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U.N.'s Blix Says Iraq Smuggled Arms-Related Goods


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LONDON (Reuters) - Chief U.N. weapons inspector Hans Blix has said his teams in Iraq have uncovered weapons-related smuggling but it was unclear if the goods were linked to weapons of mass destruction.

Currency traders said the dollar slipped briefly on the report, coming close to a three-year low against the euro and testing the day's low against the safe-haven Swiss franc.

"We have found several cases where it is clear that Iraq has imported weapons-related material in violation of the prohibitions of the Security Council," he told the BBC in an interview broadcast late Monday.

"Whether these discoveries or items are related to weapons of mass destruction is a matter which we still need to determine.

"There has been a considerable amount of import in the weapons sector which clearly is smuggling, and in violation, and they are in fact large quantities," Blix said.

The dollar has fallen sharply in recent weeks partly on concerns about a U.S.-led military strike against Iraq.

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