MILES O'BRIEN, CNN ANCHOR: One of the results of the Gulf War 10 years ago is the continuing international sanctions against Iraq. The U.N. Security Council is racing the clock to come up with a new resolution on those sanctions. Officials in Baghdad say they are holding out for a full lifting of the sanctions. CNN's James Martone reports from the Iraqi capital.</s>JAMES MARTONE, CNN CORRESPONDENT (voice-over): Days before a U.N. deadline for a resolution on Iraq, Baghdad says it's realizing the fruits of another free trade agreement with its friends, a sign, say Iraqi officials, that they are serious about accepting nothing less than a full lifting of the embargo.</s>TAHA RAMADAN, IRAQI VICE PRESIDENT: Let me take this opportunity to say that any resolution that doesn't clearly mention the unconditional lifting of sanctions will not be met positively.</s>MARTONE: Baghdad has repeatedly rejected a U.S.-British proposal that would ease holds on imports to Iraq but restrict the country's booming trade with its neighbors that is outside U.N. controls. Ramadan said Iraq's leadership was studying a Russian proposal. But other officials here have said that it has been rejected because it calls for the suspension of sanctions on the condition of the return of U.N. weapons inspectors. (on camera): That, says Iraq, is something it will never accept. It also says it will reject anything short of a normal six month phase of the oil for food program. Iraq stopped exporting oil under that program to protest U.S.-led efforts to revamp the sanctions. (voice-over): Iraqi civilians say so many pending decisions have inflated the dollar and deflated the few Iraqi dinars they have to spare. If it were cheap, I'd buy, says this woman. But it's too expensive, she says of the stainless steel pots from Syria. What good are imported goods, ask shoppers, if no one can afford them? James Martone, CNN, Baghdad.
Officials in Baghdad Hope for Lifting of Sanctions