S P E C I A L:

The Standoff with Iraq

The outlook: Iraqi official speaks of peace while U.N. focuses on disarmament

U.N. inspectors

January 1, 1998
Web posted at: 8:55 a.m. EST (1355 GMT)

BAGHDAD (CNN) -- As the world begins a new year, it also ponders the situation in Iraq with hopes that no new crisis will surface in 1998.

United Nations inspectors, leaving their compound for a last round of inspections in 1997, said their work is going well.

Inspections have returned to a more normal routine for the first time since the crisis started in November by Iraq's move to ban American members of the U.N. weapons inspections team.

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A L S O :

Grim Christmas tree marks holiday in Iraq

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However, Iraq continues to deny inspectors access to presidential sites. If a compromise is not reached on the issue, Iraq could again find itself at odds with the United States and the U.N.

There have been problems with Iraq's oil-for-food program

In addition, Iraq says its oil-for-food deal -- which allows it to sell limited amounts of oil to buy food and medicine -- is not working.

"All the operations that made for oil-for-food do not work efficiently and it does work as a political means against Iraq and the Iraqi people," said Mohamed Mehdi Saleh, Iraq's Minister of Trade.

The U.N. admits there are problems with the oil-for-food program, but the U.N. officials who administer the program remain upbeat.

"I'm optimistic we can do better. It'll never be perfect, but we can do better," said Dennis Halliday, U.N. humanitarian coordinator in Iraq.

One bright spot for Iraq as it looks toward the coming year: There appears to be little enthusiasm outside the United States for a hard-line policy against Baghdad.

Even relations with Iran, which fought a bloody eight-year war with Iraq, appear to be improving. Iranian President Mohammed Khatami sent Iraqi President Saddam Hussein greetings for Ramadan, the Islamic period of fasting from sunrise to sunset for a month.

"We convinced the world, the outside world, that we are not people who want war," said Muzafar Al-Adhami, a member of the Iraqi Parliament. "We want peace, and we want to have dialogue with others."

Meanwhile, the U.N. keeps its focus on eliminating Iraq's weapons of mass destruction, so that it can lift sanctions that have crippled Iraq's economy and impoverished its people.

"I am very concerned that we get through this business of disarmament as soon as possible because that is the best and quickest way the Iraqi people can return to a normal life," said Richard Butler, the top weapons inspector for the U.N.

Amman Bureau Chief Ben Wedeman contributed to this report.

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Related stories:

• Iraq accuses U.S. of 'blackmailing' U.N. - December 23, 1997
• U.N. approves softer statement on Iraq - December 22, 1997
• Iraq to present food distribution plan to U.N. - December 21, 1997

Related sites:

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• Iraq - ArabNet
• United Nations

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