SECURITY COUNCIL EXTENDS PROVISIONS OF RESOLUTION 986 AUTHORIZING IMPORT OF IRAQI PETROLEUM AND PETROLEUM PRODUCTS

3 July 2001
SC/7093

SECURITY COUNCIL EXTENDS PROVISIONS OF RESOLUTION 986 AUTHORIZING IMPORT OF IRAQI PETROLEUM AND PETROLEUM PRODUCTS

03/07/2001
Press ReleaseSC/7093

Security Council

4344th Meeting (PM)

SECURITY COUNCIL EXTENDS PROVISIONS OF RESOLUTION 986 AUTHORIZING

IMPORT OF IRAQI PETROLEUM AND PETROLEUM PRODUCTS

Unanimously Adopts Resolution 1360 (2001) Calling for Continued

Priority Allocation of Sales Proceeds to Nutrition and Health Sectors

Determined to improve the humanitarian situation in Iraq, the Security Council this afternoon decided to extend provisions of resolution 986 (1995) for a new period of 150 days, beginning at 00.01 hours Eastern Daylight Time on 4 July 2001.

By unanimously adopting resolution 1360 (2001), and acting under Chapter VII of the Charter of the United Nations, the Council further decided that from the sum produced from the import by States of petroleum and petroleum products originating in Iraq in the 150-day period, amounts for the food/nutrition and health sectors should continue to be allocated on a priority basis in the context of the activities of the Secretariat, of which 13 per cent of the sum produced in the period shall be used for the purposes referred to in paragraph 8 (b) of resolution 986 (1995) [the purposes of complementing, in view of the exceptional circumstances, the distribution by the Government of Iraq of goods imported, in order to ensure an equitable distribution of humanitarian relief to all segments of the Iraqi population throughout the country].

By the terms of the resolution, the Council decided to conduct a thorough review of all aspects of the implementation of this resolution 90 days after its entry into force and again prior to the end of the 150-day period.  It expressed its intention to consider favourably renewal of the provisions of this resolution as appropriate, providing that provisions are being satisfactorily implemented. Therefore, the Council requested the Secretary-General to provide a comprehensive report on the resolution’s implementation 90 days after the date of entry into force and again at least one week prior to the end of the 150-day period, and requested the Committee established by resolution 661 (1990) to report on the implementation of arrangements of resolution 986 (1995).

By the same terms, the Council decided that from the funds produced pursuant to this resolution in the escrow account established by resolution 986 (1995), up to a total of $600 million may be used to meet any reasonable expenses, other than expenses payable in Iraq, which follow directly from the contracts approved in accordance with paragraph 2 of resolution 1175 (1998) [necessary parts and equipment to enable Iraq to increase the export of petroleum and petroleum products] and paragraph 18 of resolution 1284 (1999) [the purchase of locally produced goods and to meet the local cost for essential civilian needs, including,

the cost of installation and training services], and expressed its intention to consider favourably the renewal of this measure.

The Council also decided that the effective deduction rate of the funds deposited in the escrow account to be transferred to the Compensation Fund in the 150-day period shall be 25 per cent, and further decided that the additional funds resulting from this decision will be deposited into the account established under paragraph 8 (a) of resolution 986 (1995) to be used for strictly humanitarian projects to address the needs of the most vulnerable groups in Iraq.  It expressed its intention to establish a mechanism to review, before the end of the 150-day period, the effective deduction rate in future phases, taking into account the key elements of the humanitarian needs of the Iraqi people.

The Council requested the Secretary-General, among other things, to continue to enhance as necessary the United Nations observation process in Iraq in such a way as to provide assurance to the Council that the goods produced in accordance with this resolution are distributed equitably and that all authorized supplies, including dual usage items, are utilized for the purpose for which they have been authorized, including in the housing sector and related infrastructure development.

The Council urged all States, and in particular the Government of Iraq, to provide their full cooperation in the effective implementation of this resolution, and called upon the Government of Iraq to take the remaining steps necessary to implement paragraph 27 of resolution 1284 (1999) [relating, among other things, to timely and equitable distribution of humanitarian goods and full cooperation with the United Nations Office for Project Services mine-clearance programme in the three northern governorates of Iraq].

[For full text of resolutions referred to in this resolution, see www.un.org/documents/scres.htm.]

Statements

Sir JEREMY GREENSTOCK (United Kingdom), speaking after action on the draft text, said all Council members were agreed that it was vital for the Council to decide to keep the United Nations humanitarian programme operating in Iraq for a further phase.  The United Kingdom regretted that the Security Council had been unable to agree on a new set of arrangements to make substantial further improvements to the humanitarian programme, particularly by freeing up dramatically the flow of goods into Iraq.  There was now a wide sense across the United Nations membership that it was the right time for new arrangements, such as those the United Kingdom had proposed, to be implemented.  There was no good reason for the delay.  The proposed new measures would help the Iraqi people.  The United Kingdom would continue to try to resolve outstanding issues in the hope of introducing its new approach as soon as possible.

JAMES CUNNINGHAM (United States) said the last resolution on the humanitarian programme had showed that there was considerable support for it.  There was broad scope for a new approach to that question, and efforts on the proposed new arrangements would continue.  The proposed arrangements remained on the table.  A resolution on those arrangements would have been adopted, save for a veto which would have brought the Council’s work to a halt.  He expressed disappointment at the Council’s failure to adopt the new approach, which would have improved the lives of the Iraqi people.  The United States would use the intervening time to work to resolve outstanding issues.

NOUREDDINE MEJDOUB (Tunisia) said his support for the resolution represented a continuation of his country’s position that it was necessary to adopt a comprehensive approach to guarantee improvement of the situation of the Iraqi people and a solution of the Iraqi question.  The repercussions of sanctions were not confined to Iraq, but also reached neighbouring countries.  He called on the Secretary-General and Iraq to resume the comprehensive dialogue, which represented an indispensable way to deal with the Iraqi question.

The meeting began at 5:38 p.m. and adjourned at 5:52 p.m.

The text of resolution 1360 (2001) is as follows:

The Security Council,

Recalling its previous relevant resolutions, including its resolution 986 (1995) of 14 April 1995, 1284 (1999) of 17 December 1999, 1330 (2000) of

5 December 2000 and 1352 (2001) of 1 June 2001, as they relate to the improvement of the humanitarian programme for Iraq,

Convinced of the need as a temporary measure to continue to provide for the humanitarian needs of the Iraqi people until the fulfilment by the Government of Iraq of the relevant resolutions, including notably resolution 687 (1991) of

3 April 1991, allows the Council to take further action with regard to the prohibitions referred to in resolution 661 (1990) of 6 August 1990, in accordance with the provisions of those resolutions,

Convinced also of the need for equitable distribution of humanitarian supplies to all segments of the Iraqi population throughout the country,

Determined to improve the humanitarian situation in Iraq,

Reaffirming the commitment of all Member States to the sovereignty and territorial integrity of Iraq,

Acting under Chapter VII of the Charter of the United Nations,

“1.   Decides that the provisions of resolution 986 (1995), except those contained in paragraphs 4, 11 and 12 and subject to paragraph 15 of resolution 1284 (1999), shall remain in force for a new period of 150 days beginning at 00.01 hours, Eastern Daylight Time, on 4 July 2001;

“2.   Further decides that from the sum produced from the import by States of petroleum and petroleum products originating in Iraq, including financial and other essential transactions related thereto, in the 150-day period referred to in paragraph 1 above, the amounts recommended by the Secretary-General in his report of 1 February 1998 (S/1998/90) for the food/nutrition and health sectors should continue to be allocated on a priority basis in the context of the activities of the Secretariat, of which 13 per cent of the sum produced in the period referred to above shall be used for the purposes referred to in paragraph 8 (b) of resolution 986 (1995);

“3.   Requests the Secretary-General to continue to take the actions necessary to ensure the effective and efficient implementation of this resolution, and to continue to enhance as necessary the United Nations observation process in Iraq in such a way as to provide the required assurance to the Council that the goods produced in accordance with this resolution are distributed equitably and that all supplies authorized for procurement, including dual usage items and spare parts, are utilized for the purpose for which they have been authorized, including in the housing sector and related infrastructure development;

“4.   Decides to conduct a thorough review of all aspects of the implementation of this resolution 90 days after the entry into force of

paragraph 1 above and again prior to the end of the 150-day period, and expresses its intention, prior to the end of the 150-day period, to consider favourably renewal of the provisions of this resolution as appropriate, provided that the reports referred to in paragraphs 5 and 6 below indicate that those provisions are being satisfactorily implemented;

“5.   Requests the Secretary-General to provide a comprehensive report to the Council 90 days after the date of entry into force of this resolution on its implementation and again at least one week prior to the end of the 150-day period, on the basis of observations of United Nations personnel in Iraq, and of consultations with the Government of Iraq, on whether Iraq has ensured the equitable distribution of medicine, health supplies, foodstuffs, and materials and supplies for essential civilian needs, financed in accordance with paragraph 8 (a) of resolution 986 (1995), including in his reports any observations which he may have on the adequacy of the revenues to meet Iraq’s humanitarian needs;

“6.   Requests the Committee established by resolution 661 (1990), in close consultation with the Secretary-General, to report to the Council 90 days after the entry into force of paragraph 1 above and prior to the end of the 150-day period on the implementation of the arrangements in paragraphs 1, 2, 6, 8, 9 and 10 of resolution 986 (1995);

“7.   Decides that from the funds produced pursuant to this resolution in the escrow account established by paragraph 7 of resolution 986 (1995), up to a total of 600 million United States dollars may be used to meet any reasonable expenses, other than expenses payable in Iraq, which follow directly from the contracts approved in accordance with paragraph 2 of resolution 1175 (1998) of

19 June 1998 and paragraph 18 of resolution 1284 (1999), and expresses its intention to consider favourably the renewal of this measure;

“8.   Requests the Secretary-General to take the necessary steps to transfer the excess funds drawn from the account created pursuant to paragraph 8 (d) of resolution 986 (1995) for the purposes set out in paragraph 8 (a) of resolution 986 (1995) in order to increase the funds available for humanitarian purchases, including as appropriate the purposes referred to in paragraph 24 of resolution 1284 (1999);

“9.   Decides that the effective deduction rate of the funds deposited in the escrow account established by resolution 986 (1995) to be transferred to the Compensation Fund in the 150-day period shall be 25 per cent, further decides that the additional funds resulting from this decision will be deposited into the account established under paragraph 8 (a) of resolution 986 (1995) to be used for strictly humanitarian projects to address the needs of the most vulnerable groups in Iraq as referred to in paragraph 126 of the report of the Secretary-General of 29 November 2000 (S/2000/1132), requests the Secretary-General to report on the use of these funds in his reports referred to in paragraph 5 above, and expresses its intention to establish a mechanism to review, before the end of the 150-day period, the effective deduction rate of the funds deposited in the escrow account to be transferred to the Compensation Fund in future phases, taking into account the key elements of the humanitarian needs of the Iraqi people;

“10.  Urges all States, and in particular the Government of Iraq, to provide their full cooperation in the effective implementation of this resolution;

“11.  Calls upon the Government of Iraq to take the remaining steps necessary to implement paragraph 27 of resolution 1284 (1999), and further requests the Secretary-General to include in his reports under paragraph 5 above a review of the progress made by the Government of Iraq in the implementation of these measures;

“12.  Stresses the need to continue to ensure respect for the security and safety of all persons directly involved in the implementation of this resolution in Iraq;

“13.  Appeals to all States to continue to cooperate in the timely submission of applications and expeditious issue of export licences, facilitating the transit of humanitarian supplies authorized by the Committee established by resolution 661 (1990), and to take all other appropriate measures within their competence in order to ensure that urgently needed humanitarian supplies reach the Iraqi people as rapidly as possible;

“14.  Decides to remain seized of the matter.”

Background

The Security Council met this afternoon to consider the situation between Iraq and Kuwait.

On 1 June, the Council adopted resolution 1352 (2001), deciding to extend the provisions of resolution 1330 (2000) until 3 July.  [Resolution 1330 (2000), unanimously adopted on 5 December 2000, extended the Iraq “oil-for-food” programme for a period of 180 days from 6 December 2000.]

By the terms of resolution 1352 (2001), which was unanimously adopted, the Council expressed its intention to consider new arrangements for the sale or supply of commodities and products to Iraq, and for the facilitation of civilian trade and economic cooperation with Iraq in civilian sectors.

That intention is based on the principle that the new arrangements will significantly improve the flow of commodities and products to Iraq, other

than those mentioned in paragraph 24 of resolution 687 (1991).  Items to which that text refers include arms and related materiel of all types, chemical

and biological weapons, and ballistic missiles with a range greater than

150 kilometres.  Those items are also subject to review by the Committee established by resolution 661 (1990) on the proposed sale or supply to Iraq of commodities and products on a Goods Review List to be elaborated by the Council.

According to the text, such new arrangements will improve the controls to prevent the sale or supply of items prohibited or unauthorized by the Council.  They will also prevent the flow of revenues to Iraq from the export of petroleum and related products outside the escrow account established by resolution 986 (1995).

Further by the text, the Council expressed its intention to adopt and implement such new arrangements, and provisions on various related issues under discussion, for a period of 190 days beginning 4 July 2001.

The mandate of the current resolution runs out at midnight today.

Other relevant resolutions are:  669 (1990), 986 (1995), 1153 (1998), 1284 (1999), 1293 (2000) and 1302 (2000).

On 26 June, the Council held an open debate on the matter, continued on

28 June, in response to a letter dated 15 June from the Permanent Representative of the Russian Federation to the Council (document A/2001/597).  He asked to convene the open formal meeting to consider ways of improving the humanitarian situation in Iraq related to the negative effect of sanctions on the population of that country, and also ways of implementing all the Council resolutions on Iraq and a post-conflict settlement in the Gulf region.  [For more information on these meetings, see Press Releases SC/7085 of 26 June and SC/7088 of 28 June.]

[For more information on the “oil-for-food” programme, see www.un.org.Depts.oip.]

* *** *

For information media. Not an official record.