Security Council

4241^st Meeting (PM)

SECURITY COUNCIL EXTENDS IRAQ ‘OIL-FOR-FOOD’ PROGRAMME

FOR FURTHER 180-DAY PERIOD BEGINNING 6 DECEMBER

Council Unanimously Adopts Resolution 1330 (2000)

Determined to improve the humanitarian situation in Iraq, and convinced of the need for the equitable distribution of humanitarian supplies to all segments of the country’s population, the Security Council this evening again extended the Iraq “oil-for-food” programme for a further 180-day period beginning 6 December.

The Council took that action as it unanimously adopted

resolution 1330 (2000), which was submitted by France and the United Kingdom. 

Further by that text, the Council decided that during the 180-day period, the amount recommended by the Secretary-General for the food/nutrition and health sectors in Iraq should continue to be allocated on a priority basis.  That amount would come from the sum generated from the imports of Iraqi petroleum and related products.  Also, 13 per cent of that sum should be used for the purposes referred to in resolution 986 (1995).

By other terms of the text, the Secretary-General was asked to provide a comprehensive report to the Council 90 days after the current resolution’s entry into force on its implementation.  That report should also include observations on whether Iraq has ensured the equitable distribution of medicine, health supplies, foodstuffs, and materials and supplies for essential civilian needs. 

Further by the text, the Council expressed its readiness to consider allowing a sum of $15 million drawn from the escrow account -- established by resolution 986 (1995) -- to be used for the payment of the arrears in Iraq’s contribution to the United Nations budget.

The Council also directed the Committee established by resolution 661 (1990) to approve lists of basic electricity and housing supplies consistent with the priority given to the most vulnerable groups in Iraq.  It also decided that supplies of those items would not be submitted for the approval of that Committee, except for those subject to the provisions of resolution 1051 (1996).

The Council asked the Secretary-General to expand and update, within 30 days of the adoption of the current text, the lists of humanitarian items.  It also directed the Committee established by resolution 661 (1990) to expeditiously approve the expanded lists.  The Council also decided that supplies of those items would not be submitted for approval of that Committee.

Further by the text, the Council decided that the effective deduction rate of the funds deposited in the escrow account to be transferred to the Compensation Fund should be 25 per cent. It further decided that the additional funds resulting from that decision would be used for the purposes set out in

resolution 986 (1995).  The Secretary-General was requested to use those funds for strictly humanitarian projects to address the needs of the most vulnerable groups in Iraq.

The Council also expressed its intention to establish a mechanism to review, before the end of the 180-day period, the effective deduction rate of the funds deposited in the escrow account to be transferred to the Compensation Fund in future phases.  That mechanism would take into account the key elements of the humanitarian needs of the Iraqi people.

The Secretary-General was also asked to make arrangements –- subject to the Council’s approval –- to allow funds deposited in the escrow account to be used for the purchase of locally produced goods and to meet the local cost for essential civilian needs, including the cost of installation and training services.

The Secretary-General was further asked to make the necessary arrangements, subject to the Council’s approval, allowing funds up to 600 million euros deposited in the escrow account to be used for the cost of installation and maintenance, including training services, of the equipment and spare parts for the oil industry.

Statements were made by the representatives of the United Kingdom, Malaysia, United States, Argentina, China, Canada, France and the Russian Federation.

The meeting, which began at 8:25 p.m., was adjourned at 9 p.m.

Text of Resolution

The full text of resolution 1330 (2000) reads as follows:

“The Security Council,

“Recalling its previous relevant resolutions and in particular its resolutions 986 (1995) of 14 April 1995, 1111 (1997) of 4 June 1997,

1129 (1997) of 12 September 1997, 1143 (1997) of 4 December 1997, 1153 (1998) of 20 February 1998, 1175 (1998) of 19 June 1998, 1210 (1998) of

24 November 1998, 1242 (1999) of 21 May 1999, 1266 (1999) of 4 October 1999, 1275 (1999) of 19 November 1999, 1280 (1999) of 3 December 1999, 1281 (1999) of 10 December 1999, 1284 (1999) of 17 December 1999, 1293 (2000) of

31 March 2000 and 1302 (2000) of 8 June 2000,

“Convinced of the need as a temporary measure to continue to provide for the humanitarian needs of the Iraqi people until the fulfilment by the Government of Iraq of the relevant resolutions, including notably resolution 687 (1991) of 3 April 1991, allows the Council to take further action with regard to the prohibitions referred to in resolution 661 (1990) of

6 August 1990, in accordance with the provisions of those resolutions,

“Convinced also of the need for equitable distribution of humanitarian supplies to all segments of the Iraqi population throughout the country,

“Determined to improve the humanitarian situation in Iraq,

“Reaffirming the commitment of all Member States to the sovereignty and territorial integrity of Iraq,

“Acting under Chapter VII of the Charter of the United Nations,

“1.   Decides that the provisions of resolution 986 (1995), except those contained in paragraphs 4, 11 and 12 and subject to paragraph 15 of resolution 1284 (1999), shall remain in force for a new period of 180 days beginning at 00.01 hours, Eastern Standard Time, on 6 December 2000;

“2.   Further decides that from the sum produced from the import by States of petroleum and petroleum products originating in Iraq, including financial and other essential transactions related thereto, in the 180-day period referred to in paragraph 1 above, the amounts recommended by the Secretary-General in his report of 1 February 1998 (S/1998/90) for the food/nutrition and health sectors should continue to be allocated on a priority basis in the context of the activities of the Secretariat, of which 13 per cent of the sum produced in the period referred to above shall be used for the purposes referred to in paragraph 8 (b) of resolution 986 (1995);

“3.   Requests the Secretary-General to continue to take the actions necessary to ensure the effective and efficient implementation of this resolution, and to continue to enhance as necessary the United Nations observation process in Iraq including, within 90 days of the adoption of this resolution, to complete the recruitment and placement in Iraq of a sufficient number of observers, in particular the recruitment of the number of observers agreed between the Secretary-General and the Government of Iraq, in such a way as to provide the required assurance to the Council that the goods produced in accordance with this resolution are distributed equitably and that all supplies authorized for procurement, including dual usage items and spare parts, are utilized for the purpose for which they have been authorized, including in the housing sector and related infrastructure development;

“4.   Decides to conduct a thorough review of all aspects of the implementation of this resolution 90 days after the entry into force of paragraph 1 above and again prior to the end of the 180-day period, and expresses its intention, prior to the end of the 180-day period, to consider favourably renewal of the provisions of this resolution as appropriate, provided that the reports referred to in paragraphs 5 and 6 below indicate that those provisions are being satisfactorily implemented;

“5.   Requests the Secretary-General to provide a comprehensive report to the Council 90 days after the date of entry into force of this resolution on its implementation and again at least one week prior to the end of the 180-day period, on the basis of observations of United Nations personnel in Iraq, and of consultations with the Government of Iraq, on whether Iraq has ensured the equitable distribution of medicine, health supplies, foodstuffs, and materials and supplies for essential civilian needs, financed in accordance with paragraph 8 (a) of resolution 986 (1995), including in his reports any observations which he may have on the adequacy of the revenues to meet Iraq’s humanitarian needs;

“6.   Requests the Committee established by resolution 661 (1990), in close consultation with the Secretary-General, to report to the Council 90 days after the entry into force of paragraph 1 above and prior to the end of the 180-day period on the implementation of the arrangements in paragraphs 1, 2, 6, 8, 9 and 10 of resolution 986 (1995);

“7.   Decides that from the funds produced pursuant to this resolution in the escrow account established by paragraph 7 of resolution 986 (1995), up to a total of 600 million United States dollars may be used to meet any reasonable expenses, other than expenses payable in Iraq, which follow directly from the contracts approved in accordance with paragraph 2 of resolution 1175 (1998) and paragraph 18 of resolution 1284 (1999), and expresses its intention to consider favourably the renewal of this measure;

“8.   Expresses its readiness to consider, in the light of the cooperation of the Government of Iraq in implementing all the resolutions of the Council, allowing a sum of 15 million United States dollars drawn from the escrow account to be used for the payment of the arrears in Iraq’s contribution to the budget of the United Nations, and considers that this sum should be transferred from the account created pursuant to paragraph 8 (d) of resolution 986 (1995);

“9.   Requests the Secretary-General to take the necessary steps to transfer the excess funds drawn from the account created pursuant to paragraph 8 (d) of resolution 986 (1995) for the purposes set out in paragraph 8 (a) of resolution 986 (1995) in order to increase the funds available for humanitarian purchases, including as appropriate the purposes referred to in paragraph 24 of resolution 1284 (1999);

“10.  Directs the Committee established by resolution 661 (1990) to approve, on the basis of proposals from the Secretary-General, lists of basic electricity and housing supplies consistent with the priority given to the most vulnerable groups in Iraq, decides, notwithstanding paragraph 3 of resolution 661 (1990) and paragraph 20 of resolution 687 (1991), that supplies of these items will not be submitted for approval of that Committee, except for items subject to the provisions of resolution 1051 (1996), and will be notified to the Secretary-General and financed in accordance with the provisions of paragraphs 8 (a) and 8 (b) of resolution 986 (1995), requests the Secretary-General to inform the Committee in a timely manner of all such notifications received and actions taken, and expresses its readiness to consider such action with regard to lists of further supplies, in particular in the transport and telecommunications sectors;

“11.  Requests the Secretary-General to expand and update, within 30 days of the adoption of this resolution, the lists of humanitarian items, submitted in accordance with paragraph 17 of resolution 1284 (1999) and paragraph 8 of resolution 1302 (2000), directs the Committee established by resolution 661 (1990) to approve expeditiously the expanded lists, decides that supplies of these items will not be submitted for approval of the Committee established by resolution 661 (1990), except for items subject to the provisions of resolution 1051 (1996), and will be notified to the Secretary-General and financed in accordance with the provisions of paragraphs 8 (a) and 8 (b) of resolution 986 (1995), and requests the Secretary-General to inform the Committee in a timely manner of all such notifications received and actions taken;

“12.  Decides that the effective deduction rate of the funds deposited in the escrow account established by resolution 986 (1995) to be transferred to the Compensation Fund in the 180-day period shall be 25 per cent, further decides that the additional funds resulting from this decision will be deposited into the account established under paragraph 8 (a) of

resolution 986 (1995) to be used for strictly humanitarian projects to address the needs of the most vulnerable groups in Iraq as referred to in paragraph 126 of the report of the Secretary-General of 29 November 2000 (S/2000/1132), requests the Secretary-General to report on the use of these funds in his reports referred to in paragraph 5 above, and expresses its intention to establish a mechanism to review, before the end of the 180-day period, the effective deduction rate of the funds deposited in the escrow account to be transferred to the Compensation Fund in future phases, taking into account the key elements of the humanitarian needs of the Iraqi people;

“13.  Urges the Committee established by resolution 661 (1990) to review applications in an expeditious manner, to decrease the level of applications on hold and to continue to improve the approval process of applications, and in this regard stresses the importance of the full implementation of paragraph 3 above;

“14.  Urges all States submitting applications, all financial institutions, including the Central Bank of Iraq, and the Secretariat, to take steps to minimize the problems identified in the report of the Secretary-General of 29 November 2000 pursuant to paragraph 5 of

resolution 1302 (2000);

“15.  Requests the Secretary-General to make the necessary arrangements, subject to the approval of the Council, to allow funds deposited in the escrow account established by resolution 986 (1995) to be used for the purchase of locally produced goods and to meet the local cost for essential civilian needs which have been funded in accordance with the provisions of resolution 986 (1995) and related resolutions, including, where appropriate, the cost of installation and training services, and further requests the Secretary-General to make the necessary arrangements, subject to the approval of the Council, to allow funds up to 600 million euros deposited in the escrow account established by resolution 986 (1995) to be used for the cost of installation and maintenance, including training services, of the equipment and spare parts for the oil industry which have been funded in accordance with the provisions of resolution 986 (1995) and related resolutions, and calls upon the Government of Iraq to cooperate in the implementation of all such arrangements;

“16.  Urges all States, and in particular the Government of Iraq, to provide their full cooperation in the effective implementation of this resolution;

“17.  Calls upon the Government of Iraq to take the remaining steps necessary to implement paragraph 27 of resolution 1284 (1999), and further requests the Secretary-General to include in his reports under paragraph 5 above a review of the progress made by the Government of Iraq in the implementation of these measures;

“18.  Requests also the Secretary-General to prepare a report as expeditiously as possible but no later than 31 March 2001 for the Committee established by resolution 661 (1990) containing proposals for the use of additional export routes for petroleum and petroleum products, under appropriate conditions otherwise consistent with the purpose and provisions of resolution 986 (1995) and related resolutions, and particularly addressing the possible pipelines that might be utilized as additional export routes;

“19.  Reiterates its request in paragraph 8 of resolution 1284 (1999) to the Executive Chairman of the United Nations Monitoring, Verification and Inspection Commission and to the Director General of the International Atomic Energy Agency to complete by the end of this period the revision and updating of the lists of items and technology to which the import/export mechanisms approved by resolution 1051 (1996) applies;

“20.  Stresses the need to continue to ensure respect for the security and safety of all persons directly involved in the implementation of this resolution in Iraq, and calls upon the Government of Iraq to complete its investigation into the death of employees of the Food Agriculture Organization and to forward it to the Council;

“21.  Appeals to all States to continue to cooperate in the timely submission of applications and the expeditious issue of export licences, facilitating the transit of humanitarian supplies authorized by the Committee established by resolution 661 (1990), and to take all other appropriate measures within their competence in order to ensure that urgently needed humanitarian supplies reach the Iraqi people as rapidly as possible;

“22.  Decides to remain seized of the matter.”

Council Work Programme

The Security Council met this evening to consider the humanitarian programme, known as the “oil-for-food” programme in Iraq.  It had before it the Secretary-General's report on the implementation of the programme as it enters its fifth year in December 2000 (document S/2000/1132).  The report covers a 180-day period -- phase VIII -- which began on 9 June and provides information on the distribution of humanitarian supplies throughout Iraq. 

The Secretary-General appeals to the Council to direct its Sanctions Committee to review its work and procedures to avoid inordinate delays encountered in resolving matters brought to its attention for action.  He regrets that a number of suggestions and proposals made by the Secretariat to expedite processing and approval of applications, as well as the need for inclusion of well-established commercial protection clauses, have remained on the agenda of the Committee without any action being taken.

The Secretary-General says that by 31 October 2000, a total of $22.7 billion had been made available for the implementation of the programme.  Of that,

$18.7 billion went to the centre and south and $4.4 billion to the three governorates of Dahuk, Erbil and Sulaymaniyah, where the United Nations implements the programme on behalf of the Government of Iraq.  While the humanitarian situation has generally improved since the inception of the programme, the lives of the ordinary Iraqis have not improved commensurately.  Although locally produced food has become increasingly available throughout the country, most Iraqis do not have the necessary purchasing power.  They are obliged to either barter or sell items from the food basket to meet their other essential needs, thus explaining, in part, why the nutritional situation has not improved.  At the same time, the absence of normal economic activity has increased deep-seated poverty.

Under the circumstances, the Secretary-General suggests the Government of Iraq may wish to increase the targeting of resources to meet the needs of the most vulnerable groups, including children and the disabled.  He urges the Government to ensure the distribution of the full food ration under the distribution plan as soon as possible.  In addition, a more vigorous effort must be made to meet the needs of internally displaced persons, particularly in the three northern governorates.  The Government may also consider including, in the next distribution plan, supplies to meet the specific needs of the poorest among the poor.

The Secretary-General states that it is time to review the validity of applying procedures and practices originally designed to cover food and medicine to a more complex array of infrastructure and equipment.  Accordingly, he has directed the Executive Director of the Iraq Programme to begin consultations with the Security Council Committee and the Government of Iraq to improve procedures governing the submission, processing and approval of applications.

Reiterating his concern over the excessive number of holds placed on applications, the Secretary-General says current holds on electricity, water and sanitation and agriculture sectors are a major factor impeding programme delivery in the centre and south, and impact adversely on the poor state of nutrition in Iraq.  Similarly, holds on trucks needed for transportation of food supplies may soon affect distribution of food rations, which is also compounded by collapsing telecommunications facilities.  He appeals to all parties concerned to cooperate and address the excessive number of holds placed on applications.

The Secretary-General also expresses concern over the many incomplete or non-compliant applications submitted to the Secretariat, which could not be processed because of insufficient information either from the suppliers or the Government of Iraq.  Furthermore, the Central Bank of Iraq has delayed sending the necessary instructions to BNP-Paribas to open letters of credit concerning applications already approved.  Accordingly, the Secretary-General appeals to all concerned to expedite procedures and provide the information requested by the Secretariat to expedite the arrival of the supplies in Iraq.

The Secretary-General further appeals to Iraq to expedite its contracting procedures and to ensure the timely submission of applications by its suppliers. He states that, with less than a month to the end of the present phase, only

597 applications, with a total value of $2 billion or 28.14 per cent of the funds budgeted for the phase VIII distribution plan, had been received by the Secretariat.

Of further concern are the deteriorating conditions of the cargo off-loading facilities and equipment at the main port of Um Qasr.  Due to frequent breakdowns of port equipment, the bulk of discharge goods is being carried out by shipboard equipment, leading to severe delays in the rate of discharge.

Also of concern, the Secretary-General says, is that the project-based list of phase VIII oil spare parts and equipment submitted by the Secretariat to the Committee on 8 August 2000 has remained on hold.  Only one application, with a total value of $12.73 million, has been submitted to the Secretariat under

phase VIII against the allocation of $600 million.

Noting that the rate at which oil spare parts and equipment are arriving in Iraq has continued to increase, the Secretary-General says consideration is being given to increasing the number of monitors of oil and spare parts equipment.  Owing to the increasing volume and complexity of oil spare parts and equipment delivered, each monitoring trip now takes at least three days to complete.  Based on current estimates, an immediate increase of two monitors is necessary.  A further four to six monitors will be required as the arrival rate of oil spare parts and equipment continues to increase.

He goes on to say that the absence of an appropriate cash component, essential for all sectors of the programme, has increasingly hampered the implementation of the programme.  The effective implementation of the programme cannot be achieved unless there is an early positive resolution to the present impasse.  The Secretary-General has directed the Executive Director of the Iraq Programme, together with the United Nations Humanitarian Coordinator for Iraq, to intensify their efforts towards finding an appropriate mechanism acceptable to all concerned.

Finally, the Secretary-General reiterates that "in the case of Iraq, a sanctions regime that enjoyed considerable success in its disarmament mission has also been deemed responsible for the worsening of a humanitarian crisis -- as an unintended consequence".  He regrets the continuing suffering of the Iraqi people and hopes that the sanctions imposed on Iraq can be lifted sooner rather than later. "But this demands that we find a way, somehow, to move the Iraqi Government into compliance with the Security Council resolutions", he says.  The Secretary-General appeals for a renewed and concerted effort by all to alleviate the plight of the Iraqi people.

Statements

Sir JEREMY GREENSTOCK (United Kingdom) said it was right for the Security Council to support the current resolution, which was in favour of the Iraqi people.  His country had played a central role in the quest for a compromise on the text.  While there were some measures that his delegation had wanted, there were others that it had not.  Overall, the text reflected the collective interest. 

He said he wished to stress the implementation of the so-called cash component of the resolution throughout all Iraq.  He also stressed the importance of the implementation of monetary measures that would address the needs of the vulnerable groups in Iraq.  Their needs were often neglected.

HASMY AGAM (Malaysia) said his delegation supported the text because it was in favour of the unimpeded implementation of the humanitarian programme of assistance to the Iraqi people, who had faced 10 years of sanctions.  The “oil-for-food” programme, as it stood, could not address the long-term humanitarian needs of the Iraqi people.  In the present context, there was a real risk that what was meant to be temporary for Iraq could become a permanent feature for the Iraqi people.

He said the majority of Iraqis were struggling to sustain themselves above a subsistence level, while the country’s professionals had migrated.  The latter were the people that Iraq could not afford to lose. The holds placed on applications was another source of concern for his delegation, even though many reasons had been used to explain them.  While some could be resolved, others would require the tremendous political will of members of the Security Council.  He hoped the sanctions against Iraq would be lifted sooner rather than later.

JAMES B. CUNNINGHAM (United States) said the “oil-for-food” programme was meeting the needs of Iraqi people, while denying the Iraqi regime funds to threaten its neighbours.  The Council had implemented every humanitarian goal despite new attempts by Iraq to avoid its obligations.  The current resolution underscored that the purchase of locally produced goods was subject to Council approval.  A cash component was essential for all sectors of the programme, and making progress on that issue was important.  He viewed the submission of arrangements for the oil industry as incomplete.

He said the Council had agreed to transfer funds for strictly humanitarian projects.  It must take into account the key needs of the Iraqi people, as well as the victims of aggression.  That included specific health and nutritional projects for orphans and health institutions.  He hoped Iraq would cooperate across the board.  The problem was not the lack of money.  Currently, some $800 million that could have benefited the people of Iraq would be sacrificed.

ARNOLDO M. LISTRE (Argentina) said he supported the draft resolution before the Council, although it represented the lowest common denominator that could allow a consensus to emerge.  Regarding the Council’s agreement that it was ready to consider permitting Iraq to pay its United Nations arrears from the escrow account, he said he would have preferred that an agreement be reached on its implementation.  He supported using funds formerly destined for compensation for humanitarian projects for the most vulnerable groups.  He hoped greater cooperation would be elicited in implementing Council resolutions.

CHEN XU (China) said his delegation would vote in favour of the resolution because Iraq was still under a comprehensive sanctions regime and the “oil-for-food” programme was the only way to alleviate the suffering of the Iraqipeople.  Large amounts of contracts had been put on hold and a proposal for the rapid approval of contracts had not been agreed upon due to differing opinions among Member States.  That was regrettable.  He could not also fail to mention the holds on large amounts of humanitarian projects, which now exceeded some $2.5 billion.  That could not be accepted.  The “oil-for-food” programme could not and would not completely address the humanitarian suffering of the Iraqi people.  Only the early lifting of sanctions could do that.

PAUL HEINBECKER (Canada) said his primary concern was to ensure the continuation without disruption of the humanitarian programmes, and the current draft resolution accomplished that objective.  He would have preferred that the Council limit itself to a simple extension of the “oil-for-food” programme, leaving the difficult political issues aside.  

Regarding the additional 5 per cent of revenue being redistributed from the United Nations Compensation Commission, he said he had understood that it was to have been targeted to specific needs.  He would like to see a separate escrow account established to deliver targeted nutrition programmes to children and

pregnant women.  He did, however, welcome the focus on delivering assistance to the most vulnerable citizens. 

With respect to the payment of United Nations dues, he said he did not support the transfer of any humanitarian funds for that purpose.  He recognized, however, the need for further examination of that issue.  He said cash components were necessary, and he had pushed hard for their inclusion in

resolution 1284 (1999).  Separating out the oil sector from others was not the best way to meet the needs of the Iraqi people.  He agreed with the need for the observation capacity to be fully implemented within 90 days.

JEAN-DAVID LEVITTE (France) said he would vote in favour of the draft resolution because it was attached to the continuity of the programme, and the long-suffering Iraqi population needed it badly.  It contained positive measures that would increase resources available to the population.  The funds would be immediately allocated to humanitarian projects.  The resolution called on the Secretary-General to make arrangements to find resources for the maintenance and operation of the Iraqi petroleum industry.  It would bring about a sustainable increase in Iraqi oil income, the only source of funding for the humanitarian programme. 

He regretted that no decision had been taken about payment of Iraqi arrears from the escrow account.  The Council would have to come back to that important question.  No decision had been taken regarding bringing down the high number of applications on hold, which were the principle obstacle to the smooth operation of the programme, he added. 

At a time when the Secretary-General had engaged in a dialogue with the Iraqi authorities to renew cooperation with the United Nations on the basis of resolution 1284 (1999), it was important that the Council pay attention to the responsibilities that were exclusive to the Council in managing the humanitarian programme.  It was now up to the Council to clarify the ambiguous and obscure aspects of resolution 1284 (1999).

SERGEY LAVROV (Russian Federation) said his delegation supported the resolution.  The extension was possible because the sponsors had taken into account several provisions, which were matters of principle and really encouraged improvements in the effectiveness of the humanitarian programme in Iraq.  Particular attention should be paid to the fact that there had been agreement not to put confrontational elements into the resolution which had no connection to the humanitarian programme.

He said it was unfortunate that the resolution did not reflect the concerns contained in the report of the Secretary-General -- blocked contracts for one.  He hoped that problem would be solved as soon as possible.  The humanitarian programme was transitional and was no alternative to stable social development in Iraq.  Sanctions should be suspended and lifted.

The Council then unanimously adopted resolution 1330 (2000).

* *** *