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>IRAQ SANCTIONS MONITOR Number 127
>Tuesday, September 26, 20000
>
>LATEST+++++++++++++++Iraq forsakes the dollar in oil deals+++Sanctions
>committee divided on passenger flights+++More planes take to the air+++Iraq
>claims to have hit US or Brit plan+++Russians return from Baghdad+++And more
>news than you could shake a stick at+++++++
>
>Iraq no longer to use U.S. dollars in transactions
>BAGHDAD (AFX) - The Iraqi government said it will no longer use dollars in
>its commercial transactions, as it is the currency of "an enemy country".
>It will use other foreign currencies, including the euro, it said.
>
>UN sanctions committee divided over response to flights to Iraq
>
>UNITED NATIONS, Sept 25 (AFP) - The UN committee overseeing sanctions
>against Iraq on Monday was unable to agree about an appropriate response to
>flights to Baghdad, the committee president, Dutch ambassador Peter van
>Walsum, said.
>
>"There was no agreement," van Walsum said, noting the 15 committee members
>discussed for more than two hours the recent French and Russian landings in
>Baghdad and those expected in the near future.
>
>Van Walsum said, "My view was that there was no consensus for a change of
>practice, so I felt that I should continue the existing practice" of
>requiring committee authorization for all flights to Iraq.
>
>The committee members, who represent the permanent seats of the UN Security
>Council, are profoundly divided over the legality of the flights to Baghdad.
>
>Britain and the United States maintain that committee authorization is
>necessary, while France believes that since the United Nations resolutions
>do not impose an aerial embargo, a simple notification is sufficient.
>
>France on Monday submitted a proposal to change the committee's practice, in
>place since the 1990 Gulf War, when the UN imposed a severe course of
>sanctions against Iraq after its invasion of Kuwait.
>
>The proposal stipulated that the sanctions committee must be notified in
>advance of prospective flights to Baghdad, but made no mention of
>"authorization," a diplomat said.
>
>France proposed that notification to the committee must include the reasons
>for the flight, its flight pattern, the plane's registration information and
>the carrier's nationality.
>
>Planes flying to Baghdad's international airport, the only airport to be
>authorized as a destination, will have to be inspected prior to their
>departure and upon their arrival to ensure no contraband made it aboard.
>
>Van Walsum indicated that the French proposal will be discussed at the next
>committee meeting, "probably next week."
>
>
>Jordan prepares to send plane to Iraq: foreign minister
>
>AMMAN, Sept 26 (AFP) - Jordan is preparing to send a plane to Baghdad with
>cabinet ministers and parliamentarians on board, Foreign Minister Abdel Ilah
>al-Khatib told AFP on Tuesday.
>
>  "Jordan is making the necessary preparations to send a Jordanian plane to
>Baghdad," Khatib said.
>
>
> "Jordanian officials, cabinet ministers and parliamentarians will be on
>board the aircraft," Khatib said.
>
>  He did not give a specific date for the flight but government sources said
>it will take place within 48 hours.
>
>  Prime Minister Ali Abu Ragheb could travel to Iraq after the flight,
>government sources said.
>
>  The flight will crown efforts by Jordan to ease the 10-year-old UN embargo
>on neighbouring Iraq and follows an official request by          Amman for
>the United Nations to permit the resumption of air links with Iraq.
>
>
>Russian goodwill mission back home from Iraq
>
> Text of report in English by Russian news agency ITAR-TASS
> Moscow, 26th September:
>
>A Russian group made up of State Dumadeputies, business leaders, scientists
>and cultural workers tookfive tonnes of badly needed medicines and other
>humanitarian aidto Iraq, where people have lived in conditions of
>economicblockade for the past 10 years, and returned to Moscow fromBaghdad
>on Tuesday morning [26th September].
>
>  Group members told ITAR-TASS that the meetings in Baghdad
>  confirmed that relations between the two countries were steady
>  and friendly in character and that both countries were keen on
>  laying the ground for future cooperation in the post-sanctions
>  period.
>
>  Russian Ambassador to Iraq Aleksandr Shein described the visit
>  as "important and useful". He said in an exclusive interview
>  with ITAR-TASS that the existing ties between the two committees
>  on cooperation under whose aegis the humanitarian action took
>  place pave the way for the development of relations between the
>  Russian Federation and Iraq through the efforts made by
>  nongovernmental organizations, as well as business leaders and
>  cultural workers.
>
>
>Russia to develop cooperation with Iraq
>
>Text of report in English by Russian news agency Interfax
>Baghdad, 26th September:
>Iraqi First Deputy Prime Minister Tariq Aziz has denied rumours in a number
>of the mass media that US oil companies have entered the Iraqi oil market
>using middlemen. "We know the oil market well and understand who could
>represent the interests of the Americans. We work only with our friends,"
>
>Aziz said at a meeting with Russian journalists in Baghdad. He also
>underlined that after the removal of UN sanctions, Iraq
>is ready to offer Russian oil companies a number of privileges in operating
>on the Iraqi oil market.
>
>According to Iraqi First Deputy Oil Minister Fayiz Shahin, the UN sanctions
>committee is hindering the implementation of
>agreements signed earlier between Iraq and Russian oil companies.
>
>"Due to the actions of the sanctions committee, all work on our projects
>with Russian companies has been frozen," he said.
>An Interfax correspondent reports that an agreement was signed in Baghdad on
>25th September on cooperation and joint activity
>between the Russian committee for international cultural and business
>cooperation and the Iraqi friendship, peace and
>solidarity committee and the Russian-Iraqi friendship society.
>The agreement involves the setting up in Iraq of cultural centres and
>various types of foundations. The parties have
>agreed to carry out a wide cultural informational exchange, support contacts
>between business circles in both countries and
>finance joint programmes.
>
>Jordanian plane to fly to Iraq on
>
>A Jordanian passenger plane will leave for Baghdad Wednesday in
>contravention of the air embargo, Jordanian newspaper 'Al-Ra'y'
>reported on Tuesday. It said Jordanian Foreign Minister Abd-al-Ilah
>al-Khatib had confirmed the report.
>
>The plane will carry political and public Jordanian figures as
>well as aid, the paper said. "This Jordanian decision comes as a result of
>efforts and initiatives undertaken by His Majesty King Abdallah II
>Bin-al-Husayn, who stressed on several occasions... the importance of
>"lifting the unjust embargo imposed on sisterly
>Iraq." Source: 'Al-Ra'y', Amman, in Arabic 26 Sep 00
>
>
>Iraq wants to raise oil output to 3.4 mln bpd in spring 2001
>
>NICOSIA (AFX) - Iraqi Oil Minister Amer Rashid said Iraq is aiming to
>increase its oil production to 3.4 mln barrels per day in spring 2001, under
>a  general strategy of maximising production.
>In an interview with the Middle East Economic Survey magazine, Rashid said
>he hopes the equipment that Iraq was waiting for in September will arrive in
>January or February, which would allow the country to raise its crude
>production to 3.3 mln bpd or perhaps 3.4 mln bpd in spring 2001.
>
>Rashid said Iraq is adopting a policy of maximising production. But if there
>are difficulties, shortages, or if Iraq is attacked, it will change its
>production levels as a result, he added.
>
>Iraq will probably continue to produce at the current level of 3 mln bpd
>until Jan 2001, the minister said, but it all depends on the approval and
>the arrival of the necessary oil infrastructure equipment, he said. Iraq's
>orders for this equipment have been put on hold since the Gulf War in 1991.
>
>
>HOW WILL HISTORY JUDGE IRAQ POLICY?
>From CHICAGO TRIBUNE, September 25th, 2000
>A generation from now, when historians look back on the full effect of
>United Nations economic sanctions against Iraq, they may or may not call the
>deaths of more than 1 million Iraqis genocide. To be sure, the moral
>responsibility for those lost lives lies squarely with Iraqi dictator Saddam
>Hussein--and his refusal to allow UN inspectors unfettered access to monitor
>the dismantling of his weapons of mass destruction.
>But 10 years after the UN slapped sanctions on Iraq for its August 1990
>invasion of Kuwait, it's high time Americans asked themselves serious
>questions about their responsibility in the entire sordid affair. Isn't
>there a better way for the world to contain Iraq than a policy that kills an
>estimated 5,000 Iraqi children a month without dislodging, or even harming,
>Hussein? It's a fair question, but one that the Clinton administration
>refuses to address, doggedly insisting that if sanctions were lifted,
>Hussein would quickly reconstitute his arsenal of chemical, biological or
>nuclear arms Perhaps. There's a legitimate question as to how effective the
>sanctions have been on disarmament, but there is no doubt that they have
>promoted disease, infant mortality and malnutrition.
>Nor do the presidential candidates want to broach the subject, lest they
>appear weak on defense. Republican vice presidential candidate Dick Cheney
>attacked President Clinton last week for letting Hussein "slip off the hook"
>by avoiding UN arms inspections. That's a strange reversal from the man who
>was defense secretary during the Gulf War, when the U.S. allowed Hussein to
>remain in power. Truth is, neither Texas Gov. George W. Bush nor Vice
>President Al Gore have shown they would be bold enough to change Iraq
>policy.
>America needs a policy that liberates the U.S. from responding to every
>twitch from Hussein. That means lifting the economic sanctions and keeping
>the military embargo in place, while making it plain that the U.S. will
>respond with massive retaliation if Hussein ever again threatens his
>neighbors.
>Deterrence has worked.
>Moreover, the international consensus for the sanctions is crumbling. In
>recent weeks, Russia and France have been sending in civilian aircraft in
>violation of the sanctions. Moderate Arab allies of the U.S. are
>increasingly clamoring for the embargo to be lifted.
>Sure, Hussein is capitalizing on that trend with saber rattling and
>complaints about Kuwait drilling under its border for Iraqi oil. Hussein
>draws attention this way, or by threatening to meddle with the price of oil.
>But Americans ought to think hard about reports from people such as Kathy
>Kelly of Chicago-based Voices in the Wilderness, who just spent seven weeks
>in Iraq and heard U.S. planes bombing. In Basra, there was often no
>electricity by day, little refrigeration equipment, shortages of blood bags
>and little chlorine to purify water. Disease was rampant and infrastructure
>ruined.
>The UN's oil-for-food plan isn't working. The UN arms inspection regime has
>failed. Hussein is earning hundreds of millions of dollars by smuggling oil
>despite the UN's economic embargo. This Iraq policy is increasingly a
>humanitarian and diplomatic disaster.
>It's morally unsustainable, and years hence, if historians view it as
>murder, let no one say they didn't know.
>
>
>Iraq, Jordan discuss $250m oil pipeline project (Jordan Times. Saturday,
>September 24, 2000)
>
>A Jordanian delegation currently visiting Baghdad is discussing with Iraqi
>government officials a mechanism for the implementation of the projected oil
>pipeline extending from the Iraqi borders to the Jordan Petroleum Refinery
>Company, a distance of nearly 260km to transport the crude, according to
>Minister of Energy Wael Sabri. The minister said that the estimated cost of
>the pipeline which will carry the crude to the refinery near Zarqa is $250
>million.
>
>A report in Al Ra'i Arabic daily quoted the minister as saying that the
>delegation which is led by ministry secretary general, Ahmad Bashir, will
>also pave the way for negotiations over the cost of oil for the next year, a
>subject expected to be discussed by the middle of November, the minister
>pointed out.
>
>
>Iraq in `strong position` to erode sanctions: minister
>NICOSIA, Sept 25 (AFP) - Iraqi Oil Minister Amer Rashid said Baghdad was in
>a strong position to help erode the crippling sanctions imposed on the
>country after its 1990 invasion of Kuwait, in an interview published Monday.
>
>"Sanctions will be eroded, disintegrated, due to the will and steadfastness
>of the Iraqi people, the wisdom of our leadership in managing this crisis
>situation, the unjust cause that our enemy, the US administration, is
>following and the support of friendly countries that are fully aware of the
>situation," Rashid said.
>
>"We are moving ahead with our own plans to increase, diversify and widen our
>trade relationships with neighbouring countries, as well as with others,"
>Rashid told the Cyprus-based Middle East Economic Survey (MEES).
>
>"We have soldified our political unity. We are improving our economic
>system. This puts us in a strong position. The whole policy of America
>towards Iraq has failed," Rashid said.
>
>"Do we expect the United States to lift sanctions? This is absolutely not
>our policy," the minister said. "What has happened during the last two years
>is that the moves to destroy Iraq are finished."
>
>Iraq has been under embargo ever since its 1990 invasion of Kuwait but is
>


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