SUPPLEMENT to News, 3-9/6/01

["Peter Brooke" <pbrooke@DELETETHISukonline.co.uk>]

SUPPLEMENT to News, 3-9/6/01

http://www.ain-al-yaqeen.com/issues/20010608/feat9en.htm

*  IN A LETTER TO THE UN SECRETARY GENERAL AND THE PRESIDENT OF THE SECURITY
COUNCIL:
SAUDI ARABIA REFUTES IRAQ'S FALLACIES AND WRONG INTERPRETATIONS ABOUT THE
SITUATION:
NO RELATION BETWEEN THE KINGDOM AND THE US AND BRITISH PLANES THAT BOMBARD
IRAQ AND THEY DO NOT TAKE OFF FROM ITS LANDS.
THE NO-FLY ZONE IN THE SOUTH IS NECESSARY FOR THE SECURITY OF IRAQ'S
NEIGHBORS.
RIYADH INFORMS THE UN OF IRAQI RAIDS AND VIOLATIONS ON ITS BORDERS.
THE UK DRAFT RESOLUTION AND FULL TEXT OF THE SECURITY COUNCIL RESOLUTION.
Ain al-Yaqeen (Saudi Arabia), 8th June

In a letter to the President of the Security Council and the UN Secretary
General from the Saudi Ambassador to the United Nations Fawzi Ibn Abdul
Majeed Shobokshi, the Kingdom of Saudi Arabia refuted Iraqi letters included
fallacies and wrong interpretations regarding allegations of using the Saudi
territories to bombard Iraq.

The Saudi letter also dealt with the no- fly zone in Southern Iraq, the
Kuwaiti prisoners of war and of other nationals detained in Iraq and the
case of the Saudi pilot whose plane was shot down in 1991.

In the letter, the Kingdom of Saudi Arabia confirmed that the American and
British planes ''do not take off from the Kingdom's territories to shell
Iraq and there is no relation between the Kingdom and the shelling of
Iraq''.

The Saudi Ambassador pointed out that the no-fly zone in Southern Iraq is a
''necessary mean'' to ensure ''the security and safety of the neighboring
countries and not to be continuously threatened.''

He added that this zone was established because of ''circumstances related
to Iraq's aggression against the sisterly state of Kuwait and Iraq's threats
to the neighboring countries.''

Shobokshi also said ''the resolutions of international legitimacy have
included taking the necessary measures to ensure the security and safety of
the neighboring countries and not being continuously threatened, hence it is
considered a necessary measure to reach the aimed target, as it has taken
from the Security Council Resolution 949 for the year 1994 an umbrella to
form a necessary mechanism to implement a no-fly zone and implement the
resolution.''

The Saudi Ambassador pointed out that 615 Kuwaitis and other nationals are
''detained'' in Iraq which ''refuses to cooperate in order to know their
fates, beside its continuous threat to the safety and security of the
neighboring countries since the liberation of Kuwait and untill now.''

Shobokshi noted the case of the Saudi pilot Mohamed Ibn Saleh Nadherah and
the efforts exerted for ten years by the Kingdom of Saudi Arabia, and ''were
always blocked by the Iraqi contradicting stories which ranged from total
denial of knowing his fate, then claiming that the allied forces saved and
returned him to the Kingdom, then admitting shooting down his plane which
caused his death after finding his corpse in an Iraqi mine field, then
claiming that he died after his plane crashed and he was buried by an Iraqi
military personnel.''

He added that all these contradicting stands show the reality of the Iraqi
stance on this human case.

In the meantime, the Kingdom of Saudi Arabia informed the UN Secretary
General Kofi Annan about a number of flagrant violations of the resolutions
of the international legitimacy committed by Iraq during the last period.

The Kingdom pointed out to the UN member states the consequences and the
dangers of the Iraqi authorities' constant violations of the Kingdom of
Saudi Arabia's international land borders which endanger the region's
security and peace.

In a letter from the Saudi Ambassador to the United Nations to the UN
Secretary General, the Kingdom of Saudi Arabia accused Iraq of staging 11
raids on Saudi border outposts in recent months and warned the UN Security
Council that more of such attacks could have "grave consequences."

In an attack on May 23, an Iraqi soldier was killed and a number of Saudi
soldiers wounded when an Iraqi patrol penetrated 400 meters inside Saudi
territory and fired on Saudi border forces near the Sahn Al Sharqiyah post
in the Uwayqilah sector, the UN Ambassador said in his letter.

The Ambassador added that the Saudi border guards returned fire and a number
of Saudi soldiers were injured after which the commander of the Sahn Al
Sharqiyah post in the Uwayqilah sector accompanied by some of the Saudi
patrol to the place of firing, which was inside the Saudi territories, found
an injured Iraqi soldier who was left alone inside the Saudi borders.

''The Saudi patrol carried the Iraqi soldier to the Uwayqilah hospital in
the Northern region to be treated, but later, the hospital's doctor
announced that the soldier has died,'' Shobokshi said.

The letter also stated that the soldier's name was Taqie Abdul Amir Hussein
and his ID's number was 861661.

''The government of the Kingdom of Saudi Arabia, represented by its embassy
in Kuwait, contacted the regional mission of the International Red Cross
Commission in Kuwait to contact the Iraqi authorities through its mission in
Baghdad to arrange the necessary preparations to receive the corpse of the
Iraqi soldier and hand the body over to the Iraqi authorities as soon as
possible,'' the Ambassador said in his the letter.

In the other 10 raids, staged in March and April, Iraqi soldiers fired on
Saudi outposts from the Iraqi side of the border and did not physically
enter Saudi territory, Fawzi Ibn Abdul Majeed Shobokshi said.

While initially believing the attacks to be isolated incidents "that might
be overlooked," the Kingdom now concludes that their persistence
"demonstrates that the Iraqi authorities are responsible for them,"
Shobokshi said.

"We appeal to the Security Council to urge Iraq to desist from its
violations of Saudi Arabia's international boundaries, and we assert the
inalienable right of the kingdom to take whatever measures it deems
appropriate to protect its security and its borders," the Saudi Ambassador
added.

"Saudi Arabia alerts the members of the United Nations to the grave
consequences of the continued violations by the Iraqi authorities of the
territory of Saudi Arabia, which jeopardizes security and peace in the
region," he said.

Meanwhile, the UN Security Council extended the Iraqi Humanitarian Program
for a month to give itself time to revamp sanctions against Baghdad.

Determined to improve the humanitarian situation in Iraq, and convinced of
the need to provide for the civilian needs of the Iraqi people until
fulfillment by their Government of relevant resolutions, the Security
Council decided to extend the provisions of resolution 1330 (2000) until 3
July 2001.

A resolution approved by a 15-0 vote, would roll over the UN-Iraq
'oil-for-food' program, which expired on Sunday, for 30 days instead of the
usual six months.

The Security Council said it would use the intervening period to agree on
changes to the current sanctions regime.

By this resolution, the Council set out specific principles to guide
discussions on possible changes to the sanctions regime, which has been in
place since Baghdad's 1990 invasion of Kuwait.

The text stipulates that any new arrangements must "improve significantly
the flow of commodities and products to Iraq" other than arms and related
materiel proscribed by earlier Council resolutions, as well as certain
additional prohibited items that will be placed on a "Goods Review List" to
be elaborated by the Council.

The resolution also underscored that any new arrangements must "improve the
controls to prevent the sale or supply" of these prohibited items, and must
serve to prevent Iraq from receiving unauthorized revenues from the sale of
its oil.

The Council expressed its intention to "adopt and implement" the new
arrangements for a period of 190 days beginning at 00.01 hours on 4 July
2001.

Speaking to reporters after the meeting, the current President of the
Security Council for the month of June, Ambassador Anwarul K. Chowdhury of
Bangladesh, predicted further talks on the proposed changes. "We will
continue discussion on the new arrangements that are envisaged, and we hope
that these arrangements would be agreed during that stipulated period and
would be applicable for a longer period of time," he said.

By the terms of resolution 1352 (2001) which was unanimously adopted, the
Council expressed its intention to consider new arrangements for the sale or
supply of commodities and products to Iraq, and for the facilitation of
civilian trade and economic cooperation with Iraq in civilian sectors.

That intention is based on the principle that the new arrangements will
significantly improve the flow of commodities and products to Iraq, other
than those referred to in paragraph 24 of resolution 687 (1991).

Items referred to in that text include arms and related materiel of all
types, chemical and biological weapons, and ballistic missiles with a range
greater than 150 kilometers. Those items are also subject to review by the
Committee established by resolution 661 (1990) on the proposed sale or
supply to Iraq of commodities and products on a Goods Review List to be
elaborated by the Council.

According to the text, such new arrangements will improve the controls to
prevent the sale or supply of items prohibited or unauthorized by the
Council. They will also prevent the flow of revenues to Iraq from the export
of petroleum and related products outside the escrow account established by
resolution 986 (1995).

Further by the text, the Council also expressed its intention to adopt and
implement such new arrangements, and provisions on various related issues
under discussion, for a period of 190 days beginning 4 July 2001.

Following is the full text of the resolution:

"The Security Council,

"Recalling its previous relevant resolutions, including its resolutions 986
(1995) of 14 April 1995, 1284 (1999) of 17 December 1999 and 1330 (2000) of
5 December 2000,

"Convinced of the need, as a temporary measure, to provide for the civilian
needs of the Iraqi people until the fulfillment by the Government of Iraq of
the relevant resolutions, including notably resolutions 687 (1991) of 3
April 1991 and 1284 (1999), allows the Council to take further action with
regard to the prohibitions referred to in resolution 661 (1990) of 6 August
1990, in accordance with the provisions of those resolutions,

"Recalling the Memorandum of Understanding between the United Nations and
the Government of Iraq of 20 May 1996 (S/1996/356),

"Determined to improve the humanitarian situation in Iraq,

"Reaffirming the commitment of all Member States to the sovereignty and
territorial integrity of Iraq,

"Acting under Chapter VII of the Charter of the United Nations,

"1. Decides to extend the provisions of resolution 1330 (2000) until 3 July
2001;

"2. Expresses its intention to consider new arrangements for the sale or
supply of commodities and products to Iraq and for the facilitation of
civilian trade and economic cooperation with Iraq in civilian sectors, based
on the following principles:

"(a) that such new arrangements will improve significantly the flow of
commodities and products to Iraq, other than commodities and products
referred to in paragraph 24 of resolution 687 (1991), and subject to review
by the Committee established by resolution 661 (1990) of the proposed sale
or supply to Iraq of commodities and products on a Goods Review List to be
elaborated by the Council;

"(b) that such new arrangements will improve the controls to prevent the
sale or supply of items prohibited or unauthorized by the Council, in the
categories referred to in paragraph 2 (a) above, and to prevent the flow of
revenues to Iraq outside the escrow account established pursuant to
paragraph 7 of resolution 986 (1995) from the export of petroleum and
petroleum products from Iraq, and also expresses its intention to adopt and
implement such new arrangements, and provisions on various related issues
under discussion in the Council, for a period of 190 days beginning at 00.01
hours on 4 July 2001;

"3. Decides to remain seized of the matter."

Background

When the Council met, it had before it the Secretary-General's latest report
on the ''oil-for food'' program, the humanitarian program in Iraq
established pursuant to Council resolution 986 (1995) (document S/2001/505).
The report covers a 180-day period - Phase IX-which began on 6 December
2000, and provides information on the distribution of humanitarian supplies
throughout Iraq.

The report states that since the beginning of Phase IX, and as at 30 April
2001, the oil overseers and the Security Council Committee established by
resolution 661 (1990) concerning the situation between Iraq and Kuwait have
reviewed and approved a total of 159 contracts (including 59 contracts from
Phase VIII extended into Phase IX) involving purchasers from 44 countries.

The total quantity of oil approved for export under those contracts amounts
to approximately 490 million barrels, with an estimated value of $10.7
billion. However, the volume of oil contracted far exceeds the anticipated
export volume of 290 million barrels under Phase IX.

The estimated total revenue forecast for Phase IX (before the deduction for
pipeline fees) is $5.7 billion, at current prices and rate of exchange, the
report continues. This is approximately $4 billion, less than that of Phase
VIII.

This is attributable in part to the decline in market prices over the
period, but predominantly to the reduced rate of oil exports under the
program during the first part of Phase IX, accounting for approximately $2.6
billion, of the revenue that was not made available.

Noting his previously expressed concern on the subject, the
Secretary-General confirms with regret that, despite the increase in the
daily average rate of oil exports under the program to at least the levels
of the previous phase during the last two months, it is now estimated that
the total revenue of oil exports under the program during the current phase
(which will end on 3 June 2001) will reach only about $5.7 billion. That
will provide only about $3.5 billion for the implementation of the program,
after the deductions pursuant to the relevant resolutions of the Security
Council.

The Secretary-General writes that the authorization for Iraq to export
unlimited amounts of oil and to import a wider range of goods has
transformed the program's nature and range of activities from providing
emergency humanitarian relief to encompassing many aspects of rehabilitation
of essential civilian infrastructure. In that light, he appeals to the
Council to streamline their current cumbersome approval procedures and allow
greater latitude so that a wider variety of medicine, health supplies,
foodstuffs, as well as materials and supplies for essential civilian needs,
can be procured and supplied most expeditiously. Such an approach would also
reduce the excessive number of holds placed on applications.

Notwithstanding the range of opinions and discussions on a broader framework
for the program, the Secretary-General appeals to all parties concerned to
preserve the distinct humanitarian identity of the program. He is encouraged
by the work and achievements of the United Nations observation mechanism to
date, and is confident that the mechanism can provide the necessary
assurances to the

Security Council and its Committee that supplies and materials provided
under the program are indeed being utilized for approved purposes.

The report goes on to say that with the increased funding level and the
growing magnitude and scope of the program, the whole tedious and
time-consuming process of the preparation and approval of the distribution
plan and its annexes are no longer in step with current realities. It may be
recalled, he writes, that the distribution plan for the present phase was
submitted by Iraq almost two months into the current phase. It should be
borne in mind that soon after the approval of a distribution plan, thousands
of amendments are submitted throughout the course of a given phase and
thereafter. Accordingly, the Secretary-General notes, he has directed the
Executive Director of the Iraq Program to continue discussions with Iraq
with a view to devising a more appropriate and flexible planning process.

It is essential for the Government of Iraq to prioritize its contracting,
giving particular attention to the food, health and nutrition sectors, the
Secretary-General writes. It is also essential to address urgently the
problems arising from inordinate delays in submissions of applications and
from the submission of non-compliant applications. It is unfortunate, he
writes, that while the Secretariat has notified Iraq of its concern over
delays in the submission of contracts, feedback from the Government showed
that, in many cases, contracts have been signed, but suppliers have yet to
submit them. He appeals to Iraq to insist that its suppliers submit
applications in a timely fashion.

In conclusion, the Secretary-General stresses that it is incumbent on all
parties concerned to take concerted measures to ensure the effective
implementation of the humanitarian program in order to alleviate the plight
of the Iraqi people, and to refrain from any actions that could exacerbate
the already fragile living conditions of the average Iraqi.

In protest against the Security Council resolution extending the UN's
oil-for-food program for 30 days instead of the usual six months, Iraq
announced it would halt oil exports.

''Iraq will halt exports of crude oil from ports on the Arab Gulf and the
Mediterranean as of 8:00 a.m. local time (0400 GMT) until further notice,"
the official Iraqi news Agency (INA) quoted a source at the Oil Ministry as
saying.

Iraq is angry that the Security Council voted to extend the oil-for-food
program for a stop gap period of one month while it considers a proposal by
Britain and the United States to impose a system of "smart" sanctions to
modify the embargo in force since Iraq's 1990 invasion of Kuwait.

The UK plan - which has the backing of the United States - proposes allowing
all civilian goods into the country, while tightening restrictions on
military items and strengthening anti smuggling measures.

The 30-page UK resolution also reaffirms Iraq's right to the unrestricted
use of commercial flights, sea and railway transport would authorize the
return of Iraqi planes which were grounded abroad at the time of Iraq's
invasion of Kuwait.

Under the oil-for-food program, Iraq is allowing to sell limited amounts of
oil. The money goes into a UN-controlled escrow account and can be used to
purchase food, medicine, and humanitarian goods.

The UK proposal would keep the escrow account in place and use some of the
revenues to pay Iraq's UN dues. The money would also be used to bolster
anti-smuggling controls.

The UK proposal would allow Iraq to buy civilian goods without letting the
weapons inspectors back. Under the draft resolution circulated at the UN
Security Council , Iraq would be able to trade commercial goods freely, but
strict checks of anything considered to be military or weapons-related would
remain in place. Iraq would also be able to resume civilian flights.

Meanwhile, Saudi Arabia expressed its readiness to compensate for any
shortfall as a result of the Iraqi step.

Saudi Minister of Petroleum and Mineral Resources Ali Al Naimi said Saudi
Arabia was ready to compensate for any shortfall on the world market after
Iraq announced a halt in oil exports from June 4.

''Saudi Arabia is prepared, along with the Organization of Petroleum
Exporting Countries and other large crude producer countries, to make up for
the shortfall that Iraq will cause if it implements its decision to halt
crude exports,'' he told reporters in Riyadh.

Al Naimi said that ''Saudi Arabia together with the member states of the
OPEC Countries had the capacity to make up for the shortfall of around 2.2
million barrels, which was regularly exported by Iraq under the UN
supervision.''

''The Kingdom alone, the world's largest oil producer, has the capacity to
produce an extra two million barrels per day on the market in an emergency
situation,'' he said, while reiterating his concerns about the Iraqi
decision, which may lead to fluctuation in oil prices, supply and demand on
the global level.

Saudi Arabia has been producing 7.8 million bpd under a broad framework
agreement endorsed by all member states of OPEC, and it can produce
additional 3 million bpd, according to nonofficial estimations.

On the other hand, the oil ministers of members of the Organization of
Petroleum Exporting Countries (OPEC) agreed to leave output at 24.2 million
barrels a day for 10 member countries and to gather for an emergency session
to review the situation on 3 July.

The Saudi Minister of Petroleum and Mineral Resources Ali Al Naimi said that
OPEC should be careful when it specifies its production policy in reply to
the Iraqi halt of its exports. "We do not know what Iraq's game is," said Al
Naimi. "Will this last for a day, a week, a month? We don't know what the
plan is, and we do not want to shake the stability of the market."


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