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Important quote from today's FT (full text below): '... aid agencies say ordinary Iraqis are unlikely to feel much benefit from the new strategy. "It won't improve life for the ordinary Iraqi. It will be a dole, a handout to Iraq as a whole," said an officer with a high-profile aid agency, who requested anonymity. "It will do nothing to tackle the real issue - how to stimulate the internal economy and allow civil society to come back." ' ---------------------------------------------------------------------------- ---- Support grows for 'smart' Iraq sanctions By Michael Littlejohns in New York Published: June 1 2001 16:55GMT | Last Updated: June 1 2001 21:03GMT A US-backed plan to facilitate the export of civilian goods to Iraq while tightening controls over the regime gathered support in the United Nations Security Council on Friday. But continuing differences between the US and UK on one side, and China, France and Russia on the other, prevented a final decision. With the current phase of the UN oil-for-food programme expiring at midnight on Sunday, the Security Council resolved to extend the system until July 3, pending the proposed changes. This is despite a threat by Baghdad to halt oil exports in response to any change in the current system. Disagreement among the five permanent members of the council centres on the list of items that the US insists should remain under restrictions. Nevertheless, Friday's resolution opens the door to amendments in the 11-year-old embargo, based on the new "smart" sanctions proposals made by the US. It expresses the council's intention to consider new arrangements to improve the flow of civilian goods to Iraq and curb the revenues accruing to the Iraqi regime outside the oil-for-food programme. If agreement is reached in the next 30 days in what all sides say will be tough negotiations, the new programme will go into effect for an initial period of 190 days beginning on July 4. The UN will remain in financial control, however, and proceeds of Iraq's oil sales will continue to enter a UN escrow account. The proposed system is motivated by mounting criticism of the dire effects of the embargo on Iraqi civilians. Unicef estimates that child mortality has risen 160 per cent since 1991 and what was once an advanced and flourishing state is now in decay. However, aid agencies say ordinary Iraqis are unlikely to feel much benefit from the new strategy. "It won't improve life for the ordinary Iraqi. It will be a dole, a handout to Iraq as a whole," said an officer with a high-profile aid agency, who requested anonymity. "It will do nothing to tackle the real issue - how to stimulate the internal economy and allow civil society to come back." Meanwhile, Baghdad continues to demand that all sanctions be lifted and to bar UN weapons inspectors from the country. Tariq Aziz, the deputy prime minister, said recently that any country that "deals with the new American plan" would be excluded from trading with Iraq. -- ----------------------------------------------------------------------- This is a discussion list run by the Campaign Against Sanctions on Iraq For removal from list, email soc-casi-discuss-request@lists.cam.ac.uk Full details of CASI's various lists can be found on the CASI website: http://www.casi.org.uk