- 2 - Press Release SC/6254 IK/203 9 August 1996
observed for applications submitted by the United Nations Inter-Agency Programme. This section also contains provisions covering the opening of letters of credit. Payment from the Iraq account can, in principle, take place only for items included in the categorized list of goods and after confirmation of their arrival in Iraq by independent inspection agents appointed by the Secretary-General. Section IV (paragraphs 39 and 40), entitled "Export to Iraq of parts and equipment, and financial transactions related thereto, pursuant to paragraphs 9 and 10 of resolution 986 (1995)", stipulates that the export of the parts and equipment will be undertaken in accordance with the procedures set out in Section III of the present procedures. Section V (paragraphs 41 and 42), entitled "Approval of reasonable expenses other than expenses payable in Iraq", provides that the Committee can approve the financing from the Iraq account of reasonable expenses, other than expenses payable in Iraq, which are determined by it to be directly related to the export by Iraq of petroleum and petroleum products permitted under resolution 986 (1995). Section VI (paragraphs 43 to 46), entitled "General provisions", addresses general questions such as the establishment of communication links, reports of the Secretary-General on the details of disbursements made out of the Iraq account, the form of the letters of credit and the possibility of a revision of the procedures. The last part of the procedures are the two annexes. Annex I contains the "Standard application form to request approval of contracts for the sale of Iraqi petroleum and/or petroleum products". Annex II lists up the "Information to be included in the letter of credit". Following the adoption of the procedures, the Committee agreed to introduce a new application form for sending humanitarian supplies to Iraq and requested the Chairman to make it available to all States and relevant international organizations. Pursuant to paragraph 1 of the Procedures, the Secretariat made a recommendation to the Committee on the selection of the overseers. Pending approval of the recommendation by the Committee under its no-objection procedure by noon, 9 August 1996, the names of the selected candidates will be forwarded to the Secretary-General for appointment. The Committee also considered a request from Turkey to resume the import of petroleum and petroleum products from Iraq for domestic purposes given the serious economic difficulties it has suffered as a result of the sanctions against Iraq. In view of the complexity of the matter and its implications for the sanctions regime, several members requested that the matter be deferred to allow them additional time to study the request. It was so decided.
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