IRAQ SANCTIONS MONITOR Number 168 Friday, December 9, 2000 LATEST NEWS++++++ 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 panel agrees on Iraqi oil prices. UNITED NATIONS Dec 8 (Reuters) - A U.N. committee monitoring Iraqi sanctions agreed late on Friday to Baghdad's proposal for the price of its December oil, opening the way for a resumption of Iraq crude exports, suspended last week. The Security Council Iraqi Sanctions Committee, as expected followed the advance of U.N. oil experts, known as overseers, who recommended on Thursday the latest price proposal by Iraq be accepted. Individual committee members had until 6 p.m. EST (2300 GMT) Friday to object to Iraq's proposed oil prices and a U.N. official said none of them did. Iraq last week cut off its 2.3 million barrels per day of oil flows, about five percent of the world's exports, after the overseers said the prices Baghdad submitted for December were too low and rejected them. Industry sources said this was an attempt by Baghdad to compensate for a 50 cent per barrel surcharge it wanted paid directly into its own bank account, rather than to an U.N. escrow account, as required under the sanctions, imposed after Iraq invaded Kuwait in August 1990. But buyers of Iraqi oil refused, saying this violated the sanctions. Baghdad earlier denied it had made such a demand and oil traders reported it had been dropped. Under a U.N. oil-for-food program, Iraq is allowed to sell unlimited quantities oil, under U.N. supervision, in order to buy food, medicine, oil equipment and a host of other goods in an effort to ease the impact of the sanctions on ordinary Iraqis. This year, it has sold about $17 billion of oil. The oil revenues are controlled by the United Nations, which then pays suppliers of goods Iraq has ordered. Iraq's recent moves were seen as an attempt by Baghdad to gain control over some of its oil sales monies. Iraq's cut-off of oil has cost a tight world market approximately 15 million barrels in lost export volumes. But oil prices have fallen some $6, almost 20 percent, since the stoppage, mainly because the United States and others said they would make up for Iraqi crude by using their own oil reserves. U.S. crude oil prices dropped another 91 cents to $28.30 a barrel in Friday trading on the New York Mercantile Exchange. Iraq's new prices include incentives to entice reluctant buyers following the week of suspended crude exports, the diplomats reported. The prices are 30 cents below fair market value for shipments to the United States and Europe and 20 cents for Asian shipments. The U.N. oil overseers acknowledged they were close to those they and the Security Council's sanctions committee rejected 10 days ago. But they recommended approval anyway, saying that a drop in physical oil prices since and then meant buyers needed an incentive, the diplomats said. Iraq's Oil Minister Amir Muhammed Rasheed said on Thursday that Baghdad was studying a U.N. Security Council's resolution which on Tuesday renewed the oil-for-food program for another six months. The program and any extension requires Iraq's approval. _____________________________________________________ Iraq says suppliers fail to respect contracts. Dubai - Iraq's special envoy arrived in the UAE yesterday to congratulate President His Highness Sheikh Zayed bin Sultan Al Nahyan on his swift recovery and safe return home. Iraqi Trade Minister Mohammed Mahdi Saleh, scheduled to return to Baghdad today, also took the opportunity to reiterate his government's latest challenge to the crippling UN sanctions. On December 1 Iraq halted oil exports when importers refused to pay a surcharge - 50 cents a barrel - outside the UN oil-for-food programme. Saleh conveyed Baghdad's commitment to rebuilding its economy, at an opportune moment when international public opinion seems to be shifting in its favour. "The Iraqi government took this decision in order to cover oil sector expenses," Saleh said. "Otherwise it will not be able to keep producing and exporting oil." Whether this will negatively impact on Iraq's economy is of little concern, he said. "Our economy is already in dire condition," said Saleh, pointing out that companies with which Iraq has been dealing under the oil-for-food programme have failed to respect the contracts. He presented a chart listing contracts made between 1997 and the present, indicating the total sum agreed upon against the actual quantity received. For instance, Baghdad has only received 61 per cent of food, 38 per cent of medical supplies, 15 per cent of electrical equipment, and 39 per cent of agricultural goods. Saleh also claimed that out of $40 billion in exports during the past four years, less than 23 per cent was actually left after deducting expenses. He compares the plight of his country's people under sanctions to that of Palestinians besieged by Israeli armour. "The goal is the same," said Saleh, echoing Iraq's habitual lament. "To bring Arabs into submission." He expressed the need to rebuild Iraq's oil sector and in so doing replenish other sectors in order to create jobs for Iraqi people and allow them to reap the benefits of their own resources. "It is our right to determine the price of our oil and increase exports in the future," he said. The move to halt oil production and exports comes at a time when Iraq notes "changes in Arab and international public opinion... calling for the lifting of the sanctions," said Saleh. "Only the U.S. and Britain are opposing." He condemned the role played by neighbouring countries, namely Saudi Arabia, Kuwait and Turkey, in the ongoing assault against Iraq, by allowing their territory to facilitate US and British air raids. "International public opinion, especially European, is with us," stressed Saleh. "They are calling for an end to sanctions and an end to the air attacks that kill so many people daily." He referred to the numerous solidarity flights that have flown into Baghdad during the past few months - from Jordan, Syria, Egypt, Spain, Russia, Ireland, and more recently France. _______________________________________________________ Iraq stands firm in its demand for oil surcharge. Dubai - Whatever the consequences for the economy in the short term, Iraq will stand firm in its decision to halt oil exports until buyers agree to the 50-cent-a-barrel surcharge that Iraq demands be paid outside UN sanctions controls, according to Trade Minister Mohammed Mahdi Saleh. "And we have also taken a decision not to supply companies which sell our oil to the U.S. or Britain, and others opposed to the Arab people. Such companies will be placed under a partial or full ban," the minister said. Iraq, which produces about 2.5 million barrels a day and makes up 5 per cent of world oil exports, halted exports on December 1, but indicated yesterday that it was ready to resume pumping. The surcharge was to be used to maintain and upgrade Iraq's oil infrastructure. Saleh termed the U.S. willingness to tap its Strategic Petroleum Reserves to help make up for lost Iraqi crude as fraught with risk. "And the gap that has been created by us not exporting is not something that can be filled easily, even if Saudi Arabia or others were to crank up their production. Our decision is a firm one. It's a continuation of the Iraqi struggle against the U.S. and the British and their aggressive stance on continuing with sanctions against our country. "We are not asking for a lot, and it does not cover all the expenses of our oil sector. But the surcharge is needed to meet the function of exporting the oil. "The surcharge is needed to meet the high expenses associated with the maintenance of our oil industry requirements. Four years back, we had to endure the high costs of upgrading the infrastructure ourselves. This time, we need to change that." As to whether Iraq can afford not export considering current high oil prices, Saleh said, "We are always optimistic about any decision we take. Going back to the recent past, everybody was saying Iraq would not survive for six months once sanctions start. "Now for 11 years we have shown Iraq can resist and be resilient against any sanctions. "Iraq also has revenue requirements for improving its school facilities, electricity, sewerage and create job opportunities for its people. It's time the Iraqi people started to really benefit from the export of their oil rather than bear expenses." Iraq uses its oil export income for UN-approved imports of food and medicines. The minister declined to comment on current stocks of these items, or how long they will last. But he said only 25 per cent of oil export revenues were made available to meet Iraq's requirements, and the rest went for war reparations and UN funding. Even there, out of an allocated $10.61 billion for food, Iraq received only $6.4 billion between early 1997 and November 29, 2000. In the case of medicines, out of $24.01 billion, only $902 million has been received by Iraq. For agriculture, of the total $2.97 billion required, Iraq has received only $451.6 million. For housing and industry, no revenues have been received at all, according to figures provided by the minister. ______________________________________________________ Iraqi ministry says Kuwait "playing with fire" by seizing vessels. The Iraqi Information Ministry spokesman has said that Kuwait was "playing with fire" when it seized five vessels carrying goods from Iraq in violation of UN sanctions. The spokesman said that the seizure was a foolish and irresponsible act, which threatened the freedom of shipping in the Gulf and confirmed that Kuwait was acting as a self-appointed "US and Zionist policeman". The following is the text of a report by Iraqi radio on 8th December: Once again, the Interior Ministry of the Kuwaiti regime yesterday, Thursday [7th December], announced that Kuwaiti coast guards seized five dhows, which they suspected were violating the sanctions imposed on Iraq. A statement by this ministry spoke about the great role played by the Interior Ministry to implement the UN resolutions. An official spokesman of the Culture and Information Ministry reacted to the practices of the Kuwaiti regime by saying: This foolish and irresponsible act by the Kuwaiti regime confirms once again that the Kuwaiti rulers are continuing their hostile and criminal conduct against Iraq. It also reveals that these rulers are determined to inflict further harm on the Iraqi people and to violate the international norms and charters and the relevant UN Security Council resolutions, although they are the only party that benefits from these resolutions. The Culture and Information Ministry spokesman added: The Kuwaiti regime's obstruction of commercial shipping in the Gulf in such a flagrant and repeated manner confirms the fact that the Kuwaiti rulers are trying to play a role that is much bigger than their true size. It also confirms that they appointed themselves a US and Zionist policeman that threatens the freedom of shipping in the Gulf. They still do not want to understand that their conduct is very serious indeed and that they should stop playing with fire. ____________________________________________________ Lebanon and Iraq agree to reopen oil pipeline. BEIRUT, Dec 8 (Reuters) - Lebanon and Iraq have agreed to reopen their oil pipeline via Syria which had been shut for 20 years, sources in a Lebanese delegation that was on a trip to Baghdad were quoted as saying. The Lebanese daily al-Mustaqbal, affiliated with Prime Minister Rafik al-Hariri, quoted sources in a delegation of officials and businessmen that was in Iraq on Thursday as saying the two countries had reached a "preliminary agreement" to reopen the pipeline which stretches between Kirkuk in northern Iraq and the Lebanese port city of Tripoli. Finance Minister Fouad Siniora, who was on the delegation to Baghdad, said at a news conference Lebanon was working to boost its economic cooperation with Iraq within the U.N. oil-for-food programme. He said the Syrian part of the pipeline between Kirkuk and Homs in Western Syria had already been repaired. Syria, Iraq and Lebanon were in talks to rehabilitate the pipeline between Homs and Tripoli, he said. "Iraq used to be Lebanon's first trade partner and closing the pipeline from Kirkuk to Tripoli inflicted heavy losses on Lebanon," he told the news conference on Friday. Siniora said Iraq expressed readiness to send a team of experts within 10 days to examine the pipeline. Syria is still waiting for U.N. approval to allow it ship Iraqi crude oil under the oil-for-food programme, adopted in 1991 to ease economic sanctions imposed on Iraq after driving its forces out of Kuwait. Ties between Lebanon and Iraq have been strengthening over the past two years and Iraq imported about $45 million in goods from Lebanon during the first six months of 2000. ______________________________________________________ Armed clashes in Northern Iraq. Fierce clashes broke out in Northern Iraq between the armed forces of the Patriotic Union of Kurdistan (PUK) and detachments of the Kurd Workers Party (KWP). Reports from the zone of hostilities indicate that both sides are suffering heavy losses. Nizmettin Tas, one of the KWP leaders, who was interviewed by the pro-Kurd Media TV, telecasting from Europe, said that two hundred PUK fighters were killed and twenty others were captured. On the other hand, fighters of Jelal Talabani's Patriotic Union of Kurdistan claim to have killed more than one hundred KWP men. They assert that PUK had lost only seventy men killed and fifty wounded. Armed clashes between PUK and KWP began early this week in the northern part of Iraq, bordering on Iran. This region is not controlled by Baghdad. kli/ezh. (c) ITAR-TASS 2000. tel: +44 (0)20 7403 5200 fax: +44 (0)20 7403 3823 email: [EMAIL PROTECTED] web: www.mariamappeal.com
