>
>IRAQ SANCTIONS MONITOR Number 124
>Thursday, September 21, 2000
>
>
>LATEST++++++++++++++++++++++++++++++++++
>
>
>Russia pushes to cut funds Iraq pays to war victims.
>UNITED NATIONS, Sept 21 (Reuters) - Russia is expected to lobby U.N.
>Security Council members on Thursday on the need to lower the amount of
>funds Iraq contributes for Gulf war victims from 30 percent to 20 percent,
>diplomats said.
>
>The council is holding closed-door discussions on the latest U.N. report on
>the "oil-for-food" programme that allows Iraq to sell unlimited quantities
>of oil to buy food, medicine and other civilian necessities to offset the
>impact of 10-year old sanctions on ordinary Iraqis.
>
>No decisions are expected by the 15-member body on Thursday or on Friday
>when Hans Blix, the director of the new U.N. weapons agency, talks to the
>council about how his teams are ready to go to Iraq if Baghdad ever allows
>them in. Russia, France and China are opposed to the sanctions, imposed in
>August 1990 after Baghdad's troops invaded Kuwait.
>
>To get them eased, Iraq has to cooperate with U.N. arms monitors evaluating
>its weapons of mass destruction programmes. Baghdad has not let the
>inspectors into the country since U.S.-British bombing raids began in
>mid-December 1998.
>But Russia, the country most sympathetic to Iraq on the council, is expected
>to raise the compensation issue among council members. It has already
>circulated a draft resolution to this end among the other four permanent
>council members - the United States, Britain, France and China.
>Most council members, including Britain, would not oppose Russia's proposal
>if it came to a vote, diplomats said. But the United States will not take
>any action favourable to Iraq before the November presidential elections and
>one U.S. official said Washington was opposed to Russia's draft.
>Under the current programme, 30 percent of the proceeds from the sale of
>Iraqi oil is automatically siphoned off into the U.N.-administered
>reparations fund and other funds go to U.N. administration of the programme.
>Russia, backed by France and China, argues that built-in delays in the
>programme, in which contracts for oil as well as humanitarian goods are
>submitted to U.N. headquarters for approval, means that Iraq pays more to
>the compensation fund some months than the worth of supplies it receives.
>
>Russia's U.N. ambassador Sergei Lavrov first raised the issue in August in
>challenging a $21.5 billion claim by Kuwait for lost oil production and
>sales during Iraq's seven-month occupation of the emirate in 1990. A panel
>of arbitrators has recommended awarding $15.9 billion.
>Kuwait's claim will be considered again when the commission's governing
>council, which has the same 15-nation membership as the Security Council,
>meets in Geneva next week. But a decision is likely to be delayed again.
>
>Any lowering of the amount of money Iraq pays into the compensation fund,
>however, would not affect a decision on the $15.9 billion award, which could
>be reimbursed to Kuwait over a longer period of time. But the monies
>involved are large and the issue has assumed political dimensions as have
>most topics concerning Iraq. Fears that Iraq might cut off its key crude
>exports if the Compensation Commission approved the payment have helped to
>push already lofty world oil markets to new decade highs.
>
>Iraq produces about three million barrels of crude daily, or about 4 percent
>of world oil production, and exports about 2.3 million barrels of that to
>the world market each day.
>Raad Alkadiri, an analyst with The Petroleum Finance Co. in Washington, said
>that the $16 billion claim is the "tip of the iceberg" to claims that could
>possibly tie up Baghdad's oil revenues for years. Alkadiri said that the
>current situation regarding the claim of the state-owned Kuwait Petroleum
>Co. for damages incurred during the Gulf War is "just the type of situation"
>that could lead to a suspension of oil exports.
>But Iraq, since sanctions were imposed after it invaded Kuwait in August
>1990, has rarely interrupted the flow of oil and then only briefly to
>protest U.N. actions.
>
>
>Iraq commissions two new oil refineries - papers.
>BAGHDAD, Sept 21 (Reuters) - Iraq has commissioned two new small refineries
>with a capacity to process 10,000 barrels per day (bpd) of crude each, local
>newspapers reported on Thursday.
>They said Oil Minister Amir Muhammed Rasheed opened on Wednesday the two
>refineries built in the town of Baiji, 220 km (138 miles) north of Baghdad.
>They said the two refineries were among 10 the ministry in cooperation with
>other Iraqi ministries had begun to build as early as 1998 under
>instructions from President Saddam Hussein.
>The other eight refineries are being built in various Iraqi provinces. One
>is being constructed in the southern city of Ammarah, 366 km (219 miles)
>south of Baghdad. It will also have a capacity of 10,000 bpd.
>Iraqi oil industry officials say these refineries will supply products for
>domestic consumption.
>Iraq's main refineries in Baiji, Basra and Daura, bore the brunt of cruise
>missile attacks and aerial bombardment during the 1991 Gulf War. Most
>refineries were brought back to life shortly after the war ended in March
>1991.
>
>But these refineries have been cannibalised for lack of spare parts and are
>producing refined products of low quality. Iraq is under stringent U.N.
>sanctions imposed for its 1990 invasion of Kuwait. But the U.N. has allowed
>Baghdad since December 1996 to sell unlimited quantities of oil to buy food,
>medicine and other humanitarian needs for its people.
>The exchange also allows Baghdad to buy spare parts to upgrade its oil
>industry.
>Iraq's current total oil products output from its three refineries is put at
>roughly 500,000 bpd.
>
>CHENEY ATTACKS CLINTON'S DEALINGS WITH IRAQ.
>ALBUQUERQUE, N.M. - Using the same language that some critics used against
>him and former President Bush after the Persian Gulf War nearly 10 years
>ago, former Defense Secretary Dick Cheney on Wednesday accused the Clinton
>administration of letting Saddam Hussein "slip off the hook" by avoiding
>weapons inspections.
>
>"For a period of time there, in the aftermath of the Gulf war, we had a very
>robust inspection regime under way," Cheney said. "We had people in there
>all the time, checking out, making certain that he wasn't going back trying
>to rebuild his biological and chemical capabilities."
>"Now," he said, "we've seen a situation develop in which he's kicked out all
>the inspectors and this administration appears to be helpless to do anything
>about it. We're at the point where I think we have not seen the kind of
>aggressive, effective leadership that President Bush provided with respect
>to the coalition."
>
>Cheney made the charge at a campaign stop in Lancaster, Calif., that began
>with a teary recollection of the day the ground war began in the Persian
>Gulf. His words were reminiscent of critics of the Bush administration, who
>said it let Saddam off the hook by ending the war while Saddam was still in
>power.
>
>Cheney made the accusation against President Clinton in response to a
>question from the audience after he had delivered a speech on the need for
>increasing the military's research and development budget.
>
>In past appearances, Cheney has been questioned on why the Bush
>administration did not continue the Gulf war until Saddam was driven from
>power. He has answered that the object was to drive Iraq out of Kuwait, not
>to depose Saddam, and that the international coalition would have been
>pulled apart if the United States had continued.
>Copyright (c) 2000 The New York Times Company. All rights reserved.
>Information may not be stored in electronic format.
>Please note: Users must not download the paper in its entirety, they must
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>(New York Times)
>
>Russian discusses Iraq situation with Gulf Cooperation Council envoys.
>Text of report by Russian news agency RIA
>
>Moscow, 20th September: Aleksandr Saltanov, director of the Russian foreign
>ministry's Middle East and North Africa department, has had talks with the
>permanent representatives of the Gulf Cooperation Council countries on
>issues concerning the improvement of the situation in the Persian Gulf zone
>and, in particular, the issue of unblocking the Iraq situation.
>
>RIA was informed at the ministry's Press and Information Department that the
>meeting took place within the framework of the work of the Russian
>delegation to the 55th session of the UN General Assembly.
>
>The GCC consists of Bahrain, Qatar, Kuwait, the UAE, Oman and Saudi Arabia
>
>Iraqi Kurdish group claims Iraq aiding Turkish Kurds to reach region under
>its control.
>Source: Anatolia news agency, Ankara, in Turkish 1310 gmt 19 Sep 00
>
>Ankara: The Iraqi Patriotic Union of Kurdistan [PUK] has declared that the
>terrorist organization PKK [Kurdistan Workers' Party] has been staging
>attacks against the region controlled by the PUK in northern Iraq for the
>past two weeks. A statement issued by the PUK Ankara liaison office said
>that clashes have been experienced between the peshmergas the members of the
>terrorist organization for the past two weeks and nine peshmergas were
>killed in the terrorist attack on 14th September.
>The statement also claimed that the Iraqi armed forces are helping the
>terrorists reach the region under PUK control. Pointing out that the
>terrorist PKK cannot use northern Iraq as a base for its attacks, the
>statement noted that northern Iraq will continue to be a lawful and secure
>region.
>
>Minister says Iraqi media campaign will only hurt Iraq.
>Source: Kuna news agency web site, Kuwait, in English 1450 gmt 19 Sep 00
>
>Kuwait, 19th September: Minister of State for External Affairs Sulayman
>Majid al-Shahin described on Tuesday [19th September] the information
>campaign by the Iraqi regime against the state of Kuwait as furious and
>asserted that it would only harm Iraq.
>
>Al-Shahin made the statement to Kuna following a meeting with heads of
>diplomatic missions of permanent member states in the Security Council. He
>said such practices by the Iraqi regime revives the atmosphere that existed
>before July 1990 but the conditions this year are different from those that
>existed in 1990, Al-Shahin said, asserting that the basic factor for
>stability in the Arab Gulf region lies with Iraq's full abidance by UN
>resolutions, related to its 1990 aggression on the state of Kuwait.
>
>Al-Shahin said the diplomats, during the meeting, expressed keenness of
>their governments on security and stability of the state of Kuwait and the
>region, asserting that the Security Council is shouldering its historic
>duties regarding security and stability of this vital region of the world.
>They also expressed their countries' keenness on preserving security and
>stability of the state of Kuwait.
>
>
>Government could resume regular flights to Iraq "soon".
>Source: `Al-Dustur', Amman, in Arabic 17 Sep 00
>
>A responsible source has stated that the government is currently studying
>operating regular flights to Baghdad. A number of measures have been adopted
>in this regard to offer all kinds of humanitarian aid and assistance to the
>fraternal Iraqi people, who are suffering severely from the blockade.
>
>The source, who requested anonymity, told the `Al-Dustur al-Iqtisadi' that
>the government is seriously considering operating a regular air route
>between Amman and Baghdad, as the relevant UN resolutions on Iraq do not ban
>aircraft from flying to Baghdad, especially those that carry passengers. He
>affirmed that the government and the concerned departments are discussing
>this subject.
>
>The source added that "the coming days will bring good news. A number of
>positive factors have appeared recently". He was thus hinting that a
>government decision is expected soon to resume flights to Baghdad.
>
>The source affirmed that airline companies have received verbal instructions
>to study their technical preparedness to deal directly with any decision
>issued in this regard. This includes refurbishing their offices in Baghdad
>and opening additional offices to face the expected increase in air bookings
>in the event flights are resumed.
>
>The `Al-Dustur al-Iqtisadi' has learned that the government on Thursday
>[14th September] discussed the technical and security aspects of this issue.
>It is likely that this step was within the framework of the preparations to
>resume flights to Iraq.
>
>Meanwhile, Ahid Qintar, director of the Royal Wings company told the
>`Al-Dustur al-Iqtisdadi': "We hope and fully desire to resume our flights to
>Baghdad. But this needs a decision on the practical and political levels. He
>noted that Royal Jordanian Airlines to which other Jordanian airline
>companies belong has discussed this subject with the concerned quarters and
>we are still awaiting any developments on this level."
>
>On the technical preparedness of airline companies to deal with a decision
>to resume flights to Baghdad, Qintar said: "We have high technical
>preparedness. The Royal Wings can start flights to Baghdad within a very
>short period in the event it is given the go-ahead. He noted that the
>Jordanian airline companies have kept their offices in Baghdad."
>Qintar added that several trade union, party and popular organizations have
>submitted requests to Royal Wings to rent aircraft for one trip to break the
>siege imposed on Iraq. This requires the approval of Ministry of Transport
>and the Civil Aviation Authority. But no approval for such requests has been
>received so far. In the events flights are resumed by a government decision,
>it will be easy to approve these requests...
>
>Russian oil and industrial delegation leaves by air.
>Source: Republic of Iraq Radio, Baghdad, in Arabic 1600 gmt 19 Sep 00
>
>The Russian Yak-42 aircraft took off from Saddam International Airport at
>1725 carrying a Russian oil and industrial delegation.
>
>The Russian delegation, whose visit to Iraq lasted for three days, was
>headed by Arngolt Bekker, board director of Stroytransgaz Company. In a
>statement to the Iraqi News Agency, Arngolt Bekker said his visit to Iraq
>was important, positive, and reflected the eagerness of the Russian oil
>companies to work in Iraq and participate in cooperative projects. He added
>that he held intensive talks with ranking Iraqi officials, including Deputy
>Prime Minister Tariq Aziz, as well as the ministers of industry and
>minerals, trade, and housing and reconstruction.
>The delegation held a seminar to acquaint the competent officials in the Oil
>Ministry with the operations and activities of the Stroytransgaz Company in
>setting up oil projects, pipelines construction, and gas transportation.
>
>The Russian delegation was seen off at the airport by the director general
>of the Oil Projects Company at the Oil Ministry and the Russian charge
>d'affaires in Baghdad.
>
>Culture minister briefs Saddam, senior officials on OPEC meeting.
>Source: Republic of Iraq Radio, Baghdad, in Arabic 1030 gmt 19 Sep 00
>
>President Saddam Husayn, may God protect him, has presided over a meeting
>that was attended by Izzat Ibrahim, vice chairman of the Revolution Command
>Council; Taha Yasin Ramadan, vice president of the republic; Tariq Aziz,
>deputy prime minister; and Humam Abd-al-Khaliq, minister of culture and
>information.
>
>The culture minister briefed the audience on several issues discussed at the
>OPEC culture ministers' meeting in Caracas last week.
>
>Official responds to Albright statement on sanctions.
>Source: Republic of Iraq Radio, Baghdad, in Arabic 1400 gmt 19 Sep 00
>
>A spokesman for the Foreign Ministry commented on the statement made by US
>Secretary of State Madeleine Albright in which she claimed that the solution
>to the siege on Iraq is in the hands of the Iraqi president.
>
>The spokesman said: The solution is for the United States to end the siege.
>This means that the US President must take this decision. This decision
>should be adhered to by international Zionism in the United States because
>the injustice suffered by Iraq has no justification on legal grounds. They
>should stop injustice and aggression. Dealings [between Iraq and the United
>States] should be based on full equality and free will of the two countries.
>
>The United States is Zionist. This means that the United States is in the


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