``The aim of this resolution is to establish a new foundation for the Council's approach to Iraq,'' Greenstock said in a statement. The British proposal, which is being sponsored by the Netherlands, would replace the UN Special Commission -- set up in 1991 to monitor Iraqi disarmament -- with a ``Commission on Investigation, Inspection and Monitoring'' (UNCIIM). Under the plan, Iraq would give UNCIIM inspectors ``immediate, unconditional and unrestricted access'' to any site or government official in Iraq - AFPThe British proposal also would keep current sanctions in place but allow Iraq to sell all the crude oil it wants.

The proposalstressed that while ``conditions do not exist'' for the lifting of UN sanctions on Iraq, the bi-yearly, $5.2 billion limit placed on Iraq's crude oil exports could be eliminated to improve the living conditions of the Iraqi people.

A separate Russian plan calls for the lifting of UN-sponsored international sanctions on Iraq altogether while introducing a ``reinforced'' program of control and verification to ensure that Iraq does not rebuild an arsenal of biological, chemical, nuclear weapons and long-range missiles.

To encourage Baghdad's compliance, the Russians propose lifting non-military sanctions which have caused so much hardship to 22 million Iraqis. However, US ambassador to the UN Peter Burleigh told journalists: ``don't think it is a serious proposal, we're not going to treat it as such.''

As for the British-Dutch proposal, he said the US had ``some problems with it''. In Baghdad, Iraq said on Friday that it doubted that UN Security Council discussions on its future would lead to a lifting ofcrippling sanctions because the talks were being based on weapons inspectors' lies.

``It is doubtful that the Security Council can adopt just and correct decisions since it has focused ... on reports by the UN Special Commission (UNSCOM) charged with Iraqi disarmament, which are false and biased,'' the Ath-Thawra daily said.

Baghdad has refused to allow the resumption of weapons inspections unless the UN lifts the international embargo imposed on Iraq after it invaded Kuwait in 1990. Diplomats here have said discussions were likely to continue for several weeks, given the problems in achieving consensus among the 15 Council members on UN policy toward Iraq.