The measure handed the Middle East experts, while strengthening the role of the United Nations special coordinator to be appointed by U.N. Secretary-General Kofi Annan, still gives the U.S.-led coalition a strong hand in controlling Iraq's oil wealth.
The main intention of the resolution remains to lift the sanctions against Iraq and remove the ban on oil sales.
It changed the name of the internationally supervised depository for oil revenues from the Iraqi Assistance Fund to the Development Fund for Iraq.
London and Washington will still control spending, retaining the title of "the Authority."
A new wrinkle added this time around was a suggestion the Paris Club, where debts of nations are rescheduled, could handle the claims against Iraq estimated in the hundreds of billions of dollars, could be negotiated, sparing Washington from involvement.
The resolution welcomed "the readiness of international financial institutions to assist the people of Iraq ... including multilateral consideration of issues relating to Iraq's sovereign debt through appropriate international mechanisms such as the Paris Club."
This was not the first word on a possible role for the club. U.S. Ambassador John Negroponte mentioned it as a possibility to reporters Wednesday. He said Wednesday the new text "attempts to take into account many of the comments that we have received" from colleagues in the council.
The May 9 original measure said "petroleum, petroleum products and natural gas originated in Iraq and proceeds of sales thereof shall be immune from judicial ... or any other proceedings" from claims "of whatever kind and whenever accrued"
Thursday's revision changed that to read "until an internationally recognized representative government of Iraq is properly constituted and debt-restructuring process ... is completed, all funds of the Development Fund for Iraq, petroleum, petroleum products and natural gas originated in Iraq and proceeds from sales thereof ... shall be immune."
Although this should be welcomed by nations owed considerable sums by Baghdad, French and Russia experts when asked how they viewed the changes in the text, replied simply, "Insignificant" or "Not significant." However, Moscow's envoys saw the new text as a willingness by Washington and London to negotiate.
In an apparent strengthening of the U.N. role, Annan's coordinator will report, in addition to the Security Council, to the international advisory board of the Development Fund for Iraq, comprising representatives of the International Monetary Fund, the Arab fund for Social and Economic Development and the World Bank.
As before, the resolution notes the funds would "be disbursed at the direction of the Authority and in consultation with the Iraqi interim authority."
Phasing out of the humanitarian oil-for-food program is still being worked on, U.S. officials said. It was created by the Security Council in 1996 to alleviate suffering of Iraqis from the 1990-imposed sanctions following Baghdad's invasion of Kuwait. It allows the United Nations to spend Iraqi oil revenue for humanitarian and other civilian goods.
Russia has about $4 billion in oil-for-food contracts outstanding.
The Kuwait section of the new measure, was particularly strengthened.
Not simply encouraging "efforts to locate, identify and repatriate all Kuwaiti and third-state nationals or their remains present in Iraq" following the 1990 Gulf War, it also seeks out Kuwait's archives "that the previous Iraqi regime failed" to return and "directs" those parties mandated to work on repatriation of people, remains and archives "to take steps" to insure the mandate is fulfilled.
Discussions at the expert level over the new text were expected to resume Friday. Ambassadorial level consultations were not immediately scheduled but Negroponte told reporters earlier in the week he wanted to bring the measure to a vote next week.
Copyright 2003 by United Press International.
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