubling the amount Iraq can spend on spare parts is meaningless unless the parts can be shipped. /// Lavrov translator act /// The contracts for spare parts and equipment should not be blocked in the sanctions committee, otherwise there would be no point to this decision. /// End Act /// The Security Council is grappling with what U-N Secretary-General Kofi Annan has called a "moral dilemma" for the world organization. The council is trying to ensure the Iraqi people receive sufficient humanitarian relief, while also guarding against the Iraqi government's acquisition of items that could be used in weapons of mass destruction. Mr. Annan says the simple solution would be for Iraq to comply with the U-N resolution, approved in December, that says sanctions will be lifted if Iraq fully complies with U-N weapons inspections. So far, Iraq has said it will not cooperate with the U-N resolution.(Signed) NEB/UN/BA/LSF/JP 24-Mar-2000 17:26 PM EDT (24-Mar-2000 2226 UTC) NNNN Source: Voice of America .