FRENCH PROPOSALS FOR IRAQ
(25 August 1999)
1. New Control Commission
A Control Commission would be established, as a subsidiary body of the Council, to replace UNSCOM. It would take over all UNSCOM's responsibilities, equipment and archives. It would take on all the responsibilities entrusted by the Council to UNSCOM with respect to the verification of Iraq's compliance with its obligations resulting from paragraphs 8, 9 and 10 of SCR 687 (1991) and the other related resolutions, in accordance with the recommendations of the report of the Panel on disarmament and ongoing monitoring and verification in order to implement a reinforced system of ongoing monitoring. The structure of the Control Commission would be based on a plan, laid down by the Secretary-General, in keeping with the recommendations of the report of the Panel on disarmament and ongoing monitoring and verification. In particular, greater responsibilities would be given to the members of the Commission and a greater proportion of the personnel would be localized in Iraq. The recruitment and training of independent professional experts, from as many different nations as possible, and their direct employment by the United Nations would be sought; the resources made available to the Control Commission would have to be increased.
The rights of access to the sites and documents would be the same as those of UNSCOM. The IAEA's role and operation would be maintained. The Secretary-General would submit six-monthly reports to the Council on the progress of the Control Commission's work.
The Government of Iraq would bear all the Control Commission's expenses.
2. Mechanism for suspending the sanctions
The civilian sanctions on raw materials and civilian goods, other than those covered by the mechanism approved by SCR 1051 (1996) and the prohibitions on the import of commodities and civilian goods from Iraq, including the use of air and sea transport to deliver these goods and the prohibitions on all related financial transactions resulting from SCR 661 (1991) would be suspended for an initial period of 100 days, on receipt of a report from the Secretary-General indicating that the reinforced system of ongoing monitoring is operational and effective, after a safeguard period during which Iraq would cooperate with the Control Commission.
The Council could decide to continue the suspension for further 100-day periods on receipt of a report from the Secretary-General indicating that the reinforced system of ongoing monitoring is still operational and effective and that Iraq is cooperating with the Control Commission. At any moment, should he deem that the reinforced monitoring system were not operational and effective and that Iraq had ceased cooperating with the Control Commission, the suspension would end automatically without a decision of the Council.
3. Comprehensive monitoring (transparent account and five controls)
The Secretary-General would submit to the Council proposals for arrangements, based on the above-mentioned principles, for guaranteeing the full and effective implementation of the prohibitions referred to by paragraph 24 of SCR 687 (1991) and those on the items subject to the import-export mechanism approved by SCR 1051 (1996). Such arrangements would come into force after the suspension of the sanctions.
The comprehensive monitoring of Iraq would be based on a transparent account and the combination of five controls (on exports, imports of civil items, on transfers from Iraq's Central Bank, on weapons, and physical inspections of imports).
3.1. The conditions for the export of petroleum and petroleum products from Iraq would be based on the following principles:
* the principal elements of the petroleum and petroleum products contracts, including the related financial transactions, would be notified to the Secretary-General
* the petroleum and petroleum products should be transported using specified export routes (Kirkuk-Yumurtalik pipeline, the Mina al-Bakr oil terminal and other export routes) proposed by the Secretary-General;
* independent inspectors appointed by the Secretary-General would supervise the exports of Iraqi petroleum and petroleum products and verify that all the information notified to the Secretary-General by purchasers and by Iraq is accurate and honest.
3.2 The Secretary-General would appoint customs experts to monitor at Iraq's borders the items subject to the import/export mechanism decided on by SCR 1051 (1996) and to prevent the import into Iraq of items covered by paragraph 24 of SCR 687 (1991).
3.3. All Iraq's external financial operations would be conducted though a transparent account (not subject to bank secrecy), set up by the Secretary-General. The latter would deduct from the transparent account the funds needed to:
* transfer to the compensation fund a percentage of the funds which must not exceed that decided by the Council in paragraph 2 of SCR 705 (1991);
* meet the costs of the independent inspectors, customs experts and the carrying out of the physical and financial controls;
* meet the costs of the Control Commission and the IAEA;
* for transfers to Iraq's Central Bank.
3.4. The Secretary-General would propose to the Security Council a financial mechanism to ensure the supervision of the transfers to Iraq's Central Bank. The IMF would check Iraq's balance of payments and report regularly to the Secretary-General on this issue. Iraq's Central bank would have to cooperate with IMF.
3.5. The funds deposited in the transparent account could be used, after the deductions set out above, to finance the import into Iraq of commodities, products and services, other than those subject to the import-export mechanism approved by SCR 1051 (1996), on the following conditions:
* Tacit agreement after a period of ten days: automatic dispatch of a receipt, on receipt of the documents showing the details of the contract (price, terms of delivery, etc.). This receipt would be deemed a tacit agreement to pay, after a period of ten working days;
* Possible technical objection during this period: during this period of ten working days, every contract would be examined by two customs experts. If at least one expert considered that the information provided was incomplete or incorrect, the contract would be put on hold. However, the experts would have to: provide a detailed written explanation of the technical reasons why the contract had been put on hold and say what documentation was required. They could request additional information from the Iraqi authorities and from the supplier;
* Appeal in the event of the contract being maintained on hold: If the additional information supplied in the event of an objection (see 2.2) did not allow the experts to let the contract go ahead, it would be examined by three other experts. These experts would take a majority decision.
4. Humanitarian measures
The recommendations of the Humanitarian Assessment Committee should be implemented in full, unconditionally, and immediately whenever that is materially possible.
The ceiling for the export of petroleum and petroleum products would be removed.
Contracts for the parts and equipment necessary to enable Iraq to increase its exports of petroleum and petroleum products would be approved more swiftly by a group of experts appointed by the Committee established by SCR 661 (1990).
Bilateral agreements on the sharing of production between the Iraqi government and foreign companies and investments by foreign companies in the Iraqi oil industry and other Iraqi exporting industries would be authorized, under strict United Nations control. Payment for any Iraqi exports arising from such activities would be deposited directly by the purchaser in the relevant State into the escrow account established by paragraph 7 of SCR 986 (1995). A proportion of the revenues derived from these activities would be transferred to the relevant foreign companies, through the escrow account.
These foreign companies would be authorized to import into Iraq the parts and equipment needed to carry out their activities.
Implementation of paragraph 8 (g) of SCR 986 would be suspended.
The Committee established by SCR 661 (1990) would approve, on the proposal of the Secretary-General, a list of humanitarian goods, including food, and pharmaceutical and medical goods, as well as essential medical and agricultural equipment and both basic and current educational supplies. Requests for such items would have only to be notified to the Secretary-General and financed in accordance with paragraphs 8(a) and 8(b) of SCR 986 (1995).
Purchase of locally produced goods to meet the population's essential needs would be authorized, using the funds deposited in the escrow account established by paragraph 7 of SCR 986 (1995). The arrangements for such transactions would be submitted to the Council by the Secretary-General.
The aim would be for the Committee established by SCR 661 (1990) to take decisions on all requests in the humanitarian sphere and regarding the population's essential needs within two working days of the reception of the Secretary-General's request.
The Secretary-General would submit to the Security Council proposals designed to reduce the isolation of the Iraqi people, including through the development of civil air transport.
Pilgrimage to the Holy Places would be exempt from any kind of ban.
A third of the funds which would otherwise have been intended for transfer to the Compensation Fund from the escrow account established by paragraph 7 of SCR 986 (1995) would have to be lent, on a fully repayable basis, to the escrow account for humanitarian purposes.
The Iraqi government would be asked to do everything in its power to ensure that the humanitarian goods were distributed in time and allow both United Nations agencies and recognisably impartial NGOs freer access to isolated areas and groups of people particularly in order effectively to meet the needs of vulnerable groups.
5. Prisoners and missing persons from the Gulf war
Iraq would have to cooperate more closely with the International Committee of the Red Cross. Every three months, the Secretary-General would draw up a report on the status of missing persons from Kuwait and third countries and every six months on the status of Kuwaiti goods and archives and would appoint a high-level coordinator to monitor these issues.
Iraqi property abroad would remain frozen until the Secretary-General indicated in a report that Iraq's obligations in this sphere had been satisfactorily fulfilled./.
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