September 24, 2000


                 Saddam sells UN drugs on black market
                 By Christina Lamb


CHILDREN'S medicines sent to Iraq by a British pharmaceutical company
under a United Nations programme are being smuggled out of the country and
sold on the black market in Lebanon to fund the lavish tastes of Saddam
Hussein. 

Glaxo-Wellcome has made official complaints to the Foreign Office and to
the UN which oversees the Oil for Food Programme. This allows Baghdad to
sell limited quantities of oil to buy vital humanitarian supplies for
children, the sick and elderly. 

The UN Security Council set strict controls to ensure that the medicines
went to civilians and not the regime. But a spokesman for Glaxo-Wellcome
told The Telegraph that the company has so far traced 15,000 units of
Ventolin, part of a consignment of asthma medicine shipped to Iraq,
circulating on the black market in Beirut. 

The medicines had been transported to Lebanon using vehicles belonging to
Iraq's ministry of transport. This indicates that the smuggling is being
masterminded at the highest levels and undermines Saddam's claims that
people are dying in Iraq because of shortages caused by the trade embargo
imposed in 1991 after the invasion of Kuwait. However, with the Iraqi
dictator still firmly in power despite a decade of sanctions, Britain and
America are increasingly isolated as they continue to insist on the
embargo. A Foreign Office official acknowledged: "Sanctions are clearly
not working but they are desperately clinging on because no one knows what
else to do." 

Saddam is using the supposed shortages as a propaganda tool, showing
pictures of sick children and blaming the West for his people's suffering
when his regime is actually smuggling out medicines that it does receive.
The Ventolin is thought to be just a fraction of the UN- approved Western
medicines illegally sold on by Saddam's lieutenants in a scheme run by his
son Uday. The Iraqi opposition estimate that millions of pounds are being
raised in this way and used to finance Saddam's regime and the activities
of his intelligence services as they step up their work in London and
other European capitals. 

Glaxo-Wellcome has launched a campaign to warn pharmacists in Lebanon and
other Arab states not to sell the smuggled goods. The company is concerned
about the safety implications of prescription drugs being sold over the
counter as well as being undercut in markets to which it already exports.
Last week the Lebanese authorities arrested a number of those involved in
selling them. 

"Obviously this is a worrying development," said an official at the UN
programme office for Iraq. A recent report by the office to the Security
Council projected oil revenues for Iraq from December 1999 to June 2000 at
�6 billion, which should be spent on health and food, and complained that
medicines worth �180 million were still lying in Iraqi warehouses and had
not been distributed. 

However, there is now increasing pressure to end sanctions both in the
Arab world and beyond. Iraqi trade with Syria, Egypt and some Gulf
countries has been increasing, as has support for an end to the embargo,
and there have been several reports of oil being smuggled through Turkey
and the UAE. 

Last week Saddam's regime celebrated the arrival of a Russian flight at
the newly-reopened Baghdad international airport and Aeroflot executives
are awaiting Kremlin approval for the resumption of what will be the first
regular commercial flights since the Gulf war. Passengers on last week's
flight included oil executives interested in making deals with Iraq. 

On Friday, a French plane flew from Paris to Baghdad, carrying doctors,
athletes and artists defying a request from the UN committee that upholds
the sanctions regime against Iraq. The sanctions committee was informed
only on Thursday night of the Friday morning flight and France refused a
request to delay the flight for 12 hours so that the issue could be
studied. Welcoming the flight at Baghdad, Hussein Saeed, an Iraqi Olympic
committee official, said the French had taken "a big initiative in
breaking the embargo". 

At the same time, boosted by record oil prices and the protests in Britain
and across Europe over high fuel costs, Saddam has begun an intensive
lobbying campaign to weaken the sanction regime. His efforts already seem
to be having some effect. Hugo Chavez, Venezuela's new president, recently
made a trip to Baghdad, the first elected head of state to visit since the
Gulf war. Known for his anti-American rhetoric, President Chavez claimed
his visit was necessary because Venezuela currently holds the presidency
of the Organisation of Petroleum Exporting Countries and suggested it was
time to end Iraq's isolation. 

http://www.telegraph.co.uk:80/et?ac3511677918707&rtmo=xA8YxM&a
tmo=tttttd&pg=t/00/9/24/wdrug24.html

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