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Re: Annan calls for increase in Iraq aid

>  Of the $2 billion in oil Iraq now sells every six months, it
>  receives $1.32 billion for humanitarian supplies. The
>  remaining $700 million is earmarked for reparations to 1991
>  Gulf War victims and for U.N. running costs in Iraq. 

I don't think that this is correct.  Under S/RES/986 ("food for oil") an
escrow account is established to hold the proceeds of Iraqi oil sales.
30% of the proceeds are immediately channeled to the Compensation Fund
(there is a sub-account that allows humanitarian donations not to be
subject to that same 30% tax).  The remainder is a sort of consolidated
revenue fund used to run UN programmes, including food purchases.
Therefore, under the old deal, $700 million goes to the Compensation Fund
but NOT to UN running costs; those come out of the remainder.

Colin Rowat
King's College                                                 
Cambridge CB2 1ST                       tel: +44 (0)468 056 984
England                                 fax: +44 (0)1223 335 219

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