The United Nation’s Security Council unanimously decided that the measures establishing the humanitarian oil-for-food program for Iraq would remain in force for another 180 days. The program was to expire Wednesday, December 4.
The council further decided to consider necessary adjustments to the Goods Review List (GRL) of proscribed import items and the procedures for its implementation or adoption, no later than January 3, 2003. Procedures adopted earlier this year facilitated exporting processes on non-GRL goods.
Claiming Iraq has been importing dual-use items for military rather than civilian use, council member United States has tied the renewal of the program to the GRL review. This prerequisite was set in order to “ensure that Baghdad does not manipulate the program to increase its support for conventional military or weapons of mass destruction programs," said US Ambassador John Negroponte.
In December 1996, a UN Security Council Resolution established the oil-for-food program. Under Resolution 986, all proceeds obtained from Iraq’s closely monitored oil sales are deposited in an escrow account used to purchase humanitarian supplies designated by a special UN committee.
Iraq’s oil shipments were limited by a half-annual profits ceiling, which was raised from two billion dollars to $5.265 billion in mid–1998 and was eventually removed altogether in 1999. In return for its oil shipments, Iraq is being provided with humanitarian supplies—foodstuffs and medicine, agricultural machinery, power equipment and educational materials.
During the program’s six years in operation, the UN has supervised the sale of $58 billion worth of Iraqi oil at below market prices to approved buyers. Over 40 percent of Iraq’s total oil export revenues, some $25 billion, have been allotted by the United Nation’s Compensation Commission (UNCC) to covering Gulf War reparation payments and the cost of UN operations in Iraq. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
