IRAQI DELEGATION VISIT TO THE HAGUE OCTOBER 3

C O N F I D E N T I A L SECTION 01 OF 02 THE HAGUE 002548

SIPDIS

SENSITIVE

EB FOR BILL GRANT

E.O. 12958: DECL: 10/03/2008
TAGS: ECON EAID EFIN PREL OTRA IZ NL
SUBJECT: IRAQI DELEGATION VISIT TO THE HAGUE OCTOBER 3

REF: STATE 280992

Classified By: ECONOMIC COUNSELOR RICHARD HUFF. REASONS 1.5(B) AND (D)
.


1. (C) SUMMARY: AN OFFICIAL IRAQI DELEGATION HEADED BY
PLANNING MINISTER HAFEDH MADE A BRIEF VISIT TO THE HAGUE
OCTOBER 3 IN ADVANCE OF THE IRAQ DONORS' CONFERENCE. WHILE
NOT SECURING ANY SPECIFIC PLEDGES OF ADDITIONAL SUPPORT FROM
THE "VERY CONSERVATIVE" DUTCH, THE TEAM REPORTED THAT THE
VISIT HAD BEEN USEFUL IN ESTABLISHING CONTACTS WITH SENIOR
DUTCH OFFICIALS. THEY PROMISED TO FOLLOW UP WITH ADDITIONAL
DATA FROM SPECIFIC SECTORS, SUCH AS WATER AND HEALTH, IN
WHICH THE DUTCH COULD BE INTERESTED. THE DUTCH REPORTEDLY
EMPHASIZED THE ROLE OF THE PRIVATE SECTOR IN RECONSTRUCTION.
END SUMMARY.

2 (U) IRAQI PLANNING MINISTER MEHDI HAFEDH AND MFA OFFICIAL
MOWAFAK ABBOUD OUTLINED IRAQ,S NEEDS FOR RECONSTRUCTION IN
SEPARATE MEETINGS WITH DUTCH TRADE MINISTER KAREN VAN GENNIP
AND MFA DEPUTY DIRGEN FOR POLITICAL AFFAIRS HERMAN SCHAPER IN
AN ABBREVIATED OCTOBER 3 VISIT TO THE HAGUE. WHILE AT THE
ECONOMY MINISTRY, THE IRAQIS ALSO HAD A CHANCE TO TALK WITH
REPRESENTATIVES FROM THE IRAQ TASK FORCE, AN UMBRELLA GROUP
OF DUTCH BUSINESSES INTERESTED IN IRAQ RECONSTRUCTION. THE
IRAQIS WERE ACCOMPANIED BY TOM ALLEN FROM THE CPA/CIC.


3. (C) IN A SHORT PRE-MEETING BRIEFING FOR THE TEAM AT THE
AMSTERDAM AIRPORT, THE AMBASSADOR URGED THE DELEGATES TO
EMPHASIZE IRAQ'S NEEDS AND TO ENGAGE THE DUTCH IN DISCUSSIONS
OVER PARTICULAR SECTORS, SUCH AS WATER AND HEALTH, IN LIGHT
OF THEIR REPEATEDLY EXPRESSED RELUCTANCE TO PROVIDE
ADDITIONAL GENERAL-PURPOSE FINANCIAL AID. HE ALSO EMPHASIZED
THE ECONOMY MINISTRY'S INTEREST IN SECURING A GREATER ROLE
FOR DUTCH INDUSTRY IN IRAQ'S RECONSTRUCTION PROGRAM AS
ANOTHER SELLING POINT IN ENTICING THE GONL INTO BECOMING MORE
ACTIVE IN IRAQ.


4. (C) FOLLOWING THE TEAM'S DISCUSSIONS WITH THE DUTCH,
MINISTER HAFEDH REPORTED TO THE DCM AND EMBOFFS THAT HE HAD
FOLLOWED THE AMBASSADOR'S ADVICE IN STRESSING PARTICULAR
PROJECTS AND SECTORS. ALTHOUGH THE MEETINGS HAD BEEN USEFUL,
THE MINISTER SAID, THE DUTCH HAD BEEN VERY CONSERVATIVE IN
MAKING ANY PLEDGES OF ADDITIONAL SUPPORT. THE DUTCH HAD
STRESSED THE VARIOUS FORMS OF SUPPORT AND ASSISTANCE THEY HAD
ALREADY PROVIDED, FROM THE 1100 TROOPS ON THE GROUND TO
POLICE TRAINING TO THE ROUGHLY 10 MILLION EURO DUTCH SHARE OF
THE FORTHCOMING 200 MILLION EURO EU PLEDGE TO BE MADE AT
MADRID. THE DUTCH ALSO NOTED THEIR CURRENT ECONOMIC
DIFFICULTIES AND THE TIGHT 2004 BUDGET RECENTLY PROPOSED TO
THE PARLIAMENT AS FURTHER CONSTRAINTS. PER THE MINISTER, THE
DUTCH SUGGESTED THAT SUPPORT FOR IRAQ MIGHT BE MORE
APPROPRIATELY PROVIDED IN THE FORM OF LOANS, SUCH AS FROM THE
IFIS, RATHER THAN AS GRANTS.


5. (C) DESPITE THE LACK OF SPECIFIC PLEDGES OF ADDITIONAL
DUTCH SUPPORT, THE IRAQIS BELIEVED THAT THE VISIT HAD
GENERATED SOME USEFUL ATMOSPHERICS, PARTICULARLY REGARDING
PRIVATE SECTOR INVOLVEMENT IN IRAQ'S RECONSTRUCTION. MR.
ABBOUD FROM THE IRAQI MFA REPORTED THAT THE GROUP HAD
STRESSED THAT THE IRAQIS WILL REMEMBER WHO WAS MOST HELPFUL
IN THEIR CURRENT TIME OF NEED IN FUTURE BUSINESS DEALINGS.


6. (U) THE DCM URGED THE IRAQIS TO FOLLOW UP DIRECTLY WITH
THE RELEVANT DUTCH OFFICIALS RESPONSIBLE FOR PROVIDING
OFFICIAL DEVELOPMENT ASSISTANCE AND STIMULATING BUSINESS
DEVELOPMENT, AND PROMISED THE EMBASSY'S ASSISTANCE IN
PROVIDING THE NAMES AND CONTACT INFORMATION FOR THESE
INDIVIDUALS. HE ALSO URGED THE TEAM TO CONTACT THE DUTCH
CHARGE IN BAGHDAD FOR FURTHER ADVICE ON EXPANDING CONTACT
WITH THE GONL. HE SUGGESTED THAT IT COULD BE USEFUL TO TAKE
THE INITIATIVE TO INVITE THESE OFFICIALS TO IRAQ AS A MEANS
OF STIMULATING THEIR INTEREST. MINISTER HAFEDH AGREED WITH
THESE SUGGESTIONS.


7. (U) EMBOFFS ALSO SUGGESTED THAT DUTCH NGOS, WHICH ARE
HEAVILY FUNDED BY THE GONL, COULD BE ANOTHER AVENUE FOR
INCREASING DUTCH SUPPORT FOR IRAQ'S RECONSTRUCTION AND
DEVELOPMENT. THE GROUP WILL MEET WITH THE DUTCH NGO IKV ON
OCTOBER 4 BEFORE ITS DEPARTURE FOR LONDON.

8. (U) THE IRAQI DELEGATION'S VISIT TO THE HAGUE WAS
ORGANIZED BY THE DUTCH MFA; THE IRAQI EMBASSY TO THE
NETHERLANDS IS CURRENTLY UNSTAFFED. TWO IRAQI DIPLOMATS HAVE
BEEN ASSIGNED TO REOPEN THE POST, ONE OF WHOM IS READY TO
TRAVEL PENDING THE ISSUANCE OF THE APPROPRIATE DUTCH VISA.
UNFORTUNATELY, THE TEAM,S PROGRAM IN THE HAGUE WAS CUT SHORT
BY A PROBLEM IN ISSUING THE GROUP,S AIR TICKETS FROM MADRID,
WHICH FORCED A DELAY IN THEIR ARRIVAL AND A LAST-MINUTE
REARRANGEMENT OF THE ORIGINAL DAY-LONG PROGRAM. NONETHELESS,
THE TEAM SUCCEEDED IN MEETING TWO SENIOR DUTCH OFFICIALS AND
ESTABLISHING CONTACTS THAT COULD LEAD TO GREATER DUTCH
INVOLVEMENT IN IRAQ'S RECONSTRUCTION.
RUSSEL