PRESS BRIEFING BY CHAIRMAN OF IRAQ SANCTIONS COMMITTEE

24 January 1997

Press Briefing

19970124 FOR INFORMATION OF UNITED NATIONS SECRETARIAT ONLY

The new Chairman of the Security Council Committee established pursuant to resolution 661 (1990) to monitor the sanctions against Iraq, Antonio Victor Martins Monteiro (Portugal), said at a press briefing yesterday evening that the Committee had approved the first two contracts in compliance with the "oil-for-food formula" contained in resolution 986 (1995).

By that text, the Council authorized States to permit the import of up to $1 billion of Iraqi petroleum and petroleum products every 90 days to meet the Iraqis' humanitarian needs. It also asked the Sanctions Committee to develop expedited procedures for its implementation.

Mr. Monteiro said that at 5 p.m. yesterday the Committee had approved a contract for $50 million of Australian wheat and another for $20 million of rice from Thailand. "Finally, the process is working", he added. He then introduced the Secretary of the Committee, J. Wan, as one of the people, including his predecessor, Tono Eitel (Germany), who had "worked so hard to get a good result".

He told correspondents that another item discussed during the Committee's meeting yesterday afternoon was a protocol signed on 26 December 1996 between the Turkish State-owned pipeline company and the Iraqi State Oil Marketing Organization (SOMO), for costs during Iraq's first 90 days of oil exportation under resolution 986. The overseers had given a favourable opinion on the issue of the protocol, however, certain questions were raised regarding payment compliance and resolution 986. The Committee decided that the Secretariat would prepare a document on the subject and circulate it among the members of the Committee. If all members agreed, the Committee would then communicate its approval to Turkey.

Mr. Monteiro said the third agenda item was a request by Jordan to resume reporting to the Committee on the issue of importing petroleum from Iraq. His predecessor had approached a Jordan representative regarding the possibility of resuming the reports and the response had been positive. The reports would begin after a necessary interim period to work out technicalities. Mr. Monteiro had reported to the Committee regarding the favourable disposition of the Jordan authorities. The fourth agenda item was a note from Turkey requesting the resumption of importation of petroleum and petroleum products from Iraq, Mr. Monteiro said. The request was first made in August 1996, and, after discussion, the Committee decided to postpone any decision because it could not come to "a common view".

A letter from the United Nations Development Programme (UNDP) and the Food and Agriculture Organization (FAO) comprised the fifth agenda item, he said. Both organizations wanted to implement a project in which they would strengthen seed quality control in Iraq. The request was declined, because the project was considered not to be strictly a humanitarian effort.

The next agenda item was a request from Turkey asking for permission to ship spare parts and equipment to Iraq for the repair of the Kirkuk-Yumartalik pipeline. Mr. Monteiro said the response to the request would be positive, but the Committee had to be sure that the contract was in accordance with resolution 986. There was a further request from Turkey from November 1996 -- a list of other equipment for the same pipeline -- and the Committee decided to defer its response on that request "until resolution 986 is implemented fully", he said.

Agenda item eight was a letter from the World Food Programme (WFP) asking for a general sanctions waiver for all the equipment that had to be purchased by the Programme, Mr. Monteiro said. The Committee decided it could not grant the WFP's request because there was no reason to give a blank cheque to one agency and not to other United Nations agencies. Procedures were in place that applied to all agencies. If the system was not working, a general waiver could be granted, but that was not the case.

Bangladesh then consulted with the Committee regarding the Government of Iraq's intention to send an official delegation to Bangladesh to settle monetary claims between the two countries left outstanding since the Persian Gulf war in 1991, he continued. The Committee did not object to such a meeting, provided that any settlement agreed upon would be in accordance with United Nations resolutions.

A correspondent asked how many oil contracts had been approved so far. Mr. Monteiro said he could not give an exact number, because oil contract business was not on this afternoon's agenda. Mr. Wan said the overseers had said that the $1 billion quota had almost been reached for the first 90-day period. Mr. Monteiro said questions could not be answered on behalf of the overseers on that subject.

The same correspondent said he had heard that there were problems with the deployment of observers to monitor food distribution. Mr. Monteiro said there were a number of observers who could do the job. There was no problem.

What was the purpose of the UNDP/FAO proposal? another correspondent asked. Mr. Monteiro said it was a proposal to be executed by the FAO and aimed at increasing food production in Iraq. It was not an acceptable humanitarian project; it was a long-term development project.

Iraq Sanctions Committee Briefing - 3 - 24 January 1997

Asked when the wheat and rice were expected to arrive in Iraq, Mr. Wan said, according to the available, rough information, the wheat and rice might arrive in Iraq in over one month.

When would the next contracts for food be approved? a correspondent asked. Mr. Monteiro said the Committee was scheduled to meet on 3 February 1997. But his intention was to have the Committee meet when there were substantive matters to be discussed and expedited.

A correspondent asked Mr. Monteiro to explain the protocol between Turkey and SOMO and what the Secretariat was being asked to do. The protocol was difficult to explain, but the main issue was the question of payments, he said. The Secretariat would ensure that payments would be made in a correct way. Some members of the Committee had also offered different interpretations of resolution 986. Therefore, the Committee had decided to ask the Secretariat to prepare a report on that issue before it took action.

Asked what were the exact dollar amounts of the two contracts, Mr. Wan said the Australian wheat contract was for 250,000 metric tons (plus or minus 5 per cent) and a total of $50,513,251. And the contract for Thai rice was for 6,000 metric tons and a total of $21,300,000.

When would a decision be reached on Turkey's long-standing request to resume oil imports from Iraq? a correspondent asked. Mr. Monteiro said he could not answer that question, because he had to consult with the Committee. As stated before, his intention was to proceed swiftly on all pending matters.

A correspondent asked for the current total in the escrow account. Mr. Monteiro said he did not have the figures with him at the moment. That was his first press briefing, he noted, adding that next time he would have all the figures with him.

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