The Iraqi Trade Minister, Mehdi Saleh, says discussions have been successfully concluded with the United Nations on the distribution of humanitarian aid under its oil for food plan.

He said details would be forwarded to the UN secretary general within a few days.

Once his approval had been secured the pumping of Iraqi oil would be resumed.

The announcement came two weeks after Iraq suspended exports of the limited amount of oil it's allowed to sell, protesting that the UN-approved arrangements for aid distribution were not working.

Senior UN officials acknowledged there were serious delays in the delivery of medicines.

The UN's humanitarian coordinator in Iraq, Dennis Halliday, said the new agreement was a significant step forward for the people of Iraq.

He said he hoped the UN's frustrations over the crisis with UN weapons inspectors would not effect its humanitarian operations.

Senior UN officials involved with the food for oil deal have said they hope it can be expanded from two-billion dollars' worth of exports every six months to around four billion dollars.

However, the Iraqi Trade Minister Mr Saleh said in a BBC interview that even that amount would be insufficient for the daily needs of the Iraqi people.

Mr Saleh said Baghdad urgently needed to re-start trade with all countries, to make up for the deprivation it had suffered in seven years of United Nations sanctions.

Back to top | BBC News Home | BBC Homepage	©