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Admitting Iraq Occupation, U.S. Seeks Full Oil Control

Washington proposed cutting from 25 percent to five percent the proportion of Iraq's oil sales set aside to compensate Kuwait for the 1990 invasion

UNITED NATIONS, May 9 (IslamONline.net & News Agencies) - In a draft resolution presented to the U.N. Security Council Friday, May 9, to lift Iraq sanctions, the U.S. formally recognized its obligations as an occupying power, proposed a U.S.-British body to decide how Iraqi oil proceeds would be spent and mooted slashing proportion of oil revenues given to Kuwait in compensation for the 1990 invasion.

A reworked version of the draft, formally submitted by U.S. Ambassador John Negroponte, "calls upon all concerned to comply fully with their obligations under international law, including in particular the Geneva Conventions of 1949 and The Hague Regulations of 1907."

The Geneva Conventions spell out the responsibility of an occupying force to protect civilians and treat prisoners of war humanely.

The Hague Regulations explain the occupier's obligations in maintaining civil administration.

The wording, omitted from a draft made available to reporters on Thursday, May 8, appeared to be a concession to countries such as France and Russia, which opposed the U.S.-led invasion of Iraq, reported Agence France-Presse (AFP).

Oil Control

The draft proposed setting up a new body comprising Britain and the U.S. - known as The Authority - to decide how income from the sale of Iraqi oil would be spent, reported the BBC news online.

It says "the U.N. should play a vital role in providing humanitarian relief, in supporting the reconstruction of Iraq, and in helping in the formation of an Iraqi interim authority."

But when it comes to managing Iraqi oil proceeds, the draft makes it clear that the role of the U.N., which currently controls the revenue, would be confined to an advisory role.

According to the draft, the only specific responsibility for U.N. Secretary General Kofi Annan would be to appoint a representative to the advisory board which will ensure that Iraq's oil is sold at a fair market price.

The draft also gives the U.S.-led occupying forces in Iraq control of its economy for 12 months.

The oil-for-food program, set in place in December 1996 to cushion Iraqi citizens from the crippling effect of sanctions, would remain for four months from the moment the resolution is adopted.

The draft says all oil-for-food income not so far allocated shall go to the new authority.

Progam director Benon Sevan told the Security Council on April 22 that he had 3.223 billion dollars in unencumbered funds.

Iraq has the world's second largest known oil reserves.

Kuwaiti Compensations Cut

The U.S.-sponsored draft proposed cutting from 25 percent to five percent the proportion of Iraq's oil sales set aside to compensate Kuwait for the 1990 invasion.

A copy of the draft made available to reporters on Thursday left blank the percentage of Iraq's oil money to be put into the Geneva-based Compensation Fund.

The figure was originally set at 30 percent but was reduced to 25 percent in December 1999, three years after Iraq's oil began to flow again under the oil-for-food program.

To date, the Compensation Fund has made awards of close to 44 billion dollars to Kuwait and other countries. Actual payments exceed 17.5 billion dollars.

Another 200 billion dollars in unresolved claims are pending.

At present, another three percent of Iraq's oil revenue goes to the U.N., to cover the administrative costs of the program and of the arms inspectorate, but those payments would cease immediately if the draft is adopted.

Confident White House

The White House has expressed confidence that the draft resolution will face few obstacles, reported the BBC.

"The president wants the Security Council to act quickly and there is no need for a lengthy debate," spokesman Ari Fleischer told reporters.

He said the resolution would "lift sanctions on Iraq, wind down the oil-for-food program, provide for an appropriate administration to help provide security and rebuild Iraq, and encourage international participation in this effort".

Negroponte said Thursday he wanted the resolution adopted within two weeks, and by June 3 at the latest.

Constructive France

French President Jacques Chirac said Friday the U.N. must play a "central role" in the reconstruction of Iraq, adding that France would be "constructive" in talks on such a resolution.

"I do not intend to go into details prematurely," Chirac told a news conference in Wroclaw, southwestern Poland during a trilateral summit with Germany and Poland in response to a question.

"At this stage I confirm France's willingness to broach discussions on the future of Iraq in an open and constructive spirit."

His Foreign Minister Dominique de Villepin gave a hint of the diplomatic tussles to come, saying the legitimacy of a future Iraqi government depended on "the strong involvement of the international community, via a central role for the United Nations."

A French foreign ministry spokesman said Villepin had already spoken by telephone with Annan, U.S. Secretary of State Colin Powell, German Foreign Minister Joschka Fischer and Russian counterpart Igor Ivanov.

German Mediation

Germany reached out Friday to the U.S. after their acrimonious dispute over Iraq, saying it was willing to play a mediator role in the U.S. attempt to lift U.N. sanctions against Baghdad.

The German foreign ministry spokesman said Berlin's approach would be "fixed on the future, pragmatic and constructive," in the Security Council debate on the U.S.-led draft resolution.

U.S. Assistant Secretary of State Kim Holmes flew into Berlin Friday for talks with senior foreign ministry officials on the draft resolution.

"We are hoping for German help" on the resolution, Washington's ambassador in Berlin, Daniel Coats, told the Handesblatt business daily earlier.

"There must definitely not be a new blockade."

To which Kerstin Mueller, state secretary in the ministry, said that Berlin would "try to reconcile the different interests."

She said an option would be to "lift certain sanctions" while allowing for the return to Iraq of U.N. inspectors searching for its alleged weapons of mass destruction.

"Of course in the long term the sanctions will have to be raised," she told WDR radio, but "these are not simple negotiations."

The draft resolution does not mention the return of U.N. weapons teams.

Russia and France, which hold veto power over U.N. resolutions, say U.N. inspectors must first resume their work to certify that Iraq does not have any weapons of mass destruction.

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