Fed: Balance on Iraq/wheat farmers needed: Vaile

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Fed: Balance on Iraq/wheat farmers needed: Vaile

CANBERRA, Aug 15 AAP - The government had to balance the needs of wheat farmers andthe refusal of Iraq to abide by United Nations' resolutions, Trade Minister Mark Vailesaid today.

Mr Vaile said as the Australian farming community faced the effects of drought, theconcerns it raised about the possible loss of the Iraqi wheat market were legitimate.

But the government had to stand up to Iraq and demand it fulfill its UN obligations.

Iraq has turned away several shipments of Australian wheat and threatened the annual$800 million worth of wheat sales between the countries.

It has said it has taken the action in response to comments by Foreign Minister Alexander Downer.

Mr Vaile said the government had not stepped away from its commitments as a responsiblemember of the UN, including the demands on Iraq to let in weapons inspectors.

But the government also recognised farmers were doing it tough because of drought.

"We have a sensitive situation that exists with Iraq at the moment and we will continueto move through that in a mature way," he told reporters.

"It is just something that as a nation we need to understand and have sympathy withthe concerns that have been raised by the farm community.

"(Farmers are) confronting what is being forecast as a lower level of production thisyear, and any talk of market impediments or lessening market prospects are going to beof concern, and of course we'll work closely with industry on that."

Mr Vaile refused to comment on Mr Downer's handling of the Iraq issue, saying the governmentwas united in its stance on Iraq honouring its UN commitments.

"I've said that our government stands as one as far as our position on these issuesare concerned and the commitment to the UN security council resolutions," he said.

"At the same time, we need to balance off and have a broad approach in terms of oureconomic interests."

AAP sw/las/br

KEYWORD: IRAQ AUST VAILE