The following is an archived copy of a message sent to a Discussion List run by the Campaign Against Sanctions on Iraq.
Views expressed in this archived message are those of the author, not of the Campaign Against Sanctions on Iraq.
[Main archive index/search] [List information] [Campaign Against Sanctions on Iraq Homepage]
> 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