Resolution 778
(October 2, 1992)
The Security Council,
Recalling its previous relevant resolutions and in particular
resolutions 706 (1991) and 712 (1991),
Taking note of the letter of 15 July 1992 from the Secretary-General
to the President of the Security Council on Iraq's compliance with the
obligations placed on it by resolution 687 (1991) and subsequent
resolutions,
Condemning Iraq's continued failure to comply with its obligations
under relevant resolutions,
Reaffirming its concern about the nutritional and health situation
of the Iraqi civilian population, and the risk of a further deterioration
of this situation, and recalling in this regard its resolution 706 (1991)
and 712 (1991), which provide a machanism for providing humanitarian
relief to the Iraqi population, and resolution 688 (1991), which
provides a basis for humanitarian relief efforts in Iraq,
Having regard to the fact that the period of six months referred
to in resolutions 706 (1991) and 712 (1991) expired on 18 March 1992,
Deploring Iraq's refusal to cooperate in the implementation of
resolutions 706 (1991) and 712 (1991), which puts its civilian population
at risk, and which results in the failure by Iraq to meet its obligations
under relevant Security Council resolutions,
Recalling that the escrow account provided for in resolutions
706 (1991) and 712 (1991) will consist of Iraqi funds administered by
the Secretary-General which will be used to pay contributions to the
Compensation Fund, the full costs of carrying out the tasks authorized
by section C of resolution 687 (1991), the full costs incurred by the
United Nations in facilitating the return of all Kuwaiti property seized
by Iraq, half the costs of the Boundary Commission, and the cost to the
United Nations of implementing resolution 706 (1991) and of other
necessary humanitarian activities in Iraq,
Racalling that Iraq, as stated in paragraph 16 of resolution
687 (1991), is liable for all direct damages resulting from its invasion
and occupation of Kuwait, without prejudice to its debts and obligations
arising prior to 2 August 1990, which will be addressed through the
normal mechanisms,
Recalling its decision in resolution 692 (1991) that the requirement
for Iraqi contributions to the Compensation Fund applies to certain
Iraqi petroleum and petroleum products exported from Iraq after
2 April 1991,
Acting under Chapter VII of the Charter of the United Nations,
1. Decides that all States in which there are funds of the
Government of Iraq, or its State bodies, corporations, or agencies,
that represent the proceeds of sale of Iraqi petroleum or petroleum
products, paid for by or on behalf of the purchaser on or after
6 August 1990, shall cause the transfer of those funds (or equivalent
amounts) as soon as possible to the escrow account provided for in
resolutions 706 (1991) and 712 (1991); provided that this paragraph
shall not require any State to cause the transfer of such funds in
excess of 200 million dollars or to cause the transfer of more than
fifty per cent of the total funds transferred or contributed pursuant
to paragraphs 1, 2 and 3 of this resolution; and further provided
that States may exclude from the operation of this paragraph any
funds which have already been released to a claimant or supplier prior
to the adoption of this resolution, or any other funds subject to
or required to satisfy the rights of third parties, at the time of the
adoption of this resolution;
2. Decides that all States in which there are petroleum or
petroleum products owned by the Government of Iraq, or its State bodies,
corporations, or agencies, shall take all feasible steps to purchase
or arrange for the sale of such petroleum or petroleum products at fair
market value, and thereupon to transfer the proceeds as soon as
possible to the escrow account provided for in resolution 706 (1991)
and 712 (1991);
3. Urges all States to contribute funds from other sources to
the escrow account as soon as possible;
4. Decides that all States shall provide the Secretary-General
with any information needed for the effective implementation of this
resolution and that they shall take the necessary measures to ensure
that banks and other bodies and persons provide all relevant information
necessary to identify the funds referred to in paragraphs 1 and 2 above
and details of any transactions relating thereto, or the said petroleum
or petroleum products, with a view to such information being utilized
by all States and by the Secretary-General in the effective
implementation of this resolution;
5. Requests the Secretary-General:
(a) To ascertain the whereabouts and amounts of the said
petroleum products and the proceeds of sale referred to in
paragraphs 1 and 2 of this resolution, drawing on the work already
done under the auspices of the Compensation Commission, and report
the results of the Security Council as soon as possible;
(b) To ascertain the costs of United Nations activities
concerning the elimination of weapons of mass destruction, the
provision of humanitarian relief in Iraq, and the other United Nations
operations specified in paragraphs 2 and 3 of resolution 706 (1991); and
(c) to take the following actions:
(i) transfer to the Compensation Fund, from the funds referred
to in paragraphs 1 and 2 of this resolution, the percentage referred
to in paragraph 10 of this resolution; and
(ii) use of the remainder of funds referred to in paragraphs 1, 2
and 3 of this resolution for the costs of United Nations activities
concerning the elimination of weapons of mass destruction, the
provision of humanitarian relief in Iraq, and the other United Nations
operations specified in paragraphs 2 and 3 of resolution 706 (1991),
taking into account any preference expresssed by States transferring
or contributing funds as to the allocation of such funds among these
purposes;
6. Decides that for so long as oil exports take place pursuant
to the system provided in resolutions 706 (1991) and 712 (1991) or to
the eventual lifting of sanctions pursuant to paragraph 22 of resolution
687 (1991), implementation of paragraphs 1 to 5 of this resolution
shall be suspended and all proceeds of those oil exports shall
immediately be transferred by the Secretary-General in the currency in
which the transfer to the escrow account had been made, to the accounts
or States from which funds had been provided under paragraphs 1, 2
and 3 of this resolution, to the extent required to replace in full the
amounts so provided (together with applicable interest); and that,
if necessary for this purpose, any other funds remaining in the
escrow account shall similarly be transferred to those accounts
or States; provided, however, that the Secretary-General may retain
and use any funds urgently needed for the purposes specified in
paragraph 5 (c) (ii) of this resolution;
7. Decides that the operation of this resolution shall have
no effect on rights, debts and claims existing with respect to funds
prior to their transfer to the escrow account; and the accounts
from which such funds were transferred shall be kept open for retransfer
of the funds in question;
8. Reaffirms that the escrow account referred to in this
resolution, like the Compensation Fund, enjoys the privileges and
immunities of the United Nations, including immunity from legal
proceedings, or any forms of attachment, garnishment or execution;
and that no claim shall lie at the instance of any person or body
in connection with any action taken in compliance with or
implementation of this resolution;
9. Requests the Secretary-General to repay, from any available
funds in the escrow account, any sum transferred under this resolution
to the account or State from which it was transferred, if the transfer
is found at any time by him not to have been of funds subject to this
resolution; a request for such a finding could be made by the State
from which the funds were transferred;
10. Confirms that the percentage of the value of exports of
petroleum and petroleum products from Iraq for payment to the
Compensation Fund shall, for the purpose of this resolution and
exports of petroluem or petroleum products subject to paragraph 6 of
resolution 692 (1991), be the same as the percentage decided by
the Security Council in paragraph 2 of resolution 705 (1991) until
such time as the Governing Council of the Compensation Fund may
decide otherwise;
11. Decides that no further Iraqi assets shall be released for
purposes set forth in paragraph 20 of resolution 687 (1991) except
to the sub-account of the excrow account, established pursuant
to paragraph 3 of resolution 712 (1991), or directly to the
United Nations for humanitarian activities in Iraq;
12. Decides that, for the purposes of this resolution and other
relevant resolutions, the term "petroleum products' does not include
petrochemical derivatives;
13. Calls upon all States to cooperate fully in the implementation
of this resolution;
14. Decides to remain seized of this matter.
Sources: The United Nations |