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DATE=12/29/97
TYPE=CORRESPONDENT REPORT
NUMBER=2-224596
TITLE=U-N / IRAQ OIL (L - ONLY)
BYLINE=MAX RUSTON
DATELINE=NEW YORK
CONTENT=
VOICED AT: 
INTRO:  THE UNITED NATIONS EXPECTS TO AUTHORIZE IRAQ TO RESUME 
OIL EXPORTS THIS WEEK, UNDER THE U-N OIL-FOR-FOOD ARRANGEMENT.  
V-O-A'S MAX RUSTON REPORTS FROM NEW YORK.
TEXT:  THE UNITED NATIONS SECRETARY-GENERAL'S OFFICE SAYS IRAQ 
APPEARS TO HAVE SUBMITTED ALL THE NECESSARY PAPERWORK TO RESUME 
OIL EXPORTS.  U-N SPOKESMAN FRED ECKHARD SAYS THE PAPERWORK, 
WHICH INCLUDES IRAQ'S AID DISTRIBUTION PLAN, WAS DELIVERED TO U-N
OFFICIALS IN BAGHDAD DURING THE WEEKEND.  HE SAYS IT SHOULD BE 
POSSIBLE TO APPROVE THE APPLICATION BEFORE THE END OF THE WEEK.
                         /// ECKHARD ///
         WE WOULD HOPE TO BE ABLE TO SEND THEM ON TO THE 
         SECRETARY-GENERAL, WITH A RECOMMENDATION TO HIM, BY LATE
         WEDNESDAY.  BUT AS THAT IS NEW YEAR'S EVE, TO BE SAFE, I
         THINK I WILL SAY THAT BY THE END OF THIS WEEK WE WOULD 
         HOPE THAT THE PACKAGE COULD BE APPROVED BY THE 
         SECRETARY-GENERAL.
                         /// END ACT ///
IF APPROVED, THE OIL-FOR-FOOD ARRANGEMENT, WHICH BEGAN ONE YEAR 
AGO, WILL MOVE INTO ITS THIRD PHASE.  DURING EACH OF THE FIRST 
TWO PHASES, IRAQ WAS ALLOWED TO EXPORT TWO-BILLION DOLLARS OF OIL
IN EXCHANGE FOR FOOD, MEDICINE AND OTHER HUMANITARIAN SUPPLIES.  
IRAQI OIL SALES ARE OTHERWISE BANNED BY INTERNATIONAL SANCTIONS 
IMPOSED AFTER IRAQ'S 1990 INVASION OF KUWAIT.
                      /// REST OPTIONAL ///
IRAQ IS PERMITTED TO USE ABOUT 65 PERCENT OF THE MONEY EARNED 
FROM OIL EXPORTS FOR THE PURCHASE OF HUMANITARIAN SUPPLIES.  THE 
REMAINDER GOES TOWARD GULF WAR REPARATIONS AND OTHER COSTS.  THE 
U-N SECURITY COUNCIL IS EXPECTED TO HOLD TALKS BEFORE THE END OF 
JANUARY ON PROPOSALS TO INCREASE THE AMOUNT OF OIL IRAQ IS 
ALLOWED TO EXPORT.
IRAQI OIL MINISTER AMIR MUHAMMAD RASHEED SAYS FRANCE, RUSSIA AND 
CHINA WILL RECEIVE TOP PRIORITY IN ITS OIL EXPORT CONTRACTS.  ALL
THREE COUNTRIES HAVE ADVOCATED EASING SANCTIONS AGAINST IRAQ.  
(SIGNED)
NEB/NY/MPR/LSF/RRM
29-Dec-97 2:04 PM EST (1904 UTC)
NNNN
Source: Voice of America
.