By OGJ Editors
WASHINGTON, DC, May 7 --US Department of State officials May 6 said there is a "strong consensus" among the permanent members of the United Nations Security Council to support a new system of export controls on Iraq as part of the oil-for-aid program.
The new "smart" sanctions plan, under discussion for over a year, would lift UN controls on humanitarian and civilian goods purchased with Iraq oil revenue. But Iraq in turn would have to allow the UN to resume weapons inspections.
A more formal UN proposal is expected as soon as this week.
"This change should further improve the flow of humanitarian and civilian goods to the Iraqi people. Of course it will only work if the Iraqi regime begins to cooperate fully with the oil-for-food program rather than working to undermine it, and particularly by using its oil as a propaganda tool," a US State department spokesman said.
"The goal is to provide the money necessary and to have it spent on the needs of the Iraqi people, and unfortunately, the Iraqi government has repeatedly failed to do that."
Embargo threat muted
Iraq this month resumed exports under the UN aid program after a month's absence. Iraqi President
Saddam Hussein withdrew from world oil markets to protest Israeli troops in Palestinian areas and sought solidarity from other Arab oil exporters. They however refused to join the boycott.
UN officials estimate Iraq's action resulted in a $1.3 billion loss for the aid program, which the State department calls "the mainstay of the Iraqi civilian economy."
Now however there is a question whether US companies will be able to participate in the program. The aid program is administered by the UN, which controls the oil revenue so petrodollars cannot be used to rebuild the military.
But some critics of the program, led by the Senate Committee on Energy and Natural Resources' ranking member, Sen. Frank Murkowski (R-Alas.), say the UN program is flawed and has not stopped Saddam from slowly rebuilding his arsenal.
His amendment to prevent US companies from buying Iraqi oil, even under the auspices of the current UN aid program, is in a pending Senate energy proposal. The State department has disavowed the proposal, but the White House has been quiet on the issue.
A House energy bill does not include an Iraqi oil ban, but some critics of the plan fear the final measure may include it.
When the measure was debated on the Senate floor, only 10 senators rose in opposition to Murkowski's amendment; however, one of those senators, Sen. Jeff Bingaman (D-NM) will be involved in the final negotiations of the bill as it is being prepared for President Bush's consideration (OGJ Online, Apr. 24, 2002.)
The UN oil-for-aid program began in 1996 to help ordinary Iraqis cope with sanctions imposed after Iraq's 1990 invasion of Kuwait.
It initially provided for the importation of food and basic humanitarian goods but has since been expanded to cover public services such as education and water supply.
