[House Document 107-210]
[From the U.S. Government Publishing Office]


107th Congress, 2d Session - - - - - - - - - - - - House Document 107-210








May 7, 2002.--Referred to the Committee on International Relations and 
                         ordered to be printed
                                           The White House,
                                           Washington, May 3, 2002.
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) 
and as part of my effort to keep the Congress fully informed, I 
am providing a report prepared by my Administration on the 
status of efforts to obtain Iraq's compliance with the 
resolutions adopted by the United Nations Security Council. The 
last report, consistent with Public Law 102-1, was transmitted 
on January 24, 2002.
                                                    George W. Bush.
  Status of U.S. Efforts Regarding Iraq's Compliance With UN Security 
                          Council Resolutions


    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. We are 
continuing our Iraq policy review to determine the best means 
of advancing our interests. We have already strengthened 
international consensus on the need to change the international 
community's approach to Iraq through the UN Security Council's 
(UNSC) unanimous adoption of UN Security Council Resolution 
(UNSCR) 1382, providing for the UNSC to implement the Goods 
Review List (GRL) as the basis for UN controls on Iraq 
beginning on May 30, 2002. This approach will focus UN controls 
to prevent Iraq from acquiring items to support Iraq's 
ballistic missile, conventional military or nuclear, chemical, 
or biological weapons programs. We are continuing consultations 
with other UNSC members to ensure adoption and implementation 
of the GRL. We continue to help maintain No-Fly Zones over 
northern and southern Iraq to carry out vital UNSC resolutions 
in an effort to help ensure the safety of citizens of specific 
ethnic and religious groups, and Iraq's neighbors. We are also 
considering how best to achieve our objective of regime change.
    We will continue to contain the threats posed by Iraq, but 
over the long term, the most effective and lasting way to end 
this threat is through a change of government in Baghdad. To 
this end, we support the Iraqi opposition as part of our 
program to support a transition to democracy in Iraq. As part 
of that effort, the Iraqi National Congress (INC) continues to 
be funded for a variety of activities by the State Department, 
and continues to receive training under the drawdown authority 
of the Iraq Liberation Act (ILA).
    Iraq continues to reject UNSC Resolution 1284, a binding 
resolution adopted under Chapter VII of the UN Charter, 
including its requirement that Iraq provide the UN Monitoring, 
Verification and Inspection Commission (UNMOVIC) and the 
International Atomic Energy Agency (IAEA) with immediate, 
unconditional and unrestricted access to Iraq and its 
facilities, equipment, records, and personnel.
    Nonetheless, the UN continues to implement those parts of 
the resolution which do not require Iraqi cooperation. In its 
quarterly report to the UNSC on February 26, 2002, UNMOVIC 
provided an update on measures it is taking to prepare for 
inspections in Iraq. UNMOVIC Executive Chairman Dr. Hans Blix 
has stated that UNMOVIC inspectors are prepared and ready to 
return to Iraq. To serve a useful purpose, a UN inspections 
regime must have the mandate, resources, access, cooperation, 
and support necessary to function at a high standard of 
effectiveness. A UN inspections regime that lacks the 
capability or otherwise fails to function at such a standard of 
effectiveness could significantly harm U.S. interests. We 
continue to consult regularly with Dr. Blix and his staff to 
provide the best support possible. In its semi-annual report to 
the UN Security Council on October 5, 2001, and IAEA indicated 
it is similarly prepared to return to Iraq, but that the longer 
the suspension of resolution-related inspections lasts, the 
more difficult it will be and the more time will be required 
for the Agency to re-establish a level of knowledge comparable 
to that achieved at the end of 1998.
    Ambassador Yuli Vorontsov, the Secretary General's high-
level coordinator for Kuwait Issues, presented his periodic 
report on Kuwaiti and third-country national prisoners and 
stolen Kuwaiti property on December 20, 2001. These reports 
demonstrate Iraq's continuing failure to comply fully with its 
obligations under relevant UNSCRs. The Iraqi Government 
continues to deny Ambassador Vorontsov entry to the country. We 
have requested that Ambassador Vorontsov attend any future 
meetings between the SYG and the Iraqi Foreign Minister.
    The Oil-for-Food (OFF) program, which is designed to 
provide for the humanitarian needs of the Iraqi people as long 
as UN sanctions remain in place, continues to function 
effectively. Iraq exported over $10 billion worth of oil in 
2001 with the proceeds going to a UN-controlled escrow account. 
On November 29, the UNSC extended the current phase of the OFF 
program for an additional 180 days.

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

    Saddam Hussein's record of aggressive behavior necessitates 
the continued deployment of a highly capable force in the 
region in order to deter Baghdad and respond to any threat it 
might pose to its neighbors,the reconstitution of its weapons 
of massdestruction (WMD), or movement against the Kurds in 
northern Iraq. We will maintain a strong posture and have established a 
rapid reinforcement capability to supplement our forces in the Gulf, if 


    Aircraft of the United States and coalition partners 
patrolling the No-Fly Zones over Iraq under Operations NORTHERN 
WATCH and SOUTHERN WATCH are routinely tracked by Iraqi radar, 
fired upon by anti-aircraft artillery, and attacked with 
surface-to-air missiles. Our aircrews continue to respond in 
self-defense to threats against and attacks on our aircraft 
patrolling the No-Fly Zones.


    The U.S.-led 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. Canadian, Australian, and British 
forces are currently operating with U.S. forces.
    In large part, member states of the Gulf Cooperation 
Council (GCC) continue to support the MIF. The UAE accepts the 
vast majority of vessels diverted for violating UN sanctions 
against Iraq. Kuwait continues to accept diverts and is 
receptive when approached. Kuwait has also increased its 
ability to deal with smuggled oil by contracting a bunkering 
tanker, further indicative of its continued support. Other GCC 
nations are more hesitant to accept diverted vessels (Saudi 
Arabia, Qatar and Bahrain have accepted ships in the past, but 
now refuse), but all provide support in some form to the 
enforcement of UNSCRs against Iraq.
    From December 2001 through February 2002, monthly totals of 
smuggled petroleum products through the Gulf averaged less than 
those in the previous three-month period. This reduction is 
most likely due to lower oil prices and an increased MIF 
presence that makes interception of suspect vessels more 
likely. Iran continues to deny use of its territorial waters to 
all but the largest of smuggling vessels from which significant 
fees can be obtained.
    The MIF continues to serve as a critical deterrent to the 
smuggling of prohibited items and products into and out of 
Iraq. We need to continually reassess the adequacy of MIF force 
levels as conditions develop.


    There have been no Council-mandated weapon inspections in 
Iraq since December 15, 1998. Iraq's defiance of the 
international consensus, as expressed by UNSCR 1284, has meant 
that no progress has been made in addressing Iraq's outstanding 
disarmament obligations. Iraq remains in violation of its 
obligations to end its programs to develop weapons of mass 
destruction and long-range missiles.
    UNMOVIC has largely completed the hiring of its core staff 
in New York and is continuing to hire people in an on-call or 
``roster'' category, including Americans. UNMOVIC has completed 
five training courses and is planning to hold a sixth course in 
late 2002. The United States continues to provide UNMOVIC with 
course instructors and facilities for hands-on training. We 
consult with Dr. Blix and his staff regularly to provide the 
best support possible. Most recently, on January 10, Dr. Blix 
met with Secretary of State Powell, Dr. Condoleezza Rice, and 
OASD/USDP Douglas Feith in Washington. On February 26, 2002, 
UNMOVIC provided its latest report on measures it is taking to 
prepare for inspections in Iraq. Dr. Blix has stated that 
UNMOVIC inspectors are prepared and ready to return to Iraq.
    The United States also continues to provide support to and 
hold regular consultations with the IAEA Iraq Action Team. In 
its semi-annual report to the UN Security Council on October 5, 
2001, the IAEA indicated that it has maintained its readiness 
to resume verification and monitoring activities in Iraq but 
that the longer the suspension of resolution related 
inspections lasts, the more difficult it will be and the more 
time will be required for the Agency to re-establish a level of 
knowledge comparable to that achieved at the end of 1998.

                             DUAL-USE ITEMS

    Although the OFF program revenues are designated for 
humanitarian purposes only, we remain concerned that Iraq is 
abusing this program in an attempt to acquire goods and 
materials for its weapons programs. Currently, the United 
States, as a member of the UN Iraq Sanctions Committee, reviews 
all contracts under the OFF program (unless the items are on 
alist pre-approved for expedited humanitarian export) to ensure that 
prohibited items are not exported to Iraq and dual-use items are not 
diverted to Iraqi weapons programs. On November 29, 2001, the United 
Nations Security Council unanimously adopted Resolution 1382. In this 
resolution, the Council agreed to adopt and implement a Goods Review 
List (GRL) by May 30, 2002, subject to any refinements agreed to by the 
Council prior to that date. When implemented, the GRL will maintain UN 
controls on items deemed useful in supporting Iraq's ballistic missile, 
conventional military, and nuclear, chemical, and biological weapons 
programs. At the same time, this approach will lift economic sanctions 
on purely civilian trade with Iraq.
    UNSCR 1051 established a joint UNSCOM/IAEA unit to monitor 
Iraq's authorized imports of WMD and missile-related items 
(WMD/missile-related goods are also known as ``1051''-listed 
goods). UNSCR 1051 also established lists of items subject to 
review in all four weapons categories--ballistic missile, 
nuclear, chemical and biological. As we previously reported, 
these lists were updated by UNMOVIC and the IAEA. Under UN 
Security Council resolution 1284, UNMOVIC has assumed this 
responsibility from UNSCOM, with the added requirement to 
identify if, in their estimation, a contract contains a 1051-
listed good. UNMOVIC and the IAEA have continued to perform 
this duty during this reporting period. Under UNSCR 1382, 
UNMOVIC and the IAEA would be charged with screening all oil 
for food contracts for GRL-listed items. Under this approach, 
the GRL includes the 1051 lists and items that Iraq could use 
to support its conventional military. Since weapons inspectors 
left Iraq in December 1998, the UN Office of the Iraq Programme 
is the principal organization allowed to observe goods going 
into Iraq under the OFF program. Various UN agencies have 
provided end-use verification to varying low degrees. In the 
absence of weapons inspectors and other experts on the ground 
in Iraq, The United States has placed holds on a number of 
prohibited or dual-use contracts that otherwise likely would 
have been approved if UNMOVIC/IAEA monitoring were available.

                    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 OFF program. Under UN control, the proceeds 
of Iraqi oil sales are used to purchase humanitarian goods, 
fund UN Compensation Commission awards against Iraq arising out 
of its invasion and occupation of Kuwait, and to meet UN 
administrative costs. As of March 15, 2002, Iraq had exported 
nearly $3.0 billion worth of oil during the eleventh six-month 
phase of the OFF program, which began on November 30, 2001. 
According to UN data since the start of the OFF program, 21,575 
contracts for humanitarian goods worth over $31 billion have 
been approved through January 31, 2002. To streamline the 
approval process for humanitarian goods, we have agreed with 
the UN on a fast-track approval process for some goods. 
However, as purchases under the program have moved from basic 
humanitarian supplies to more expensive infrastructure 
projects, the number and value of U.S. ``holds'' on contracts 
have increased. The Security Council's commitment in recently 
adopted resolution 1382 to implement the Goods Review List and 
related procedures on May 30, 2002, will help eliminate holds 
(contracts would either be approved or submitted to the 
sanctions committee members for approval or submitted to the 
sanctions committee members for approval or denial)), while 
ensuring that the Iraqi regime has less access to the goods 
most important to its rearmament efforts.
    The OFF 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 percentage of the funds 
generated under the OFF program are spent on items for northern 
    Humanitarian efforts in northern Iraq have led to a marked 
contrasts between the health of the population of the north, 
where indicators show an improvement, and of the population 
living in the areas where the UN does not administer the 
    International humanitarian programs, including most 
importantly the OFF Program, have steadily improved the life of 
the average Iraqi and led to improvements in health care, 
water, sanitation, agriculture, education, and other areas, 
while denying Saddam Hussein control over most of Iraq's oil 
    However, as noted in a February 26, 2002, UN report, the 
Government of Iraq is not committed to using the funds 
available through the OFF program to improve the health and 
welfare of the Iraqi people. Iraq's recent cut-off of oil 
exports, attributed to the Palestinian-Israeli conflict, is the 
latest in a series of political moves whose impact falls 
principally on the Iraqipeople, as lack of oil revenues 
directly impacts the Oil-for-Food program. In addition, Iraqi 
contracting delays, cuts in food, medicine, educational and other 
humanitarian sector allocations, government attempts to impede or shut 
down humanitarian NGO operations in northern Iraqi, and Baghdad's 
delays in the issuance of visas for UN personnel demonstrate that the 
Iraqi regime is attempting to undermine the effectiveness of the 
    On March 6, 2002, the United States briefed the United 
Nations Security Council 661 Sanctions Committee on Iraq's 
diversion of trucks to its military programs. We will continue 
to work with the UN Secretariat, other members of the Security 
Council, and others in the international community to ensure 
that the implementation of UNSCR 1284, and other relevant 
UNSCRs, better enables the humanitarian needs of the Iraqi 
people to be met while denying political or military benefits 
to the Baghdad regime.

                         FLIGHT CONTROL REGIME

    UNSC resolutions are open to competing interpretations 
regarding international flights to Baghdad. The UNSC has so far 
unsuccessfully attempted to reach a consensus on new procedures 
for international flights. In the absence of an agreement, we 
continue to press for adherence to existing Sanctions Committee 
procedures, that allow for Committee approval of flights with a 
demonstrable humanitarian purposes. The majority of 
international flights to Iraq in the past year have operated in 
compliance with UNSC procedures.


    The Kurdistan Democratic Party (KDP) and the Patriotic 
Union of Kurdistan (PUK) continue their efforts to implement 
the September 17, 1998, reconciliation agreement. 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, and within the larger 
Iraqi national democratic opposition movement. The situation in 
northern Iraq is not settled, however, and we continue to look 
for ways to encourage the parties to make greater progress 
toward resolving their differences.


    The human rights situation in Iraq continues to fall 
severely short of 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. On April 
18, 2001, the United Nations Commission on Human Rights 
strongly condemned ``the systematic, widespread and extremely 
grave violations of human rights and of international 
humanitarian law by the Government of Iraq, resulting in an 
all-pervasive repression and oppression sustained by broad-
based discrimination and widespread terror.''
    Human rights NGOs and other interested voices continue to 
call for creation of an international tribunal to address the 
war crimes and crimes against humanity of the Iraqi leadership. 
United Sates Government policy supports this view: the 
leadership of the Iraqi regime should be indicted and 
prosecuted by an international criminal tribunal or by a 
national court that can properly exercise jurisdiction over 
    The Iraqi leadership's abuse of resources for personal 
enrichment and attempts to manipulate the OFF program continued 
unabated. The government fails to use revenues earned via the 
OFF or from illicit trade for the greatest benefit to the 
people of Iraq.
    In the north, outside the Kurdish-controlled areas, we 
continue to receive reports of the regime continuing its ethnic 
cleansing policy of forcibly expelling ethnic Kurds and 
Turkomans from Kirkuk and other cities, and transferring Arabs 
into their places. Saddam's security apparatus continues to 
repress Shias.

                          The Iraqi Opposition

    We continue to support the Iraqi opposition, helping Iraqis 
inside and outside Iraq to become a more effective voice for 
the aspirations of the people, and working to build support for 
the forces of change inside the country. They are working 
towardthe day when Iraq has a government worthy of its people--
a government prepared to live in peace with its people and its 
    Since October 2001, we have been making short-term 
extensions to our cooperative agreement with the Iraqi National 
Congress (INC), as we negotiate a new agreement with them. The 
funding in the current grant has allowed the INC to continue 
operations at its headquarters and satellite offices, begin 
satellite television broadcasting into Iraq, continue 
production and distribution of its newspaper, undertake 
outreach programs to further develop its organization, deploy 
teams to advocate the interests of the Iraqi people at 
international fora, plan for the delivery of humanitarian 
relief of Iraqis in need, collect information on the Iraqi 
regime, and manage assistance provided under the Iraq 
Liberation Act (ILA). We plan to reach a new agreement with the 
INC shortly, to provide them with further funding to continue 
such activities.
    In addition, we are currently planning a broad-based 
conference of Iraqi emigres and oppositionists that will (1) 
provide Iraqis the opportunity to make their case for a better 
government; (2) affirm a statement of political principles and 
give a basis for major oppositionists to come together to build 
towards the future; and (3) provide a platform for a series of 
working groups regarding immediate, practical post-Saddam 
needs, such as transitional justice, public health, public 
finance, education, environment and water, the role of the 
military, building a free press, building civil society, and 
rebuilding the Iraqi economy.


    The United States 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 2.6 million awards worth 
about $37.7 billion, and has already paid $13.8 billion of 
those awards. Of the former amount, the United States 
Government has been awarded approximately $666.3 million from 
the UNCC for payment to U.S. claimants. Awards and the costs of 
the UNCC's operation are paid from the Compensation Fund, which 
is funded through the allocation to it of a certain percentage 
of the proceeds from authorized oil sales under Security 
Council resolution 986 (1995) and subsequent extensions. The 
allotment has generally been set at 30 percent. However, for 
the six-month phase of the OFF program beginning December 6, 
2000, there was a reduction in that allotment to 25 percent. 
This reduction has been extended with each subsequent rollover, 
including the latest one starting on November 29, 2001, as 
embodied in UNSCR 1382. The reduction is designed to make funds 
available for specific programs intended to meet pressing 
humanitarian needs of the Iraqi people.


    Iraq remains a serious threat to international peace and 
security. The Iraqi regime's record on human rights continues 
to be abysmal. The United States remains 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 
will continue to encourage and support those Iraqis working for 
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.