UN and Iraq fail to agree on money for oil industry improvements

The UN Security Council on Thursday failed to reach an agreement to double the sum allotted for Iraq to improve its oil industry from US $300 million to US $600 million, due to US opposition.

AFP said UN Secretary General Kofi Annan proposed to double the sum put at the disposal of Iraq for the rehabilitation of its ailing oil infrastructure.

Meanwhile, the director of UNICEF, Carol Bellamy, has called on the UN Security Council to permit Iraq to have "liquid sums" in order to improve the "humanitarian program." She stressed that financial backing is very important for rehabilitating schools and clinics or for programs to train employees.

She reiterated her concern over the slowness of the UN sanctions committee in approving the contracts submitted to it. She continued in this regard that the committee making 661 contracts wait for approval is a great constraint on UNICEF and for implementing programs in the southern and central parts of Iraq.

She briefed the UN Security Council on the trip she held to Iraq on October 12 - 16.