U.N. extends oil-for-food programme for Iraq

UNITED NATIONS, JULY 4. The Security Council voted unanimously for a five- month routine extension of the Iraq ``oil-for-food'' programme after Russia forced the United States and Britain to put off a plan to revamp 11-year-old sanctions against Baghdad.

Haggling continued until the last minute with Russia insisting all references to the U.S.-British proposals be deleted. In the end, the Council yesterday included one oblique reference to discussions of the proposals among a series of resolutions pertaining to the oil-for-food programme.

A vote had to be taken by midnight on Tuesday, before the expiration of the oil-for-food programme, which allows Iraq to export oil and buy civilian goods under U.N. supervision to offset the impact of the sanctions. They were imposed when Baghdad's troops invaded Kuwait in August 1990. Russia, which has commercial interests in Iraq, wants the sanctions suspended. It threatened to veto the U.S.-British plan to overhaul the embargoes as part of the oil-for-food programme, forcing a delay of at least five months and now wants no further discussions on it.

The U.S.-British ``smart sanctions'' would have eased civilian imports to Iraq while tightening controls on smuggling oil and prohibited weapons. One aim was to counter Iraqi claims that the sanctions were responsible for the hardship of ordinary Iraqis. Iraq stopped oil sales on June 4 to protest discussions on the U.S.-British plan. It has said it would resume shipments if the oil-for-food plan was extended without any mention of the proposed sanctions overhaul. But it is expected to follow Russia's lead. Baghdad had also threatened to stop oil flows to its neighbours, Jordan and Turkey, if they cooperated with the U.S. and Britain. Both countries criticised the ``smart sanctions,'' which would require them to subject their trade with Iraq to some U.N. oversight.

The Russian veto threat was a setback for the new administration of the President, Mr. George W. Bush, which had given a new policy on Iraq a high priority. With a five-month delay, Iraq for now got what it demanded - a continuation of the status quo, which Western diplomats say allows the Iraqi President, Mr. Saddam Hussein leeway in illegal trade and kickbacks on oil sales.

The delay - perhaps indefinitely - on a revamp of the sanctions may also bolster Pentagon conservatives who prefer military rather than diplomatic options with Iraqi leaders. But the British Ambassador, Mr. Jeremy Greenstock and the U.S. Ambassador, Mr. James Cunningham both told the Council they intended to push ahead with their new sanctions plan. ``There is broad support in the Council for U.S.-U.K. efforts to continue,'' said Mr. Cunningham. ``It would have been adopted today were it not for a threat of a veto.''

- Reuters

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