UK reinforces demand for an end to Iraqi oil smuggling

Britain yesterday underlined its commitment to a clamp-down on illegal Iraqi oil exports as part of US-backed proposals for a…

Britain yesterday underlined its commitment to a clamp-down on illegal Iraqi oil exports as part of US-backed proposals for a new UN "smart sanctions" regime against Iraq.

But the Foreign Office minister, Mr Brian Wilson, said London would be flexible on the timing of a UN Security Council vote.

He added the measures, which have drawn heavy criticism from Russia, still needed some refining.

"An essential element of our approach must be to tighten up on illegal oil exports which, one would assume, does include . . . neighbouring countries," Mr Wilson said.

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He was referring to illicit cross-border oil trade to Turkey, Syria and Jordan which brings billions of dollars a year direct to the government of Iraqi President Saddam Hussein.

Britain distributed a draft proposal to Security Council members yesterday that would allow civilian goods to flow freely to Iraq while maintaining a ban on military materials.

The document aims to tighten United Nations control over Iraq's oil revenues. The Baghdad government has threatened to pull out of the UN oil-for-food exchange if the new measures interfere with the programme.

The United States and Britain are aiming for a vote by the council on May 31st, in time for the next six-month phase of oil-for-food due to start on June 4th.

Russia, stopping short of threatening a veto, heavily criticised the draft proposals while China said the measures could not be adopted as they stood.

As permanent members of the United Nations Security Council both have the power to veto the proposals.

Mr Wilson said Britain would not object to the vote being delayed beyond May 31. "It is more a case of getting it right rather than working towards a particular deadline," he said.

"There are very positive discussions going on.

"There is great unanimity within the international community and the Security Council about preventing Iraq developing weapons of mass destruction," he added.

"The objective is shared by all. It is simply a case of refining it."

Britain and the United States believe revenues from smuggled oil could be used to develop weapons and want to stifle Baghdad's direct cash supplies by forcing its neighbours to step up border controls.

Most Iraqi oil exports take place under the United Nations programme, which allows the country to sell crude in return for civilian supplies. Revenues are controlled by the United Nations through a New York escrow account.

Iraq has threatened to cut off its oil supplies to Turkey and Jordan if they co-operate with the UN and has said it will stop exports under oil-for-food altogether if the new sanctions interfere with the programme.

The loss of Iraq's two million barrels a day of supplies to world markets for any significant period could force up oil prices that already are close to $30 a barrel.

Mr Wilson said the aim of the new plan was solely to bring Iraq's oil exports under greater international scrutiny, to ensure revenues were channelled to the Iraqi people, not government.

"Our purpose is not to win applause from Iraq, he said. "The intention is to make it more difficult for Iraq to develop weapons of mass destruction - that is the imperative behind this entire policy."