The State Department May 12 issued a double fact sheet on a draft resolution tabled May 9 at the United Nations Security Council by the United States, the United Kingdom, and Spain that would lift U.N. economic sanctions on Iraq to support the country's recovery and reconstruction.

UN economic sanctions on imports and exports of goods, imposed to compel Saddam Hussein's compliance with WMD [weapons of mass destruction] requirements and contain the threat of his regime, are outdated; they no longer serve a useful function. Sustained imposition of economic sanctions would only hinder Iraq's recovery. This resolution recognizes the absurdity of economic restrictions on trade with Iraq now.

Facilitate Iraq rejoining the global market.

The resolution will abolish outdated provisions relating to the sale of oil and other goods and facilitate Iraq's ability to trade freely in the international market.

Facilitate Iraq's ability to sell oil freely.

The reconstituted Iraqi State Oil and Marketing Organization (SOMO) will conduct oil sales consistent with international market practices. These transactions will be audited by independent public accountants, who will report their findings to an international advisory board that will include representatives from the UN, World Bank, and IMF [International Monetary Fund]. To ensure that the Iraqi people are not penalized because of Saddam and can receive the benefits of their national patrimony, oil sales will be immunized against attachment by international creditors or others with claims against the former regime.

Return oil revenues to Iraq.

An Iraqi Assistance Fund will be established in the Central Bank of Iraq. The Fund will be subject to full transactional transparency by the international advisory board and audited by independent public accountants.

Spend Iraqi revenues on Iraqi reconstruction.

Iraqi export oil revenues will be deposited in the Iraqi Assistance Fund and the draft resolution specifies their use: to meet the humanitarian needs of the Iraqi people, for the economic reconstruction and repair of Iraq's infrastructure, for the continued disarmament of Iraq, and for the costs of indigenous civilian administration, and for other purposes benefiting the people of Iraq. These disbursements will be made with direct Iraqi participation.

Enlist support of international financial institutions.

By providing expertise and oversight of financial transactions, the World Bank and the International Monetary Fund will play key roles in Iraq's economic and financial recovery. To this end, the resolution also immunizes the Iraqi Assistance Fund from outstanding debt and other claims during its recovery period.

Wind down the Oil-for-Food program.

This will be first step in Iraq's transition to a market economy. Iraq is dependent on a public distribution system to get imported food throughout Iraq. It will take some time to convert this centrally-controlled economy to a free market. During the transition, we will support food distribution through a public distribution system.

Mandate the return of assets stolen by Saddam and his regime to Iraq.

The resolution tabled on May 9 at the UN by the United States, the United Kingdom, and Spain will:

LIFTING UN SANCTIONS IN IRAQ
The Role of the International Community

The resolution encourages the participation of the UN, interested states and regional organizations in Iraq's economic and political reconstruction:

Fulfill the promise of a vital UN role.

To ensure the UN plays a vital role in Iraq's reconstruction, the resolution proposes the appointment of a UN Special Coordinator. This individual will coordinate UN humanitarian assistance, support economic reconstruction, facilitate civil administration, assist in the development of a representative government, and promote legal and judicial reform and human rights.

Encourage support for Iraq's recovery from states and interested organizations.

The resolution encourages the international community to support the Iraqi people in building a free, prosperous and secure Iraq, including by responding to UN humanitarian appeals and providing resources for reconstruction and rehabilitation of Iraq's infrastructure. It also welcomes the assistance of international financial institutions to the people of Iraq.

Confirms the international community's commitment to the right of the Iraqi people to freely determine their own political future.

The resolution calls on the UN Special Coordinator and the international community to support the Iraqi people in their effort to establish a permanent representative government based on the rule of law, which affords equal rights to the people of Iraq without regard to ethnicity, religion, or gender.

Bar Iraqis who committed crimes and atrocities from receiving safe haven in other countries.

The resolution also affirms the need for accountability for crimes and atrocities committed by Saddam's regime, including the Kuwaitis and third-country nationals imprisoned during and since the 1991 Gulf War.

Protect Iraq's heritage.

The resolution will establish a ban on international trade in Iraqi cultural property and other archaeological, historical, cultural, religious and rare scientific items illegally removed from the Iraq National Museum, National Library and other locations.

Support continued efforts to account for Kuwaitis and others missing since Iraq's 1990 invasion of Kuwait.

Provide for continued funding of the UN Compensation Commission [UNCC] which deals with outstanding claims stemming from the 1990 invasion.

Five percent of oil proceeds will automatically be deposited into the UNCC Compensation Fund.

The UN has a vital role to play in Iraq's recovery.

-- Lift economic sanctions now

-- Encourage the international community to assist in helping the Iraqi people build a better future for their country

-- Establish a UN Special Coordinator

-- Provide for humanitarian needs, while winding down the Oil-for-Food program

-- Support Iraqis in charting their own political future

-- Return the benefits of Iraqi oil to the Iraqi people

Lifting UN sanctions will benefit the Iraqi people.