DATE=12/10/1999
TYPE=CORRESPONDENT REPORT
TITLE=IRAQ / OIL SMUGGLING (L-ONLY)
NUMBER=2-257050
BYLINE=GIL BUTLER
DATELINE=STATE DEPARTMENT
CONTENT=
VOICED AT: 

INTRO:  The United Nations Security Council has 
approved a six-month extension of a program to allow 
Iraq to sell oil for money to buy food and medicines.  
At the same time, the United States says Iraq has been 
smuggling increasing amounts of oil to provide the 
regime with money for its own -- non-humanitarian -- 
purposes.  V-O-A's Gil Butler has a report from the 
State Department.

TEXT:  The State Department released a satellite photo 
of the Shatt al-Arab waterway at Basra, which it says 
shows foreign tankers loading up with oil.  Under 
United Nations sanctions, Iraq is allowed to ship oil 
only from two designated ports under the "oil-for-
food" program.

The State Department says at the same time Iraq was 
rejecting the U-N program, it smuggled 21-million 
dollars worth of oil in November.

State Department spokesman James Foley said the United 
Nations program allows Iraq to sell legitimately more 
than five-billion dollars' worth of oil every six 
months for humanitarian purchases.

            /// FOLEY ACT ///

      This kind of smuggling has nothing to do with 
      the international community's ability to feed 
      and help care for the humanitarian needs of the 
      Iraqi people.  It occurs precisely because it 
      evades the controls of the United Nations.  It 
      allows Saddam [Hussein] to line his pockets, to 
      build his palaces and to otherwise import goods 
      that would be prohibited by the United Nations.

            /// END ACT ///

Mr. Foley said the smuggling picked up significantly 
in November when Iraq illicitly shipped 70-thousand 
barrels of oil a day.  He said the United States is 
discussing what to do about the alleged smuggling with 
other Security Council members.   (Signed)

NEB/MGB/WTW



10-Dec-1999 16:33 PM EDT (10-Dec-1999 2133 UTC)
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Source: Voice of America
.