REVISED FRENCH PROPOSAL FOR THE SECURITY COUNCIL

11 June 2001

Procedures governing responsabilities of the Secretariat.

1 - Applications for each export of goods and non financial services to be financed from the United Nations Iraq account should be forwarded to the Secretariat either by at the request of the government of Iraq, with a copy to the exporting state through permanent or observor missions of the exporting state, or by UN agencies and programmes. The application must indicate that the exporter seeks payments from the Iraq account. The copy of the concluded contractual arrangements must be attached to the application.

2 - The Secretariat will also determine if the export of non financial services not related to goods exported under these procedures can be authenticated by the UN observers or independent agents in Iraq. Should the services cannot be authenticated, the Secretariat will forward the relevant contract to the Committee 661 for its consideration.

3 - Each application and the concluded contractual arrangements will be reviewed by one custom expert of the Secretariat and one dual-use expert from UNMOVIC, in order to determine whether the contract is eligible for payment from the Iraq account. For that purpose, the experts will verify that the contract does not include any item included in GRL or that the service is not related to any item included in GRL.

4 - In order to verify that the condition set forth in paragraph 3 are met, the two experts may request additional information from Iraq or the exporting states. The exporting states or Iraq must provide the additional information requested within a period of two months. If the two experts do not request any additional information within two business days, the procedure under paragraph 7 of these procedure applies.

5 - Should the experts conclude that the conditions set forth in paragraph 3 above is not met or should it conclude that the exporting states or Iraq has not provided the additional information within the period set forth in paragraph 4, the experts will so inform the exporting state and the Government of Iraq. In that event, the experts will immediatly inform the exporting state and Iraq that the contract should be submitted to the Committee for its consideration.

6 - If the exporting state or Iraq disagrees with the decision of the experts that the contract should be circulated to the Committee, it may appeal against this decision within two business days to the Executive Director of OIP. In that event, the Executive Director of OIP, in consultation with the Executive Director of UNMOVIC will designate immediately two different custom and dual-use experts for reconsideration of the contract in accordance with the procedures set forth in paragraphs 3, 4 and 5. The decision of these experts are endorsed by the Executive Directors of OIP and of UNMOVIC and are final and irrevocable.

7 - If the experts verify that the condition set forth in paragraph 3 above is met and therefore the exporter is eligible for payment from the Iraq account, they will inform immediatly the Government of Iraq and the exporting state in written form. The exporter will be considered as eligible for payment from the Iraq account on this date.

8 - No expert from both the Secretariat or UNMOVIC shall review a contract submitted by one exporting state between Iraq and a company of which the expert is a national. Moreover no expert from both the Secretariat or UNMOVIC shall review a contract that indicates that the goods or services concerned are originating from a state of which the expert is a national.

9 - Any Committee member may call for an urgent meeting of the Committee to consider revising or revoking these procedures. The Committee will keep these procedures under review and, in light of experience, will amend them as appropriate. If necessary, the Committee may suspend these procedures and standard procedures will apply.