Iraq Said to Reject Oil Sales Monitored by U.N.

The Iraqi government is no longer willing to go ahead with partial oil sales under strict U.N. supervision, a well-placed diplomat in Baghdad said Thursday.

“They (the Iraqis) are now after a package deal. They want the U.N. to lift the oil embargo in return for cooperation on remaining weapons issues,” the diplomat added.

Talks to grant Iraq the right to sell limited quantities of oil for the first time since the Persian Gulf crisis began in 1990 were suspended July 14 without an agreement.

“They are not ready to accept U.N. terms on limited exports. They have always viewed them as humiliating,” the diplomat said.

He said this does not mean that they have decided not to send an oil delegation to New York to resume the talks. “But agreement cannot be reached before the outcome of September talks,” he added.