THE UN: The following are the main points of the US draft Security Council resolution, co-sponsored by Britain and Spain, that would end UN sanctions on Iraq:
The resolution would lift all trade and financial sanctions imposed on Iraq in August 1990 when its troops invaded Kuwait, except for an arms embargo.
The United States and Britain will send letters to the Security Council recognising their obligations under international law as occupying powers, called an "authority". Other allies may be included in the future.
The resolution would establish an "Iraqi assistance fund" to meet humanitarian needs of the Iraq people, economic reconstruction and repair of Iraq's infrastructure and other civilian purposes. All revenues from exports of oil and natural gas are to go into the fund.
Money in the fund would be disbursed "at the direction" of the "authority" (United States and Britain) in consultation with an Iraqi interim authority and until an Iraqi government is formed.
The fund would have an international advisory board, staffed by officials from the United Nations, the International Monetary Fund, the World Bank and others, to be held by the Central Bank of Iraq. It would be audited by an independent public accountant chosen by the advisory board.
A percentage of the oil revenues would still be deducted for a compensation fund for Kuwaiti and other claims resulting from Iraq's 1990 invasion of the emirate.
Currently 25 per cent of the revenues goes to the compensation fund but diplomats said this would probably be reduced to 5 per cent.
The resolution phases out the UN oil-for-food program over a period of four months. Some $13 billion from Iraq's past oil revenues are now in the programme, administered by the United Nations.
Whatever is not spent over four months would be deposited into the new Iraq assistance fund.
Future oil sales would be immune from lawsuits.
Secretary-General Kofi Annan is asked to appoint a special envoy to co-ordinate humanitarian activities, support reconstruction, work with the United States and Britain to establish governing institutes, promote human rights, help build an Iraqi police force and legal and judicial reforms.
The resolution would endorse the "exercise of responsibility" by the United States and Britain for an initial period of 12 months. This jurisdiction would continue automatically unless the Security Council decided otherwise
The document asks all countries to watch out for, return and prohibit trade of Iraqi cultural properties looted from Iraq's National Museum and National Library.
The resolution makes no mention of weapons of mass destruction.
It does not call for international arms inspectors to verify Iraq has no dangerous weapons, as called for in Security Council resolutions since 1991. - (Reuters)