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.

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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.


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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.

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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.
                                                                      

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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.
                                                                      

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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].' 

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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.

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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
     

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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.


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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.


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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.

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