Iraq used massive oil smuggling to pay N. Korea for strategic weapon aid

LONDON [MENL] -- Iraq and North Korea are believed to be cooperating in restoring Baghdad's medium-range missile and nuclear weapons capability.

Western intelligence sources said Iraq has used revenues from massive oil smuggling to pay North Korea. They said Baghdad appears to be moving toward the level of strategic weapons capability deployed on the eve of the 1991 Gulf war.

Former United Nations chief arms inspector Richard Butler was the latest expert to raise this concern. Butler, who angered Iraq with his aggressive pursuit of weapons concealed by President Saddam Hussein, said Israel could be a prime target of a future Iraqi attack.

"Were I living in Israel would I be concerned about Saddam's escape from monitoring, his continuing possession of the relevant weapons of mass destruction? Yes I would be concerned," Butler told the BBC.

U.S. officials assert that a range of countries, including North Korea, Russia and Yugoslavia, are peddling weapons and technology to Baghdad. They said Saddam is determined not to allow the return of UN inspectors to ensure that the West is kept in the dark regarding Baghdad's progress in restoring its strategic weapons capability.

Experts said one prospect is that Iraq will cooperate with terrorist groups to deliver chemical or biological weapons in planned attacks against Israel or the West. They said such an attack could be launched with cooperation of Saudi billionaire fugitive Osama Bin Laden.

"We have proof that nerve gas was found in a farm near Amman - with a group of suspects linked to Bin Laden," said Israeli terrorism expert Yael Haran. "Now we know that the border between Iraq and Jordan is extremely porous -- conventional weaponry passes easily. Anthrax could pass in the pocket of somebody."

Western intelligence sources said nuclear material is being smuggled from the former Soviet Union to Pakistan and parts of the Middle East. Shipments of nuclear material have been seized heading toward Pakistan and nuclear material contained in canisters with Russian markings have been offered for sale in the Middle East.

Iraqi oil revenues have risen dramatically over the last year, the sources said. They said Baghdad plans to raise its oil exports from 2.5 million barrels to 3.2 million barrels a day. This would exceed Iraqi production in 1990 when Saddam invaded Kuwait.

On Wednesday, the UN Security Council again urged Iraq to cooperate with its weapons inspectors, who plan to be ready for work in August. The council was briefed by Hans Blix, director of the UN Monitoring, Verification and Inspection Commission.

"We have enough recruited staff and trained staff to undertake some inspections, but for larger-scale inspections we need more staff," Blix said.

The UN inspector said his agency has targeted many suspected Iraqi weapons sites. He said the inspections would seek to determine whether Iraq violated restrictions on developing missiles beyond the 150 kilometer limit as well as the development of biological weapons.

"Biological weapons do not take very much space so inspectors on the ground," Blix said. "Going into buildings, is a very important thing."

In Jerusalem, Israeli Prime Minister Ehud Barak expressed concern over the transfer of Russian technology to Iran and Iraq. He said this included the "continued flow of nuclear technology to Iran."

In a related development, U.S. intelligence sources have expressed concern over Russian refusal to disclose details of 200 suspected underground nuclear sites. One of them is a massive complex that is suspected to house a nuclear research or survival headquarters for Russian military and government officials.