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Ministry of Trade

Oil-for-Food Transition CIC Briefing to Baghdad-based diplomats
18 August 2003

Overview: UN Security Council resolution 1483 (adopted 22 May 2003) lifted sanctions on Iraq and provided the tasks and timeline for winding down the Oil-for-Food (OFF) program. The Coalition Provisional Authority (CPA), Iraqi representatives, and UN officials (Office of the Iraq Program and the UN Office of Humanitarian Coordinator for Iraq) will oversee this transition through 21 November 2003 - the date the Oil-for-Food program ends.

South/Center: Following UNSCR 1483's adoption, "tripartite" (CPA, Iraqi, UN) working groups were established in Baghdad to facilitate the review of the relative utility of OFF contracts that had been let by the former Government of Iraq and funded by the 59% account. (NOTE: Under OFF, 59% of Iraqi oil revenues were set aside in escrow to import goods for the South and Center of Iraq.) The review is nearing completion; most contracts have been considered.

The tripartite review process has focused solely on meeting the needs of the Iraqi people -- as defined by them -- in order to ensure that OFF goods arriving in Iraq correspond to stated priorities or relative utility. The figures below reflect the current status of the prioritization process.

Total Universe of Contracts to Review: 5400

Percent reviewed: 80%

Percent Called Forward: 75%

Dollar Value: $5.5 billion

The North: A tripartite review process for OFF programs has also been established in the three northern Governorates and includes the CPA, UN and Kurdish representation. The CPA recently sent a multi-sectoral team of advisors and experts to Erbil in order to help facilitate the OFF transition. This team, led by U.S. Ambassador Steve Mann, is assessing the UN programs that were funded under OFF. The goal is to determine whether the programs are still appropriate and, if so, how responsibility for them should be transitioned after November 21. The CPA wants to transfer as much responsibility as possible to national or local authorities. If these bodies need additional assistance or capacity building, CPA will consider how best to provide that.

U.S. and UK Permanent Representatives to the UN will provide August 21 a report to the Security Council on UNSCR 1483 implementation. Part of their remarks will focus on the OFF transition.

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Wednesday, 10-Dec-03 15:10:03