In addition to most domestic flights in the U.S. and Canada, the food-for-purchase program will apply to leisure destinations such as Cancun and Puerto Vallarta, Mexico, and the Caribbean Islands, Continental spokeswoman Christen David said.

CNN: Continental cuts back on free food

For example, in 1999, the German multinational Siemens sold Saddam Hussein many sets of lithotripters under the rubric of medical equipment Iraq has been permitted to purchase as part of the so-called "oil for food" program.

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The U.N. created the oil-for-food program as a loophole in post-Gulf War sanctions, allowing Iraq to sell oil so Baghdad could purchase food, medicine and other humanitarian needs.

CNN: Iraq rejects proposed changes to new sanctions