Kuwait City, Kuwait -- The United States is "guardedly optimistic" about the Middle East peace process, Thomas Pickering, Under Secretary of State for Political Affairs, said June 2 in an interview with the Kuwait News Agency (KUNA).

"We are in close contact with all of the parties. We're very pleased that the ideas that we have provided have been accepted by Chairman Arafat, and the task now is to work closely with Prime Minister Netanyahu," he said.

Pickering is visiting the Middle East to discuss the situation in the region, including, in addition to the Middle East peace process, Iraq, Iran and other recent developments in the world.

Asked about opening the door with Iran, Pickering said "Iran is clearly a country that is now going through a process of change." President Khatemi, he said "is a man who has been saying important things and we are listening to that. We would hope that he would have more influence ... in some of the areas where the more conservative leaders of Iran seem to hold sway, and where they seem to affect in a negative way those policies of Iran that we have consistently made clear we're concerned about -- its program of building weapons of mass destruction and missile delivery vehicles, the use of terrorism as an instrument of state policy, and the violent opposition or the support for violent opposition to the Middle East Peace Process."

Regarding Iraq, Pickering said, "on the basis of past experience with Saddam that it is not possible to rule out the possibility of further confrontations and difficulties." The U.S. prefers diplomacy in dealing with Saddam Hussein, he said, "And on a number of occasions over the past years diplomacy has worked. Interestingly enough, diplomacy has worked best and has worked most effectively, and it has worked most importantly when it is backed up by the threat of the use of force. So, the President has made clear the commitment of the U.S. and to maintain a very strong force presence in the region," he said.

He emphasized that "the longer Saddam continues to obstruct, the longer he continues to fail to comply fully with the [UNSC] resolutions, the longer the sanctions regime will be maintained in place."

Pickering noted that when the original U.N. Security Council resolutions were drafted, in April of 1991, "we made a very careful and conscious decision -- all of us -- not to impose sanctions on food and medicine for the people." Saddam Hussein, he said, is responsible for the terrible condition of the people of Iraq, not the world community, or the U.N. Security Council or the U.S.

He said the United States would like to see the oil-for-food program put into place on a long-term basis, until sanctions are lifted, and that the U.S. is also prepared to support the expansion of the Iraqi oil productions system and the provision of material for the repair and maintenance of water systems and sanitary systems inside Iraq.

Following is the transcript of the interview, provided by USIS Kuwait:

(Begin transcript)

TRANSCRIPT OF U.S. UNDER SECRETARY OF STATE FOR POLITICAL AFFAIRS
THOMAS R. PICKERING'S INTERVIEW
WITH THE KUWAIT NEWS AGENCY (KUNA)
ON TUESDAY, JUNE 2, 1998,
AT THE RADISSON SAS HOTEL,
KUWAIT CITY, STATE OF KUWAIT

KUNA: With regard to the Middle East Peace Process, Egypt's Foreign Minister, Amr Moussa, said that the peace process is brain dead, the heart is still surviving, and the U.S. is still trying to resuscitate it. How do you feel about that?

PICKERING: Well, with all due respect, I don't agree with the Foreign Minister of Egypt. We are continuing to work in the peace process. We will continue to make efforts. We certainly will know if it is dead and we don't believe that is the case. We are in close contact with all of the parties. We're very pleased that the ideas that we have provided have been accepted by Chairman Arafat, and the task now is to work closely with Prime Minister Netanyahu.

KUNA: How optimistic are you?

PICKERING: I would say that with any process as difficult as this, one must be guardedly optimistic. But I would say that is the position we are taking.

KUNA: And, how do you think the GCC countries feel about that?

PICKERING: I am here now to talk to the GCC countries so I wouldn't want to anticipate their reaction. I'll be very interested to have it. I'll be talking to them about our approach, our objectives, and the way in which we're proceeding.

KUNA: Could you talk with me a bit about opening the door with Iran? Why now and how do you feel the process is going to be?

PICKERING: I think it is important that we take a very clear-eyed look at Iran. Iran is clearly a country that is now going through a process of change. Seventy-percent of them have supported the now President of Iran, President Khatemi. He is a man who has been saying important things and we are listening to that. We would hope that he would have more influence quite frankly in some of the areas where the more conservative leaders of Iran seem to hold sway, and where they seem to affect in a negative way those policies of Iran that we have consistently made clear we're concerned about -- its program of building weapons of mass destruction and missile delivery vehicles, the use of terrorism as an instrument of state policy, and the violent opposition or the support for violent opposition to the Middle East Peace Process, are among them. These are issues clearly, on at least a number of occasions on some of them, President Khatemi has spoken out rather strongly. We would of course like to see actions follow, and as of this point we have yet to see that.

KUNA: August is approaching and from our past experience with Saddam something usually happens. Are we expecting anything to happen, are we anticipating and, if so, how well prepared are we? It's been eight years -- how long do you think we'll have to keep going through the same thing over and over again?

PICKERING: Well, you've asked me a couple of questions. Let me say first on the basis of past experience with Saddam that it is not possible to rule out the possibility of further confrontations and difficulties. That seems to be his style. He allows things to go ahead for a while, but there is some cooperation, then he suddenly turns perhaps for no serious reason and confronts the world community. And then the world community, through the use of diplomacy backed up by the threat of the use of force, brings him back I would hope to what one could call his senses. We want to see him fully comply. The longer he doesn't comply the longer the sanctions will stay on. The world community has a lot of patience, and patience is clearly required to deal with Saddam. The U.S. considers this a long-term problem. We're ready for it to maintain our commitment. And, of course, one of the major elements of our commitment is the question of our ability in the military sphere if that were necessary to back up our policies with the use of force. We prefer diplomacy, we've always made it clear that we prefer diplomacy, and there is always time for diplomacy to work. And on a number of occasions over the past years diplomacy has worked. Interestingly enough, diplomacy has worked best and has worked most effectively, and it has worked most importantly when it is backed up by the threat of the use of force. So, the President has made clear the commitment of the U.S. and to maintain a very strong force presence in the region.

KUNA: Sir, you said earlier that you will be speaking with Kuwaiti officials about new strategies, new steps. Could you elaborate on that?

PICKERING: I think of course I must preserve my first words on these issues for our friends here in Kuwait. But, there should be no doubt that we are changing our basic objectives here -- we're not. There should be no doubt that we're changing our basic approach -- we're not. What we hope to do is to strengthen and improve our efforts to carry out the policies we've all agreed on. And those are very simply contained in U.N. resolutions.

KUNA: Chairman Butler has said that within the next year sanctions may be lifted.

PICKERING: I think he feels that he may have been misquoted on that. You will really want to talk with him. And, of course, the question of lifting the sanctions is a question for the Security Council. It's a question that goes beyond the role of UNSCOM, as we have made clear, because of course there are a number of issues, some of great importance I understand to Kuwait, including a full accounting for the missing and POWs of Kuwait, institution or other arrangements satisfactory to Kuwait having to do with the missing property and the other destruction that was wreaked upon Kuwait. So, there are a number of these issues that clearly are also out there that will have to be dealt with. I want to emphasize this, that the longer Saddam continues to obstruct, the longer he continues to fail to comply fully with the resolutions, the longer the sanctions regime will be maintained in place.

KUNA: What you said earlier about the Iraqi people suffering, I mean it's Saddam's fault. Can you tell me more about that because, as you know, the world community feels sorry about that, Kuwaitis feel sorry about that?

PICKERING: The American people, the American President, the American Administration, feel sorry for the people of Iraq. I think quite simply when the original resolutions were drafted, in April of 1991, and I participated in that, we made a very careful and conscious decision -- all of us -- not to impose sanctions on food and medicine for the people. We had that very much in mind. And, as a result, Saddam was free then, as he is today, to import food and medicine for his people if he cannot produce it inside Iraq. Secondly, almost immediately after providing an exception to sanctions on food and medicine, the Security Council also provided that Saddam, under U.N. supervision -- careful supervision -- could export oil, the proceeds of which would be put into an escrow account, which the U.N. would authorize to be spent for food and medicine for the people of Iraq. Saddam resisted this for five years. When he finally turned to it the process involved a negotiation and another U.N. resolution, and then he resisted implementation for another year and one-half. Now, throughout that process, and at each six months, he appears to resist implementation of extensions of that resolution.

We would like to see those particular arrangements put into place on a long-term basis, until sanctions are lifted, so that each six months there isn't a kind of situation of uncertainty with respect to the future of food and medical supplies for the people of Iraq.

The U.S. is also prepared to support the development of a larger amount of oil infrastructure, because in a recent review by the Secretary General of the U.N. he felt that the amount of oil and the amount for food and medicine should be increased. And, in order to do that, expansion of the Iraqi oil productions system is required. We're also prepared to support as we always have been the provision of material for the repair and maintenance of water systems and sanitary systems inside Iraq, which are basically there to provide for the health, safety, and security of the people of Iraq. That has been the uppermost in our minds as this process proceeds. We are really aghast that all around the world people believe to the contrary, that it has been the world community -- the Security Council, even the United States -- that is responsible for the terrible condition of the people of Iraq, rather than in fact Saddam Hussein himself, through the arrangements and the history that I have explained.

KUNA: Thank you sir.

(End transcript)