IRAQ SANCTIONS MONITOR Number 173 Tuesday, December 19, 2000 FRESH FROM ITS INTERNATIONAL PREMIERE....... VHS copies of the film 'Big Ben to Baghdad', the epic account of last year's journey in a 37-year-old Routemaster bus from London to the capital of sanctions-engulfed Iraq. The 65-minute-film costs £9.99 from the Mariam Appeal, 13a Borough High Street, London+++++++++++++++++LATEST UN oil overseers accept Iraqi oil-pricing formula: diplomats UNITED NATIONS, Dec 18 (AFP) - The United Nations' oil overseers have accepted a new formula proposed by Iraq for the pricing of its crude through the second half of December, diplomats here said Monday. The new formula is expected to be approved Tuesday by the UN Sanctions Committee, said the diplomats, speaking on condition of anonymity. UN spokesman Fred Eckhard confirmed the Iraqi oil authority had requested on Friday a revision of the pricing formula "in light of recent market changes. " Iraq on December 13 resumed its oil exports after suspending them for 12 days due to the dispute over the UN-run 'food-for-oil' programme, which allows the sanctions-hit state to export crude in six-month phases to purchase essential goods. According to the diplomats here, Baghdad had initially asked for a 70-cent reduction in the price per barrel of oil which it exports to Europe, while it wanted the pricing formula for exports to North America and Asia left unchanged. The UN's oil overseers has accepted a 50-cent reduction in the price per barrel of oil destined for Europe, and has recommended this formula to the UN Security Council's Sanctions Committee, the diplomatic sources said. The price of oil on world markets fluctuates constantly. When Iraq submits its monthly pricing formula, it asks the UN to sell its oil at a fixed discount below the fluctuating price of benchmark oils. However Iraq's advocacy of a lower official prices for its oil exports to Europe raised suspicions here that the latest pricing formula was intended to conceal a surcharge. According to a report in the authoritative Middle East Economic Survey magazine in late November, Iraq wants certain purchasers of its oil to pay a surcharge into a bank account not controlled by the UN. UN officials and diplomats said that such a surcharge would violate UN sanctions. Eckhard said the Security Council's 661 Sanctions Committee, which deals with Iraq, had until 2300 GMT Tuesday to reach a decision on the proposed pricing formula for the second half of December. Benchmark Brent North Sea crude for delivery in February stayed above 26 dollars in London Monday, but OPEC said that its basket oil price had fallen to 22.92 dollars. ______________________________________________________ PUK says Turkish forces `not present` in northern Iraq - Iran report Text of report by Iranian news agency IRNA Sanandaj, 19 December: Quoting the spokesman for the Patriotic Union of Kurdistan [PUK], the [PUK] radio denied on Tuesday [19 December] that Turkish forces were present in areas which are under the PUK's control. The radio which can be heard in Sanandaj [in Iranian Kordestan], said that such news reports were broadcast because the Turkish Kurdistan Workers' Party (PKK) had hatched plots aimed at resuming the war in Iraqi Kurdistan. On Monday [18 December], the PKK radio reported that Turkish army commandos had entered the areas which were under the PUK's control and that they had ensconced themselves in Charqurna and Raniyah. _______________________________________________________ Baghdad, Moscow coordinate for lifting of embargo BAGHDAD, Dec 18 (AFP) - A Russian envoy held talks here Monday with Iraq's Deputy Prime Minister Tareq Aziz on efforts to lift the decade-old UN embargo on Baghdad, the official news agency INA reported. It said Nikolai Kartuzov and Aziz reviewed "the latest developments on the Iraq situation and the continuation of coordination between the two countries". On Saturday, Kartuzov said Russia was working "seriously" for a lifting of the embargo slapped on Baghdad for its 1990 invasion of Kuwait and linked to the elimination of banned Iraqi weaponry. The foreign ministry in Moscow, meanwhile, said Russia was seeking a renewal of cooperation between Iraq and the United Nations on the issue of disarmament to clear the way for a suspension of sanctions to be followed by their lifting. Baghdad and the United Nations are expected to reopen a dialogue in January, more than a year after a UN Security Council resolution offering a suspension of sanctions in return for Iraq's cooperation with a new arms control regime. Iraq has rejected the resolution which dates back to December 1999, a year after UN arms inspectors were evacuated on the eve of a US-British air war. _______________________________________________________ Iraqis take Ramadan `iftar` in Saddam's palaces BAGHDAD, Dec 18 (AFP) - President Saddam Hussein has opened his palaces to the Iraqi people to take the "iftar" meal which breaks the daily dawn-to-dusk fast during the Muslim holy month of Ramadan. Iraqi TV has shown hundreds of men, women and children, some of them carrying portraits of Saddam and Iraq's flag, streaming into the "people's palaces" on a nightly basis. "The gatherings are a sign of their support for President Saddam Hussein," said Ahmad Hussein Khodeir, head of the president's office, quoted in Baghdad newspapers on Monday. Such iftars were also organised last year for Ramadan, after Iraqis had gathered at the palaces to serve as "human shields" against US and British air strikes in December 1998. _______________________________________________________ Kuwaiti politicians agree to testify for death row colonel: lawyer KUWAIT CITY, Dec 18 (AFP) - Several Kuwaiti politicians and a military official have agreed to testify for a former colonel facing the gallows for heading a puppet government after Iraq's 1990 invasion, his defence lawyer said Monday. "At least 10 influential political figures and a high ranking military official have agreed to testify in favour of my client Alaa Hussein Ali," Nawaf Sari told Kuwait's cassation court. "I believe this will completely change the course of the trial in my client's favour," Sari told reporters outside the courtroom. He declined to name any of the personalities. Although the cassation court's normal role is to ensure the law has been correctly implemented, Sari hopes to press for a complete revision of the trial and to call new witnesses. Verdicts by Kuwait's highest court are final, but any death sentence upheld by the cassation court needs to be approved by the emir, Sheikh Jaber al-Ahmad al-Sabah, who has the power to commute sentences. Ali was sentenced to death in absentia in 1993. The sentence was confirmed by the criminal court on May 3 when he was convicted of treason, collaboration with the enemy, and undermining Kuwait's security and sovereignty. On July 9, an appeals court upheld the sentence. During Monday's session, Ali himself made a passionate appeal to the five-judge panel headed by Kuwait's new chief justice Abdullah al-Issa to spare his life, insisting he was forced to lead the puppet government. "I want every one of you to just imagine they were in my position on August 2, 1990. Just imagine how they threatened me with my wife and children, and then decide," Ali told the judges, referring to the invasion day. He reiterated that senior Iraqi officials had forced him to accept the post of prime minister, which was created immediately after Iraq's troops invaded and occupied the oil-rich emirate. Speaking from a metal cage, before the court was adjourned until January 29 for final arguments, Ali told reporters he had asked Kuwait's emir to pardon him the same way as the others members of his short-lived cabinet. Charges against Ali's eight-member puppet government were dropped after their return to Kuwait in March 1991, shortly after the Gulf Arab emirate was liberated in the Gulf War. Ali, who continued to live in Iraq until 1997, flew back to Kuwait voluntarily along with his three sons and daughter last January from Norway. _____________________________________________________ Iraqi Airways says Saddam International Airport is ready for foreign flights DEC 18, 2000, M2 Communications - Iraqi Airways has indicated that Saddam International Airport is ready to receive foreign carriers and that several foreign airlines were making preparations to recommence services to the country. Iraqi Airways' director-general was quoted by the al-Thawra newspaper as stating: 'Airlines of Jordan, Egypt, Yemen, United Arab Emirates and Russia have made official requests to Iraq to start regular service and Iraq has accepted.' It was also reported that the Iraqi carrier had reopened its offices in Amman and Damascus, according to Reuters. Airlines have been banned by the United Nations from operating commercial services to Iraq since the 1991 Gulf War, however humanitarian flights are allowed to operate there with prior permission. Iraq, France and Russia have recently argued that the UN sanctions do not actually ban commercial flights and many countries have operated so-called humanitarian flights carrying business people, politicians and medical teams in a show of solidarity with Iraq. Jordan has operated several flights to Baghdad with paying passengers in recent weeks. In other news, Airbus Industrie, the European aircraft manufacturer, has a long-standing deal with Iraqi Airways for five Airbus aircraft and the carrier has stated that 'The company is committed to the contract but it cannot implement it now and contacts are on with [Airbus Industrie].' ______________________________________________________ Jordanian airlines stops regular flights to Iraq Text of report by Jordanian weekly Al-Majd on 18 December Al-Majd has learned that the management of Royal Jordanian Airlines decided two days ago to stop its regular flights to Iraq. These flights began last month with one regular flight every Thursday. A reliable source told Al-Majd that the management has decided to operate occasional, humanitarian and irregular flights instead. The source added that the management was forced to make this decision in response to the UN Sanctions Committee's objection to regular weekly flights between Amman and Baghdad. _____________________________________________________ Al-Bakr oil loadings continue; buyer says no premium paid New York--Dec. 18--Crude oil loadings are continuing at the Iraqi port of Mina al-Bakr, despite the still unresolved standoff between Baghdad and the U.N. over Iraq's request to customers for a non-U.N.-approved premium of 40 U.S. cents per barrel on loadings, shipping and crude market sources said Monday. Bayoil had loaded a very large crude carrier (VLCC) oil cargo from al-Bakr over the weekend, the first such cargo to be loaded at the terminal since exports were halted, shipbroking sources said. The Skopelos had loaded a 260,000-tonne cargo for Bayoil and the ship had now sailed for the U.S. Gulf, the sources said. It was unclear, however, if Bayoil had paid the 40c premium demanded by Iraq's State Oil Marketing Organization (SOMO), the sources said. Source: Bridge News ______________________________________________________ Iraqi spokesman reports on US-UK air sorties on 18 Dec 00 Text of report by Iraqi radio on 18 December The US and British ravens of evil have resumed their treacherous combat sorties against our secure cities, with direct support from the failing ruling regimes in Saudi Arabia and Kuwait, with the aim of inflicting further harm on the jihad march of our struggling people under the historic leadership of His Excellency leader President Saddam Husayn. They were confronted by our heroic missile force and ground defences and forced to leave our space disappointed and cursed back to the bases of evil and aggression. In a statement to INA, a military spokesman for the Air Defence Command said: At 1220 [0920 gmt] today, the US and British ravens of evil violated our airspace through Turkish and Saudi airspace and with direct support from the ruling regimes in Saudi Arabia and Kuwait. These regimes extended support for the hostile ravens, which conducted 16 combat sorties from Saudi airspace and 18 combat sorties from Kuwaiti airspace, backed by an AWACS aircraft flying in Saudi airspace and an A2-C aircraft flying in Kuwaiti airspace. They flew over areas in the Governorates of Basra, Dhi Qar, Al-Muthanna, Al-Qadisiyah, Karbala, Al-Najaf, and Maysan. They were confronted by our heroic missile force and ground defences and were forced to leave our airspace to the bases of aggression in Saudi Arabia and Kuwait. The spokesman added: At 1030 today, the US and British ravens of evil violated our airspace through Turkish airspace and with direct support from the Turkish side and an AWACS aircraft flying in Turkish airspace. They conducted 26 combat sorties from Turkish airspace. They flew over areas in the Governorates of Dohuk, Arbil and Ninawa. They were confronted by our valiant ground defences and forced to leave our airspace to the bases of evil and aggression in Turkey. Thus, the total number of combat sorties staged by the ravens since the Conquest Day on 17 December 1998 becomes 5,780 from Turkish airspace, 14,386 from Saudi airspace, and 7,764 from Kuwaiti airspace. The total number of combat sorties conducted by the ravens from Saudi, Kuwait and Turkish airspace totals 27,930. _______________________________________________________ Trade Ministry official says US, Britain suspended 41 contracts Text of report by Iraqi radio on 18 December An official Trade Ministry source today announced that the US and British representatives on Committee 661 have suspended 41 contracts Iraq had concluded with world companies within the sixth, seventh and eighth phases of the oil-for-food and medicines formula [UN Resolution 986]. In a statement to [Iraqi News Agency] INA, the source said that the contracts were suspended during the committee's sessions on 7-13 December. The source said that the contracts included spare parts for rehabilitating oil facilities and power systems, switchboards, diggers for the transport and communications sector, axial irrigation system, pumping equipment, laboratory supplies, oil extraction units, sterilization devices for the agricultural sectors, trucks' wheels, power generators, raw materials for the trade sector, multi-purpose vehicles for Baghdad Municipality, air compressors for water and sewage, medicines for the health sector, and pickups for the power sector. The source said that these contracts were concluded with Jordanian, Egyptian, Syrian, Lebanese, Tunisian, UAE, Saudi, French, Chinese, Russian, Spanish, Indian, Belgian, Cypriot and Turkish companies. ______________________________________________________ Parliament approves to extend Operation Northern Watch >From TURKISH DAILY NEWS, December 18th, 2000 Stating that Operation Northern Watch has been working under the control of Turkish officers and under rules set up by Turkish authorities, Defense Minister Cakmakoglu said its term should be extended for the sake of Turkey's national interest Turkish Parliament once again extended the term of Operation Northern Watch on Sunday upon the demand of the Prime Ministry. Operation Northern Watch was set up in 1991 to prevent Iraqi President Saddam Hussein and the Iraqi army from extending its hold over the North. The term of Operation Northern Watch has been extended by Turkish Parliament every six months since it began. ________________________________________________ tel: +44 (0)20 7403 5200 fax: +44 (0)20 7403 3823 email: [EMAIL PROTECTED] web: www.mariamappeal.com