ACCESSION NUMBER:374659 FILE ID:EUR509 DATE:01/13/95 TITLE:U.S. ACCUSES IRAQ OF SELLING OIL THROUGH IRAN (01/13/95) TEXT:*EUR509 01/13/95 U.S. ACCUSES IRAQ OF SELLING OIL THROUGH IRAN (Text: Albright remarks to U.N. Security Council) (1190) United Nations -- The United States January 12 alleged that Iraq is illegally selling oil at $5 a barrel through Iran rather than accept the U.N.-approved plan to sell oil at $8 or $9 a barrel to help the Iraqi people. In a presentation during the U.N. Security Council's private periodic review of Iraqi sanctions, U.S. Ambassador Madeleine Albright said that "we do not understand why Iraq complains about the suffering of the Iraqi people and yet refuses to accept a mechanism that is specifically designed to help alleviate their plight." "Use of this mechanism would yield $8 to $9 for each barrel of Iraqi oil to be spent on food, medicine, and other needs of the Iraqi people. Instead, the regime, in an arrangement that violates relevant Security Council resolutions, sells oil through Iran for as little as $5 per barrel, so that it can use the revenues for its own needs," the ambassador said in the statement, which was released to the press. The United States reported the Iraqi oil sales to the council's Sanctions Committee in December. Under the oil sale scheme approved by the council, Iraq would be allowed to sell up to $1,600 million in oil under U.N. scrutiny, with the money to go for humanitarian goods and food and to pay reparations and other gulf war obligations. The council determined that the situation with Iraq had not improved enough to warrant any change in sanctions. Following is the text of Albright's remarks: (begin text) With today's review, this council -- with five new members -- has once again 1xpressed its will that Iraq must comply fully and unconditionally with all relevant Security Council resolutions. One of the foundations of UNSCR 687 is the council's need to be assured of Iraq's peaceful intentions, which is measured by full compliance, not by grudging half-measures. Such assurances would be prudent under any circumstances. They become imperative when dealing with a regime which has established an undisputed track record of violating solemn agreements, claiming cooperation when in fact deliberately concealing truth, attempting to evade sanctions by subterfuge, refusing to be forthcoming on humanitarian issues, and causing untold suffering to its own population through repression and deprivation of the most basic human services. What do Saddam's threats against UNSCOM and his belligerent troop movements last October suggest about his intentions? What should we conclude from his January 5 speech, calling for missile attacks on Israel? Anyone who compared it with his similar speeches of the spring of 1990 would have to conclude that Saddam has learned nothing about the concept of peaceful intentions. This council's firm refusal to take a narrow view of what Iraq must do to have the sanctions lifted and its refusal to be satisfied with partial compliance resulted in a major achievement for the council in November when Iraq unconditionally accepted Kuwait's borders and sovereignty. Baghdad's difficulty in accepting that step suggests that continued firmness and consistency in demanding that the terms of relevant UNSC resolutions be met -- and met fully -- is the only viable way to achieve our common objectives. The council publicly acknowledged the importance of Iraq's recognition of Kuwait when it occurred -- and stands willing to recognize further steps if and when Iraq takes them. Unfortunately, Iraq has done nothing since its recognition of Kuwait last November to move closer to full compliance. Hundreds of Kuwaitis taken by Iraq during the invasion and occupation remain unaccounted for. For the last four months, Iraq has claimed to be cooperating fully with the International Red Cross, yet the results have been almost non-existent. If Iraq had truly spent these few months in a search for information about these cases, I am confident that, just as with the "missing documents" on its weapons programs, it would have been able to produce some concrete results. A huge store of Kuwaiti national property, including armaments and equipment, looted during the occupation, remains in Iraqi hands. Some of the most dangerous offensive weapons were used during Iraq's failed attempt last October to intimidate its neighbors and the council. This militarily significant equipment, if it remains in Iraq, remains a threat to regional security. The council has made clear that the compensation mechanism is not an acceptable alternative to their immediate return. Iraq has not ended its support for terrorism. Repression of the Shi'a and Kurds continues unabated, as does the Iraqi internal embargo against food, medicine and electricity for its northern provinces. While weapons of mass destruction (WMD) are not technically covered in this review cycle, some argue Iraq has recently improved its cooperation in this area. In fact, UNSCOM Chairman Ekeus' December report, and his oral update this week, make clear that the regime continues to hinder the commission's work, and lower our confidence in Iraq's readiness to cooperate. Credit for progress in setting up a program to monitor Iraq's capability to develop such weapons belongs to Chairman Ekeus and his team, not Saddam's regime. Indeed, UNSCOM is convinced that Iraqi authorities have made a conscious decision not to release information on their past weapons programs to UNSCOM. As Chairman Ekeus noted in his December report, such information is a prerequisite to setting up an effective monitoring regime. And any discussion of the viability of such a regime over the long term is purely academic until remaining gaps in our understanding of past programs are filled. One cannot monitor something when one does not know its 1imensions, and we cannot make a judgment about the functioning of the monitoring system until its dimensions have been clearly and fully established. We would also like to see Iraq accept and implement resolutions 706 and 712 which would authorize limited oil sales for humanitarian relief. This would show that Iraq respects and is ready to cooperate with the council. Frankly, we do not understand why Iraq complains about the suffering of the Iraqi people and yet refuses to accept a mechanism that is specifically designed to help alleviate their plight. Use of this mechanism would yield $8 or $9 for each barrel of Iraqi oil, to be spent on food, medicine and other needs of the Iraqi people. Instead, the regime, in an arrangement that violates relevant Security Council resolutions, sells oil through Iran for as little as $5 per barrel, so that it can use the revenues for its own needs. The council's experience with Iraq shows that threats, violence and deception must be met with firmness; only that resolve has resulted in the limited implementation Iraq has shown so far. Premature action by this council that would encourage Iraq to believe it can selectively choose the manner of its compliance will result in no compliance at all. My government is determined to oppose any modification of the sanctions regime until Iraq has moved to comply with all its outstanding obligations. With its action today, this council has advanced the goal of ensuring full Iraqi compliance with all the UNSC resolutions. (end text) NNNN .