Security Council Hopes to End Iraq Talks This Month

The UN Security Council Monday voiced its hope to complete talks on a controversial reform of UN sanctions against Iraq by the end of this month.

The council president for the month of June, Anwarul Chowdhury of Bangladesh, told a press conference here that experts would meet later Monday to discuss the reforms in detail, and the 15- nation council would review progress on Thursday.

Iraq has cut off its oil exports, currently about 2.2 million barrels a day, in protest at the proposed reforms.

"We intend to finish it by the third week of the month," the council president said.

Asked why he was more optimistic, Chowdhury said, "There is no expression of optimism as such; the optimism lies in the fact that council members are keenly engaged in the matter."

"As president, it is my intention to push it hard," he said.

Asked what would be the most difficult part of the council's deliberations, Chowdhury said, "There are a number of sticking points."

The U.N. spokesman, Fred Eckhard, confirmed Monday that Iraq had halted shipments of crude oil in protest at the reforms proposed by Britain and the United States.

"Loading at Ceyhan has stopped," Eckhard said, referring to the Turkish Mediterranean port which is one of two authorized outlets for Iraq crude oil under sanctions imposed by the Security Council in 1990.

"Two vessels are continuing to load at Iraq's oil terminal at Mina al-Baqar," Eckhard said, but he said that the tankers were already taking on crude when the Iraqi authorities decided to halt shipments on Saturday.

U.N. Secretary-General Kofi Annan acknowledged that there was little if anything that he could do to change Iraq's mind.

Speaking to reporters upon his arrival at the U.N. headquarters in New York on Monday morning, Annan said, "I don't think I can do anything."

The shape of the new sanctions would not be clear until the council had finished its deliberations, he said.

"And of course Iraq is a sovereign state," Annan said. "If it decides to turn off the oil, we can bring pressure to bear with them to change it, but whether they will change it or not, only time will tell."

Annan Welcomes US Move to Relax Holds on Iraqi Contracts

UN Secretary-General Kofi Annan on Monday issued a statement through his spokesman that he welcomes the decision taken by the United States to release the holds placed on 410 Iraqi applications in the "oil for food" program.

Annan appeals to all Security Council members to expedite the approval of applications and spare no effort in lifting the remaining holds, the statement said.

The U.S. has informed the relevant U.N. office on Friday of its decision to release 703 million U.S. dollars worth of contracts for civilian goods for Iraq, according to spokesman Fred Eckhard.

The 410 holds, covering agriculture, food handling, education, electricity, health, housing, water and sanitation are among a total of 1,651 holds with a value of 3.7 billion dollars as of March 31.

Iraq has been under international sanctions since its invasion of neighboring Kuwait in 1991.

It has urged a lift of the sanctions, citing their humanitarian impact on the Iraqi people.

The U.N. Security Council on Friday voted to extend the "oil for food" program for one month while pursuing negotiations over a recent British proposal backed by the U.S. to reform the 11-year- old sanctions regime.

Iraq rejected the proposal by announcing that it will suspend its oil exports for one month.






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