The Security Council,

Recalling its previous resolutions and, in particular, its resolutions 986 (1995) of 14 April 1995 and 1111 (1997) of 4 June 1997,

Reaffirming that the implementation period of resolution 1111 (1997) began at 00.01, Eastern Daylight Time, on 8 June 1997, and that the export of petroleum and petroleum products by Iraq pursuant to resolution 1111 (1997) did not require the approval by the Secretary-General of the distribution plan mentioned in paragraph 8 (a) (ii) of resolution 986 (1995),

Taking note of the decision by the Government of Iraq not to export petroleum and petroleum products permitted pursuant to resolution 1111 (1997) during the period 8 June to 13 August 1997,

Deeply concerned about the resulting humanitarian consequences for the Iraqi people, since the shortfall in the revenue from the sale of petroleum and petroleum products will delay the provision of humanitarian relief and create hardship for the Iraqi people,

Noting that, as set out in the report of the Committee established by resolution 661 (1990) (S/1997/692), Iraq will not be able to export petroleum and petroleum products worth two billion United States dollars by the end of the period set by resolution 1111 (1997) while complying with the requirement not to produce a sum exceeding one billion United States dollars every 90 days set out in paragraph 1 of resolution 986 (1995) and renewed in resolution 1111 (1997),

Acknowledging the situation with regard to the delivery of humanitarian goods to Iraq as described in the report of the Secretary-General (S/1997/685) and encouraging the continuing efforts to improve this situation,

Stressing the importance of an equitable distribution of humanitarian goods as called for by paragraph 8 (a) (ii) of resolution 986 (1995),

Determined to avoid any further deterioration of the current humanitarian situation,

Reaffirming the commitment of all Member States to the sovereignty and territorial integrity of Iraq,

Acting under Chapter VII of the Charter of the United Nations,

1. Decides that the provisions of resolution 1111 (1997) shall remain in force, except that States are authorized to permit the import of petroleum and petroleum products originating in Iraq, including financial and other essential transactions directly relating thereto, sufficient to produce a sum not exceeding a total of one billion United States dollars within a period of 120 days from 00.01, Eastern Daylight Time, on 8 June 1997 and, thereafter, a sum not exceeding a total of one billion United States dollars within a period of 60 days from 00.01, Eastern Daylight Time, on 4 October 1997;

2. Decides further that the provisions of paragraph 1 above shall apply only to the period of implementation of resolution 1111 (1997), and expresses its firm intention that under any future resolutions authorizing States to permit the import of petroleum and petroleum products originating in Iraq, the time limits within which imports may be permitted established in such resolutions shall be strictly enforced;

3. Expresses its full support for the intention of the Secretary-General, stated in his report to the Security Council (S/1997/685), to follow up his observations concerning the needs of vulnerable groups in Iraq by monitoring the actions of the Government of Iraq in respect of these groups;

4. Stresses that contracts for the purchase of humanitarian supplies submitted in accordance with resolution 1111 (1997) must be limited to items which appear on the list of supplies annexed to the second distribution plan prepared by the Government of Iraq and approved by the Secretary-General pursuant to paragraph 8 (a) (ii) of resolution 986 (1995), or appropriate amendments to the plan must be requested prior to purchasing items not on the annexed list;

5. Decides to remain seized of the matter.