DATE=10/24/03

TYPE=CORRESPONDENT REPORT

TITLE=U-N/ANNAN/IRAQ (L-O)

NUMBER=2-309021

BYLINE=PETER HEINLEIN

DATELINE=UNITED NATIONS

CONTENT=

VOICED AT:

INTRO: U-N Secretary-General Kofi Annan is giving an optimistic assessment of the Madrid donors' conference on Iraq. From U-N headquarters, Peter Heinlein reports, Mr. Annan is predicting further contributions as security conditions improve.

TEXT: On his return Friday from Madrid to New York, the secretary-general cautioned reporters not to read too much into the amounts pledged at the Madrid conference on Iraqi reconstruction. He noted that the conference is only the beginning of a process.

/// ANNAN ACT ///

One shouldn't expect governments to indicate all they're going to do for Iraq today in Madrid. It's a process, and over time, governments will do more. I also indicated security was a constraint, and we need to do something about that issue. We should not judge the success of the Iraqi reconstruction by the contributions that are announced today.

/// END ACT ///

U-N organizations charged with providing assistance to Iraq say the money already pledged in Madrid will be enough for the next year's needs. Spokesman Fred Eckhart says the U-N Development Program will need about nine-billion dollars for infrastructure and social services, plus several billion more for security.

/// ECKHART ACT ///

The U-N Development Program tells us that the pledges announced so far should meet what the U-N considers the most critical issue being addressed, the need for immediate grant assistance to Iraq, from now through 2004.

/// END ACT ///

On a related matter, Secretary General Annan said Friday he is considering a top-to-bottom overhaul of the U-N security system. He was responding to a report issued by an independent panel he appointed to study security following two recent attacks on U-N headquarters in Baghdad.

The panel, headed by former Finnish President Martti Ahtisaari, concluded that responsibility for security lapses went right to the top of the U-N. Mr. Annan Friday skirted the issue of accountability, but told reporters changes would have to be made. (SIGNED)

NEB/NYC/PFH/RH/TW