-Caveat Lector-

Iraq allocates money for Palestinian uprising
The Associated Press
12/9/00 8:04 PM


BAGHDAD, Iraq (AP) -- Iraq pledged Saturday to allocate some $881 million in
oil revenues to support the Palestinian uprising, the official Iraqi News
Agency said.

The agency was quoting a statement issued after a meeting of the
Revolutionary Command Council and the Iraq Regional Command of al-Baath
Party, chaired by President Saddam Hussein.

The members agreed to allocate $264 million to support the families of
Palestinian martyrs, with the remaining $617 million to go toward the
purchase of food, medicine and humanitarian needs. The money would be
donated in euros.

More than 300 people, most Palestinians, have been killed in more than two
months of fighting in Israel and the Palestinian territories.

The Iraqi News Agency said the donated money would be deducted from its oil
export income.

The four-year-old U.N. oil-for-food program has generated $38 billion in
revenue for Iraq, most of it for humanitarian programs and to fund Gulf War
reparations and U.N. operations.

The program was launched to help ordinary Iraqis cope with the effects of
U.N. sanctions imposed to punish Iraq for its 1990 invasion of Kuwait.

However, under the program, all profits from Iraqi exports go into an escrow
bank account in New York. Iraq cannot spend the money without approval from
the United Nations.

Saturday's meeting also discussed whether to extend the program, but Iraqi
News Agency did not say if the Iraqi leadership accepted the extension.

Iraq long has opposed the program, arguing that it only serves to perpetuate
sanctions that it wants lifted immediately. Under Security Council
resolution, sanctions can be lifted only after U.N. inspectors certify that
Iraq's weapons programs have been dismantled.

"The program was supposed to be a temporary measure ... but America and
Britain are dealing with it as an alternative for the total lifting of
sanctions and as a permanent measure," the statement said. "This ignorance
toward Iraq's rights will make them find out the dangers of their policies,
in addition to their lack of legal basis."


Copyright 2000 Associated Press. All rights reserved. This material may not
be published, broadcast, rewritten, or redistributed.

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