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By Mark John
Reuters
www.reuters.com
Mon May 12, 2003

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PARIS (Reuters) - France set out conditions Monday for supporting U.S. draft proposals to end U.N. sanctions against Iraq, demanding a larger role for the United Nations and strict rules governing Iraq's oil revenues.

Foreign Minister Dominique de Villepin denied Paris wanted a new clash in the U.N. Security Council with Washington after its opposition to the Iraq war, but said the current U.S. draft resolution was merely a "starting point" in negotiations.

"I believe we need more transparency and information on Iraq," he told French RTL radio. "That is why we are asking for international controls ... And who better than the United Nations to perform this task?"

The United States presented a draft resolution Friday, co-sponsored by Britain and Spain, that would immediately end 12 years of sanctions on Iraq and give Washington and its allies control of Iraq's oil revenues.

France, one of five veto-holding members of the U.N. Security Council, wants to ensure the United States does not monopolize Iraq's postwar reconstruction. Russia and Germany also want an expanded U.N. role.

In a lengthy interview in Le Monde newspaper, Villepin said the draft offering the United Nations a role in humanitarian aid and reconstruction was "too timid and imprecise," and suggested it be expanded.

He proposed a "strict, reasonable" deadline be set for ending the occupation of Iraq and that any extension should be agreed by the Security Council, which in turn should receive quarterly reports on the progress of reconstruction.

Villepin also said the United Nations was better placed than the United States and Britain alone to confer legitimacy on any new Iraqi administration.

"The principles and political conditions (for a new administration) must be clearly established in the draft resolution so that the process is above reproach," he said.

RULES FOR OIL REVENUES

Villepin said the current draft was not clear enough on how revenues from Iraq's oil reserves -- the second largest in the world after those of Saudi Arabia -- would be exploited.

"We have to establish rules for sharing oil revenues and ensuring that the management is placed under international and uncontested control," he said.

The draft calls for oil revenues to be deposited in an "Iraqi Assistance Fund" whose advisory board would include officials appointed by U.N. Secretary-General Kofi Annan, the International Monetary Fund, the World Bank and others.

But the United States and Britain would take most decisions on where to spend the money, perhaps with some input from other allies who helped to oust Saddam.

Villepin reiterated France was ready to agree a suspension of sanctions against Iraq. But he insisted a full withdrawal could only follow the phasing out of the U.N. oil-for-food program, which allows Iraq to buy food and medicine, and the end of the U.N. arms inspections process.

"For that it would need some international certification after cooperation between (U.N.) inspectors and the forces on the ground," he said.

The United States has said it hopes for a vote on the text by June 3, when the oil-for-food program runs out.

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