ECONOMIC AND FINANCIAL RELATIONS BETWEEN
THE EUROPEAN COMMUNITY AND IRAQ
Letter from the Chairman to the Rt Hon
Peter Hain MP, Minister for Europe, Foreign and Commonwealth Office
UNNUMBERED: DRAFT COUNCIL REGULATION AMENDING
COUNCIL REGULATION (EC) NO 2465/96 CONCERNING THE INTERRUPTION
OF ECONOMIC AND FINANCIAL RELATIONS BETWEEN THE EUROPEAN COMMUNITY
AND IRAQ. REGULATION ON THE IMPLEMENTATION OF UN SECURITY COUNCIL
RESOLUTION 1409 (2002)
UNNUMBERED: DRAFT COUNCIL COMMON POSITION
2002/. . ./CFSP CONCERNING THE DEROGATIONS FROM THE EMBARGO WITH
REGARD TO IRAQ AND REPEALING COMMON POSITION 96/741/cfsp. COMMON
POSITION ON THE IMPLEMENTATION OF UN SECURITY COUNCIL RESOLUTION
Sub-Committee C considered these documents at
their meeting on 20 June and agreed to clear both of them.
Nevertheless, we would be most grateful to be
informed what measures are in place to prevent illegal exports
and imports across land borders, and in particular via Syria and
Jordan and with what degree of success.
We would also like clarification of the status
of the escrow account that is referred to several times in the
draft Council Regulation. Who has (or will) set up this account
and who places money in it?
24 June 2002
Letter from The Rt Hon Peter Hain MP,
Minister for Europe, to the Chairman
Thank you for your letter of 24 June informing
me that your Committee has agreed to clear these documents from
scrutiny. I am grateful for your Committee's expeditious consideration
of the material.
In your letter you ask what measures are in
place to prevent illegal exports and imports across land borders,
and in particular via Syria and Jordan and with what degree of
success. Iraq's imports under the Oil for Food programme which
are transported overland must arrive in Iraq at one of four designated
border checkpoints where UN agents verify that the goods have
UN authorisation. We expect neighbouring states to abide by their
binding obligations under UN resolutions to implement and enforce
UN sanctions including by ensuring adequate border policing. To
this end, where possible, we share information we receive about
breaches of sanctions by third countries with the country concerned.
We have raised possible breaches of sanctions with Syria and Jordan.
In the case of Syria, in addition to bilateral approaches, we
have sought to apply diplomatic pressure by raising their illegal
import of Iraqi oil at the Un sanctions committee.
You also ask for clarification of the status
of the escrow account referred to in the draft Council regulation.
This account was opened with BNP-Paribas pursuant to UN resolution
986 (1995) which established the Oil for Food programme. It is
administered by the UN secretariat. Payments for Iraqi oil purchased
under the OFF programme must be made into the account. The funds
held in the account are then used to fund OFF exports to Iraq,
payment being released once the UN agents have confirmed that
the goods in question have arrived in Iraq.
8 July 2002