U.S. Department of State
Daily Press Briefing
DPB # 81
Monday, June 11, 2001  1:20 P.M.
(On the Record Unless Otherwise Noted)

QUESTION:  Same area.  Despite Iraq's threats to cut off oil to its
neighbors if they supported the US and the British idea of sanctions,
apparently they have not cut off oil to Syria.  It is still exporting at
a higher rate than it can produce, which was one of our concerns when we
went to the region.  And the Secretary asked Syria about this, and this
gets back into the whole pipeline.
Do you have any update yet on what Syria is doing to bring its pipeline
under UN control, or at least UN awareness?
MR. BOUCHER:  I think we have always described that as part of the
process of this new resolution and that the new resolution, now that the
political direction is set, that some of these things will be worked out
and mechanisms will be set up.  We're working on that.  So, no, I don't
have an instant update.  I think towards the end of the month, if we've
set many of these details of the resolution where the lists have to be
done, the mechanisms have to be set up, we'll be able to describe that
in somewhat more detail for you then.
QUESTION:  So have we been working on it as the process moves, or is it
something that we can start working on it once the new measures --
MR. BOUCHER:  We have been working with the UN and with the frontline
states all along, but exactly what mechanism we come up with and whether
it's - how it's set up, we'll see later in the month.
QUESTION:  I think at the time, you said that you had an agreement from
Bashar Assad on this, and then the Syrian Information Ministry said they
didn't.  And you said, no, that's our understanding from the agreement.
What has happened?  I mean, let me ask you this:  Did Bashar Assad back
out on a promise?
MR. BOUCHER:  Again, I'm not going to make an update for you at this
point.  As you know, the Syrian President told us that he would put this
under the UN auspices.  We said that that would be done around the time
of the resolutions.  And exactly how those frontline states'
arrangements are worked out is something we're discussing this month in
the context of the new resolution, and when we get farther into the
month, closer to the new resolution, we'll update you on that.
QUESTION:  To follow up on that, what incentives are you offering them
for this?  Because I think we've discussed many times there is a clear
financial incentive for the Syrians and others to do it this way rather
than your way.  So what are you offering them?
MR. BOUCHER:  We're offering them the chance to ensure that Iraq doesn't
threaten them any more, that Iraq doesn't redevelop its weapons of mass
destruction and its military capabilities which have been used against
its neighbors in the past.
QUESTION:  What about hard cash, which is a little bit more interesting?
MR. BOUCHER:  We are taking care of that aspect, too, to make sure that
nobody suffers by implementing these things.
QUESTION:  How?  How?  How?
MR. BOUCHER:  You're asking me on June 11th about arrangements that are
going to be made in a resolution on July 4th, and I'm not prepared to
give you all the details yet.  We are in the process of discussing these
things.
QUESTION:  (Inaudible.)
MR. BOUCHER:  It's what it says in the last resolution.  Did you read
the last resolution?  By July 4th, we will have a resolution for 190
days that puts in place the new arrangements.  We'll do that.
QUESTION:  Well, when you are working on Independence Day, I will be
glad to --
MR. BOUCHER:  Maybe we'll do it before July 4th.
QUESTION:  Exactly, thank you.
MR. BOUCHER:  I said by July 4th.  Okay?

....

QUESTION:  How about another subject?  And some of the news agencies
report that the US giving some aid to Iraqi Liberation Front is auditing
from the - for the US the State Department people.  Is it true?  Can
you confirm this subject?
MR. BOUCHER:  Yes, let me go through that with you a little bit, if I
can, just so people understand.
I mean, the first point to make is we continue to work with, we continue
to cooperate closely, with the Iraqi National Congress and other
elements of the Iraqi opposition to strengthen their efforts to
represent the true voice of the Iraqi people.
The Inspector General's Office won't comment on specific ongoing or
planned work, but I would say that in general they routinely conduct
audits of grants and contracts that are awarded by the Department.  They
have recently begun an audit of funds issued by the Department to the
Iraqi National Congress, and that audit will conclude when they
determine it appropriate.
At the same time, I would point out in this interim period we are
working very closely with the Iraqi National Congress on ways to help
them implement programs that benefit the Iraqi people.  So that work
continues with them.
QUESTION:  How will they do these audits (inaudible) your grants?
MR. BOUCHER:  Some of them are done periodically, some of them are done
in relation to particular events or standards.
QUESTION:  (Inaudible) in reaction to particular events?
MR. BOUCHER:  No, I can't go into any more detail on their behalf for
this.  I would say that we look to them to come up with recommendations
to improve the management of programs and accounts by the Iraqi National
Congress, and they --
QUESTION:  (Inaudible)?
MR. BOUCHER:  We look to the audit to produce recommendations on how to
improve the management of the programs and accounts, and we anticipate
that the audits will enhance the Iraqi National Congress' ability to
receive greater levels of US funding in order to carry out programs
within the parameters of US Government rules designed to ensure proper
use of the money.
QUESTION:  What is wrong with the management of the accounts now, and
what improper use of the money has there been?
MR. BOUCHER:  I didn't say either one of those things existed.  I said
that there was an audit being conducted and we look to the audit to help
us further improve the way things are done.
QUESTION:  The program goes on as is, even during the auditing?
MR. BOUCHER:  Our cooperation continues.  I'm not sure about specific
funding and specific programs, frankly.
QUESTION:  Well, is an audit not being conducted with an eye toward
maybe, if they uncover bad things going on there, that cooperation and
aid is going to stop?  Or is it only to, as you say, further improve --
MR. BOUCHER:  To further improve.
QUESTION:  But could further improve mean stopping and cutting them
totally out of the loop?
MR. BOUCHER:  Again, I'll leave it at what I said, Matt, and not re-
interpret right now.
QUESTION:  Haven't these held up during the review, though?
MR. BOUCHER:  I'll see what I can say on that subject.