May 29, 1999
Web posted at: 6:02 p.m. EDT (2202 GMT)

In this story: India eyes Iraqi oil fields More flak over no-fly zone RELATED STORIES, SITES

BAGHDAD, Iraq (CNN) -- Iraqi Oil Minister Amir Muhammed Rasheed on Saturday turned down a proposal by Britain and the Netherlands to permit private international investment in Iraq's oil fields if Baghdad cooperated with U.N. weapons inspectors.

Rasheed said U.N. sanctions, imposed on Iraq after its 1990 invasion of Kuwait, must be completely removed before his country would discuss such a proposal.

"Any other suggested formula is a matter of delaying tactics to put off the lifting of the embargo," he said.

The two European nations proposed last month that the sanctions be relaxed to allow international oil firms to invest in Iraq. Russia had recommended suspending the U.N. embargo entirely.

France and China backed the Russian initiative, but the United States opposed it in favor of most the provisions in the British-Dutch proposal.

India eyes Iraqi oil fields

Meanwhile, India's oil minister, V. K. Ramamurthy, requested Saturday that Baghdad allow major firms from his country to help develop unexplored oil fields in Iraq, particularly in the south.

"We will be happy if Iraq supplies us with all our oil needs. We're good friends," he said.

Ramamurthy said his government would not break the sanctions, but work within the framework of U.N.-approved exceptions, whereby Iraq can buy food, medicine and spare parts with revenue from oil sales.

According to U.N. resolutions, the sanctions will remain until Iraq proves to U.N. arms inspectors that it has eliminated banned weapons and the means to produce them. Rasheed said Iraq has already dismantled or destroyed the prohibited war items.

More flak over no-fly zone

Iraq has refused to allow U.N. weapons inspectors into the country since mid-December, when the United States and Britain launched four days of extensive airstrikes because of Baghdad's non-cooperation with the monitors.

Since then the United States and British established two no- fly zones over Iraq, which Baghdad does not recognize. U.S. and British warplanes bombed three military targets in the southern no-fly zone Friday, according to U.S. officials. One of dozens during the past five and a half months, the airstrike came in response to Iraqi anti-aircraft fire, they said.

Correspondent Jonathan Karl andReuters contributed to this report.

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