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Excerpts from previous political updates, by subject:

5-17-01



A new British-American sanctions plan proposed

The United States and Britain have proposed a plan that appears to include the following features. First, Iraq would be able to buy any item it wished as long as the item did not appear on a special list of controlled items. This new US-British control list includes military items and civilian dual-use items that can help make weapons of mass destruction. Contracts containing items on the list would be referred to the UN Sanctions Committee for approval or denial. The plan would apparently give to the UN Monitoring, Verification and Inspection Commission (UNMOVIC) the job of screening contracts to determine whether an item is on the list and therefore should be referred to the Committee.

Second, all of Iraq's oil revenue under the oil-for-food program would continue to go into a UN-administered escrow account that pays for Iraq's civilian purchases. However, it is unclear what position the US-British plan takes on the issue of whether the escrow account can be used to pay Iraq's debts as well.

Third, it is unclear what position the US-British plan takes on the question of allowing foreign investment in Iraq's oil fields.

Fourth, it is unclear whether the details of any plan to combat oil smuggling have been worked out. An estimated two to three billion dollars worth of Iraqi oil is now being sold outside UN control. Most of that oil flows through Jordan, Syria and Turkey. The new plan would authorize Iraq to export at least some of this oil under UN control and would authorize countries bordering Iraq to be compensated from the UN escrow account if Iraq retaliated by cutting off the oil shipments. Also, the plan would apparently include additional personnel to control shipments crossing Iraq's borders. Iraq has said it will not agree to this plan and will stop the oil shipments if the border states agree to it.

 

 

 


 

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