UN to let Iraq sell oil for food

The long-delayed agreement to allow Iraq to export limited quantities of oil to fund the purchase of food and humanitarian supplies appeared to be close to implementation last night, following word from Baghdad of its willingness to abide by strict conditions laid down by the United Nations.

Emerging from hastily ar-ranged talks in the UN Security Council, the United States Ambassador, Madeleine Albright, confirmed that Boutros Boutros Ghali, the Secretary General, "is ready to go forward with the implementation of 986". If no additional hitches arise, the first Iraqi oil to come on to the market since the 1990 Gulf War could start flowing in weeks.

"This is good news for the people of Iraq and for the people of the United States," Ms Albright said. "For the last two years, my government has been working to make sure the people of Iraq can be given humanitarian assistance".

Initial authorisation of the deal was given by the UN Security Council last April under Resolution 986. It is designed to give the impoverished Iraqi population partial relief from the economic trade embargo imposed on the country after the Gulf hostilities.

The implementation of the agreement, outlined in a separated Memorandum of Understanding (MOU) was put on hold, however, after Saddam Hussein intervened in a conflict between Kurdish factions in northern Iraq, provoking American military action against the country in early September.

Yesterday's breakthrough came with the delivery of a letter from the Iraqi government to Mr Boutros Ghali agreeing to all of the conditions of the memorandum. An exact date on when oil will start moving will be set once agreement is reach- ed on a pricing formula.

Under 986, Iraq will be allowed to sell $2bn (pounds 1.2bn) worth of its oil over six months. The sale of its oil, principally through a pipeline into Turkey, and the importation of food and medical supplies will be overseen by UN monitors.