UN approves resolution to lift Iraq sanctions

IN a victory for the United States, the UN Security Council overwhelmingly approved a resolution yesterday empowering the United States and Britain to govern Iraq and use its oil wealth to rebuild the country.

The resolution passed by a 14-0 vote, with Syria the only Arab nation on the council absent.

John Negroponte, the US ambassador, said that after more than a decade of being frozen out of the world economy by sanctions against Saddam Hussein's regime, "it is time for the Iraqi people to benefit from their natural resources," a reference to the country's vast oil wealth.

With passage of the resolution, the following steps are expected:

The flow of oil exports will resume. There are 8 million barrels of Iraqi oil in storage points at the Turkish port of Ceyhan, one of Iraq's two export terminals, that can be sold immediately, diplomats said.

UN Secretary-General Kofi Annan will appoint a special representative to work with US and British administrators in running Iraq. Speculation for Annan's choice centred on UN High Commissioner for Human Rights, Sergio Vieira de Mello of Brazil, who has Washington's support.

The United States and Britain will take charge of a new Iraqi Development Fund, based at the Central Bank in Baghdad, controlling Iraqi oil revenues for use in rebuilding the country. The United Nations and other international bodies will monitor and audit the fund. It will get a $1 billion deposit, transferred from the UN oil-for-food account, as well as frozen Iraqi assets around the world which are required to be turned over by governments.

The oil-for-food program will be phased out over the next six months. Annan will review $10 billion worth of contracts existing under the program to decide whether they are still needed.

The resolution grants immunity from lawsuits involving future oil and natural gas sales until December 31, 2007, to allow Iraq temporary relief from paying its estimated $400 billion debt and time to restructure the debt.

The final resolution represented a compromise, giving a somewhat stronger role to the United Nations in post-war Iraq.

However, it left the underlying goal of the United States and its allies intact: Washington and London, as occupying powers, remain firmly in control of Iraq and its oil wealth "until an internationally recognised, representative government is established."

France remained concerned the resolution gives the United States too much power. French Ambassador Jean-Marc de la Sabliere noted yesterday that the resolution "is not perfect."

Still, France, Russia and Germany decided to back the resolution, taking "the path of unity of the international community," France's foreign minister said.