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