FM ZEBARI AND CHARGE DISCUSS ELECTORAL DISTRICTS,

C O N F I D E N T I A L SECTION 01 OF 02 BAGHDAD 002952

SIPDIS

E.O. 12958: DECL: 07/13/2015
TAGS: PREL PGOV ECON EPET KDEM IZ
SUBJECT: FM ZEBARI AND CHARGE DISCUSS ELECTORAL DISTRICTS,
SHARING RESOURCES, AND KIRKUK

Classified By: Charge D' Affaires David M. Satterfield for reasons 1.4
(b) and (d)


1. (C) Summary. Foreign Minister Zebari told Charge
Satterfield on July 11 that Kurdish leaders favor a single
national electoral district, but he does not think this
position is unmovable. Charge emphasized that the USG favors
an outcome in which natural resources belong to the national
government, as outlined in the TAL. For the USG to spend
money on Kirkuk, Charge stressed that the Kirkuk Provincial
Council must be seated first. Coupled with Article 58
discussions within the constitutional debate, Charge outlined
three immediate steps: agreement to a seat for an Arab chosen
by Arabs, progress on the Iraq Property Claims Commission,
and movement on the Kirkuk Foundation. Zebari urged Charge
to meet with Barzani and Talabani on the Kirkuk issue and
offered to arrange the meeting. Charge told Zebari that we
would continue to work with the Sunnis and encourage the
insurgency to talk to Iraq and the Coalition about laying
down their arms. Following the recent attacks on the
diplomatic envoys, Zebari informed Charge that he and
Interior Minister Jabr had offered security assistance to
foreign missions. End Summary.

Districts, Resources, and Kirkuk
--------------


2. (C) Foreign Minister Zebari told Charge Satterfield on
July 11 that he belongs to a small group whose aim is to
encourage progress on the constitution. Drawn from "the two
parliamentary groups", this small group includes Vice
President Mahdi, Deputy Prime Minister Shaways, Planning
Minister Barham Saleh, Deputy Head of the Constitutional
Committee Fuad Maasum, and TNA Security and Defense Chairman
Maliki. Zebari said that the group's goal is to facilitate
and accelerate discussions on federalism, the status of
Kirkuk, the role of religion, the structure of the state,
allocation of natural resources, and other contentious
issues. He admitted that no Sunnis belong to this group.


3. (C) Charge asked whether the group had taken any critical
positions, pointing out that a "fait accompli" without Sunni
participation would not be positive. After attending only
one group meeting since his return from a long trip abroad,
Zebari was unsure. However, he discussed electoral
districts, resource sharing, and Kirkuk from a Kurdish
perspective.

- ELECTORAL DISTRICTS. Zebari said that Kurdish leadership
favors a single national electoral district because Iraq is
still in a state of transition. However, he admitted that he
has not spoken to his leadership concerning electorl issue
since his return to Baghdad. Charge suggested that Sistani's
preference for electoral districts by provinces had merit.
If consensus on the number of seats for each province is
reached, Charge explained that proportional representation
with provincial districts would encourage Sunnis, promote
local representation, and appeal to confessional groups.
Zebari opined that the electoral district issue is not an
"ideological problem" and would not lead to a "veto" from his
leadership.

- RESOURCE SHARING. Charge emphasized that the USG favors an
outcome in which natural resources belong to the national
government, as the TAL stipulates. If natural resources are
split among regions, Charge warned, it would be difficult for
Iraq to conclude economic treaties, and existing IMF
agreements would be invalidated. Zebari replied that there
are many modalities to resource sharing, but the key issue is
management. Charge asserted that the key issue for the USG
is ownership -- ownership of resources by all of one country.
As an example, Charge said that making clear Kirkuk oil
belongs to the nation would help solve the Kirkuk issue.

- KIRKUK. Zebari said that both KDP and PUK will not allow a
further postponement to the resolution of this issue. Charge
inquired as to the accuracy of reports that the Government
has allocated USD 55 million to Kirkuk. Zebari was
uncertain, but opined that the perception that the Government
is moving on this issue is important. Charge told Zebari
that he would travel to Kirkuk and Sulaymania to meet with
Barzani to promote the need to work on a process to address
the Kirkuk issue. We have the money to spend on Kirkuk,
Charge explained, but the Provincial Council must be seated
first. Coupled with Article 58 discussion within the
constitutional debate, Charge stressed that three steps are
required to move things forward: seats for Arabs chosen by
Arabs - similar to the Turkmen arrangement - and progress on
both the Iraq Property Claims Commission and the Kirkuk
Foundation. On the Kirkuk issue, Zebari advised Charge to
meet with Barzani and Talabani together, offering to arrange
such a meeting.

Yes To Sunni Engagement
--------------


4. (C) Zebari voiced concern that an all-out outreach to
Sunnis could come at the cost of existing alliances. Charge
assured that this is not the case, but stressed that we want
the insurgency to end. He said that the USG will continue to
work with the Sunnis on constructive engagement. If the
insurgency wants to talk to Iraq and the Coalition about
laying down its arms, Charge said, we will encourage it "with
you at the table."

Securing Foreign Missions
--------------


5. (C) Zebari informed Charge that he and Interior Minister
Jabr had met July 11 with chiefs of foreign missions in Iraq
and assured them that the Iraqi Government wants to offer
security assistance and asked for their cooperation. He said
the meeting was well received. Unfortunately, Zebari said
that the recent killing of the Egyptian Charge and kidnapping
attempts on the Bahraini and Pakistani envoys hurt the
positive momentum gained during the recent Arab League
gathering in Yemen, where Saudi Arabia, Jordan, and Yemen
committed to sending Ambassadors to Iraq. Zebari agreed with
Charge that encouraging missions, especially from Arab
countries, to publicly affirm their commitment to Iraq
despite recent attacks, would be useful in countering the
insurgency.


6. (U) REO HILLAH, REO BASRAH, REO MOSUL, and REO
KIRKUK, minimize considered.
Satterfield