Iraq humanitarian scheme extended

By CNN U.N. Producer Ronni Berke

BAGHDAD, Iraq (CNN) -- The U.N. Security Council has approved a one-month extension of the Iraqi oil-for-food programme.

The extension is intended to give members more time to consider a U.S.-British proposal to modify economic sanctions.

In a rare show of unity on Iraq, the council voted 15-0 to adopt the resolution.

In Iraq, Deputy Prime Minister Tariq Aziz called in ambassadors from China, Russia, and Tunisia before the vote and told them that Iraq will reject the extension. Iraq has already said it will not accept the proposed new British sanctions scheme.

In the resolution, the council expressed its intention to consider new arrangements for the sale of humanitarian goods to Iraq, and to adopt the new measures by July 4.

Britain's original intention had been to wrap the new proposals into a six-month extension of the oil-for-food programme, which expires June 4.

The programme allows Iraq to spend oil revenues on humanitarian goods by channeling the money through a U.N.-controlled escrow account.

In addition to lifting the embargo on civilian products, the resolution allows civilian flights to resume flying into Iraq without the approval of the Iraq sanctions committee.

The goal, British and U.S. diplomats say, is to reduce the number of items blocked by the sanctions committee from entering Iraq, allieviating the suffering of the Iraqi population.

Iraq's neighbors, Jordan, Turkey and Syria, would be allowed to import 150,000 barrels of oil a day under the British plan.

Diplomats are now grappling with how to compensate Iraq's neighbours if Baghdad choses to cut off oil supplies to them in retaliation for their support of the resolution.

One idea under discussion is to take some escrow account money used to compensate Kuwaiti victims of the Gulf War, and divert it to those countries cut off from Iraqi oil.

Diplomats hope the new plan would cut into the huge sums --- one estimate is $3 billion annually -- that Iraq earns outside the oil-for-food program. from smuggling, oil surcharges and other fees placed on contracts.