ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Tuesday, December 10, 1996 TAG: 9612100118
SECTION: NATIONAL/INTERNATIONAL PAGE: A-3 EDITION: METRO
DATELINE: UNITED NATIONS
SOURCE: Associated Press
The United Nations gave Iraq the go-ahead Monday to resume limited oil exports for the first time since 1990 to buy food and medicine for Iraqis suffering the effects of international sanctions.
In Iraq, people rejoiced when state media announced the deal Monday night. In Baghdad's poor neighborhoods, large crowds danced in the streets and shouted slogans in support of President Saddam Hussein.
Overjoyed celebrants fired guns into the air, prompting government warnings for them to stop shooting or face arrest.
International sanctions have prohibited Iraq from exporting oil since Saddam invaded Kuwait in 1990, triggering the Persian Gulf War.
The United Nations agreed to allow limited oil exports to alleviate the misery of the Iraqi people. U.N. agencies estimate that about 180,000 Iraqi children under age 5 suffer from malnutrition because of the embargo.
``This is a victory for the poorest of the poor of Iraq, for the women and children,'' U.N. Secretary-General Boutros Boutros-Ghali said.
Iraq's U.N. ambassador, Nizar Hamdoon, said he expected oil to begin flowing within a couple of days. Iraq will be allowed to sell up to $2 billion worth of oil for the first six months under strict international supervision. Some 250 companies have expressed an interest in bidding for the oil contracts, and the U.S. Treasury Department has cleared American firms to take part.
Two-thirds of the revenues will go for food and medicine. The rest will provide compensation to Gulf War victims and pay for U.N. monitoring of Iraqi weapons systems.
``We see this as a humanitarian issue, as a way for Saddam Hussein to, however begrudgingly, meet his commitments to the international community to provide for his own civilian population,'' White House spokesman Mike McCurry said.
Iraq's ambassador to Turkey, Rafi El-Tikriti, said Sunday that Baghdad would ask the United Nations to more than double the daily quota after the first three months, the Turkish Anatolia news agency said.
In New York, Iraqi officials said the increase was needed to compensate for the rise in food and medicine prices since the United Nations first made the ``oil-for-food'' offer six years ago.
Before the invasion of Kuwait, Iraq exported more than 3 million barrels per day. At current world prices, Baghdad would be allowed to export about 580,000 barrels a day.
Some analysts predict that Iraq's re-entry into the oil market could depress prices, thus providing a lift to oil consumers.
Iraq cannot resume unlimited exports until the U.N. Security Council is satisfied Baghdad has dismantled programs to develop long-range missiles and weapons of mass destruction.
LENGTH: Medium: 58 linesby CNB