NEW YORK, May 16: The following are the highlights of the new US Draft:

— The United States and Britain submitted letters to the Security Council recognizing their obligations as occupying powers. The draft refers to them as the “authority.”

— The resolution would establish a “Development Fund for Iraq” for reconstruction and humanitarian purposes to be held by the central bank of Iraq and to be audited by independent accountants approved by an international advisory board.

— The board includes envoys from the United Nations, the International Monetary Fund, the Arab Fund for Social and Economic Development and the World Bank.

— All proceeds from oil sales would go into the development fund until an “internationally recognized” Iraqi government is established. The money would be “disbursed at the direction” of the authority (United States and Britain), in consultation with the Iraqi interim authority.

— Five per cent of the oil revenues are to be deposited into a compensation fund (compared to the current 25 per cent) for claims resulting from Iraq’s 1990 invasion of Kuwait.

— The resolution phases out the UN oil-for-food programme over a period of four months. Some $13 billion from Iraq’s past oil revenues are now in the programme, administered by the United Nations. Whatever is not spent would be deposi-ted into the new development fund.

— All money from Iraq’s oil sales or those in the development fund are immune from claims and law suits until an internationally recognized Iraqi government is established.

— The document asks for “multilateral” consideration of Iraq’s massive debt “through appropriate international mechanisms” such as the Paris Club. This informal group of 19 wealthy nations restructures debt for emerging countries.

— The document asks all nations to watch out for, return, and prohibit trade of Iraq cultural properties looted from Iraq’s National Museum and other institutions.