*UN Passes One-Week Oil Plan For Iraq* -

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Saturday, 4 December 1999 6:31 (GMT)(UPI Focus)

UN passes one-week oil plan for Iraq

By WILLIAM M. REILLY

UNITED NATIONS, Dec. 4 (UPI) - The U.N. Security Council Friday approved a one-week extension to the Iraq oil-for-food humanitarian program to bridge the gap until members of the 15-member panel can hammer out a more comprehensive resolution.

The vote Friday was 11-0 with three abstentions and France refusing to participate. Such a move is not without precedent. It frequently was employed in the early days of the world organization, but available records show the last time was in 1994.

The move came as Washington readied for action on the comprehensive measure. The United States is increasingly optimistic that measure will pass next week. U.S. Secretary of State Madeleine Albright during a trip early next week to the Middle East is expected to bring Iraq up in talks with the officials from Saudi Arabia.

But the French representative in the council, Ambassador Alain Dejammet, said the measure tabled Friday was ineffective and undermined future chances for a long-term solution. He said the short-term extension "proved impractical."

He said the latest extension made the sale of oil materially impossible "because of time required for the processing of contracts as a result of U.N. machinery."

Dejammet called the extension "deliberately incapable of realization," designed "with the purpose of bringing pressure" on member states to pass the broader resolution.

"This is an extremely exceptional, extraordinary process and we see only one rational position to take and that is not taking part in the voting," he said.

The two-week extension, ending Saturday at midnight, earlier prompted Baghdad to reject it, saying it was halting the flow of oil but would continue to accept goods in the U.N. humanitarian pipeline.

The Iraqi Ambassador to the United Nations, Saeed Hasan said, "It's a sad day in the history of the United Nations because the United States once again imposed its wicked will, evil will, on members of the Security Council. It is regrettable that 11 members of the Security Council voted in favor of this resolution while they know very well from a technical point of view this resolution is inapplicable and illogic."

U.N. officials told Baghdad's envoy that it would take at least three weeks to initiate an oil shipment.

U.S. officials, however, said the measure was a workable option until the council agrees on a long-term plan.

"This resolution ensures that essential humanitarian assistance can continue while the Security Council prepares for adoption of a comprehensive resolution on Iraq next week," said Deputy U.S. Ambassador Peter Burleigh, the Clinton administration's point man at the United Nations on Iraq.

"Adoption of that resolution, which includes many important provisions bearing on the oil-for-food program, will clear the way for action on a full six-month extension of the program a week from now," he said.

In Washington, State Department spokesman James Rubin said that optimism for a long-term solution was high. "We've got a large body of support," Rubin told reporters Friday. "Well over 10 countries support the approach that the United Kingdom and the Dutch initiated."

The Russian representative, Deputy Ambassador Gennady Gatilov, said Russia does "not at all link a consideration of humanitarian issues with continuing work on a comprehensive resolution on Iraq." He said, "The decision adopted by the council does not at all predetermine the timetable for conclusion of work on an omnibus resolution and we do not assume any responsibilities in this regard."

Led by the permanent five members, Britain, China, France Russia and the United States, the Security Council has been working since March on a comprehensive resolution designed to return U.N. weapons inspectors to Iraq, expelled in December 1998 when Britain and the United States began a bombing campaign.

The oil-for-food program allows Iraq to sell $5.2 billion worth of oil every six months to buy humanitarian goods such as medicine and food. Recently it was allowed to make up for shortfalls because of low oil prices, and the latest phase brought more than $7.45 billion in revenue.

URL: http://www.vny.com/cf/News/upidetail.cfm?QID=27249

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-- snooze button (alarmclock_2000@yahoo.com), December 04, 1999

Answers

I'm befuddled on this one.

No surprise. There's a Retuer's story out this morning saying the Iraqi's formally rejected the one week deal as everyone knew they would. Ten days ago they rejected a two week deal for being too short. Why would the US & UK waste everyone's time and effort by subsequently passing a one week unworkable oil for food proposal???? The Iraqi said they would have accepted a 6 month rollover of the just expired contract.

OK Questions:

If the US and UK govs are truely in the know on pending y2k rollover probs in the oil industry, why would we press this issue with Iraq right now? The way this is unfolding I'm very cionfident we won't see any Iraqi oil in Dec (+70 million barrel shortfall in a tight market). They, and so many others, have got y2k probs. Why would the US contribute to oil market shortages by pressing weapons inspections and these bullshit one and 2 week contracts a month b4 D-day?

What is Madelline Albright gonna be discussing in Saudi Arabia next week? Can we assume that we're coluding with the Saudis to make up for the Iraqi shortfall? The Saudis would be able to bump up their production by 2 million barrels a day into very lucrative economics.

What am I missing? Come on gang....What do you sharpies think?????

-- Downstreamer (downstream@bigfoot.com), December 04, 1999.


As I've been saying all along, the oil corporations are planning to jack gasoline prices sky high by exploiting crude oil supply shortages. This would include not only ignoring Y2K problems in order to create disruptions to supply, but also engineering little games like the one they are playing with Iraq. The American public should begin stashing some extra cash away in preparation for very high gas prices.

-- Hawk (flyin@high.again), December 04, 1999.

Maybe some of the big corps offered an unsatisfactory transaction to Sadam and he balked. Then to make it clear to him that they have friends in the major capitals, they pulled the strings to send him the message directly.

-- snooze button (alarmclock_2000@yahoo.com), December 04, 1999.

Hawk wrote: As I've been saying all along, the oil corporations are planning to jack gasoline prices sky high by exploiting crude oil supply shortages

Hey Hawk, not for nothin, but stop capping on the oil cos. We don't do the bullshit that we're always accused of in regard to manipulation. Howevery we're constantly being called on the carpet by idiot politicians and govt. wonks who couldn't figure out what a free market is if it hit them in the groin. Neither are we stupid businessmen, but it's not near as sinister as you make it to be.

In any event, the Iraqis already said no to this. SadMan is playing this one to the hilt. Smart guy really good market timer. Would've made a great oil trader.

Unfortunately our guys are left with "the SPR boogeyman" as their only recourse and that doesn't seem to be scaring away our inflationary oil prices in the least. Even Greasepan can't slide through that fact.

-- Gordon (g_gecko_69@hotmail.com), December 04, 1999.


Gordie,

Sorry, I guess I can be perhaps too cynical of the old oil tycoons. They aren't intentionally trying to ripoff consumers, just trying to get those profits back that they didn't get the last couple of years when oil was low. After all, it must be kinda rough for those CEO's that are taking home a half a $mil a week to find out that they won't get as big of a bonus based on earnings.

Politics hasn't been much of an obstacle for oil companies since the breakup of the Standard Oil Company, and I don't think it is now either. They already own the politicians, so it's only a matter of dollars and cents. Oil companies and banks have been running this country since day one, and there ain't no stopping them now unless the people suddenly awake from their collective coma.

-- Hawk (flyin@high.again), December 04, 1999.



I think Ol' Sadam is coiled up like a rattler and crooked Willy's poking him with a stick.

Godspeed,

-- Pinkrock (aphotonboy@aol.com), December 04, 1999.


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