TETSURO SHARES JAPANESE PLANS TO FULFILL FUNDS

UNCLAS BAGHDAD 003760 SIPDIS SENSITIVE E.O. 12958: N/A TAGS: ECON EFIN PREL ETRD EINV EAID ELAB IZ KCRS SUBJECT: TETSURO SHARES JAPANESE PLANS TO FULFILL FUNDS PLEDGED TO IRAQ SENSITIVE BUT UNCLASSIFIED; GOVERNMENT DISTRIBUTION ONLY; NOT FOR INTERNET DISTRIBUTION ¶1. (SBU) On September 2 Amano Tetsuro (Minister- Counselor of the Embassy of Japan, Baghdad and Chief Liaison and Representative of Japan to Baghdad) met with IRMO Director Daniel Speckhard and Deputy Director David Harris to discuss Japan's fulfillment on the commitment of funds pledged to Iraq at the 2003 Madrid Pledging Conference. Mr. Amano admitted that the process of determining which projects might warrant support with Japan's $3.5B (yen-denominated) loan commitment has been slow. ¶2. (SBU) Mr. Amano also shared two project lists with Speckhard. The first list indicates tentative candidate projects that Japan would consider for its loan. There was no indication that GOJ and ITG had agreed to any of these projects. The second list indicated projects that have been presented to the Iraqi Strategic Review Board (ISRB),the group that approves projects for possible international donor support [NOTE: A project that reaches the ISRB should have been reviewed and approved by the ministry in whose area of responsibility the proposed project falls. END NOTE]. The projects on this second list are for implementation within the Kurdistan Regional Government. ¶3. (SBU) Speckhard informed Mr. Amano that the US IRRF commitment would be ending in the not-too-distant future, but that additional adjustments in USG plans are likely as we accommodate additional costs for sustainment of completed projects. He also told Mr. Amano that he looks forward to sharing the revised plan with the GOJ once it is completed and discussed with the ITG. Speckhard expressed hope that some projects that may no longer receive IRRF funding may be considered for funding under the Japanese loan program. ¶4. (U) The meeting concluded with agreement on establishing regular consultative meetings to ensure continued close cooperation between US and Japanese reconstruction efforts in Iraq. SATTERFIELD