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DATE=12/10/1999 TYPE=CORRESPONDENT REPORT TITLE=U-N-IRAQ OIL (L ONLY) (CQ) NUMBER=2-257048 BYLINE=LARRY FREUND DATELINE=NEW YORK CONTENT= VOICED AT: INTRO: The United Nations Security Council today (Friday) extended for six months the oil-for-food program for Iraq. The action came as the council continued to consider a broader resolution intended to return U-N weapons inspectors to Iraq and suspend U-N sanctions if Iraq complies with the council's disarmament requirements. Correspondent Larry Freund reports from New York. TEXT: The Security Council voted unanimously to extend what has come to be known as the oil-for-food program for a full six months. Under that program, Iraq is allowed to sell more than five billion dollars worth of oil every six months, with proceeds used for food, medicine and other humanitarian supplies. The program was started three years ago as an exception to the U-N sanctions established after Iraq's invasion of Kuwait in 1990. The sanctions resolution remains in effect because U-N inspectors have not certified that Iraq is free of weapons of mass destruction and is not manufacturing them. The Security Council's six-month extension of the oil- for-food program followed two earlier extensions for two weeks and then one week which Iraq refused to accept and stopped shipping oil. After approving the extension of the oil-for-food program, the Security Council continued consideration of a comprehensive resolution to create a new arms inspection program for Iraq. U-N weapons inspectors left Iraq a year ago. The resolution now being discussed has been under review for several months by the five permanent members of the Security Council. Diplomats say the major problem has been finding agreement on the terms under which the sanctions against Iraq would be removed. But the deputy U-S ambassador to the United Nations, Peter Burleigh, told reporters talks are underway at what he called very high political levels. /// BURLEIGH ACTUALITY /// A consensus I think has developed on the council to bring this to closure - close to a consensus, anyway, to bring this to closure soon. And the psychology of that is that it puts a lot of pressure on all sides, because the question is, does one compromise further on certain issues or not. We are in intense high-level, difficult negotiations right now. /// END ACTUALITY /// The United States and Britain have pressed for language requiring Iraq's full cooperation with U-N weapons inspectors before most sanctions are lifted. But Russia prefers another, less demanding standard for compliance. (Signed) NEB/NY/LSF/KL 10-Dec-1999 16:06 PM EDT (10-Dec-1999 2106 UTC) NNNN Source: Voice of America .