Annex I

            Letter dated 13 June 2002 from the Executive Director of the Iraq
            Programme addressed to the Permanent Representative of Iraq
            to the United Nations

On behalf of the Secretary-General, I have the honour to acknowledge receipt, under cover of your letter dated 10 June 2002 addressed to the Secretary-General, of the distribution plan submitted by your Government for the new period specified in paragraph 1 of Security Council resolution 1409 (2002) of 14 May 2002, together with the annexes to the distribution plan received from the Ministry of Foreign Affairs of the Republic of Iraq, through the Office of the Humanitarian Coordinator in Iraq.  In this respect, I would like to inform you that I have been authorized by the Secretary-General to convey the following.

I have the honour to inform the Government of Iraq, through you, that, having examined the distribution plan, and taking into full account the relevant provisions of resolutions 986 (1995) and 1409 (2002), as well as the memorandum of understanding concluded on 20 May 1996 between the United Nations Secretariat and the Government of Iraq (S/1996/356), the Secretary-General has come to the conclusion that the plan, if properly implemented, should meet the requirements of equitable distribution of humanitarian goods to the Iraqi population throughout the country. The plan is therefore approved with the following understandings.

It is necessary to recall that the responsibility for the sectoral allocations in the distribution plans remains with the Government of Iraq, which is also responsible for the selection of its suppliers and contracting under the ESB (59 per cent) account.  The Secretariat is involved only after the suppliers, through their respective permanent and/or observer missions to the United Nations, submit applications to the Office of the Iraq Programme.  The financial allocations presented in the distribution plan are regarded by the United Nations as being provisional, as the funding level for the distribution plan for phase XII is based at this time on the estimated revenues to be received from the volume and price of oil exports from Iraq.  Accordingly, the financial allocations presented in the distribution plan are considered by the United Nations as being indicative and for planning purposes only.

It has been decided not to comment further at this time on the content of the distribution plan, in view of the authorization contained in paragraph 3 of resolution 1409 (2002) permitting, “notwithstanding the provisions of paragraph 3 of resolution 661 (1990) and subject to the procedures for the application of the Goods Review List (S/2002/515), the sale or supply of any commodities or products other than commodities or products referred to in paragraph 24 of resolution 687 (1991) as it relates to military commodities and products, or military-related commodities or products covered by the Goods Review List (S/2002/515) pursuant to paragraph 24 of resolution 687 (1991) whose sale or supply to Iraq has not been approved by the Committee established pursuant to resolution 661 (1990).”   However, the approval of the distribution plan does not constitute an endorsement of every specific item or project contained in the plan, as in certain cases the items will become subject to review by the Security Council Committee in accordance with the relevant provisions of resolution 1409 (2002).

The approval of the distribution plan is subject to the condition that its implementation is governed by the relevant provisions of Security Council resolutions 986 (1995), 1281 (1999), 1284 (1999), 1302 (2000), 1330 (2000), 1360 (2001), 1382 (2001), 1409 (2002) and the memorandum of understanding (S/1996/356) and that, in case of inconsistency between the particular provisions of the plan, on the one hand, and the resolutions and the memorandum of understanding, on the other, the provisions of the latter documents shall prevail.  Furthermore, the approval of the plan is without prejudice to actions that might be taken by the Security Council Committee regarding applications for export of particular items contained in the list submitted for the Committee’s consideration in accordance with its procedures.


                                                                                                           (Signed) Benon V. Sevan