[House Document 106-270]
[From the U.S. Government Publishing Office]


106th Congress, 2d Session - - - - - - - - - - - - House Document 106-









 July 20, 2000.--Referred to the Committee on International Relations 
                       and ordered to be printed
                                           The White House,
                                         Washington, July 17, 2000.
Hon. J. Dennis Hastert,
Speaker of the House of Representatives,
Washington, DC.
    Dear Mr. Speaker: Consistent with the Authorization for Use 
of Military Force Against Iraq Resolution (Public Law 102-1 as 
amended by Public Law 106-113) and as part of my effort to keep 
the Congress fully informed, I am reporting on the status of 
efforts to obtain Iraq's compliance with the resolutions 
adopted by the United Nations Security Council. I shall 
continue to keep the Congress informed about this important 
                                                William J. Clinton.
     Status of U.S. Efforts Regarding Iraq's Compliance With UNSC 


    We are convinced that as long as Saddam Hussein remains in 
power, he will continue to threaten the well-being of the Iraqi 
people, the peace of the region, and vital U.S. interests. The 
only long-term solution to this problem is a new government in 
Baghdad, one that is able to live at peace with its people and 
its neighbors. We support a broad range of activities designed 
to help bring about such a new government in Baghdad. Until we 
have achieved this goal, we will continue to contain the threat 
posed by Saddam Hussein.
    Iraq continues to reject United Nations Security Council 
resolution 1284, a binding resolution adopted on December 17, 
1999 under Chapter VII of the UN Charter, including its 
requirement that Iraq provide the UN Monitoring, Verification 
and Inspection Commission (UNMOVIC) with immediate, 
unconditional and unrestricted access. Nonetheless, the UN 
continues to implement those parts of the resolution which do 
not require Iraqi cooperation. On April 13, 2000, the UN 
Security Council approved the organizational plan for UNMOVIC 
presented by Dr. Hans Blix. Ambassador Yuli Vorontsov, the 
Secretary General's high-level coordinator for Kuwait Issues, 
presented his first report to the Council on Kuwaiti and third-
country national prisoners on April 23; and on June 14, he 
submitted his first report on stolen Kuwaiti property. Both of 
these reports demonstrate Iraq's continuing failure to 
cooperate fully with its obligations to the Security Council.
    The ``oil-for-food'' program, which is intended to provide 
for the humanitarian needs of the Iraqi people as long as UN 
sanctions remain in place, continues to expand. During the 
seventh six-month phase of the program, which ended on June 8, 
Iraq exported more than $8.4 billion worth of oil. On June 8, 
the Council extended the program for an additional six months.

           U.S. and Coalition Force Levels in the Gulf Region

    Saddam Hussein's continuing threat to U.S. allies in the 
region and his record of aggressive behavior necessitates the 
deployment of a highly capable force in the region to deter 
Iraq and respond to the reconstitution of its WMD program, a 
move against the Kurds in northern Iraq, or any threat to U.S. 
forces or neighboring states. We will continue to maintain a 
strong posture and have established a rapid reinforcement 
capability to supplement our forces in the Gulf, if needed.
    Our forces are a balanced mix of land and carrier-based 
aircraft, surface warships, a Patriot missile battalion, a 
mechanized battalion task force and special operation units. To 
enhance force protection throughout the region, additional 
military security personnel are also deployed.

         Operation Northern Watch and Operation Southern Watch

    Aircraft of the United States and coalition partners 
patrolling the No-Fly Zones over Iraq under Operations Northern 
Watch and Southern Watch are still routinely tracked by Iraqi 
radar, are regularly engaged by anti-aircraft artillery, and on 
occasion, are attacked by surface-to-air missiles.
    Our aircrews continue to respond in self-defense to Iraq's 
No-Fly Zone violations and threats against and attacks on our 
aircraft patrolling the No-Fly Zones.

                  The Multinational Interception Force

    The maritime Multinational Interception Force (MIF) 
continues to enforce UN sanctions in the Gulf. The United 
States continues to approach potential participants in the MIF 
to augment current partners.
    Member states of the Gulf Cooperation Council (GCC) 
continue to provide logistical support and shipriders to the 
MIF and accept vessels diverted for violating UN sanctions 
against Iraq. The efforts to the members of the MIF help ensure 
that nearly 90 percent of Iraqi revenues are captured by the 
``oil-for-food'' program. However, aggressive Iraqi smuggling 
efforts increasingly allow Saddam Hussein's regime access to 
hard currency outside of that program--approximately 100,000 
barrels per day, representing over $40 million per month in 
uncontrolled revenue. In response, the MIF has increased its 
activities to try to detain or deter would-be smugglers.
    In addition, the United States has engaged in a wide-
ranging diplomatic effort both in the Iraq Sanctions Committee 
at the UN and in our bilateral relations to build international 
pressure to shut down the smuggling activity.In part because of 
these efforts, Iran stopped allowing smugglers use of its territorial 
waters to avoid MIF interdiction for a period of about six weeks 
beginning in mid-April. Iran has, however, renewed its cooperation with 
Iraq, and the smuggling of petroleum products through the Gulf has 
returned to the record levels we saw in the first three months of this 
year. The single most important factor contributing to the high level 
of smuggling remains the elevated price of oil and the resulting 
incentive for the smuggler.
    The MIF, and our ability to rapidly augment it, will 
continue to serve as a critical deterrent to both the smuggling 
of petroleum products out of Iraq, and the smuggling of 
prohibited items into Iraq.

               UNMOVIC/IAEA: Weapons of Mass Destruction

    There have been no UN Security Council-mandated inspections 
in Iraq since December 15, 1998. Iraq's defiance of the 
international consensus as expressed by resolution 1284 has 
meant that no progress has been made in addressing Iraq's 
outstanding disarmament obligations. Iraq remains in violation 
of its disarmament obligations to end its programs to develop 
weapons of mass destruction and long-range missiles.
    Dr. Blix has indicated that UNMOVIC likely will be prepared 
to conduct inspections in Iraq in August 2000. It remains our 
intent to support UNMOVIC and the IAEA as they work to carry 
out the Security Council's mandate.

                            Dual-Use Imports

    While we recognize the real humanitarian function that the 
oil-for-food program serves, we remain concerned that Iraq is 
using this program to acquire goods and materials for its 
weapons programs. The United States, as a member of the UN Iraq 
Sanctions Committee, reviews all contracts under the oil-for-
food program to ensure that items that are prohibited or pose 
significant dual-use concerns are not approved.
    Resolution 1051 established a joint UNSCOM/IAEA unit to 
monitor Iraq's imports of allowed dual-use WMD items (known as 
``1051''--listed goods). Under UN Security Council Resolution 
1284, UNMOVIC has assumed this responsibility from UNSCOM. 
Since weapons inspectors left Iraq in December 1998, the UN 
Office of the Iraq Programme is the only organization allowed 
to have observers monitor goods going into Iraq under the 
``oil-for-food'' program. Lacking weapons inspectors and other 
experts on the ground in Iraq, the United States has placed 
holds on a number of dual-use contracts that otherwise might 
have been approved with UNMOVIC/IAEA monitoring.

                   The UN's ``Oil-for-Food'' Program

    We continue to support the international community's 
efforts to provide for the humanitarian needs of the Iraqi 
people through the ``oil-for-food'' program. In Resolution 
1284, the UN Security Council authorized Iraq to export as much 
oil as required to meet humanitarian needs of the Iraqi 
population. Under UN control, the proceeds are used to purchase 
humanitarian goods, fund claims against Iraq arising out of its 
invasion and occupation of Kuwait, and to meet UN 
administrative costs. As of June 20, UN reporting indicates 
that since the start of the ``oil-for-food'' program 7,684 
contracts for humanitarian goods worth over $12 billion have 
been approved. We view Resolution 1284 as a vehicle for robust 
improvement of the humanitarian situation in Iraq and are eager 
to see all aspects of it implemented as rapidly as possible.
    The ``oil-for-food'' program maintains a separate program 
for northern Iraq, administered directly by the UN in 
consultation with the local authorities. This program, which 
the United States strongly supports, ensures that when Iraq 
contracts for the purchase of humanitarian goods, 13 percent of 
the funds generated under the ``oil-for-food'' program are 
spent on items for northern Iraq.
    International humanitarian programs including, most 
importantly, the ``oil-for-food'' program, have steadily 
improved the life of the average Iraqi--the ration basket 
provides 2,150 calories per day--and has led to improvements in 
health care, water, sanitation, agriculture, education, and 
other areas, while denying Saddam Hussein control over Iraq's 
oil revenues.
    We will continue to work with the UN Secretariat, the 
Security Council, and others in the international community to 
ensure that the implementation of Resolution 11284 better 
enables the humanitarian needs of the Iraqi people to be met 
while denying political or economic benefits to the Baghdad 

                 Northern Iraq: Kurdish Reconciliation

    The Kurdistan Democratic Party (KDP) and the Patriotic 
Union of Kurdistan (PUK) continue their efforts to implement 
the September 17, 1998 reconciliation agreement. U.S. diplomats 
visited northern Iraq in June to assess the state of KDP-PUK 
relations and to encourage more rapid implementation of the 
1998 agreement. In addition, Kurdish leaders met with 
Administration officials in Washington in late June and early 
July. The parties remain engaged with one another and have 
reiterated their commitment to address their issues peacefully 
through continued negotiation. They work together effectively 
in a number of areas, including joint efforts to bring the 
needs of their region to the attention of the UN and the 
international community.

                   The Human Rights Situation in Iraq

    As reflected in the Department of State's Human Rights 
Report for Iraq, released February 25, the human rights 
situation in Iraq remains severely below international norms. 
UNSCR 688 expressly notes that the consequences of the regime's 
repression of its own people constitute a threat to 
international peace and security in the region. It also demands 
immediate access by international humanitarian aid 
organizations to all Iraqis in need in all parts of Iraq. Yet, 
for over nine years, the Iraqi government has refused to allow 
the UN Human Rights Commission's Special Rapporteur for Iraq to 
visit the country. UN human rights monitors have never been 
allowed in. Newly appointed Special Rapporteur Andreas 
Mavrommatis asked the Government of Iraq for access so that he 
might make a personal inspection; the Iraqi government has 
denied his request.
    In the north, outside the Kurdish-controlled areas, we 
continue to receive reports of the regime forcibly expelling 
ethnic Kurds and Turkomans from Kirkuk and other cities, and 
transferring other populations into their places. There have 
also been reports of Shia in certain sections of Baghdad being 
    Human rights NGOs and other interested voices continue to 
call for creation of an international tribunal to address the 
crimes against humanity of the Iraqi leadership. United States 
Government policy supports this view: Saddam Hussein and the 
leadership of the Iraqi regime should be indicted and 
prosecuted for crimes against humanity and war crimes by an 
international criminal tribunal or by a national court that can 
properly exercise jurisdiction over them.
    The Iraqi leadership's abuse of resources for personal 
enrichment and attempts to manipulate the oil-for-food program 
continued unabated. Due to higher world oil prices, Iraq has 
more revenue available to it to address the humanitarian needs 
of its people via the ``oil-for-food'' program. The Iraqi 
leadership's command of illicit revenue has also risen sharply 
for the same reason. Nonetheless, the government fails to use 
these resources in a manner that would most benefit the people 
of Iraq.

                          The Iraqi Opposition

    As part of a broader program of regime change, we continue 
to support the Iraqi opposition, helping Iraqis inside and 
outside Iraq to become a more effective voice for the 
aspirations of their people, and working to build support for 
the forces of change inside the country. We will work toward 
the day when Iraq has a government worthy of its people--a 
government prepared to live in peace with its neighbors, a 
government that respects the rights of its citizens rather than 
represses them.
    We signed our first grant agreement with the Iraqi National 
Congress (INC) in late March 2000. This provided them with the 
resources necessary to run their headquarters, hold a Central 
Committee meeting, undertake outreach programs to energize free 
Iraqis, and manage assistance provided under the Iraq 
Liberation Act (ILA).

               The United Nations Compensation Commission

    The United Nations Compensation Commission (UNCC), was 
established and operates pursuant to UNSCRs 687 (1991) and 692 
(1991). It continues to process claims and pay compensation for 
losses and damages suffered by individuals, corporations, 
governments, and international organizations, as a direct 
result of Iraq's unlawful invasion and occupation of Kuwait. To 
date, the UNCC has issued approximately 1.5 million awards 
worth about $15.5 billion. Of these, the United States 
government has received funds from the UNCC for an initial 
payment on approximately 2,879 claims of U.S. claimants and a 
follow-up payment for approximately 2.226 claimants. Awards and 
the costs of the UNCC's operation are paid for from the 
Compensation Fund which is funded through the allocation to it 
of thirty percent of the proceeds from authorized oil sales 
under Security Council Resolutions 986 (1995) and subsequent 


    Iraq remains a serious threat to international peace and 
security. We remain determined to see Iraq comply fully with 
all of its obligations under UNSC resolutions while at the same 
time endeavoring to see that the humanitarian needs of the 
Iraqi population are addressed. The United States looks forward 
to the day when Iraq rejoins the family of nations as a 
responsible and law-abiding member under a new government that 
serves its people rather than represses them.