The Security Council,

Recalling its previous relevant resolutions and in particular its resolutions 669 (1990) of 24 September 1990, 986 (1995) of 14 April 1995, 1153 (1998) of 20 February 1998, 1175 (1998) of 19 June 1998, 1284 (1999) of 17 December 1999, 1293 (2000) of 31 March 2000, 1302 (2000) of 8 June 2000, 1330 of 5 December 2000 and 1352 of 1 June 2001.

Convinced of the need as a temporary measure to continue to provide for the civilian needs of the Iraqi people until the fulfillment by the Government of Iraq of the relevant resolutions, including notably resolution 687 (1991) of 3 April 1991 and resolution 1284 (1999) of 17 December 1999, allows the Council to take further action with regard to the prohibitions referred to in resolution 661 (1990) of 6 August 1990, in accordance with the provisions of those resolutions,

Recalling the Memorandum of Understanding between the United Nations and the Government of Iraq of 20 May 1996 (S/1996/356),

Reaffirming the commitment of all Member States to the sovereignty and territorial integrity of Iraq,

Acting under Chapter VII of the Charter of the United Nations, except for part B of this resolution.

   

- A -

1. Decides to allow Iraq to import any civilian goods and non financial services other than arms or goods included in the Goods Review List (GRL) attached to the present resolution, using the escrow account for these purchases;  

2. Further decides that civilian goods and non financial services, other than those subject to the GRL will not be submitted for approval of the Committee established pursuant to resolution 661 (1990), and will be notified to the Secretary-General in accordance with the procedures attached to the present resolution and financed in accordance with the provisions of paragraphs 8(a) and 8(b) of resolution 986 (1995);

3. Decides that applications for the export of goods or services to Iraq on hold at the date of the adoption of this resolution  are subject to the notification and approval mechanism set forth by paragraph 1 and 2 of this resolution;  

4. Decides to keep under review the GRL list and requests in that regard the Secretary General, in consultation with UNMOVIC and IAEA and following consultation with the interested states, to make recommendations to the Council on possible revision and updating of the GRL prior to the end of the 180-day period;

5. Decides to allow civilian investments in Iraq by foreign companies, in particular into the Iraqi oil industry and production capabilities and requests the Secretary-General to submit arrangements for that purpose to the Council, for its approval, within three months after the adoption of this resolution;

6. Approves the arrangements regarding the use of funds up to 600 millions euros for the cost of installation and maintenance, including training services, of equipment and spare parts for the oil industry, recommended by the Secretary-General in his report of 6 June 2001 (S/2001/x), pursuant to paragraph 15 of resolution 1330, and requests the Secretary-General to keep the Council informed on the implementation of these arrangements;

7. Decides that any State may send civilian flight carrying cargo or passengers from its territory to Iraq, provided the flight is notified to the Secretary-General and is inspected, either by national authorities in the presence of United Nations observers, prior to the departure of the aircraft or in one of the overflown country, or by United Nations personnel in Iraq upon the arrival of the aircraft, in order to verify that no unauthorized goods are transported to Iraq, decides also that the notification of the flight to the Secretary-General is given two working days in advance to facilitate such observations or inspections, except in the case of a medical emergency, and requests that the Secretary-General make the necessary arrangements, with the interested States, to provide when necessary and upon request, United Nations observers, with ressources drawn from the escrow account established pursuant to paragraph 8(d) or resolution 986 (1995);

8. Decides to revoke paragraphs 3, 4 and 6 of resolution 670 (1990);

9. Allows the return to Iraq of its civil aircraft currently held by other countries, including by Tunisia and Jordan;

10. Requests the Secretary-General to prepare within one month a plan for the approval of the Committee established by resolution 661 (1991) regarding the transactions related to importations of petroleum and petroleum products originating from Iraq, in particular [criteria for the selection of authorized brokers and] to ensure that the price mechanisms are consistent with the conditions of the market in the different areas of consumption;

11. Decides also that the funds in the escrow account established pursuant to paragraph 8 (d) of resolution 986 (1995) may be use for the payment of Iraq's arrears and, on a continuing basis, assessments to the budget of the United Nations and other international organizations, for an amount that should not exceed 30 millions US dollars;

12. Decides that the effective deduction rate of the funds, deposited in the escrow account established by Resolution 986 (1995) to be transferred to the Compensation shall be [20%] [25%], further decides that the additional funds resulting from this decision will continue to be deposited in the account established under paragraph 8(a) of resolution 986 (1995) and reiterates its intention to establish a mechanism to review, before the end of the 180-day period, the effective deduction rate of the funds deposited in the escrow account to be transferred to the Compensation Fund in future phases, taking into account the key elements of the humanitarian needs of the Iraqi people; 

- B -

Determined to insure full implementation of measures aimed at reinforcing regional security through cooperation of all States concerned, in particular neighbouring countries to Iraq,

Also determined to that effect, to consult with those States and to act in close concertation with them,

13. Requests the Secretary-General to prepare, in close cooperation and concertation with the contiguous states of Iraq, recommendations for the approval of the Council on ways and means to facilitate the implementation of the two principles set out by paragraphs 2(a) and 2(b) of resolution 1352 (2001) regarding the trade between Iraq and each of these states, including in particular :

 

a/ possible trade arrangements between each of these states and Iraq, without prejudice to the existing arrangement between Iraq and Jordan. For the purpose of these trade arrangements, outside the provisions of paragraph 6 of resolution 986 (1995), a cap of 200 000 barrels a day should be set for each of these states on the quantity of petroleum and petroleum products originating from Iraq, and these arrangements should be used only for the purposes set out in paragraph 8(a) of resolution 986 (1995);

b/ revised procedures to improve the United Nations land-based monitoring of the export of commodities and services to Iraq, drawing as necessary ressources from the account established under paragraph 8(d) of resolution 986 (1995);

14. [Safety net].

- C -

15. Decides that the provisions of resolution 986 (1995), except those contained in paragraphs 4, 8 (a) (ii), 11 and 12 and subject to paragraph 15 of resolution 1284 (1999), shall remain in force for a new period of 180 days beginning at 00.01 hours, Eastern Standard Time, on 4 July 2001;

16. Requests the Secretary-General to provide a comprehensive report to the Council on the implementation of this resolution 90 days after the entry into force of this resolution and again at least one week prior to the end of the 180-day period, on the basis of observations of the United Nations personnel in Iraq to carry out the purposes of paragraph 3 of resolution 1330 (2000), and of consultation with the members of the Committee established by resolution 661 (1990) and with the Government of Iraq;

17. Requests the Secretary-General to continue to take the actions necessary to ensure the effective and efficient implementation of this resolution, and to continue to enhance as necessary the United Nations observation process in Iraq in such a way as to provide the required assurance to the Council that the supplies and services authorized by the Committee established by resolution 661 (1990) are utilized for the purpose for which they have been authorized;

18. Stresses the need to continue to ensure respect for the security and safety of all persons directly involved in the implementation of this resolution in Iraq; 

19.  Expresses its intention to consider favourably prior to the expiration of the 180 day period the renewal of the provisions of this resolution; 

20. Requests the Secretary-General to take the necessary measures, including with the Government of Iraq as appropriate, to implement this resolution, in particular regarding its  paragraphs 5, 6, 7, 9 and 11;

21. Decides to remain seized of the matter.

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See further:

• 2. "Procedures governing responsibilities of the Secretariat", French Proposal of 19 June 2001.