1.1 | UK
Iraq strategy 1990 to 2000
67.
The resolution
asked the UN Secretary-General to produce a scheme,
which
became
known as the “Oil-for-Food” programme, to cover those purchases,
and
to monitor
and supervise their equitable distribution to “all regions of Iraq”
and “all
categories
of the Iraqi civilian population”. The Secretary-General’s report
was submitted
on
4 September, and implementation was authorised by resolution
712 (1991) adopted
on
19 September.
68.
Iraq rejected
both resolutions and refused to co-operate on the grounds that
the
arrangements
were an infringement of Iraq sovereignty. Resolution 778 (1992),
adopted
on
2 October 1992, deplored Iraq’s position “which puts its
civilian population at risk”
and decided
that any Iraqi funds arising from the proceeds of sale of Iraqi
petroleum
or
petroleum products should be transferred by Member States to the UN
escrow
account.
States were also to arrange to sell or purchase any petroleum or
petroleum
products
owned by Iraq and transfer the proceeds to the escrow account; to
contribute
funds from
other sources as soon as possible. The resolution stated that no
further
Iraqi
assets should be released for the purchase of food stuffs,
medicines and other
essential supplies
except to the escrow account or directly to the UN for
humanitarian
activities
in Iraq.
69.
By late 1993,
differences had emerged within the Security Council over
the
conditions
for lifting sanctions. The US and UK took the view that sanctions
could only
be lifted
following Iraq’s full compliance with its obligations as set out in
UN resolutions.
China,
France and Russia believed that a timetable for the gradual lifting
of sanctions
should be
put in place as Iraq complied with UN demands.
70.
As a result of
Iraq’s objections, the UN adopted resolution 986 (1995) on
14 April
1995. It
directed the committee established by resolution 661 to monitor the
sale of
petroleum
and petroleum products exported by Iraq, with the assistance of
independent
inspection
agents appointed by the UN Secretary-General; and to verify that
the
purchase
price was “reasonable in the light of prevailing market
conditions”.19
A
separate
escrow
account was established to finance the export to Iraq of material
covered by
the
resolution. In the exceptional circumstances in northern Iraq, and
to ensure an
equitable
distribution, the UN Inter-Agency Humanitarian Programme operating
in
the
Governorates of Dahuk, Erbil and Sulaymaniyah would disburse a
share of the
fund. The
fund was to be audited by “independent and certified public
accountants”.
The UN Secretary-General
was to keep the Government of Iraq “fully informed”.
71.
Iraq
eventually accepted resolution 986 in May 1996, when a Memorandum
of
Understanding
was agreed. Following the Iraqi offensive against the Kurds in
August,
implementation
was suspended until December. The first shipment of food arrived
in
March 1997
and the first shipment of medicines in May 1997.
19
UN Security
Council resolution 986 (1995).
37