IRAQ - Britain and US aim to refocus embargo

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Britain and US aim to 'refocus' Iraqi embargo
By Anton La Guardial, Diplomatic Editor

BRITAIN and America have proposed a radical dismantling of many of the economic sanctions imposed on Iraq in an attempt to regain the initiative against President Saddam Hussein.

After months of talks behind the scenes, Britain will formally submit a United Nations Security Council resolution next week to ease the sanctions while tightening controls on the Baghdad regime's ability to build chemical, biological or nuclear weapons. But Iraq has threatened to cut off supplies of cheap oil to Jordan and Turkey - the main outlets for Iraqi oil - if they co-operate with the "smart sanctions".

Britain and America have become isolated amid criticism that the decade-long sanctions have only caused appalling suffering among Iraqi civilians, without visibly weakening Saddam.

The proposal to "refocus" the embargo is designed to win back political support, especially in the Middle East, where anti-Western emotions are running high because of the renewed conflict between Israel and the Palestinians. It amounts to a tacit abandonment of the American policy of deposing Saddam by economic pressure.

One British official last night said: "The idea is to target the sanctions on the real threat, which is weapons of mass destruction. Iraq will have the means to address the suffering of its own people. If it fails to do so, it will be clear that it is because of its own choice."

The British-American plan calls for removing most controls on Iraqi civilian supplies, while placing military or "dual-use" goods on a list of banned imports. This would go hand-in-hand with plans to tighten up inspections on Iraq's borders to reduce smuggling, which has given Saddam a source of income outside the control of the UN oil-for-food programme.

It is likely that restrictions on civilian flights to Baghdad - now openly flouted - will be formally eased. There has been no response so far from other members of the Security Council - especially Russia, China and France which have been most critical of the sanctions policy.

It is not clear whether Iraq's neighbours will agree to co-operate in clamping down on the lucrative smuggling trade with the country, which British officials estimate earned Saddam about £600 million last year. Jordan, Syria and Turkey have benefited from Iraqi oil at heavily discounted prices. The rise in the price of crude has given Iraq renewed economic clout, and it has steadily emerged from its isolation in the Arab world.

British officials said there was no question of abolishing Security Council resolution 1284, which promises to lift sanctions entirely once Iraq is seen to co-operate with international weapons inspectors. "Iraq is still a threat," said one Whitehall source. "If its weapons programme is not checked, Iraq could develop an offensive chemical and biological capability, and a crude nuclear device within five years."

At the moment, Iraq's oil revenues are paid into a UN escrow account and contracts for Iraqi imports must be vetted by the UN's oil-for-food programme. Under pressure to relieve humanitarian suffering, the UN allowed Iraq to export as much oil as it wants, and placed some imported goods on a "pre-approved" list to speed up the process. Iraq has long complained that the system is tortuous, and needlessly delays delivery of essential supplies.

About $3 billion (£2.1 billion) worth of goods ordered by Iraq are currently "on hold" by the UN sanctions committee, mostly at the request of America and Britain, because of faulty paperwork or because they are suspected of being "dual-use" items that have an ostensible civilian purpose but can be used to develop Iraq's military capability.

British officials say the new proposals invert the priorities: instead of scrutinising everything except a list of "fast-track" goods, the UN will allow Iraq to import anything except goods on a list of banned military equipment or "dual-use" goods.

All Iraqi revenues would still have to pass through the UN's escrow account. London and Washington believe that controlling the finances of Iraq is the best way of preventing it from rebuilding weapons of mass destruction.

-- Anonymous, May 16, 2001


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