|
|
|
|
Oil-for-Food Background Information
|
Introductory
remarks by Benon V. Sevan Security
Council Consultations 21 May 1999 The Security Council has before it two
reports from the Secretary-General regarding the humanitarian programme
established by resolution 986 (1995) of 14 April 1995 and successive
resolutions. The first is the two-year review and assessment of the
implementation of the programme (S/1999/481), and the second is the report
submitted pursuant to paragraph 6 of Council resolution 1210 (1998), namely, the
180-day report on the current phase V (S/1999/573). I do not believe that there is need to
further elaborate the Secretary-General's
observations and recommendations contained in the reports before the Council. The Secretary-General's supplementary report
in February of last year (S/1998/90) contained a range of recommendations for
improving the programme, which were endorsed by the Council in resolution 1153
(1998). However, over both phase IV and phase V, oil
revenues have not come close to the ceiling of $5.2 billion authorized. In phase
V - the final revenue figure will be $3.8 billion - still $1.4 billion below the
ceiling. For phases IV and V combined, the deficit in terms of spending on the
humanitarian programme is more than $2.5 billion dollars -- and well over $3
billion dollars, if I take into account the need to fund oil industry spare
parts and equipment. I make this point to underline the fact that
the recent upward trend in the price of oil has not solved the difficulties
encountered in meeting the objectives of the programme. This programme is still
seriously short of the revenue required to meet its objectives. Nonetheless, there is no doubt that a
significant development since the consideration of the 90-day report of the
Secretary-General (S/1999/187) has been the increase in the price of Iraqi oil -
it has gone from around $8.60 barrel to a high of $15.60 a barrel. In his report
on the two-year review, the Secretary-General rightly cautioned against any
over-optimism on this point - and the oil market quickly underlined his point,
as the price of Iraqi oil dropped back to $13 a barrel yesterday. The message is
loud and clear - we cannot make any safe assumptions about future revenue. There
remains a compelling need to take every possible measure which could increase
Iraq's capacity to produce oil for export. The increase in phase V revenues, resulting
from the sharp increase in the price of oil in the past three months, has been
most welcome and has enabled my office to clear much of the backlog in approved
but unfunded contract applications. Contracts in the electricity, water and
sanitation, and agriculture sectors have been the main beneficiaries. There are a number of measures which, though
small, if taken together would have a significant impact on the efficiency of
this programme. Most are contained in the report of the Secretary-General on the
two-year review and others are already familiar from previous reports of the
Secretary-General. Once again, I should like to appeal, on behalf of the
Secretary-General, that the Security Council Committee established by resolution
661 (1990) endorse the proposal submitted by the Office of the Iraq Programme,
on 11 February 1999, regarding the reimbursement of funds from the ESC (13 per
cent) account to the ESB (53 per cent) account. As you
will note from the tables I am circulating for the information of the
Council, as of yesterday, the total amount awaiting reimbursement from the 13
per cent to the 53 per cent account had reached $280,075,055. On 13 May 1999, the Secretary-General
approved the revised part seven of the distribution plan for phase V, concerning
telecommunications (S/1999/559). As we have reported before, the lack of
effective voice and data communications poses a serious obstacle to the
effective and timely distribution of the humanitarian supplies purchased under
this programme. The first applications for this sector will be distributed in
the next few days. With regard to the situation of storage of
medical supplies and equipment, I should like to inform the Council that the
United Nations is working closely with the authorities concerned to address the
difficulties encountered. On an informal basis, my colleagues in Iraq
have been discussing with their technical counterparts the preparation of the
next distribution plan. Although we hope that the extension of the programme
will take place smoothly, following a decision by the Security Council, we do
not take it for granted. We have noted a certain increase in the stridency of
statements regarding the future of the programme, which may signal difficulties
ahead. In closing, I should like to emphasize that
any assessment of the implementation of the humanitarian programme should bear
in mind its mandate. This is a programme established by the Security Council
under Chapter VII of the Charter, as a temporary measure to provide for the
humanitarian needs of the Iraqi people, until the fulfilment by Iraq of the
relevant Council resolutions. As the Secretary-General has stated in his report
of the two-year review, the programme pursuant to resolution 986 (1995) cannot -
and was never meant to - meet all the humanitarian needs of the Iraqi people,
nor can it restore Iraq's
economic and social infrastructure to pre-1990 levels. * *** * Status of
Reimbursement of the 53% account from the 13% account Amounts to
be reimbursed
|
|||||||||||||||||||||||||||||
| OIP Home Page | ||||||||||||||||||||||||||||||
|
|
|
Produced for media and public
information – not an official United Nations Document |