They believe the draft resolution, which proposes the administration and reconstruction of Iraq over the next 12 months be run by the UK and the US, will break the monopoly on reconstruction work held by US contractors.

Under the proposals contained in the draft resolution, the UK and the US as ‘occupying powers’ will form a new interim authority for Iraq that will be responsible for Iraq’s future oil revenues and managing the reconstruction of the country. The UN would be limited to an auditing and co-ordinating role.

Analysts say the sums of money that would be under the control of the new authority will dwarf funds currently available. Currently the only money being spent on the reconstruction of the country is $2,400 million by the US Agency for International Development and an unspecified amount from the US Army Corps of Engineers.

Key points from the draft resolution the US plans to introduce to the UN Security Council on Friday 16 May, co-signed by Britain and Spain:

The US and the UK, as occupying powers, to be recognised as a new interim authority responsible for the administration of Iraq for an initial 12-month period

The UN to appoint an envoy in Iraq to co-ordinate the UN and other international agencies’ activities in co-ordination with the authority

The formation, by the people of Iraq with the help of the authority and working with the special co-ordinator, of an Iraqi Interim Authority as a transitional administration run by Iraqis until a permanent government is established by the people of Iraq

The UN oil-for-food programme to be run down over a four-month period and economic sanctions on Iraq to be lifted, with the exception of arms trade

Creation of an Iraqi Assistance Fund, with an international advisory board including the UN, the International Monetary Fund, appropriate regional institutions and the World Bank, to be held by the Central Bank of Iraq and to be audited by independent public accountants chosen by the international advisory board

The funds in the Iraqi Assistance Fund disbursed at the direction of the authority, in consultation with the new UK/US interim authority, to meet the humanitarian needs of the Iraqi people, for the economic reconstruction and repair of Iraq’s infrastructure

Remaining Funds from the oil-for-food programme to transferred to the Iraqi Assistance Fund

Iraq oil revenues to be deposited in the Iraqi Assistance Fund, until such time as a new Iraqi government is properly constituted and capable of discharging its responsibilities; to be audited by independent public accountants reporting to the international advisory board

A percentage of the proceeds from Iraq oil sales to be deposited in a Compensation Fund

All oil revenues to be protected from claims against Iraq

All assets of the government of Iraq, Saddam Hussein, Baath party officials and their immediate families to be frozen.