The establishment of the United Nations "oil-for-food" program (OFFP) reflected a longstanding U.N. Security Council effort to alleviate human suffering in Iraq while pressing Iraq to comply with all relevant U.N. Security Council resolutions. The program was a temporary and limited exception to the international trade embargo imposed on Iraq by U.N. Security Council Resolution 661, adopted on August 6, 1990, after Iraq's invasion of Kuwait on August 2, 1990. U.N. Security Council Resolution 687 (April 3, 1991) provided for the international embargo on Iraq's exportation of oil to end once Iraq had fully complied with U.N. efforts to end its weapons of mass destruction (WMD) programs. The WMD inspections began in April 1991 but proceeded more slowly than expected, and an end to sanctions did not appear to be in sight by the mid-1990s. Without oil export revenues, Iraq was unable to import sufficient quantities of food and medical supplies, and, according to virtually all accepted indicators (infant and child mortality, caloric intake, and other indicators), living conditions deteriorated sharply during 1991-1995. The first version of an oil-for-food plan would have allowed Iraq to export $1.6 billion in oil every six months. It was adopted by the Council in 1991 in Resolutions 706 (August 15, 1991) and 712 (an implementing plan adopted September 19, 1991), but Iraq rejected it as too limited in scope and an infringement on Iraq's sovereignty. There was little movement on the issue during 1991-95, despite dramatic declines in Iraq's living standards. During this period Iraq continued to sell its oil under the terms of trade protocols with some of its neighbors in violation of the U.N. sanctions regime. These sales were known to members of the U.N. Sanctions Committee, including the United States. On April 15, 1995, the U.N. Security Council adopted Resolution 986, which took into account one of Iraq's concerns by allowing the export of $2 billion in oil every six months. Pressured by fears of unrest caused by the drop in living standards, Iraq accepted this proposal, and it and the United Nations signed a memorandum of understanding on the program on May 20, 1996 (document number S/1996/356). After several more months of negotiations on details, the first Iraqi oil exports under the OFFP began on December 10, 1996. After the first year of the program, the Secretary General determined that the program was not meeting the food and medical needs of the Iraqi people, and Resolution 1153 (February 20, 1998) raised the oil export ceiling to $5.256 billion per six-month phase. In an effort to provide Iraq an incentive to cooperate with a new program of U.N. WMD inspections, the U.N. Security Council, in Resolution 1284 (December 17, 1999), abolished the export limit entirely. From inception in December 1996 until the U.S.-led war that began March 19, 2003, the OFFP was progressively modified to try to remove obstacles to the delivery of civilian goods to Iraq. However, the program did not—and was not intended to—restore normal economic activity to Iraq or completely blunt the effect of international sanctions on Iraq during the rule of Saddam Hussein. Moreover, the program did not—and was not intended to—monitor Iraq's compliance with the wider trade embargo governed by Resolution 661. The U.N. Sanctions Committee administered the implementation of sanctions on Iraq and was responsible for ensuring that Iraq complied with all relevant U.N. sanctions, including the embargo on oil sales outside of the program, during the rule of Saddam Hussein. After the fall of the regime at the hands of U.S. forces on April 9, 2003, the United States achieved U.N. support for its proposal to phase the program out entirely and to allow Iraq to resume normal commercial interactions. For an outline of OFFP operations, see Appendix . In order to ensure that only humanitarian objectives were served, the OFFP placed substantial controls on approved Iraqi oil exports and humanitarian imports under its jurisdiction. Under the terms of the memorandum of understanding drafted to implement Resolution 986, Iraq's state-owned oil marketing company (State Oil Marketing Organization, SOMO) was empowered to negotiate contracts with international oil companies to sell Iraqi oil. Once finalized, the oil purchase contracts were reviewed by a panel of oil contract overseers reporting to the UN Sanctions Committee. The oil overseers reviewed Iraq's pricing proposals monthly. Under the program, Iraq was allowed to export only oil, not any other products. The oil sold under the OFFP's auspices was exported through an Iraq-Turkey pipeline and from Iraq's terminals in the Persian Gulf. According to Resolution 986, "the larger share" of these oil exports ran through the Turkish route. The proceeds from these sales were deposited directly, by the oil purchasers, into a U.N.-monitored escrow account held at the New York branch of France's Banque Nationale de Paris (BNP, now BNP-Paribas). Iraq's approved oil exports were monitored at the point of exportation by personnel from Saybolt Nederland BV, an energy services firm working under contract to the program. Under its contract, Saybolt was not asked or expected to ensure that Iraq was using only the approved export routes, or to police any other illicit exportation of oil, according to U.N. Secretary General reports on the program. In each six-month phase of the program, Iraq purchased goods and services directly from supplier firms, in accordance with an agreed distribution plan allocating anticipated revenues among categories of goods to be purchased in that phase. Prior to the major amendment to the program approved in May 2002, which is discussed below, the Sanctions Committee reviewed and had authority to approve contracts for the export of goods to Iraq. The Committee operated by consensus. Any Sanctions Committee member could place a "hold" on a contract for goods to be imported by Iraq, and the United States often placed holds on exports of dual use items (civilian items that could have military applications). In deciding whether to place a hold on a contract, the U.S. representative on the Sanctions Committee consulted with agencies of the U.S. government to determine whether Iraq could use the requested items for military purposes. Under the procedures adopted in Security Council Resolution 1409 (May 14, 2002) and placed into effect in July 2002, the U.N. weapons inspection unit (UNMOVIC, U.N. Monitoring, Verification, and Inspection Commission) reviewed export contracts to ensure that they did not contain items on a designated list of dual-use items known as the Goods Review List (GRL). If so, the Sanctions Committee then decided whether to approve that portion of the contract containing the GRL items in question. Under U.S. regulations written for the program, U.S. firms could buy Iraqi oil and sell goods to Iraq, including oil industry spare parts and equipment. Over the last few years, purchases of Iraqi oil by U.S. firms ranged between one-third to one-half of Iraq's pre-2003 war export volume of about 2.1 million barrels per day. In February 2003, just prior to the start of the war, U.S. imports of Iraqi oil tended toward the high end of that range, about 1 million barrels per day. The U.S. imports came primarily by purchases from intermediate energy trading firms rather than direct buys from Iraq. Once a contract was approved, funds from the escrow account were used to pay letters of credit for the purchased goods. The arriving supplies were monitored at their point of entry into Iraq by about 50 personnel from the Swiss firm Cotecna at four approved border crossings: Umm Qasr on the Persian Gulf; Trebil on the Iraqi-Jordanian border; Walid on the Iraqi-Syrian border; and Zakho on the Iraqi-Turkish border. In November 2002, a fifth border point, at Arar on the Saudi-Iraq border, was established, a few years after Saudi Arabia decided to re-open its border with Iraq. Cotecna and its predecessor, Lloyd's Register, did not inspect, monitor, or report on goods entering or leaving Iraq outside of the auspices of the OFFP and neither firm was empowered or expected to do so under the terms of Resolution 986 or the memorandum of understanding agreed to by the United Nations and the Iraqi government. Cotecna was not responsible for searching or authenticating other goods imported by Iraq through bilateral trade agreements with its neighbors or purchased with other Iraqi government funds, even if those goods entered Iraq through the approved OFFP border entry points mentioned above. Nor was Cotecna responsible for certifying what price was paid for the goods imported under the OFFP, although Cotecna says it offered that service to the Office of the Iraq Program but was turned down. In Baghdad-controlled Iraq, the Iraqi government distributed imports to the population through an extensive government rationing system that employed about 40,000 Iraqis. Distribution was monitored by about 158 U.N. workers from the World Food Program, the Food and Agriculture Organization, the World Health Organization, and UNICEF. The U.N. personnel visited ration centers, marketplaces, warehouses, and other installations to ensure that distribution was equitable and accorded with the targeted allocation plans submitted by Iraq for each six month phase. In Kurdish-controlled Iraq, about 65 U.N. workers, accompanied by about 130 U.N. security guards, performed the distribution function. Some goods bound for the Kurdish-controlled areas were combined with Baghdad's purchases in order to obtain more favorable prices in bulk.