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Weapons of Mass Destruction (WMD)

DATE=09/27/00

TYPE=CORRESPONDENT REPORT

TITLE=U-N / Iraq Compensation (L Only)

NUMBER=2-267265

BYLINE=Breck Ardery

DATELINE=United Nations

CONTENT=

VOICED AT:

INTRO: A deal was announced at the United Nations Wednesday which will grant Kuwait almost 16-billion dollars in compensation from Iraq. But at the same time, as V-O-A Correspondent Breck Ardery reports, the deal reduces the rate at which Iraq must pay compensation.

TEXT: The agreement, worked out by the five permanent members of the U-N Security Council, orders Iraq to pay 15-point-nine-billion dollars to the Kuwait Petroleum Corporation for lost production during Iraq's occupation of Kuwait in 1990 and early 1991. It is the largest single claim approved so far in compensation program.

The program, approved by the Security Council after the Gulf War, requires Iraq to Iraq pay 30 percent of its gross oil revenues into a U-N supervised compensation fund that is administered by a commission in Geneva. The new deal calls for a reduction of Iraq's rate of payment to 25 percent of revenues in order to make more money available for the U-N supervised humanitarian aid program in Iraq.

U-S representative to the United Nations, James Cunningham, told reporters the agreement will allow the compensation commission to proceed to other claims.

/// CUNNINGHAM ACT ///

We think that this package provides a reasonable way ahead that accomplishes the goal of allowing the compensation commission to get on with its work. There are still a lot of small claims before the commission that need to be adjudicated. We have always said that we want the commission to get on with that business and do its work. We are confident we have now set the ground for that.

/// END ACT ///

Mr. Cunningham said the deal means that "everybody wins."

/// REST OPT ///

However, the United States is still arguing with other members of the Security Council about so-called "humanitarian" air flights to Iraq. Such flights have already been undertaken by France, Jordan, and Russia and more are planned, including flights from Iceland and Yemen.

Mr. Cunningham says the United States continues to believe that such flights must have approval from the Security Council committee that was set up to enforce sanctions against Iraq. France's ambassador Jean Levitte says that the committee must only be notified. Mr. Levitte again called for council clarification of the dispute because he expects flights to Iraq will continue. (Signed)

NEB/UN/BA/LSF/JWH



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