November 27,1998
Iraq has accepted a six-month renewaI of the United Nations "oil for food" program and is set to deliver its new distribution plan for relief supplies, a United Nations spokesman here announced today.' Despite its initial request for a two-month, extension of the last, or fourth, phase of the program, which expired on Wednesday, Iraq has accepted Secretary General Kofi Annan's recommendation of a 180-day renewal, said the spokesman, George Somerwill.
Mr. Somerwill said he expected Iraq to deliver its distribution plan for approval by Mr. Annan soon. Because the new term, or phase five, already began today, Mr. Somerwill said Iraq was likely to hand over the distribution plan for food and medicine in New York, rather than in Baghdad.
Iraq had sought an extension of the fourth term because its revenue from United Nations-authorized oil exports fell far short of the agreed goal of $4.5 billion, because of a slump in world crude oil prices. The revenue generated in the last six months is estimated to have reached $2.7 billion.
Taking into account the one-third that goes toward paying compensation for the 1991 Persian Gulf war and United Nations operations in Iraq, $1.79 billion was left for relief supplies and spare parts for the oil industry.On Tuesday, the United Nations Security Council renewed the accord for a further six months at current levels, providing for Iraq to export up to $5.2 billion worth of oil. It is renewed on a six-month basis by the Security Council and enables Iraq to export a fixed value of oil in return for urgently needed food and medical supplies.
