In continuation of its criminal hostile policies against Iraq to inflict more harm upon our steadfast people through obstructing and delaying the execution of the Memorandum of Understanding (MOU) signed with the United Nations on May 20, 1996, and within the same course of the American Administration behavior and subordinate, the British Government, the two mentioned countries are suggesting to add new and unjustifiable conditions and obstacles to limit the export of Iraq crude oil. The representatives of the two countries in the (661) committee meeting on March 16, 2001 submitted a draft of two papers containing new measure to be taken by the Committee in its dealing with the purchases of Iraqi crude oil representing fundamental and serious changes in the MOU procedures. Such proposals suggested adding the following to the present procedures:

a- Requiring all companies on the UN list of eligible purchasers of Iraqi oil to renew their registration at he beginning of each phase of the MOU.

b- Introducing new criteria for eligible purchasers of Iraqi oil.

The spokesman added that these proposals have been introduced now despite the fact that the present working procedures to execute the MOU are complicated and inflexible contrary to the practical needs of the oil trade which necessitate a high degree of flexibility and quick decision making process and that such procedures have been already put by the U.S. and the U.K. representatives through their insistence to issue the so-called "list of procedures" which took two and a half months of discussions to be adopted by the (661) Committee after signing the MOU and such a list was, then , one of the pretexts used by the U.S. and the U.K. governments to delay the execution of the MOU.

To avoid the delay in the execution of oil purchase contracts and to enable companies to communicate directly with the oil overseers already adopted procedures stipulate that states should send lists of its national purchasers qualified to purchase Iraqi Crude Oil to the (661) Committee and they (the states) have the right to change such lists. The domain of (661) Committee has been limited only to take note of such lists of purchasers, and that such registration procedure and acknowledgment is done only once and for all. Hence, the question of defining the qualified national purchasers is the sole domain of the relevant states and not the (661) Committee.

Accordingly, any new additional conditions or restrictions on national purchasers are considered an interference in the states internal affairs.

Besides, the new proposals to renew registration of the national purchasers with the (661) Committee at the beginning of each phase will certainly lead to delays and interruptions in execution of the MOU.

The spokesman concluded that the new proposals of the U.S. and U.K. representatives are clear and frank violation of the MOU conditions and intend to circumvent the MOU itself.

Instead of the introducing proposals to eliminate or to lessen the complexities already introducing by them to the MOU, the U.S. and U.K. representatives are now, after (4) years from signing the MOU, placing new obstacles and conditions that limit the capability of marketing Iraqi crude oil.

We are deeply confident that the new proposals will not receive any support from the other members of the Security Council and the (661) Committee, and will be rejected and considered unacceptable and impractical. In spite of such stupid maneuver by the U.S. with all the hatred and the ill-feelings that it embraces and the deliberate harm that intend to inflict, Iraq and its great leader his excellency President Saddam Hussein will proceed with firmness and good faith to destroy what is remained in the sanction regime and to terminate the existing MOU with all its complicated and unjust conditions.