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To: John Carpenter who wrote (27950)8/18/1998 6:20:00 PM
From: John Carpenter  Respond to of 95453
 
After hours NYMEX crude- up 17 cents to $13.09



To: John Carpenter who wrote (27950)8/18/1998 6:28:00 PM
From: Captain James T. Kirk  Respond to of 95453
 
UN envoy says Iraq still refuses to cooperate
By Hassan Hafidh

BAGHDAD, Iraq (Reuters) - The United Nations special envoy in Iraq said Tuesday Baghdad stood by its decision to suspend cooperation with U.N. weapons inspectors.

''There is no change in Iraq's decision announced on August 5,'' Prakash Shah told reporters.

Shah's comments echoed similar remarks by Iraq's U.N. envoy Monday, referring to an earlier announcement that the Baghdad government would not cooperate with U.N. weapons inspection teams until they were restructured to eliminate alleged U.S. influence.

''However, Iraq will continue the dialogue... to carry on cooperation with the United Nations with the aim of ending the sanctions regime and end the oil embargo,'' Shah said.

Shah, the special envoy of U.N. Secretary-General Kofi Annan, has held two meetings with Iraq's Deputy Prime Minister Tareq Aziz since he arrived last Thursday. He conveyed a message from Annan urging Iraq to resume cooperation with U.N. Special Commission (UNSCOM) weapons inspectors.

Shah said he conveyed to Aziz a message from Annan stressing the need for Iraq ''to fully comply with its obligations and relevant Security Council resolutions.''

The U.N. envoy said if Baghdad reconsidered its decision to halt cooperation with U.N. arms inspectors the Security Council would be ready to discuss other issues, which observers said might be a reference to U.N. trade sanctions imposed on Iraq for its 1990 invasion of Kuwait.

''I also stressed that reconsideration by Iraq of its decision of August 5 would make it possible for the council to focus on broader issues involved,'' he said.

Shah said he would go to New York Wednesday and brief the Security Council on his talks with the Iraqis Thursday.

''I am going to New York tomorrow and there is an intention of the council to hear what I have to say.''

The Security Council gave the go-ahead late Monday for full-scale operations by U.N. weapons inspectors in Iraq, despite the Baghdad government's continuing refusal to cooperate.

Letters the council agreed to send to the heads of UNSCOM and the International Atomic Energy Agency (IAEA) stressed that Iraq was obliged to provide the necessary cooperation.

UNSCOM is charged with scrapping Iraq's ballistic missiles, biological and chemical weapons.

It and the IAEA, given the task of monitoring Iraq's nuclear program, last week suspended weapons inspections at new sites in Iraq after Baghdad's decision to halt cooperation.

But UNSCOM experts have continued to monitor sites already identified by inspectors looking for evidence of prohibited weapons.

The U.N. weapons inspectors are waiting for instructions from their headquarters in New York to resume full inspections of Iraqi arms sites, a U.N. official in Baghdad said Tuesday.

Iraq has repeatedly accused UNSCOM of being influenced by the United States to prolong weapons inspections. The country must be certified free of all weapons of mass destruction before the United Nations can lift the economic sanctions