DATE=02/27/01

TYPE=CORRESPONDENT REPORT

TITLE=U-N-IRAQ SANCTIONS (L-O)

NUMBER=2-273081

BYLINE=BRECK ARDERY

DATELINE=UNITED NATIONS

CONTENT=

VOICED AT:

INTRO: Iraq Foreign Minister Mohammed Al-Sahaf is describing as stupid - a call by Secretary of State Colin Powell to modify international sanctions against Iraq. Correspondent Breck Ardery reports from the United Nations.

TEXT: Speaking to reporters as he arrived for a second day of talks with U-N officials, Mr. Al-Sahaf was asked about Secretary Powell's proposal that sanctions be changed.

Mr. Powell's idea is to allow Iraq to obtain more civilian goods, but tighten restrictions on items that could be used for weapons. The Iraqi Foreign Minister said all sanctions against his country must be lifted.

/// AL-SAHAF ACT ///

We are hearing stupid statements from the foreign minister of the United States of America, talking about clever sanctions. It is as if he confessed that all that has been going on since 1990 is stupid. So there is no place for compromise.

/// END ACT ///

Mr. Al-Sahaf said Iraq has already met the terms of disarmament required by U-N Security Council resolutions.

In a separate encounter with reporters, U-N Secretary-General Kofi Annan said he was not surprised by Secretary Powell's suggestion. But Mr. Annan said any change in the sanctions would have to be authorized by the U-N Security Council.

/// ANNAN ACT ///

I think that would have to be for the Council to decide. I think as they review all these issues they will have to determine how to proceed and I would not want to prejudge or preempt what the Council members may do. But obviously, as you know, there are lots of reflections and discussions going on and I hope that out of all of this will come something constructive.

/// END ACT ///

Mr. Annan characterized his meetings with the Iraqi officials as - good discussions in a good atmosphere. (SIGNED)

NEB/UN/BA/EJB/RAE