PRESS BRIEFING

22 January 1997

MULTIMEDIA PRESENTATION ON ACTIVITIES OF UN COMPENSATION COMMISSION

19970122 FOR INFORMATION OF UNITED NATIONS SECRETARIAT ONLY

A multimedia presentation on the first five years of the work of the United Nations Compensation Commission was made to the press this morning by the President of the Governing Council of the Commission, Ambassador Goncalo de Santa Clara Gomes of Portugal. The CD-ROM, produced by the Commission's secretariat, had earlier been shown to members of the Security Council.

The United Nations Compensation Commission and the United Nations Compensation Fund were established by Security Council resolution 692 (1991). The mandate of the Commission is to administer the Fund for the payment of compensation for "any direct loss, damage, including environmental damage and the depletion of natural resources, or injury to foreign governments, nationals and corporations, as a result of Iraq's unlawful invasion and occupation of Kuwait". The Fund was to receive up to 30 per cent of Iraqi oil exports to pay for the claims. The Compensation Commission, a subsidiary body of the Security Council, has three organs: the Governing Council, six Panels of Commissioners and the secretariat.

According to the narrative which accompanied the video presentation, the Governing Council had so far approved 36 decisions -- all by consensus. Upon request, the plenary sessions of the Governing Council are open to participation by States that are not its members. Government representatives of Kuwait and Iraq have addressed every single session of the Council. Representatives of 12 other governments have also participated in its meetings since 1991. The Panels of Commissioners examine the claims submitted to them by the secretariat in instalments and recommend compensation awards to the Governing Council. The Commissioners are chosen from among renowned international jurists and other professionals and included former Presidents and Judges of the International Court of Justice, members of the International Law Commission and former Ministers of Justice. They also include human rights experts, international arbitrators, law professors, accountants and loss adjusters.

The narrative states that the United Nations Compensation Fund, like other United Nations funds, is administered by the Secretary-General. Although the original projected estimate of resources for the Fund was $6 billion per year, as of today, the Fund had not received any revenue. The entire compensation operation had been funded so far from voluntary contributions and the transfer of Iraqi oil-originated frozen funds to the United Nations. The implementation of resolution 986 (1995) on the "oil-for- food" formula should give the Commission no less than $100 million. The 1991 secretariat projected estimates of 2 million in claims had been exceeded and

as the filing deadline elapsed, the figure had reached 2.6 million. The asserted value of the claims -- amount sought by claimants -- totalled $200 billion.

The Governing Council has established six categories of claims covering departure from Iraq or Kuwait, serious personal injury or death, losses below and above $100,000, as well as the claims of corporations, governments and international organizations. By December 1995, more than 2.6 million claims covering all six categories had been received from nearly 100 countries.

Category "A", "B" and "C" claims had been given priority by the Commission because of their humanitarian nature. Category "A" claims were those for departure from Iraq or Kuwait. To be entitled to a fixed amount of compensation under it, claimants need to show that they had left Iraq or Kuwait between 2 August 1990 and 2 March 1991. More than 950,000 category "A" claims had been submitted on behalf of nationals of 86 countries, according to the narrative. The Commission had processed and approved for payment in five instalments over 785,000 category "A" claims for more than $2.8 billion.

Category "B" claims, dealing with serious personal injuries or death, and totalling 6,265, had been submitted by 49 countries and 3 international organizations. Processing of the claims ended in December 1995 with total payments of $13,450,000 made to approximately 4,000 successful claimants.

The narrative further stated that more than 430,000 category "C" claims, submitted to the Commission on behalf of 80 countries, covered individual claims for damages up to $100,000. The losses included inability to leave Iraq or Kuwait, personal property losses, losses of bank accounts, stocks and other securities, losses of income and unpaid salaries or support. Nearly 65,000 category "C" claims from 71 countries and 2 international organizations had been so far approved for payment of more than $476 million.

According to the narrative, 1.2 million claims had been submitted on behalf of Egyptian citizens working in Iraq for the alleged non-transfer of remittances. The Kuwait Oil Company had submitted a claim for the alleged costs of extinguishing oil well fires.

The narrative further stated that the goal of the United Nations Compensation Commission had, throughout its entire operation, been to perform its mission with independence, impartiality and objectivity. The Commission was the largest and fastest compensation operation of its kind. Unlike other programmes that took years to set up and start, the Commission was established two-and-one-half months after the end of hostilities and reached full operational status two months later. In a little over three years, the first awards to claimants were issued and paid, the narrative stated. Of the 2.6 million claims received, the Commission would have resolved 2.4 million claims -- all by individuals -- by the end of 1996, it adds.

Compensation Commission - 3 - 22 January 1997

Ambassador Santa Clara Gomes told the press that the presentation had been very well received by members of the Security Council. He told a questioner that authenticity of claims were verified by the Panel of Commissioners. Replying to another question, he said that from savings made in its budget, the Commission had recently been able to pay claimants under category "B" more than $17 million. It expected to be able to pay those under category "C" by the middle of February.

Asked how much the Kuwait Oil Company would receive for the cost of extinguishing fires set to the oil wells, he said the company had presented a claim for $951 million, but the Panel of Commissioners had assessed a liability for $610 million.

A correspondent said that the International Maritime Association had recently written to the Commission for guidance on liability for sunken ships in the Persian Gulf. He wondered whether the Commission had replied to the Association and, if so, what its response was. Ambassador Santa Clara Gomes said the issue was a "tricky problem" which did not fit into the Commission's mandate and would require "some coordination with the Security Council".

He told another correspondent that claims could be made for the damage caused by Iraqi "scud" missile attacks on Israel and Saudi Arabia.

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