DATE=12/04/00

TYPE=CORRESPONDENT REPORT

TITLE=U-N / IRAQ OIL (L ONLY)

NUMBER=2-2700017

BYLINE=BRECK ARDERY

DATELINE=UNITED NATIONS

CONTENT=

VOICED AT:

INTRO: The United Nations official in charge of the Iraq oil program, Benon Sevan, says the U-N Security Council must streamline the approval process for Iraqi imports. V-O-A Correspondent Breck Ardery reports from the United Nations.

TEXT: Mr. Sevan told reporters he is concerned about the delays in approval of Iraqi orders for non-food and non-medical items. The so-called oil-for-food program has been expanded to allow Iraq to import infrastructure supplies needed for the electricity, water, and sanitation sectors. But the United States has blocked many shipments, saying some pose a potential for military use. In other cases, suppliers have not provided the U-N Security Council's Iraq Sanctions Committee with sufficient information about a shipment.

Mr. Sevan says both suppliers and the Council committee must speed up the process of approval.

/// SEVAN ACT ///

We cannot go on applying procedures that were valid at the time it (the program) was only just food and medicine. But now that we are involved in infrastructure (imports), the time has come for the 661 Committee on the sanctions to review its procedures and try to make the necessary adjustments in order to ensure that applications are approved more expeditiously.

/// END ACT ///

The U-N Security Council established the Iraq oil program to raise funds for humanitarian relief. Some members of the Security Council argue that, in addition to food and medicine, clean water, adequate sewage systems, and electricity are also vital for the welfare of the Iraqi people.

/// REST OPT ///

Regarding the current impasse between Iraq and the United Nations on oil prices, Mr. Sevan says negotiations are continuing. The U-N has rejected Iraq's proposed oil price for December as too low. The lower-than-market price was believed to have been proposed to compensate buyers of Iraqi oil for a 50-cent a barrel surcharge that Iraq wants paid into an Iraqi-controlled bank account. Iraqi Trade Minister Mohammed Saleh was recently quoted as saying his nation is getting too little under the U-N administered program. (Signed)

NEB/UN/BA/EJ/JWH