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Weapons of Mass Destruction (WMD)

28 March 2003

U.N. Security Council Restarts Iraq Oil-for-Food Program

(U.S. will facilitate U.N.-coalition cooperation) (1490)
By Judy Aita
Washington File United Nations Correspondent 
United Nations -- Regaining the unity it lost before the start of
hostilities in Iraq, the U.N. Security Council March 28 unanimously
adopted a resolution authorizing the secretary general to use money in
the oil-for-food program to provide emergency humanitarian aid to
Iraqi civilians.
After more than a week of negotiations, the council was able to
separate the still divisive issue of the allied coalition's war
against the regime of Saddam Hussein from the technical matters that
prevented Secretary General Kofi Annan from using about $9 billion in
proceeds from the sale of Iraqi oil to help civilians.
U.S. Ambassador John Negroponte said, "we think that today's Security
Council vote modifying the oil-for-food program marks an important
step, which the United States has favored from the moment that the
United Nations personnel were withdrawn and the program was
suspended."
"For its part, the United States will facilitate the necessary
coordination on the ground in Iraq between coalition authorities and
the United Nations and associated relief agency staff as oil-for-food
supplies and other humanitarian assistance arrive and are distributed,
as circumstances on the ground permit," Negroponte said.
Resumption of the oil-for-food program, the ambassador said,
"complements extensive United States efforts to address the
humanitarian needs of the people of Iraq."
Negroponte said U.S. bilateral humanitarian aid commitments will not
be affected by the resumption of the program. U.S. aid "will remain
robust and long term," he said.
German Ambassador Gunter Pleuger, who as chairman of the council's
Iraqi Sanctions Committee led negotiations on the resolution, said,
"this was a good day for the United Nations; it was a good day for the
Security Council and, I hope, a good day for the suffering people of
Iraq."
"The council returned to its unity of purpose ... to save the people
of Iraq who have been suffering for a long time and are suffering even
more in the war now. The resolution not only makes clear the
responsibility in wartime of the occupying power, it also makes an
appeal to the international community and to the international
organizations to do what they can to relieve the plight of the Iraqi
people," he said.
"We have to realize that even before the war, the people of Iraq were
dependent on oil-for-food to a very large extent. The food basket in
Iraq consists of 80 percent of goods that come out of the oil-for-food
program. More than 60 percent of the Iraqi people were dependent on
the program even before the war. That means the oil-for-food program
fed more than 14 million people," Pleuger said.
The unanimous vote "gives the right signal to the outside world that
the Security Council is united in the purpose of helping the people of
Iraq," the German ambassador said.
According to U.N. officials, there are currently approved and funded
contracts for purchase of humanitarian supplies totaling about $8.9
billion that have not yet been delivered, also referred to as "in the
pipeline." Included in those contracts are about 6.2 metric tons of
food. However, since the United Nations oversaw the program and the
contracts were undertaken by the Iraqi Government, the United Nations
is unsure of the status of much of the supplies. Another $5 billion in
contracts have been processed but the program lacks the funds to pay
for them, U.N. officials said.
The four-page technical resolution, number 1472, gives the secretary
general authority to make changes in the oil-for-food program for an
initial period of 45 days. It allows him to establish locations both
inside and outside Iraq for the delivery, inspection and review of the
supplies and equipment the program purchases.
Most importantly, it allows the secretary general to look at all the
long list of contracts already in the pipeline, identify those which
are urgently required to meet the needs of the Iraqi population under
the new circumstances, then contact the suppliers to determine where
the goods are or make adjustments. He is also authorized to use
unencumbered funds to pay additional costs connected with reviewing
and renegotiating the contracts.
Under the resolution, the council's Iraqi Sanctions Committee is to
work with the secretary general to expedite new contracts for
emergency supplies and goods not in the pipeline.
Under the program, which began in 1996, the proceeds from the sale of
Iraqi oil were deposited in a U.N. escrow account, the large portion
of which went to the oil-for-food program. The program was suspended
when the secretary general withdrew 300 U.N. staff members just before
hostilities began.
The resolution addresses strictly the humanitarian aspect of the
program and does not deal with the resumption of oil sales or the
replenishment of the fund. Also not included is the use of
oil-for-food funds for the reconstruction or rebuilding Iraq after the
conflict.
At the same time the council was voting March 28, the United Nations
launched an appeal for over $2.2 billion to help U.N. agencies provide
emergency humanitarian supplies to fill in the gaps that the
oil-for-food program will not be able to provide.
The appeal includes $1.3 billion for the World Food Program (WFP) for
emergency food aid for the entire Iraqi population, including refugees
and internally displaced persons. The remainder is earmarked for
providing safe drinking water; attending to the health and nutrition
needs of children, nursing mothers, and the elderly; providing
shelter; clearing landmines; and emergency repairs to Iraq's
infrastructure.
Under Secretary General Louise Frechette said that with the war only a
week old, the extent and nature of Iraq's needs are still very hard to
assess. Also affecting the appeal will be how the oil-for-food program
will be able to address the current needs, especially food
requirements.
At a press conference announcing the appeal, the under secretary
general emphasized that the United Nations "will not know with any
degree of certainty what supplies can actually be shipped in the
45-day period stipulated in the resolution until we have contacted the
suppliers to establish where the supplies have got to, whether they
are still available, when and where they could arrive in Iraq and at
what extra cost."
Therefore, Frechette said, it is urgent that U.N. humanitarian aid
agencies, which have the flexibility and experience in working in such
situations, have the funds needed to help out in the short term.
Nevertheless, donors must guard against the notion that there is a
large amount of money available from the oil-for-food program so
additional funds are not needed, she said. "There are limits to how
much one can play with what's in the (oil-for-food) pipeline. The fact
that we now have a war situation on the ground is creating new and
different requirements that were not anticipated when all these
contracts were entered into."
U.N. Development Program Administrator Mark Malloch Brown said that
the United Nations will be constantly reviewing what can be paid for
and delivered under the oil-for-food and then reduce the amount of the
donor assistance needed.
In addition to food, most of the appeal funds will go for repairing
water systems or restarting electrical plants, Malloch Brown said.
"Those items are not generally covered because those are longstanding
capital items, not the requirement you need for emergency
infrastructure repair. And, in a situation like Iraq which is largely
urbanized, these kinds of issues -- water, sanitation, electricity,
infrastructure -- are very urgent and up front," he said.
"The oil-for-food program ... is essentially an on-going, import
program for the (Iraqi) government to meet approved needs that the
Security Council has allowed," Malloch Brown explained.
"On top of that is the emergency created by the war. Those needs are
clearly not planned for or provisioned for when the contracts were
laid out and many in the Security Council believe that the nature of
the conflict means that the Iraqi people shouldn't be the sole source
of funding," he said. "There is an obligation on the international
community to meet these unexpected exceptional needs."
Frechette said that while U.N. international staff has been
temporarily withdrawn from Iraq, there are more than 3,000 Iraqi
nationals who work for the United Nations. U.N. agencies are keeping
in contact with them and have reported that all those who can are
continuing to provide assistance and support to Iraqi civilians.
WFP has estimated that the majority of Iraqis will exhaust their food
reserves by May. WFP is planning to support a food distribution system
capable of meeting the needs of the entire population.
(The Washington File is a product of the Office of International
Information Programs, U.S. Department of State. Web site:
http://usinfo.state.gov)



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