U.S. seeks other takers for anti-Saddam aid

WASHINGTON Ñ The United States is seeking to increase its support for the Iraqi opposition.

The U.S. State Department announced Monday that Washington is seeking to support Iraqi dissidents not linked to the Iraqi umbrella opposition group, the Iraqi National Congress.

State Department spokesman Richard Boucher said that these dissidents could be eligible for $97 million in congressional aid approved in 1998. The funds were designated to boost the Iraqi opposition to topple Iraqi President Saddam Hussein.

"The money that Congress has allocated is for assistance to the Iraqi people and ... as we look at ... continuing and expanding what we do with the [INC], we would also be in touch with other potential grantees to see if there are other programs that we should be supporting," Boucher said. "The Iraqi National Congress was more organized, able over a period of time to get in place the management and internal controls that allow us to give them the assistance and they were the first out the gate in terms of being able to accept our grants and work with us [but] if there are other potential grantees, we should talk to them as well."

On Monday, the Los Angeles Times reported that the U.S. administration was not satisfied with INC's use of congessional funds and that Washington was seeking an alternative Iraqi opposition group.

To date, the Times reported that $3 million of the funds have been spent by the INC and another $25 million held by the State Department have not yet been allocated.

Still, Boucher said that the State Department recently released some money to the INC for intelligence operations.

In Baghdad, Iraq is seeking to bolster ties with Russia and Italy. Earlier, Saddam announced that Iraq wants to upgrade relations with both Russia and Italy.

"Iraq's government has a serious and deep desire to cooperate with Russia in all fields where it can fulfil its commitments and Iraq can meet its own now and in the future," Saddam said. "All the factors indicate a high level of cooperation between Iraq and Russia...and I hope relations would develop between Russia and all the Arabs."

Saddam's statements come in the wake of Moscow's recent arms deal with Teheran. Russia will supply $7 billion worth of weapons to Iran over the next few years and will complete Iran's only nuclear reactor by 2003 Before the 1991 Gulf War, Russia sold $8 billion worth of weapons to Iraq.

For its part, Russia is urging the United Nations to remove sanctions from Iraq in an effort to develop Iraq's oil fields Lukoil, Russia's largest oil company together with two other Russian companies Ñ Zarubezneft and Mashinoimport Ñ signed a $3.5 billion contract in 1997 to develop the West Qurna oilfield.

Iraq also wants to improve political, economic, trade and cultural relations with Italy, Iraqi Deputy Premier Tareq Aziz said, following a meeting with Italian Senator Massimo Valda.

Valda said Italy would also urge the UN to end sanctions against Iraq.