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Blair to Stop Short of Threatening Sanctions in Visit to Sudan

By Reed V. Landberg

Oct. 6 (Bloomberg) -- U.K. Prime Minister Tony Blair, who made an unannounced visit today for talks in Sudan, will stop short of threatening to deploy troops or economic sanctions in urging the government of the African nation to protect refugees in the western Darfur region, his spokesman said.

``Rather than concentrate on threats and sanctions, we'd rather see real progress,'' said Tom Kelly, a spokesman for Blair, who will travel on to Ethiopia for a meeting of the Commission for Africa. ``The Sudan government is well aware of the view of the international community.''

In his first public engagement since being treated for a heart flutter last week, Blair was in the Sudanese capital of Khartoum for talks with President Omar al-Bashir, who seized power in 1989. Since fighting began in Darfur two years ago, at least 100,000 people have been killed and 1.5 million chased from their homes.

Last month, the United Nations Security Council raised the possibility of imposing sanctions on Sudan's oil industry unless Bashir's government makes Darfur safe. China threatened to veto a resolution condemning Sudan, saying sanctions weren't needed, and then joined Russia, Pakistan and Algeria in abstaining from a vote.

Sudan relies on oil revenue for three quarters of its export earnings. It started exporting petroleum in 1999 and plans to boost production to 500,000 barrels a day by the end of next year from 345,000 barrels a day in June. China's state oil companies are the biggest investors in Sudan's oil industry.

Conflicting Views

Britain backed the U.S.-sponsored resolution against Sudan, adopted by the Security Council on Sept. 18, but has declined to join the U.S. in accusing Sudan of ``genocide.'' Instead, the U.K. has left it to the UN to investigate the matter.

The U.S. banned trade with Sudan in 1997, and in 2002 barred Americans from doing business with the Greater Nile Petroleum Operating Co., a group that taps Sudanese crude and ships it to overseas customers.

Aid organizations urged Blair to press Bashir for results. They want Blair to see that Bashir makes good on a promise to allow 3,500 African Union troops to deploy to the region this month. They've stopped short of publicly calling for sanctions, which might endanger staff working in Darfur.

``While Blair's short trip alone will not directly save lives, the prime minister can help thousands by shifting British policy up a gear,'' said Barbara Stocking, director of Oxfam, which sponsors aid workers in Darfur. ``This concrete action will directly help stop the violence.''

Oil Interests

Except for Sweden's Lundin Petroleum AB, western oil companies have pulled out of Sudan as violence flared between government and rebel troops during the past two decades. Chevron Corp. explored in the region from the 1960s to 1985. Talisman Energy Inc. of Canada sold out in 2003 as did OMV AG of Austria. Total SA of France suspended work in Sudan but retains rights to drill, according to the U.S. Department of Energy.

China National United, or Chinaoil, and China National Chemicals, known as Sinochem, were awarded contracts in August to buy half of the Sudanese Nile Blend crude oil for sale in the fourth quarter.

Those companies, controlled by the Chinese government, also have stakes in drilling projects in Sudan and in a pipeline that exports most of the nation's crude. Oil & Natural Gas Corp. of New Delhi works in Sudan.

Sudan's Needs

Sudan also needs outside help to expand petroleum refineries at Port Sudan on the Red Sea and Khartoum in the center of the nation. Those plants, with a combined capacity of 72,000 barrels a day, produce gasoline for cars and butane for cooking. The government wants each plant to produce 100,000 barrels a day.

Blair will have discussions with Bashir on efforts to stop violence between rebel militias and government troops in Darfur. He wants to press the UN demand for Sudan to disarm the Arab Janjaweed militia, which Bashir has said is beyond the control of government troops.

The Janjaweed, who attacked government army bases and police stations in 2003 to protest that they weren't getting their share of the nation's oil riches, is blamed for many of the troubles in Darfur.

With a population of 39 million, Sudan has an annual gross domestic product of about $15.6 billion and external debts of $21 billion. Britain allocated 62.5 million pounds ($112 million) to aide in Sudan this year.

``We are already contributing a lot,'' said Kelly, the spokesman for Blair. ``The purpose of the trip is to underline the message to Sudan from the international community. Sudan must comply with UN resolutions.''

To contact the reporter on this story: Reed Landberg in Sudan landberg@bloomberg.net.

Last Updated: October 6, 2004 02:51 EDT

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