Saddam Hussein has imposed an economic blockade against Kurdish-controlled areas of northern Iraq, putting severe strains on the population and allowing him to use food, medicine and essential goods to remain in power, a Senate committee reported Saturday.

Saddam set up the blockade in the north Oct. 26, shortly after reb-els seized the city of Suleimaniya, a report by the Senate immigration subcommittee staff said."The ban includes major food items, medicines and other critical supplies and is imposing hardship on the Kurdish population," the staff report said.

The study said that, unlike the international embargo on Iraq that is flouted by almost all of Iraq's neighbors on a daily basis, "Saddam's embargo has placed tight and effective controls on the flow of traffic northward to Kurdish-controlled areas.

"The flow of goods from the south is now less than a quarter of its prewar level," the report said.

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It also said that at least 900,000 Kurds remain at risk of violence and deprivation and will remain so until Saddam is ousted. It said that recent harassment has caused 300,000 Kurds to flee their homes since October.

"Without an extension of the allied security zone to include all Kurdish-controlled areas, the flow of Kurdish refugees will continue," the report said.

Sen. Edward Kennedy, D-Mass., chairman of the Senate immigration subcommittee that released the report, said, "One year after the gulf war, the tragic human consequences of the conflict continue. International efforts to assist the Kurds have made important gains, but the suffering continues for thousands of Kurds living under Hussein's brutality."

Kennedy said the repression of the Kurds by Iraqi forces has "caused a new wave of refugees at the worst possible time" and placed unexpected strains on international efforts to provide food and shelter at the onset of winter.

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