DATE=05/17/01

TYPE=CORRESPONDENT REPORT

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

NUMBER=2-276131

BYLINE=BRECK ARDERY

DATELINE=UNITED NATIONS

CONTENT=

VOICED AT:

INTRO: At the United Nations, Britain and the United States are developing a proposal that could lift most of the sanctions against Iraq. V-O-A Correspondent Breck Ardery reports the plan may be formally presented as early as next week.

TEXT: Britain and the United States have been discussing a plan that would lift sanctions on virtually all civilian goods, but continue to bar arms sales to Iraq. Britain will likely detail the plan in a formal U-N Security Council resolution that could be discussed next week.

United States Ambassador James Cunningham says that, although the full proposal is still being developed, it will focus on restricting the shipment of arms, or arms components, to Iraq.

/// CUNNINGHAN ACT ///

Our intent is to focus the discussion (in the council) on the security problem that the sanctions regime and U-N Security Council resolutions address. So, of course, we are looking at the arms materials and technologies involved.

/// END ACT ///

China, France and Russia, the three other nations with veto power on the Security Council, have taken no position on the proposal, but have indicated a willingness to discuss it. Those nations, along with many others, have expressed concern that the current sanctions program is causing severe hardship for Iraq's civilian population.

Sources say the plan would include a master list of prohibited items, and that the U-N Iraq sanctions committee would still have the right to bar suspect shipments. In addition, the revenue from Iraqi oil sales would still be controlled by the United Nations, and new efforts would be made to end the so-called "black market" sale of Iraqi oil.

Iraq's initial reaction to the proposals is negative. The official Iraqi newspaper (Al Quadissiya) described them as just a "political game." (Signed)

NEB/UN/BA/TDW