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1.2  |  Development of UK strategy and options, September 2000 to September 2001
opportunity to come forward with their own proposals for unilateral easing of sanctions”,
set out parameters for a new “Controlled Goods List”, and described in broad terms the
arrangements by which it would be enforced.
264.  In his covering letter, Mr Sawers stated that:
There was common ground between the US and UK on the NFZs.
The UK had suggested that the question of regime change should be addressed
through a ‘Contract with the Iraqi People’.
Efforts to chart a way forward on sanctions at a working level had got “bogged
down”. Sticking to the present arrangements while loosening some of the holds
that the US and UK had placed on OFF programme contracts, combined with a
renewed diplomatic effort, would be an advance but would “fall a good way short
of the goals the Prime Minister and President agreed”. Mr Sawers concluded:
“So our strong preference is to be more ambitious, and be prepared to agree
changes to the sanctions regime in the Security Council, and put real pressure
on Iraq’s neighbours to implement the agreed controls vigorously.”
265.  Mr McKane reported to Mr Sawers on 6 April that useful progress was being made
“to put flesh on the bones” of the policy framework attached to Mr Sawers’ letter of
7 March.147 The UK and the US appeared “to be in agreement on the broad direction,
but there is still some way to go not least in working out the details of a deal under which
Iraq’s neighbours would agree to bring all Iraqi oil revenues under UN control”.
266.  On sanctions, Mr McKane advised that the UK and US agreed on the case for
moving towards a single list of goods subject to UN controls (thereby freeing up the
import of other goods). Discussions still had to take place on the composition of that
list. Further talks with US State Department officials on 17 April would be followed by
talks with the French and “in due course” the Russians. The aim was to obtain UN
endorsement of a more targeted sanctions package in the OFF roll-over resolution
due in June.
267.  On bringing illegal Iraqi oil exports under UN control, Mr McKane advised that it
was “not yet clear what concessions might have to be offered to the neighbouring states
to persuade them to co-operate”. Increased investment in border controls would “only
make sense if Iraq’s neighbours can be persuaded to co-operate – enforcement would
be carried out by their customs personnel”. The UK paper on border controls had been
passed to the US.
268.  Mr McKane advised that the UK paper on the controls that should remain in place
after the suspension of sanctions had been passed to the US. An essential feature was
maintaining the UN escrow account (see Section 1.1) “so that Iraq’s oil revenue (or other
significant sources of foreign exchange revenue) cannot be used to purchase either
conventional or unconventional arms or dual use items”.
147  Minute McKane to Sawers, 6 April 2001, ‘Iraq’.
243
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