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NEWS, 22-29/10/00 The main development this week seems to have been the moves towards conversion from the dollar to the euro but note also the bombing raid on Monday and another incident this weekend. Note also the item on the Gulf War payouts. These include "Yugoslavia [SIC PB], $13.2 million; China, $12.3 million; Russia, $11.5 million; and South Korea, $11.2 million." So everyone gets a cut. Flights to Baghdad airport have continued but though these are important they're rather repetitive so I've only given URLs. The Supplement is mainly interesting on general matters of US foreign policy and international law. * Mesopotamia's 'city of graves' excavated * Western warplanes bomb Iraq no-fly zone, U.S. Says * Iraq discreetly slips back onto Arab scene * Iraq slams outcome of Cairo Arab summit * Pentagon says Iraqi troops not a threat to Israel * Japan turn on style to break Iraqi hoodoo [football special] * Kadhafi will be first Arab leader to return to Iraq, his daughter says * Proposals between Iraq and Iran to open borders * Remains of the missing Saudi pilot found? * Millions spent on Camp Saddam * Jordan to ditch dollar in trade dealings with Iraq * Iran halts normalization with Iraq * 4,000 Iranian pilgrims to visit holy sites in Iraq per week * Oil rises on Iraq rumours * UN approves $1.27 billion payout to Gulf War claimants * UN: Euro Account for Iraq Feasible * Iraqi troop movements no threat: Israel * US Denies Plane Hit by Iraq * Iraq still a threat to region: Kuwait URLs ONLY http://www.brecorder.com/story/S00DD/SDJ23/SDJ23317.htm * Pak-Iraq oil & gas sector co-operation discussed Business Recorder (Pakistan) * Lebanese delegation in Baghdad, 26th October http://www.arabicnews.com/ansub/Daily/Day/001026/2000102603.html * Syrian and Egyptian planes arrive in Baghdad today, 26th October http://www.arabicnews.com/ansub/Daily/Day/001026/2000102605.html * More Russian flights to Baghdad BBC World Service, 27th October http://news.bbc.co.uk/hi/english/world/europe/newsid_993000/993615.stm http://www.news24.co.za/News24/World/Middle_East/0,1113,2-10 35_932628,00.html * Ukraine, Turkey, Egypt defy Iraq embargo SUPPLEMENT (sent separately) * U.S. To Pay Victims of Terrorism * Vietnam may ask US for wartime compensation * Decline of the UN Council * Surprise for Yemenis: Cole Blockaded Iraq * FBI Uses Light Touch in Yemen Blast Probe * Containing Iraq: A Forgotten War [on patrolling no-fly zones] * Iraqi troop movement causes tension in Mideast * U.S. military spread across 142 countries * The role for the US in UN peacekeeping [by Jeremy Greenstock, United Kingdom's permanent representative to the United Nations] KURDISH SUPPLEMENT (sent separately) * Britain says Iraqi Kurdish area is an example to Saddam * Barzani, UK Foreign Office Minister Hain Hold Talks * KDP's Ankara Representative Interviewed on Ties With PKK, PUK [Interview with Safin Diza'i, Ankara representative of the KDP. Very informative.] * PUK Concentrates Forces Near PKK Positions, Situation Tense * Kurds battle daily for ethnic survival {quite useful general account of situation in Turkey] * Film Notes [A time for drunken Horses, by Kurdish film director, Bahman Ghobadi] http://www.timesofindia.com/231000/23hlth3.htm * Mesopotamia's 'city of graves' excavated Times of India, 23/10/00 UMM AL-AJARIB, Iraq: Iraqi archaeologists are striving to bring to light what they describe as Mesopotamia's largest "city of graves," where the Sumerians buried their dead nearly 5,000 years ago. The scientists are stunned by the size of cemetery and say much more work needs to be done to determine what role it played in ancient times. "We have never excavated anything like it before. It is unprecedented," said Fadhil Abdulwahid, a Baghdad University archaeologist. Remote and desolate, the site was long the target of grave robbers who the scientists say pilfered gold ornaments, cylinder seals made of precious stones and statuettes. Ancient Iraqis usually buried their dead with their most valued possessions. Chief archaeologist Donny Youkhanna could not say how many artifacts were stolen nor estimate their significance, "but the damage is certainly big." When he started excavations with 40 diggers last year he brought along armed guards. Previously, he said, few dared to approach the ancient mound due to the large number of scorpions that lived among the graves, which prompted the locals to name it Umm Al Ajarib or "mother of scorpions." Shells, bowls, beads and handsome earthenware and statues dot small lanes in the cemetery situated 400 km south of Baghdad. "It is the largest graveyard of Sumer. Nowhere in ancient Iraq have we come across so many graves," Youkhanna said. Until now, experts had designated a cemetery at Eridu in southern Iraq as the largest Sumerian burial ground. There, scientists uncovered 1,000 graves in one sqkm.(AP) http://www.cnn.com/2000/WORLD/meast/10/23/iraq.usa.attack.reut/index.html * Western warplanes bomb Iraq no-fly zone, U.S. says October 23, 2000 WASHINGTON (Reuters) -- Western warplanes on Monday attacked military air defense targets in a no-fly zone in northern Iraq after Iraqi forces fired anti-aircraft guns at planes patrolling the area, the U.S. military said. All of the U.S. and British planes involved in the exchange returned safely to their base in nearby Turkey, according to a statement released by the U.S. military's European Command based in Germany. The statement said that the air attacks occurred after Iraqi forces fired anti-aircraft guns at the planes from sites north of the city of Mosul. [....] http://www.bahraintribune.com/middle.asp?Art_No=5675 * Iraq discreetly slips back onto Arab scene Bahrain Tribune, 23/10/00 BAGHDAD: By taking part in an Arab summit for the first time in ten years this weekend in Cairo, Iraq has discreetly regained its place in the Arab world, with some Arab leaders calling for an end to the embargo against it. Baghdad¹s representative at the summit, Ezzat Ibrahim, vice- chairman of Iraq¹s decision making Revolutionary Command Council (RCC), had meetings with several Arab leaders, the first at this level since the Gulf War of 1991. In particular, he met the Egyptian and Syrian presidents, Hosni Mubarak and Bashar Al Assad respectively, King Abdullah II of Jordan, and the vice-president of the United Arab Emirates, Shaikh Maktoum bin Rashed al-Maktoum, the Iraqi press reported yesterday. The vice-president of the CCR was representing Iraqi head of state Saddam Hussein at the Cairo summit, which was also attended by senior Saudi and Kuwaiti representatives, particularly hostile to Iraq. Ibrahim also met Palestinian leader Yasser Arafat, whose last trip to Baghdad was back in February 1993, seven months before he signed the Oslo accords with Israel on Palestinian autonomy, which Baghdad fiercely opposes. As well as the Palestinian uprising in the Israeli-occupied territories, which was at the centre of the summit, the Iraqi official raised with his discussion partners ³relations between Iraq and their respective countries,² the press reported. The meetings, made possible by the holding of the Cairo summit, came as several Arab countries have recently been organising flights to Baghdad in defiance of the aerial embargo. These flights bringing humanitarian aid and Arab politicians, have been organised as a sign of solidarity with Iraq, which has been subjected to a range of sanctions since its invasion of Kuwait in 1990. The lifting of sanctions was urged by ³at least four Arab heads of state,² at Saturday¹s opening of the Cairo summit, the Bagdad press said, citing the Jordanian monarch, Yemeni President Ali Abdullah Saleh and Sudanese head of state Omar HassanAl Bashir, as well as Arafat. ³The Arab nation can no longer accept the embargo against the Iraqi people and the threats against the territorial integrity and sovereignty² of Iraq, King Abdullah said in published comments. President Saleh called on ³Arabs to lift the embargo hurting the Iraqi people, without waiting for a United Nations initiative,² while his Sudanese counterpart called for ³serious action aimed at lifting² the embargo and ending the suffering of the Iraqis.² ³The Arabs are called on to lift the embargo imposed on Iraq,² Arafat said to those attending the Cairo summit. AFP http://www.timesofindia.com/241000/24mide6.htm * Iraq slams outcome of Cairo Arab summit BAGHDAD 24th October: Iraq has blasted Arab leaders for what it called their "failing and vicious" summit which concluded in Cairo on Sunday. A statement issued late on Sunday after a meeting of top Iraqi leaders chaired by President Saddam Hussein also urged the Arabs to revolt against their leaders specially the rulers of Saudi Arabia, Iraq's Gulf War foe. "These are weak resolutions issued by a failing and vicious summit," said the statement, carried by all Iraqi newspapers on Monday. The outcome of the summit was "a poison in the Arab body and poisoning and killing arrows directed against our Arab nations," the statement said. The Cairo summit blasted "barbaric" Israel and vowed support for Palestinians but failed to agree on concrete steps to punish the Jewish state for over three weeks of violence that has killed 125 people, mostly Palestinians. "Have you (Arab peoples) read the voice of failure from those who posted themselves as kings and presidents to rule under your names?" the statement said in reference to Arab leaders who took part in the summit. "You should escalate struggle and 'jihad (holy war) in all its fields and means against these rulers, particularly the rulers of Saudi Arabia who are the core of (Arab) misfortune," the statement said. The Iraqi press said that Iraq's delegation to the summit had expressed reservations over the summit's final communique. Baghdad was represented at the summit by Vice-Chairman of the Revolutionary Command Council Izzat Ibrahim and Deputy Prime Minister Tareq Aziz. Ibrahim, in an opening speech, called for the "liberation of Palestine" from the Israelis through Jihad (holy war). http://www.cnn.com/2000/US/10/24/iraq.us.troops.reut/index.html * Pentagon says Iraqi troops not a threat to Israel October 24, 2000 WASHINGTON (Reuters) - The United States is still closely watching the movement of Iraqi troops west of Baghdad but the move appears only to be part of an annual training cycle, the Defense Department said Tuesday, "We continue to pay very close attention to what they are doing," Rear Adm. Craig Quigley, a Pentagon spokesman, told reporters. "Our best assessment is that it is, indeed, training activity and that they have not postured themselves ... to do some threatening act toward any of their neighbors," he added in response to questions. Quigley said he did not agree with some assessments from Israel that Iraq was massing troops along its border in support of Palestinians at odds with Israel. "I can't speak to the motivation of placing them west of Baghdad as they have," the spokesman said. "But I would not agree with that (threatening) characterization," he stressed. "There is a lot of Iraq to the west of where these forces are located. And they don't have with them the essential elements of logistic support that you would require in order to use them in an offensive or a threatening manner." "The movements seem to be local and training and administrative in nature," Quigley said. The Pentagon said earlier this month that members of the 15,000-man division had been moved out of their bases into an area west of Baghdad and that it was watching the movement closely although it did not appear to be threatening. http://www.voila.co.uk/News/afp/media/001024155138.bmulyqke.html * Japan turn on style to break Iraqi hoodoo BEIRUT (AFP) - - Japan came from a goal behind to outclass Iraq here on Tuesday beating them 4-1 in their Asian Cup quarter-final and avenging the 2-2 draw in 1993 that robbed them of a place in the 1994 World Cup finals. Japan, who were also recording their first ever win over the Iraqis in six meetings, will meet China in a mouthwatering semi-final here on Thursday. The freescoring Japanese, who coach Philippe Troussier has said need to win this tournament to be regarded as a world force rather than just an Asian power, scored through a double by Hiroshi Nanami and one apiece from Naohiro Takahara - his fifth of the campaign - and right wingback Tomokazu Myojin. The Iraqis, whose last minute goal in 1993 had eliminated the Japanese from going to the United States, had taken the lead through playmaker Abbas Obeid Jassim. Myojin, who had run the Iraqi leftback ragged in the first-half, got on the scoresheet himself with a sweet shot from the edge of the penalty area in the 63rd minute to put any vain hopes the Iraqis had of a revival to sleep. The Iraqis had briefly threatened to reduce the deficit to just one in an early second-half rush of attacks. Jassim, who is their only player plying his trade abroad with Korean outfit Pohang, had forced a superb save out of Yoshikatsu Kawaguchi after latching on to hardman Ziyad Tariq's longball over the defence. Lone striker Qahtan Chatir, who scored in their opening match with Thailand, was also inches away from scoring but just missed from Adnan Mohammed's low cross three minutes into the second period. Japan too had missed their opportunities Nanami having his hat-trick denied him by a goaline clearance from his header. The Japanese had been given a rude awakening when the splendid Jassim opened the scoring in the fourth minute crashing home a 20-yard shot after Japanese captain Ryuzo Morioka had failed to clear properly with his head. However, they showed the class of champions by levelling within four minutes working a beautiful freekick and totally fooling the Iraqi defence. Rather than floating it into the box Shunsuke Nakamura played it sideways to Nanami and he sent a searing effort past 'keeper Hashim Khamis. Three minutes later Japan had taken the lead as Hiroaki Morishima, named the 'Robot' by Troussier and playing in absent Italy-based star Hidetoshi Nakata's role, slipped the ball through Jassim's brother Haydar Obeid's legs and Takahara executed it in fine style. Obeid was replaced a minute later. Nanami, who had played in all three group matches so he could get near full match fitness, turned on the style for the third in the 29th minute as he spotted Khamis off his line and chipped him taking a slight deflection on the way into the net. Morishima, who scored in the 8-1 humiliation of Uzbekistan, should also have got on the scoresheet but he headed the ball down from Myojin's curling cross to the backpost and it was hacked off the line. Takahara too had a shot cleared off the line but blotted his copybook when he elbowed the hyperactive Tariq which went unseen by the referee - though the shaven-headed Iraqi defender got his own back early in the secondhalf when he callously brought him down from behind. [I think Iraq is now out of the running so that's it for football fans, but if you want to know about subsequent matches not involving Iraq, try: http://www.voila.co.uk/News/afp/spo/001025111450.ejmboazy.html * Moment of truth for Japan as Asian Cup battle reaches semi-finals/Saudi Arabia celebrate after scoring the golden goal against Kuwait this one has a photo of the Saudi team answering a question that has been bothering me. Do the Saudi team wear shorts? They do, but very long ones and very high socks. Also: http://www.irna.com/newshtm/eng/04191120.htm * Headcoach Talebi resigns. This is the headcoach of the Iranian team after they were beaten by S.Korea] http://www.voila.co.uk/News/afp/people/001024191235.r4xjzfuy.html * Kadhafi will be first Arab leader to return to Iraq, his daughter says [See also: http://www.cnn.com/2000/WORLD/meast/10/22/iraq.gadhafi.ap/index.html * Libyan leader's daughter meets Saddam Hussein Associated Press, October 22, 2000] BAGHDAD (AFP, 24th October) - - Libyan leader Moamer Kadhafi will be the first Arab leader to return to Iraq despite international sanctions, his daughter said in an interview published Tuesday. Aisha Kadhafi, who spent two days in Baghdad after arriving on Saturday on the first Libyan flight to the country in 10 years, said the colonel would visit Iraq soon. She told Al-Rafidain magazine: "My father has always worked for a radical solution to the questions of sanctions on Iraq ... and, God willing, he will soon be (in Iraq) for the first visit," of an Arab leader since the embargo was enforced in 1990. She met President Saddam Hussein on Sunday and "saluted the resistance of the Iraqi people, and Iraqi women to American aggression," it said. The Libyan plane, which brought a delegation and cargo of food and medicine, left Baghdad for Tripoli on Sunday. [I recommend a visit to this site for a photograph of Miss Khadafi which, in my ignorance of the different varieties of 'image' that are possible for the daughters of leading Muslim statesmen, took me by surprise PB] http://www.arabicnews.com/ansub/Daily/Day/001024/2000102409.html * Proposals between Iraq and Iran to open borders 24th october The London-based al-Wasat magazine said on Monday that Iran had proposed during the visit held by the Iranian foreign minister Kamal Kharazi recently to Baghdad that Iraq to open its borders and airspace to Iran so as Tehran can send weapons and even fighters to Syria in order to back it together with Lebanon and the Palestinian uprising. The magazine added that Kharazi's visit resulted in an " undeclared " agreement to open Iraq's doors for the Iranian military aids for Hizbullah and the Palestinian Intifada. http://www.arabicnews.com/ansub/Daily/Day/001024/2000102403.html Free! * Remains of the missing Saudi pilot found? 24Th October, 2000 The joint Iraqi- Saudi team which is carrying out a research operation in a border area between the two states found parts of the plane and remains of a person mostly expected to be for the missing Saudi Pilot. An official source at the permanent mission of the International committee of the Red Cross in Baghdad said on Monday " we are not sure whether these remains are for the Saudi pilot Muhammad al-Nasera -- shot down during the Kuwait liberation war -- before the completion of the necessary test by the expert who accompanies the joint team as well as testing the engine to know the type of the plane." The source added that it is expected that the research operation for the remains of the pilot will end successfully. He explained that the work progress in the Sahara area which is located 60 Km from the borders into the Iraqi territories is much easier than expected and every thing isrunning smoothly. Last Saturday, the joint team led by representatives for the Red Crescent started the search operation according to what was agreed upon following two-day meetings in the Saudi area of Arar, at the Iraqi- Saudi borders by the end of last week. http://www.thetimes.co.uk/article/0,,24039,00.html * Millions spent on Camp Saddam by Michael Evans, Defence Editor, the Times, 24th october SADDAM HUSSEIN has built a huge lakeside resort complex for his family and friends, including a safari park with deer and elephants, according to intelligence reports sent to the Foreign Office. Saddam City, as it has been dubbed ‹ or more correctly Saddamiat Al Tharthar (That Which Belongs to Saddam at Tharthar Lake) ‹ is 85 miles west of Baghdad. It is so big that it includes 625 homes for the Iraqi leader¹s ³favourites², Peter Hain, the Foreign Office Minister, said yesterday. Mr Hain produced the latest evidence of Saddam¹s luxury life to highlight the way in which his regime has siphoned off much of the revenue from the $24 billion-a-year oil sales for himself and his cronies, rather than provide food and medicine for the Iraqi people. Intelligence gleaned from American satellite photos and other sources has revealed, according to Mr Hain, that the resort has stadiums, an amusement park, hospitals and the latest communications systems. Animals in the safari park ³graze on lush vegetation grown with the latest irrigation systems², while the Iraqi population has to survive on unclean water supplies. The exclusive ³city², which reportedly cost ³hundreds of millions of dollars², was protected by Iraqi Special Forces, Mr Hain said. There was also an elite security unit, called the Group of 40, which looked after Saddam during his visits, arranging his parties and barbecues. The United Nations carried out a survey of imports from March to September. Its report showed that far from bringing in food for the Iraqi population, under the agreed UN oil-for food humanitarian programme, Iraq imported more than 300 million cigarettes, and each month 28,000 bottles of whisky, 230,000 cans of beer, 40,000 litres of vodka and almost 19,000 bottles of wine. Mr Hain said that a tiny percentage of the Iraqi people was benefiting from ³obscene decadence², while the rest of the population starved. [See also: http://www.guardianunlimited.co.uk/international/story/0,3604,387094,00.html * Britain intensifies propaganda war against Saddam by Richard Norton-Taylor, Tuesday October 24, 2000. nb This makes the important observation that sinful items such as whiskey and cigarettes are not imported under the Oil for-food programme. It does not draw the obvious conclusion that therefore a) these items are not being subtracted from the Oil for Food money available for humanitarian purposes and b) they are to be subtracted from the 'illegal' - smuggling - fund available for the building of weapons of mass destruction PB] http://www.cnn.com/2000/WORLD/meast/10/25/iraq.jordan.currency.reut/index.ht ml * Jordan to ditch dollar in trade dealings with Iraq October 25, 2000 BAGHDAD, Iraq (Reuters) -- Jordan has decided to stop using the U.S. dollar in trade dealings with Iraq and replace it with the euro or another European currency, the Iraqi state news agency INA reported on Wednesday. The move is in response to Iraq's decision, announced in September, to stop trading with the U.S. currency, head of the Jordan's Trade Centre in Baghdad Ma'an al-Azizi told INA. Announcing that decision, the official Iraqi news agency said it had been taken to confront "daily American-Zionist aggression" against Iraq. "Jordanian companies which have dealings with Iraq started to make offers to Iraq with the euro or European currencies," al-Azizi said. Al-Azizi said Jordan's Trade and Industry Minister Wasef Azzar would head a 150-strong delegation of businessmen to Baghdad on Monday to participate in Baghdad International Fair, which opens on November 1. [....] http://www.vny.com/cf/News/upidetail.cfm?QID=130932 * Iran halts normalization with Iraq Wednesday, 25 October 2000 TEHRAN, Iran, Oct. 25 (UPI) -- Iran is halting efforts to normalize relations with neighboring Iraq following an attack on a Tehran residential area by Iraq-based Iranian dissidents, state run radio said Wednesday. The attack, involving mortars, was staged by the Mujahedeen Khalq and took place recently, it said. No one was reported injured, but additional details were not disclosed. The Mujahedeen Khalq has claimed responsibility for a series of mortar attacks in Iran since the beginning of the year. Iran Radio said the decision to stop normalization efforts was made by Iran's Supreme National Security Council. Officials said they were dismayed that Iraq had failed to respond positively to Tehran's request that it stop its support for the dissidents. The request was made last week by Foreign Minister Kamal Kharrazi, who traveled to Baghdad to meet with President Saddam Hussein. Iraq has not responded to the Iranian decision. Iran, which fought Iraq from 1980 to 1988, had "shown good will towards reconciliation with Iraq, but Baghdad has not responded in kind," officials said, according to the radio. The Mujahedeen attack "showed Iraq's ill-will and determination not to resolve our pending problems." Kharrazi was the highest ranking Iranian official to visit Iraq since Iran's 1979 Islamic revolution. The visit was seen by analysts as a signal that Iran was prepared to defy international sanctions imposed against Iraq by the U.N. following Iraq's 1990 invasion of Kuwait. Iraq in the past has criticized Iran for harboring and supporting Iraqi opposition groups. -- http://www.irna.com/newshtm/eng/05153050.htm * 4,000 Iranian pilgrims to visit holy sites in Iraq per week Kermanshah, Oct. 26, IRNA -- Governor of western border city of Qasr-e-Shirin Esfandiar Zakeri said here Thursday that more pilgrims would be dispatched to holy sites in Iraq following talks between Iranian and Iraqi officials. Zakeri told IRNA that under agreements reached between the two countries, 4,800 Iranian pilgrims can leave the country for Iraq a week to visit holy sites. Formerly 3,000 Iranian pilgrims were allowed to visit the holy shrines in Iraq, he added. Zakeri said each Iranian pilgrim would stay in Iraq for eight days by paying dlrs 435. The Iraqi government closed Manzarieh crossing point to Iranian pilgrims on July 30 this year. http://www.news24.co.za/News24/Finance/Markets/0,1466,2-8-21_931715,00.html * Oil rises on Iraq rumours 26th October Dubai - The price of oil spiked upwards again towards $32 a barrel on Thursday following a report that Iraq could soon halt crude deliveries because of a dispute over currency payments with the United Nations, analysts and dealers said. A barrel of Brent North Sea benchmark crude for December delivery advanced 47 cents to $31.85 a barrel, before easing slightly. Prices had fallen on Wednesday, with Brent closing at $31.38 while in New York a barrel of light sweet crude slipped to $32.96. But on Thursday, the market found its feet again as investors digested a report in the Middle East Economic Survey (MEES) that Iraq could halt oil sales. Iraq is likely to suspend oil exports from November 1 if the United States objects to a proposal by Baghdad that it be paid in euros rather than in dollars, an Iraqi source said on Thursday. "Iraq is unlikely to implement oil contracts if the United States objects to euro payments for Iraqi oil and Baghdad insists payment be made in euros," an Iraqi source told Reuters. "I see a problem," he added. "This is a political issue and not a technical matter." He indicated any suspension would be from November 1. The United Nations sanctions committee will meet on October 30 to discuss a proposal from Iraqi oil marketer SOMO that from November 1 all letters of credit for crude oil payment must be opened in euros rather than dollars. The committee, which is to receive a written report by Thursday from U.N. staff on the issue, is split on whether it should allow the switchover to euros or even whether the committee has any right to weigh in on the matter, diplomats in New York have said. >From a practical perspective, lifters of Iraqi barrels have seen no problem with the switch from dollar payment to euros but are worried about becoming bogged down in a procedural wrangle. Baghdad has been exporting about 2.3 million barrels per day (bpd) of oil in the current eighth phase of the UN oil-for-food exchange. The eighth phase ends December 5. Iraq's oil exports at current prices fetch around $60m a day. Oil-for-food revenues are currently deposited in a dollar UN escrow account at Banque Nationale de Paris (BNP) in New York. That account, after nearly four years of the programme, now stands at around $10bn, said industry sources. But BNP cannot issue a new, standard euro format for letters of credit until instructed to do so by the United Nations, customers said. Those lifting Iraqi barrels in the early days of November must now get the necessary UN mandated paper work in place. Some industry sources have said Washington, dead set against euro payment, was proving the main stumbling block at the UN. But Baghdad was also playing politics as well, they added. The Iraqi government decided last month to halt trading with the dollar and replace it with the euro or any other currency. Baghdad has said the move was to confront the "daily American-Zionist aggression," an apparent reference to US support for sanctions. The UN oil-for-food deal lets Iraq sell oil over a six month period on a renewal basis to buy food, medicine and other humanitarian goods for the Iraqi people reeling under stringent UN sanctions imposed for Baghdad's 1990 invasion of Kuwait. http://www.vny.com/cf/News/upidetail.cfm?QID=131422 * UN approves $1.27 billion payout to Gulf War claimants GENEVA, Switzerland, Oct. 26 (UPI) -- A special United Nations commission handling claims stemming from the Persian Gulf War on Thursday agreed to pay out $1.27 billion to 38 governments and international organizations for distribution to more than 1,500 claimants. As part of the "oil-for-food" formula approved by the U.N. Security Council, the awarding of claims by the Compensation Commission is funded by the sale of Iraqi oil and oil products on the world market. The compensation body receives 30 percent of revenue generated from the sales. The latest payment brings the total amount of compensation to date to $9.4 billion. A threefold increase in world oil prices coupled with the Security Council's decision last December to lift the ceiling on the amount of crude that Iraq exports has substantially increased funds flowing into the commission's coffers. "As prices go up the amount that flows to the commission automatically increases," a senior commission official said. The Geneva-based commission said the approved payment includes $1 billion to cover claims by companies and other private entities and $130.4 million for claims by governments and international organizations. The payment also includes more than $136 million for individual claims. Kuwait received most of the payments -- more than $1 billion - with $825.8 million for corporations, $127 million or individuals and $86.2 million for government claims. Other countries that received substantial amounts in corporate claims include the United States with $37 million; Yugoslavia, $13.2 million; China, $12.3 million; Russia, $11.5 million; and South Korea, $11.2 million. http://www.wn.com/?action=display&article=4158415&template=worldnews/search. txt&index=recent * UN: Euro Account for Iraq Feasible UNITED NATIONS (AP, 27 Oct 2000) ‹ The United Nations outlined a plan Friday that would meet Iraq's request for oil payments in the common European currency, but it said the system could cost millions of dollars that would otherwise go to Iraqi humanitarian needs. A report from the U.N. Treasury Department said the Security Council's sanctions committee and the U.N. secretary-general's office should study the Iraqi request further because of its significant expected costs and other technical questions. Nevertheless, the United States and Britain, which take the hardest line against Iraq in the Security Council, have said they will not oppose creation of a euro-based account. And diplomats said Friday that the proposal would likely go ahead. Iraq, which exports about 2.2 million barrels of oil a day, has threatened to halt exports beginning next week if its proposal isn't accepted ‹ a warning that has put additional pressure on the tumultuous oil market and sent prices up 2 percent Thursday. Crude for delivery in December was trading down Friday, however, primarily on worries that OPEC will release an additional 500,000 barrels into the market. In trading on the New York Mercantile Exchange, crude was down 48 cents to $33.21. [....] A report Friday from the U.N. Treasury Department found that a shift to the euro would be possible, with U.N. sanctions committee approval, but ``cumbersome'' and would incur additional costs. Because Iraq would continue pricing its oil in dollars ‹ which is how oil is bought and sold internationally ‹ the program would have to swallow undetermined currency conversion costs, the report found. New staff would be needed to chart the fluctuations of the euro, and the aid program's finances would be exposed to greater risks on investments because of the euro's volatility, the report said. The euro is trading at about 84 cents to the dollar, about 28 percent off its value when it first launched back in January 1999. Interest rates on euro accounts are almost 2 percentage points lower than on dollar accounts, meaning the program would lose about $185 million annually in interest on a $10 billion account, the report found. Iraq currently has about $10 billion in its Paribas account, which has earned $541 million in interest that has been put towards buying additional humanitarian goods, the report said. ``Given the magnitude of the issues, adequate time should be provided to ensure the protection of the funds and the continued supply of humanitarian goods to Iraq,'' the report concluded. The sanctions committee is expected to meet Monday. French officials have said they don't believe the committee needs to approve the Iraqi proposal, saying the U.N. secretary-general's office has the authority to create the euro account. See also: http://www.lasvegassun.com/sunbin/stories/w-me/2000/oct/27/102800653.html * Iraq Starting Euro Oil Contracts Las Vegas Sun, 27th October and http://www.individual.com/story.shtml?story=d1027140.600 * U.N. asks Iraq to delay Euro proposal for oil program Reuters, October 27, 2000 http://www.brecorder.com/story/S00DD/SDJ28/SDJ28249.htm * Iraqi troop movements no threat: Israel Business recorder (Pakistan) JERUSALEM (October 28) : Israel's army chief said on Friday he did not believe the movement of Iraqi troops west of Baghdad posed a threat to Israel. Lieutenant-General Shaul Mofaz predicted the troops would return to base soon. "I do not see the Iraqis at this point as a threat to the state of Israel and I imagine that in light of the results of Israeli army action and the strength of the Israeli army they will also return soon to where they came from," he said. "They know that we will also respond if there will be a need and I don't attribute excessive importance to this movement of the Iraqis," Mofaz said. [....] http://english.peopledaily.com.cn/200010/29/eng20001029_53840.html * US Denies Plane Hit by Iraq People's Daily (China), October 29, 2000 The United States Saturday denied claims by Iraq that its air defense forces had hit a Western plane which invaded the southern part of the country. "The Iraqi claim is not true," U.S. National Security Council spokesman P.J. Crowley said. He made the comments after Iraq announced Saturday that its forces hit a Western plane patrolling the so called no-fly zone in the south of the country. "Our brave air defenses have hit one of the aggressors' planes," an Iraqi military spokesman was quoted as saying. He said a total of 62 sorties of U.S. and British planes invaded southern Iraq Friday and Saturday. The plane was hit Saturday, the Iraqi military spokesman said. http://www.brecorder.com/story/S00DD/SDJ29/SDJ29158.htm * Iraq still a threat to region: Kuwait KUWAIT (Reuters, October 29) : Kuwait said on Saturday that its "evil" former occupier Iraq continued to pose a threat to oil-rich Gulf Arab states. Kuwait's Emir Sheikh Jaber al-Ahmad al-Sabah also demanded Baghdad's full implementation of Gulf crisis-related UN resolutions. In an address read in parliament at the start of a new term the emir said recent Iraqi statements and acts should kill any "illusions" by some countries about the true "evil and aggressive intent of the Iraqi regime towards Kuwait and regional states". 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