UNDER SECRETARY OF DEFENSE EDELMAN MEETS WITH PM

C O N F I D E N T I A L SECTION 01 OF 03 BAGHDAD 004347

SIPDIS

E.O. 12958: DECL: 10/21/2015
TAGS: PREL MARR MOPS ECON EFIN PTER KCOR IZ
SUBJECT: UNDER SECRETARY OF DEFENSE EDELMAN MEETS WITH PM
JAAFARI

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


1. (C) SUMMARY: Under Secretary of Defense for Policy
(USDP) Eric Edelman and LTG Victor Renuart, Director of
Strategic Plans and Policy, met with Prime Minister Ibrahim
al-Jaafari at his office on October 18. They discussed the
ongoing development of the Iraqi Security Forces (ISF).
Jaafari stressed that it is critical for Iraq to continue to
develop its security capacity along with its political and
economic capacities if the progress already made is to
continue. Iraq will continue to look to the U.S. for
assistance with this, Jaafari added. In the fight against
terrorism, Jaafari said, it is critical that we continue to
work together -- for if the U.S. falters in Iraq, it will be
a victory for international terrorists. On the economy,
Jaafari said that Iraq must cope with its problems and that
he would be grateful if the U.S. would use some of its
political goodwill with other nations to help obtain debt
relief. Steps to help Iraq meet its international financial
obligations will be painful, Jaafari said, and U.S. support
will be necessary to get past the pain. END SUMMARY.


2. (C) USDP Edelman opened the meeting by thanking Jaafari
for receiving his delegation. He explained that he and LTG
Renuart had recently assumed their positions and wanted to
visit at the earliest opportunity to assess and learn
first-hand what is taking place in Iraq. So far, Edelman
said, they had visited Mosul, al-Kisik, and Taji to meet with
ISF officers and to inspect training facilities. Edelman
said that he and Renuart had been impressed by what they had
seen.

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POLITICAL PROGRESS -- ISF PROGRESS
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3. (C) Jaafari replied that USDP Edelman's visit comes at a
critical moment following the referendum, as it would allow
Edelman to see how the situation in Iraq is evolving and
would put this year's progress into context. Jaafari proudly
reviewed how, since January 2005, Iraq has held a democratic
election, formed and installed a new government, and drafted
a constitution that was put to the people in a referendum
whose security was provided by the ISF. And, Jaafari added,
in less than two months the fourth major political milestone
will be attained: the election of a permanent government.
Iraq's progress on security is evident, the PM said, from the
ISF's performance in ensuring a safe environment for the
referendum.


4. (C) Jaafari added that Iraq would like to continue to
formulate stronger plans to build its security forces. The
quietness of the referendum, he warned, does not mean that
the threat has gone away. Further, he continued, the
strength and capabilities of the ISF are not just an Iraqi
issue; it concerns the U.S. and the region as well. Jaafari
said that the growth of the ISF must not be seen in the
limited context of Iraq's own fight against terrorists but in
the broader context of the global war on terror. In
addition, the PM noted, the success of democracy in Iraq is a
success for the U.S., and a setback for Iraq is a setback for
the U.S. Jaafari said that what has taken place in Iraq has
already affected countries in the region such as Saudi
Arabia, Libya, Lebanon, and others. Even at the
international level, he continued, countries such as France
and Russia that initially opposed Coalition actions in Iraq
now realize what is at stake. Jaafari said that Iraq needs
to continue to focus on the type and level of military
equipment it needs, the number of people it trains, and the
quality of the training received.

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ECONOMIC CONCERNS
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5. (C) Jaafari said that Iraq has many problems aside from
security issues. As the security ministries continue to
build capacity, he said, so too must the other government
ministries. The PM noted that Iraq has big economic hurdles
to clear to secure adequate international financial
assistance, and measures taken by the GOI to satisfy
international economic requirements might create further
challenges for the country. U.S. help, Jaafari said, will be
necessary to overcome these hardships. Also, he added, Iraq
is still burdened by international compensation claims, and a
full five percent of Iraqi oil revenue goes to pay these
claims to Kuwait. Jaafari said that the U.S. should leverage
its political goodwill with other countries to give Iraq some
breathing room. In addition, Jaafari complained that many
countries continue to hold frozen Iraqi assets, which the
U.S. should help to release and return to Iraq.


6. (C) USDP Edelman concurred with Jaafari that security is
necessary to assure economic growth but that economic growth
is necessary to pay for additional security. He told Jaafari
that he was impressed by the patriotism and professionalism
of the Iraqi soldiers he has meet, as well as by the close
relationships evident between U.S. and Iraqi soldiers. The
growth of the ISF from zero to 207,000 soldiers and police is
a significant accomplishment, Edelman continued. He added
that the ISF appears to be on the path to success, and their
performance during the referendum is an impressive measure of
their abilities and a tribute to what has been accomplished.

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CAPACITY DEVELOPMENT
--------------


7. (C) USDP Edelman agreed with Jaafari that capacity
development at the Ministries of Defense and Interior to
support their forces remains a key issue. Edelman said that
in the future these ministries must be able to purchase
needed equipment, pay their employees, and provide the
resources necessary to permit investments being made today to
continue to pay off in the future. The U.S., the Under
Secretary noted, has experience helping other countries to

SIPDIS
create ministries capable of these functions -- with the
Eastern European nations that have recently joined NATO being
good examples. However, he stated, there are two things
required of the Iraqis to successfully move forward:

-- The fight against corruption must be waged and won
transparently and according to the rule of law. Iraq cannot
afford waste or fraud and the disillusionment that results.

-- There must be sufficient political will in the government
to devote the resources needed to adequately finance the
costs of security.

Jaafari replied that the ITG is determined to fight
corruption to the end. USDP Edelman reiterated that as long
as the process is fair and based on the rule of law, rather
than used to forward political or sectarian agendas, the U.S.
will be fully supportive. Jaafari assured Edelman that the
ITG policy is exactly that.


8. (C) LTG Renuart stated that developing police loyalty to
Iraq and securing energy infrastructure are key issues for
Generals Casey and Abizaid, and the USG will continue to work
closely with the Iraqis on these issues in the period leading
up to the December elections. Renuart remarked that he was
impressed by the progress being made by the police forces and
stressed the need to continue to inculcate new officers with
loyalty to Iraq rather than to sectarian groups. He also
noted the critical task of securing energy infrastructure,
which will require a team effort that includes Coalition
Forces, the security ministries, and other relevant
ministries.

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RELATIONS WITH NEIGHBORS
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9. (C) USDP Edelman asked Jaafari how the ITG plans to
build upon the referendum's successful voter turnout efforts
and ensure that the results of the December election will be
broadly representative. Jaafari replied that the major goal
of his government will remain ensuring that the people can
vote in a safe and secure environment. The PM also
highlighted the importance of continuing to reach out to
other Arab countries to gain their support. He mentioned the
recent visit of an Arab League delegation, the visit of Arab
League SecGen Amr Moussa, and visits he himself is planning
to other Arab capitals. "What is important is to have the
goodwill of other Arab countries and to have them supporting
Iraq, not the insurgency," the PM said. He also complained
that both money and fighters from some Arab states feed the
insurgency, while the media in other Arab states publish
unhelpful stories about what is really taking place in Iraq.


10. (C) USDP Edelman asked Jaafari which countries posed
the greatest problem in this respect. Jaafari replied that
Syria is the number one problem, that Syria harbors
terrorists who are training to come to Iraq, and that many of
the foreign fighters arrested or killed in Iraq have passed
through Syria. Jaafari said that Iraq is waiting for
Damascus to improve its conduct regarding these foreign
insurgents before developing the Iraq-Syria relationship any
further. Jaafari next mentioned Iran but qualified his
statement by saying that the problems Iran caused did not
compare to the problems caused by Syria. He said that Tehran
denies involvement in any activities aimed at subverting Iraq
but that there is evidence that fighters have crossed the
border. Jaafari returned to the subject of Syria and said
that the problem will get out of hand if Iraq and the U.S. do
not work together closely.

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TERRORIST FINANCING
--------------


11. (C) USDP Edelman raised the subject of terrorist
financing. He noted that some funds that support the
insurgency flow from Syria, while others are earned through
criminal enterprises such as kidnapping. For this reason, he
added, police capabilities must be enhanced. At the same
time, Edelman suggested, Iraq should consider dealing with
the problems caused by fuel subsidies -- which lead to a
black market for fuel sales, the earnings from which can feed
the insurgency. Rethinking fuel subsidies, the U/S
explained, would also help Iraq in its dealings with the
International Monetary Fund.

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REMARKS TO THE PRESS
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12. (C) Following his meeting with Jaafari, USDP Edelman
was invited to make comments to a sizable group of Iraqi
journalists who had gathered in a room nearby. He explained
the reason for his trip, said he was very encouraged by what
he saw with regard to the ISF's developing capabilities, and
expressed pleasure to be visiting Iraq during this hopeful
period immediately following the referendum. In response to
a question regarding the Coalition's plans to depart Iraq,
Edelman responded that the Iraqis and the Coalition have
formed a joint committee to plan for the transfer of security
responsibilities and that any such transfers would be
conditions-based rather than driven by an arbitrarily set
timeline.


13. (U) This cable was cleared by USDP Edelman.
Satterfield