Backed by U.S., U.N. drafts plans to ease Iraqi sanctions

NEW YORK [MENL] -- The United Nations has launched a new effort, supported by the United States, to loosen sanctions on Iraq and give President Saddam Hussein more authority to purchase foreign products.

The UN Security Council began discussions of two proposed resolutions to replace the so-called oil-for-food plans under which Iraq is allowed to sell oil to pay for humanitarian supplies for Iraqi civilians.

The current oil-for-food program under which Iraq is allowed to sell $5.25 billion in oil every six months to buy food, medicine, and other humanitarian goods for Iraqi civilians, is set to expire on Monday.

Some council members said they want to offer Iraq an incentive to agree to resume cooperation with the UN on weapons disarmament. Iraq has not worked with UN weapons inspectors since September 1998 and banned UN weapons inspectors in December. That move led to air strikes by the Britain and the United States.

Britain and the Netherlands have now proposed a resolution that would allow foreign companies to invest in Iraq's oil industry if Baghdad cooperates with UN weapons inspectors. The resolution would allow for the foreign investment 120 days after Baghdad was deemed as having cooperated with the UN.

The United States said it is reviewing the draft. "But in general, yes we support it," said Peter Burleigh, the U.S. envoy to the UN.

The United States, however, supports a Russian draft that would suspend sanctions once the UN says that the long-term monitoring system in Iraq is operational.

In a message to Congress on Wednesday, U.S. President Bill Clinton said Iraq remains a serious threat to international peace and security. "We are convinced that as long as Saddam Hussein remains in power, he will continue to threaten the well-being of his people, the peace of the region and the security of the world," he said. "We will continue to contain these threats, but over the long term the best way to address them is through a new government in Baghdad. To that end, working with the Congress, we have deepened our engagement with the forces of change in Iraq to help make the opposition a more effective voice for the aspirations of the Iraqi people."

Diplomats said on Wednesday that Egypt has refused a U.S.-supported request to allow Iraqi opposition groups to hold a conference in Cairo. Arab diplomats said a delegation from the Iraqi National Council visited Cairo last week to hold talks with officials on sponsoring a conference to plan for the overthrow of President Saddam Hussein.

They said the main issues on the agenda were the election of a parliament-in-exile and the drafting of a military and political strategy against the Baghdad regime.