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Weapons of Mass Destruction (WMD)

Washington File

14 May 2003

State Department Says Lifting Sanctions Would Benefit Iraqi People

(Outlines U.N. sanctions resolution in two fact sheets) (970)
The State Department May 12 issued a double fact sheet on a draft
resolution tabled May 9 at the United Nations Security Council by the
United States, the United Kingdom, and Spain that would lift U.N.
economic sanctions on Iraq to support the country's recovery and
reconstruction.
Following is the text of the fact sheet:
(begin fact sheet)
LIFTING UN SANCTIONS IN IRAQ
Supporting Iraqi Recovery and Reconstruction
The resolution will support Iraq's recovery and reconstruction:
Lift sanctions.
UN economic sanctions on imports and exports of goods, imposed to
compel Saddam Hussein's compliance with WMD [weapons of mass
destruction] requirements and contain the threat of his regime, are
outdated; they no longer serve a useful function. Sustained imposition
of economic sanctions would only hinder Iraq's recovery. This
resolution recognizes the absurdity of economic restrictions on trade
with Iraq now.
Facilitate Iraq rejoining the global market.
The resolution will abolish outdated provisions relating to the sale
of oil and other goods and facilitate Iraq's ability to trade freely
in the international market.
Facilitate Iraq's ability to sell oil freely.
The reconstituted Iraqi State Oil and Marketing Organization (SOMO)
will conduct oil sales consistent with international market practices.
These transactions will be audited by independent public accountants,
who will report their findings to an international advisory board that
will include representatives from the UN, World Bank, and IMF
[International Monetary Fund]. To ensure that the Iraqi people are not
penalized because of Saddam and can receive the benefits of their
national patrimony, oil sales will be immunized against attachment by
international creditors or others with claims against the former
regime.
Return oil revenues to Iraq.
An Iraqi Assistance Fund will be established in the Central Bank of
Iraq. The Fund will be subject to full transactional transparency by
the international advisory board and audited by independent public
accountants.
Spend Iraqi revenues on Iraqi reconstruction.
Iraqi export oil revenues will be deposited in the Iraqi Assistance
Fund and the draft resolution specifies their use: to meet the
humanitarian needs of the Iraqi people, for the economic
reconstruction and repair of Iraq's infrastructure, for the continued
disarmament of Iraq, and for the costs of indigenous civilian
administration, and for other purposes benefiting the people of Iraq.
These disbursements will be made with direct Iraqi participation.
Enlist support of international financial institutions.
By providing expertise and oversight of financial transactions, the
World Bank and the International Monetary Fund will play key roles in
Iraq's economic and financial recovery. To this end, the resolution
also immunizes the Iraqi Assistance Fund from outstanding debt and
other claims during its recovery period.
Wind down the Oil-for-Food program.
This will be first step in Iraq's transition to a market economy. Iraq
is dependent on a public distribution system to get imported food
throughout Iraq. It will take some time to convert this
centrally-controlled economy to a free market. During the transition,
we will support food distribution through a public distribution
system.
Mandate the return of assets stolen by Saddam and his regime to Iraq.
The resolution tabled on May 9 at the UN by the United States, the
United Kingdom, and Spain will:
LIFTING UN SANCTIONS IN IRAQ
The Role of the International Community
The resolution encourages the participation of the UN, interested
states and regional organizations in Iraq's economic and political
reconstruction:
Fulfill the promise of a vital UN role.
To ensure the UN plays a vital role in Iraq's reconstruction, the
resolution proposes the appointment of a UN Special Coordinator. This
individual will coordinate UN humanitarian assistance, support
economic reconstruction, facilitate civil administration, assist in
the development of a representative government, and promote legal and
judicial reform and human rights.
Encourage support for Iraq's recovery from states and interested
organizations.
The resolution encourages the international community to support the
Iraqi people in building a free, prosperous and secure Iraq, including
by responding to UN humanitarian appeals and providing resources for
reconstruction and rehabilitation of Iraq's infrastructure. It also
welcomes the assistance of international financial institutions to the
people of Iraq.
Confirms the international community's commitment to the right of the
Iraqi people to freely determine their own political future.
The resolution calls on the UN Special Coordinator and the
international community to support the Iraqi people in their effort to
establish a permanent representative government based on the rule of
law, which affords equal rights to the people of Iraq without regard
to ethnicity, religion, or gender.
Bar Iraqis who committed crimes and atrocities from receiving safe
haven in other countries.
The resolution also affirms the need for accountability for crimes and
atrocities committed by Saddam's regime, including the Kuwaitis and
third-country nationals imprisoned during and since the 1991 Gulf War.
Protect Iraq's heritage.
The resolution will establish a ban on international trade in Iraqi
cultural property and other archaeological, historical, cultural,
religious and rare scientific items illegally removed from the Iraq
National Museum, National Library and other locations.
Support continued efforts to account for Kuwaitis and others missing
since Iraq's 1990 invasion of Kuwait.
Provide for continued funding of the UN Compensation Commission [UNCC]
which deals with outstanding claims stemming from the 1990 invasion.
Five percent of oil proceeds will automatically be deposited into the
UNCC Compensation Fund.
The UN has a vital role to play in Iraq's recovery.
-- Lift economic sanctions now
-- Encourage the international community to assist in helping the
Iraqi people build a better future for their country
-- Establish a UN Special Coordinator 
-- Provide for humanitarian needs, while winding down the Oil-for-Food
program
-- Support Iraqis in charting their own political future
-- Return the benefits of Iraqi oil to the Iraqi people
Lifting UN sanctions will benefit the Iraqi people.
(end fact sheet)
(Distributed by the Bureau of International Information Programs, U.S.
Department of State. Web site: http://usinfo.state.gov)



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