CHARGE DISCUSSES CONSTITUTIONAL ISSUES WITH TNA

C O N F I D E N T I A L SECTION 01 OF 02 BAGHDAD 003036

SIPDIS

NOFORN

E.O. 12958: DECL: 07/20/2015
TAGS: PREL PGOV PTER IZ
SUBJECT: CHARGE DISCUSSES CONSTITUTIONAL ISSUES WITH TNA
DEPUTY PRESIDENT SHAHRISTANI


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


1. (C/NF) Summary. TNA Deputy President Hussain
al-Shahristani and Charge discussed the state of play of the
constitutional debate along with the TNA's progress on key
legislative proposals in a July 18 meeting. Shahristani told
Charge that eighty percent of the drafting has been completed
and that federalism is the only remaining big issue to be
decided. Shahristani thinks the goal of having an approved
text by August 15 is achievable. While all parties have
agreed to some basic features of federalism, Sunni committee
members are concerned that a small southern region styled
after the Kurdish Regional Government will subject Iraq to
undue Iranian influences and ultimately result in the
dissolution of Iraq. Shahristani said natural revenues
should be shared on a per capita basis, but the ownership
issue is problematic as the Kurds are insisting on regional
ownership. Charge repeated the USG position that ownership
of natural resources should remain with the central
government.


2. (C/NF) Summary Continued. Shahristani spoke highly of
the TNA's progress to date. He said the new referendum law
will soon be passed, along with a law addressing shortcomings
in the Iraqi Special Tribunal statute and a new electoral law
for the December elections. End summary.

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Constitution Debate Progressing
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3. (C/NF) In a July 18 meeting with Charge, TNA Deputy
President Shahristani said the constitutional negotiations
have been intense, but the parties have achieved consensus on
eighty per cent of the major issues and are progressing
toward consensus on the key issue of federalism. Agreement
on this issue will take time said Shahristani, but he is
optimistic that one will be achieved by the August 15
deadline.

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Federalism - Sunni Concerns
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4. (C/NF) Shahristani indicated that all parties have agreed
to Kurdistan's status as a federal entity and to the central
government's exclusive powers over foreign affairs, national
defense, currency, and other central responsibilities. All
other powers will be reserved for the provinces, said
Shahristani. The Sunnis are insisting that all but Kurdistan
stay unified or, if there must be change, that only one
region be created from the nine southern governorates.


5. (C/NF) Sunni fear of having many regions within Iraq
stems from their concern that a small southern region would
be subject to undue influence from Iran, said Shahristani.
"We think they need time to live as equal citizens in a
democratic society," Shahristani said, "before the Sunni
Arabs will be comfortable with the idea of federalism. They
must understand that constitutional guarantees lead to
rights, not the denial of rights to others," offered
Shahristani.


6. (C/NF) Addressing the issue of a southern region,
Shahristani confirmed that some deputies in the TNA want to
form a region now. He went on that "Najaf (referring to
Ayatollah Sistani) does not wish to see unnecessary friction
created and has asked that we refrain from moving forward on
such a proposal at this juncture." That said, the Assembly
may consider the idea of creating a region from the nine
southern governorates after the elections, but only if the
Sunnis do not object, stated Shahristani. The Charge offered
that this thinking is consistent with USG policy: the TNA
should ensure that the right to form regions is embodied
within the new constitution. However, the TNA should not take
action now to create a region, as it would unnecessarily
disturb current negotiations.

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Fiscal Federalism - Revenue and Resource Ownership
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7. (C/NF) Although all parties have agreed to share revenues
derived from natural resources on a per capita basis,
Shahristani confirmed that they have not reached agreement on
the issue of the ownership of natural resources. The Shia
and Sunni Arabs favor national ownership of Iraq's resources
while the Kurds desire ownership by region. This debate is
crucial to the Sunni Arabs, stated Shahristani, as they must
be assured that Iraq's resources will remain a national asset
if they are to agree to any form of federalism. The Charge
concurred, stating that the USG strongly supports national
ownership of natural resources, as any other form of
ownership would weaken Iraq's ability to conclude
international financing agreements.


8. (C/NF) Shahristani added that the constitution may call
for the creation of a development fund, another fund for
investment, and a stabilization fund to help dampen
fluctuations from future oil sales.

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Following Article 58 on Kirkuk
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9. (C/NF) Shahristani said the parties have agreed to put
off resolution of the Kirkuk debate until after the December
elections per TAL Article 58. The issue is too complex to
negotiate now and should be resolved through the legal
system, Shahristani said. The Charge agreed and pointed to
Kirkuk as a perfect example of why ownership of natural
resources must be assigned to the national government. "If
ownership of natural resources were to be assigned to the
regions, the Kirkuk matter would never be resolved" stated
the Charge.

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TNA Developing; Special Tribunal and Elections Legislation
Moving Forward
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10. (C/NF) Assessing the state of TNA affairs, Shahristani
opined that the body has its shortcomings, but is learning
how to be an efficient legislative body. The new referendum
law is coming along well; the TNA intended to have the first
reading of the election law on July 20, stated Shahristani.
The TNA is also working on a revision of the Iraqi Special
Tribunal (IST) Statute to make it impervious to legal or
jurisdictional challenges.


11. (C/NF) Pressed by Charge whether the revised IST statute
would bar the removal of a sitting IST judge formerly a
low-level member of the Baath Party, Shahristani said the TNA
is drafting language that will protect sitting judges from
being challenged solely by reason of their former Baath Party
membership. (Most IST Judges held low-level membership within
the Baath Party, which was required of judges or attorneys
practicing law during the former regime.)


12. (C/NF) Shahristani claimed that the TNA has not reached
consensus on the new electoral law mainly because of Kurdish
reservations. But the law will most likely call for the
establishment of provincial electoral districts as opposed to
the single national district used in the January elections
(Baghdad would be split because of its large population). To
protect minority groups (Christian, Sabean, Yazidis),the law
would establish a single national electoral district with a
number of Assembly seats set aside for various minorities.
The modalities for this electoral system are unclear.


13. (C/NF) Shahristani expressed the view that the Kurds are
warming up to this idea, but asked USG assistance in pushing
the matter with the Kurdish leadership. The Charge
emphasized that we have informed senior Kurdish leaders that
the USG supports growing national consensus on a
provincial-based electoral system. Finally, Shahristani
indicated that the TNA will request expert assistance from
the UN and IECI to draft the new electoral law.


14. (U) REO HILLA, REO BASRA, REO MOSUL, and REO KIRKUK,
minimize considered
Satterfield