Oil sales of $1.4 billion.

The Security Council on 25 March, concerned about the humanitarian consequences for the Iraqi people resulting from a shortfall in oil revenues, decided to authorize the sale of up to $1.4 billion of Iraqi oil and oil products within a 90-day period from 0001 hours (EST) of 5 March.

Acting under Chapter VII of the United Nations Charter, the Council sought to offset the shortfall in Iraqi oil revenues during the first 90-day period of the implementation of its resolution 1143 (1997), resulting from a delay in the resumption of oil sales and a serious drop in oil prices.

That text had extended for an additional six months, beginning on 5 December 1997, the provisions of resolution 986 (1995), which allows the sale of Iraqi oil to pay for humanitarian goods and their distribution in their country. By its adoption, the Council authorized the sale of $2.1 billion worth of Iraqi oil over an additional 180-day period. To avoid further deterioration of the humanitarian situation in Iraq, the Council adopted resolution 1153 (1998) on 20 February, thereby permitting the import of up to $5.256 billion - up from the previous $2.1 billion - for a new 180-day period.

On 28 April, the Office of the Iraq Programme (OIP) announced that as of 27 April, under Phase III of the "oil-for-food" programme, 72 approval letters to ship goods to Iraq had been issued. Of those, 65 fell within the food sector and 7 for other humanitarian aid, including medicines. Also on 27 April, the total amount of funds available for humanitarian supplies in the United Nations Iraq Account was approximately $503 million, of which $493 million was used for food contracts and $10 million for other humanitarian contracts.

Prior to that day, funds had been allocated on a first-come, first-served basis, as stipulated by the rules and procedures of the Security Council Committee monitoring the sanctions against Iraq, a United Nations Spokesman said on 28 April. That approach was also requested by the Government of Iraq. On 27 April, the Permanent Mission of Iraq had submitted to the Secretariat a request to consider, on a priority basis, contracts pertaining to tea and vegetable ghee only. That request was implemented with an understanding that other food contracts would be postponed. Currently, there were approximately 170 approved contracts remaining, awaiting receipt of oil revenues under the oil-for-food programme.

Iraq was "obliged to make a full disclosure of its weapons of mass destruction", while the United Nations Special Commission (UNSCOM) established by Security Council resolution 687 (1991) to inspect Iraq's biological, chemical and missile capabilities, and destroy, remove or render harmless Iraq's proscribed weapons and all related components, items and facilities - was to "verify it and to determine its veracity", UNSCOM Executive Chairman Richard Butler told the Press at Headquarters on 28 April.

"If they really want this to be over, they should give it to us", he went on. "They promised in the Memorandum of Understanding that they would give us full cooperation. That's all we ask. Our promise is when they do that, they will find us competent, honest and quick."

The problem had been with Iraq's statements of full disclosure which the Commission had never been able to verify scientifically or technically to its satisfaction, Mr. Butler explained. "There is very good scientific and technical support for our difficulty in doing what we really want to do - which is, to find what Iraq had disclosed to be true. We want it to be true," he stressed.

However, "disarmament by declaration" was against the Council's resolutions, the UNSCOM Chairman said. Iraq had to provide the materials to support its claims, and it failed to do. Iraq had all those materials in its archives and records at its disposal.

Mr. Butler added that the Commission might be able to get its disarmament work done in a relatively short time if Iraq cooperated by producing the materials, evidence and documents required for UNSCOM's tasks. He also observed that the period before 23 February - the day when the Memorandum of Understanding between the United Nations and Iraq was signed - had been marked by "possibly the most intense crisis in their relationship", while the period after it "saw an entirely new spirit of cooperation".