U.S. Envoy to U.N. on Iraqi Oil-for-Food Program

Explanation of Vote by Ambassador James C. Cunningham, Deputy U.S.
Permanent Representative to the United Nations, on the Iraq
Humanitarian Program, in the Security Council, December 5, 2000

The United States is pleased to support this latest expression of the
Council's effort to improve the humanitarian situation of the Iraqi
people. We continue to believe that the Oil for Food program is
meeting the needs of the Iraqi people, while denying the Baghdad
regime access to funds it would use to further repress the citizens of
Iraq and threaten its neighbors.

The Oil for Food program can be improved, and the changes we have
agreed to today reflect our interest in making those improvements. But
the most effective change would be for the regime to stop obstruction,
and implement the relevant humanitarian sections of Resolution 1284,
which are intended to improve the operation of the Oil for Food
program.

While the Security Council implemented every humanitarian paragraph in
resolutions 1284 and 1302, the Government of Iraq:

-- denied thousands of its citizens the opportunity to perform the
Hajj;

-- submitted virtually no contracts for the health, water and
sanitation, education or oil sectors for Phase VIII of the program;

-- proposed a conversion of the escrow account from dollars to euros,
which will cost the humanitarian program hundreds of millions of
dollars; and

-- initiated a housing sector distribution program that ignores those
most in need of housing assistance, against the understanding of the
Secretary-General.

Council agreement to Iraq requests, like the conversion of the escrow
account, have reaped few benefits. On the contrary, during the
negotiation of this new phase of the program, we have seen numerous
Iraqi attempts to avoid, rather than accept, obligations to the
international community. This is clearly unacceptable and works to the
detriment of the Iraqi people.

In this resolution, the Council underscores that arrangements for the
purchase of locally produced goods and for the cash component of the
oil sector are subject to the Council's approval, and are desirable.
Funding the cash component in the oil sector is linked conceptually to
the need for cash components in all sectors. As the Secretary General
made clear in his report, "a cash component is essential for all
sectors of the programme." Making progress on this is important and
has been a priority for sometime. The Secretary General should also
give priority to making arrangements associated with essential human
needs, as requested in 1284 and in this resolution, as well as for the
oil industry. We would view submission of arrangements for the oil
industry only as incomplete. And the resolution calls upon the
Government of Iraq to cooperate in the implementation of all such
arrangements.

Mr. President,

The Security Council agreed in September to transfer funds from the UN
Compensation Commission for strictly humanitarian projects and this
Resolution does that. For that move to have any real meaning, those
funds must be used in a way that takes into account the key elements
of the humanitarian needs of the Iraqi people, as well as the needs of
the victims of Iraqi aggression. Specifically, we suggested that those
funds be directed toward:

-- malnutrition in children, including the establishment of
supplementary feeding centers, the purchase and provision of targeted
nutrition supplies, and breastfeeding education programs;

-- health and nutritional support for internally displaced persons;

-- specific health infrastructure support for the southern governates,
including Bashrah;

-- infrastructure improvements in the health and education sectors;

-- purchase and use of children's vaccines;

-- and health and nutritional support for orphaned children resident
in other institutions.

The focus of this effort should be on the priorities identified by the
Secretary General and by UN personnel on the ground.

We hope that the Government of Iraq will cooperate across the board on
these and other humanitarian issues. The problem is not lack of
resources. Indeed, the Government of Iran has given up almost $300
million in converting currency from dollars to euros, and according to
OIP, should give up some $500 million in this phase by stopping the
flow of oil. This means some $800 million will be sacrificed which
could have benefited the people of Iraq.

We look forward to the implementation of this new six-month phase of
the program. We will continue to work in this Council to gain Iraqi
acceptance of its obligations to the international community. Thank
you.