Return to Transcripts main page

CNN Live At Daybreak

Issue of Iraqi Sanctions

Aired May 08, 2003 - 06:34   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


CAROL COSTELLO, CNN ANCHOR: While the United States and the United Nations try to come to some sort of agreement, people in Iraq continue to be in need. In a country with huge oil resources, there's a gas shortage.
Let's talk you live to Baghdad now, and Karl Penhaul.

Hello -- Karl.

KARL PENHAUL, CNN CORRESPONDENT: Hi, Carol.

Obviously, the question of sanctions, whether they're lifted or not has huge implications. Yes, on the one hand, lifting sanctions would allow the free flow of goods, spare parts, and those kinds of elements to flow freely into Iraq. That would allow the water systems and the sanitation systems to get going again.

It would also supply broad access to food stuffs that maybe can't be acquired here in Iraq, hopefully those at reasonable prices for the Iraqi people.

But at the same time, there is a sense by the Iraqi people that the issue here isn't the sanctions themselves. It isn't the humanitarian side of things. It's the question of oil. If you talk to Iraqis on the street and they say, not many people care about us as Iraqis. They say they care about us for our oil.

If you take a look at the U.N. Security Council, the permanent members, four of those permanent members were also home the biggest oil corporations in the world. By lifting those sanctions, obviously that would also lift U.N. control over how Iraqi oil is sold and where the proceeds go to.

By removing them also, then other countries like France and Russia who are putting up some stiff opposition to the U.S. proposal, could be left out in the cold, because they enjoyed their relations with the previous regime, and had done deals for oil contracts and such like.

So, a huge tussle, and one of the main components driving that tussle will be the oil -- Carol.

COSTELLO: Understand. Karl Penhaul, many thanks for bringing us up-to-date from Baghdad.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.





Aired May 8, 2003 - 06:34   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: While the United States and the United Nations try to come to some sort of agreement, people in Iraq continue to be in need. In a country with huge oil resources, there's a gas shortage.
Let's talk you live to Baghdad now, and Karl Penhaul.

Hello -- Karl.

KARL PENHAUL, CNN CORRESPONDENT: Hi, Carol.

Obviously, the question of sanctions, whether they're lifted or not has huge implications. Yes, on the one hand, lifting sanctions would allow the free flow of goods, spare parts, and those kinds of elements to flow freely into Iraq. That would allow the water systems and the sanitation systems to get going again.

It would also supply broad access to food stuffs that maybe can't be acquired here in Iraq, hopefully those at reasonable prices for the Iraqi people.

But at the same time, there is a sense by the Iraqi people that the issue here isn't the sanctions themselves. It isn't the humanitarian side of things. It's the question of oil. If you talk to Iraqis on the street and they say, not many people care about us as Iraqis. They say they care about us for our oil.

If you take a look at the U.N. Security Council, the permanent members, four of those permanent members were also home the biggest oil corporations in the world. By lifting those sanctions, obviously that would also lift U.N. control over how Iraqi oil is sold and where the proceeds go to.

By removing them also, then other countries like France and Russia who are putting up some stiff opposition to the U.S. proposal, could be left out in the cold, because they enjoyed their relations with the previous regime, and had done deals for oil contracts and such like.

So, a huge tussle, and one of the main components driving that tussle will be the oil -- Carol.

COSTELLO: Understand. Karl Penhaul, many thanks for bringing us up-to-date from Baghdad.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.