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http://quote.bloomberg.com/apps/news?pid=10000087&sid=aZqQHCdEZIGw&refer=top_world_newshttp://quote.bloomberg.com/apps/news?pid=10000087&sid=aZqQHCdEZIGw&refer=top_world_news
U.S. to Ask UN Tomorrow to Lift Sanctions on Iraq (Update1)
By Bill Varner
United Nations, May 8 (Bloomberg) -- The U.S. will offer a Security Council resolution tomorrow calling for the immediate lifting of United Nations sanctions on Iraq and for the resumption of oil exports under UN and World Bank monitoring.
The resolution calls for only a limited UN role, allowing Secretary-General Kofi Annan to continue for four months a program that has allowed Iraq to export oil to buy food and medicine, according to a copy obtained by Bloomberg News. It would protect Iraq's oil industry from lawsuits stemming from prewar claims, a provision that may draw resistance from France and Germany, whose companies had contracts with Saddam Hussein's regime.
Diplomats said that while the measure will face a tough debate, it stands a good chance of winning approval by the 15- nation council, most of whose members opposed the U.S.-led war.
``The general mood in the Security Council is that the war we didn't want is over now, so let's not repeat the debate of yesterday,'' said Ambassador Gunter Pleuger of Germany, a council member that was among the main opponents of the war. ``The council is in a constructive and cooperative mood.''
White House spokesman Ari Fleischer said Spain and the U.K. will co-sponsor the resolution. The proposal is negotiable, with the goal of adoption before the UN's oil-for-food program expires on June 3, a U.S. official told reporters at the UN.
Weapons Inspectors
Ambassadors from Chile and Spain, which are also Security Council members, said while the 15-member panel is not as divided as before the war, debate on the resolution would take several weeks because there's no mention in the text of the resumption of UN weapons inspections, one of the most contentious issues.
``It is not going to be a question of a couple days, but the atmosphere is good,'' Spanish Ambassador Inocencio Arias said.
France and Russia, permanent council members with the power to veto the resolution, have said the sanctions shouldn't be lifted until UN monitors certify that Iraq is free of weapons of mass destruction.
The sanctions should be lifted, ``but this can happen on the basis of implementing provisions of old UN Security Council resolutions, that is, on the basis of international law,'' Russian Deputy Foreign Minister Yuri Fedotov said after meeting in Moscow with U.S. Undersecretary of State Kim Holmes, according to China's Xinhua press agency.
`A Different Iraq'
The U.S., which has assembled its own team of inspectors, opposes the return of the UN teams. It wants the sanctions removed to give Iraqis a chance to raise oil-export revenue that will help in rebuilding the country.
``The president feels very strongly that sanctions should be lifted entirely,'' Fleischer said. ``This is a different Iraq, and it deserves to be treated differently.''
The U.S. resolution would call for the International Monetary Fund to join the UN and World Bank in monitoring Iraqi oil exports. Money from the sale of oil, along with funds placed in the UN-controlled escrow under the oil-for-food program, would be deposited in a fund to be audited by accountants chosen by the UN, World Bank and IMF.
The resolution says all oil and natural gas sales ``shall be consistent with prevailing international market prices, to be audited by independent public accountants'' reporting to the UN, World Bank and IMF.
Immune From Lawsuits
Oil and natural gas, and proceeds from their sales, ``shall be immune from judicial, administrative, arbitration or any other proceedings,'' the resolution states.
Other provisions call for Annan to name a special coordinator to assist the delivery of humanitarian aid and the reconstruction of Iraq. UN members are asked to help the transitional Iraqi government now being formed and to transfer financial assets from Hussein's regime to the new Iraqi Assistance Fund.
Still, the resolution doesn't give the UN substantial responsibility. It says only that its coordinator will help organize the activities of UN and other agencies and work with the Iraqis and U.S.-led coalition to form a government.
The UN isn't given any formal responsibility for meeting Iraq's humanitarian needs or rebuilding the nation.
France, Germany, Russia and most other Security Council members have called for the UN to play a central role in Iraq to limit U.S. control over revenue from oil sales and the awarding of reconstruction contracts that could total $100 billion.
`Like Day and Night'
The council voted on March 28 to give Annan wide authority over the oil-for-food program, which he suspended when the war began. The UN said 60 percent of Iraq's 23.6 million people have depended on the program, which has provided $27 billion in food, medicine and oil industry spare parts since 1996.
Ambassadors representing other council members said the atmosphere at the UN was different than before the war, when the debate over UN authorization split the body and led the U.S. to withdraw a resolution seeking that backing.
``It's like day and night,'' said Ambassador Stefan Tafrov of Bulgaria, a council member.
``The atmosphere is different because we need to do something for the Iraqi people, who are suffering,'' Chinese Deputy Ambassador Zhang Yishan said.
Last Updated: May 8, 2003 16:48 EDT
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