Saddam Hussein: The new plan is "more stupid" than original sanctions

Britain and Russia have advanced competing resolutions on how the Security Council should proceed with sanctions against Iraq.

The rival proposals could divide the five permanent members of the Council on whether to overhaul the sanctions regime against the oil-rich, but devastated, nation.

The UK plan - backed by the United States - proposes allowing all civilian goods into the country, while tightening restrictions on military items and strengthening anti-smuggling measures.

The UK wants "smart sanctions"

"The main truth behind this proposal is that the American administration is seeking to strangle the Iraqi economy and to infringe upon the sovereignty of Iraq," Mr Aziz said.

Russia, Iraq's closest ally on the Security Council, proposes to extend the existing oil-for-food humanitarian programme, which needs to be renewed by 4 June.

It also

• reaffirms Iraq's right to the unrestricted use of commercial flights, sea and railway transport
• would authorise the return of Iraqi planes which were grounded abroad at the time of Iraq's invasion of Kuwait.

Russia wants to keep the current plan in place

BBC correspondent Frank Gardner says the fact that Baghdad feels it can reject a scheme which would allow it to import far more goods shows it is holding out for something better.

Saddam Hussein has reportedly called the Western proposal to modify sanctions "the kick of a dying mule".

Clearly he is expecting sanctions to collapse altogether, our correspondent says.

Under the oil-for-food programme, Iraq is allowed to sell as much oil as it wants. But the revenue goes into a UN-controlled escrow account and can be used to purchase food, medicine and humanitarian goods.

Smuggling controls

The UK proposal would keep the escrow account in place and use some of the revenues to pay Iraq's UN dues.

The money would also be used to bolster anti-smuggling controls. Iraq is believed to smuggle hundreds of thousands of barrels per day through neighbours Syria, Turkey and Jordan.

The sanctions were designed to force Saddam Hussein to allow UN weapons inspectors access to Iraq to ensure it did not have chemical, biological or nuclear weapons.

The inspectors were withdrawn two and a half years ago before an escalation in US-UK bombing of Iraq, and have not been allowed to return.

The UK proposal would allow Iraq to buy civilian goods without letting the weapons inspectors back.