Identifier
Created
Classification
Origin
05BAGHDAD3426
2005-08-20 14:48:00
CONFIDENTIAL
Embassy Baghdad
Cable title:  

AUGUST 20 MORNING UPDATE ON CONSTITUTIONAL DRAFTING

Tags:  PGOV KDEM PREL IZ 
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C O N F I D E N T I A L BAGHDAD 003426 

SIPDIS

E.O. 12958: DECL: 08/20/2015
TAGS: PGOV KDEM PREL IZ
SUBJECT: AUGUST 20 MORNING UPDATE ON CONSTITUTIONAL DRAFTING

REF: BAGHDAD 3424

Classified By: DCM David M. Satterfield for reasons 1.4 (b) and (d)

C O N F I D E N T I A L BAGHDAD 003426

SIPDIS

E.O. 12958: DECL: 08/20/2015
TAGS: PGOV KDEM PREL IZ
SUBJECT: AUGUST 20 MORNING UPDATE ON CONSTITUTIONAL DRAFTING

REF: BAGHDAD 3424

Classified By: DCM David M. Satterfield for reasons 1.4 (b) and (d)


1. (C) As noted in reftel, the key issue remaining for
Shia-Kurd resolution is management of oil/gas resources and
handling of associated revenues. Morning of August 20,
Ambassador Khalilzad presented revised language to SCIRI
leader Hakim, who then reviewed the text with UIA leadership.
VP Abdel Mehdi subsequently informed Ambassador of UIA
agreement on the following text:

"Natural resources are the property of all the people of Iraq
in all regions and governorates.

The federal government with the producing governorates and
regional governments shall undertake the management of oil
and gas extracted from current fields and distribute the
income in a fair manner in proportion to the population
distribution in all parts of the country with a set allotment
in a set time for damaged regions that were deprived in a
biased manner by the former regime - and in a way that
assures balanced development in different areas of the
country, and this will be stipulated by law.

The federal government with the regional and governorates
governments shall draft the necessary strategic policy to
develop oil and gas in a way that achieves the highest
interests of the Iraqi people based upon the best market
principles and to encourage investment."

Ambassador is now with KDP leader Barzani to review the above
language and seek concurrence.


2. (C) Next steps: Obtaining Shia-Kurd closure on the
resources issue is essential to moving forward on closing the
entire constitution text. If Barzani balks, we believe the
moment will have arrived for maximum and immediate Washington
pressure to be brought to bear upon him. If he concurs on
the closing issue, then we will move ahead today on editing
the full constitution text - a procedure agreed to by Hakim.
Khalilzad