MFA RESPONDS TO OIL-FOR-FOOD DEMARCHES

C O N F I D E N T I A L BAGHDAD 004920

SIPDIS

NEA/I-ECON FOR JOSH VOLZ

E.O. 12958: DECL: 12/07/2015
TAGS: AINF ECON PGOV IZ
SUBJECT: MFA RESPONDS TO OIL-FOR-FOOD DEMARCHES

REF: A) STATE 219153 B) STATE 213760

Classified By: Economic Minister Counselor Tom Delare for reasons 1.4 (
b) and (d).


1. (C) Summary: In a December 8 meeting with Econoff,
Ambassador Srood R. Najib of the MFA, agreed to USG requests
for: 1) declassification of certain Oil-for-Food (OFF)
documents for use by the Department of Justice (DOJ),and 2)
Iraqi funding of the U.N. OFF Independent Inquiry Committee
(IIC). End summary.


2. (C) On December 8, Econoff met with Ambassador Srood R.
Najib, head of the MFA's International Organization and
Multilateral Cooperation Department to discuss two recent OFF
requests submitted to the MFA by the Embassy via diplomatic
note. The first request was for permission to declassify two
OFF documents for dissemination outside the USG, per the
request of the DOJ and the U.S. Attorney's office for the
Southern District of New York (SDNY) (ref A). SDNY intends
to use these documents in ongoing OFF investigations and
prosecutions.


3. (C) Najib was quite knowledgeable of OFF issues having
just returned from two months at Iraq's U.N. mission in New
York. He immediately gave his verbal permission for the
documents to be declassified, provided any illicit funds or
"kickbacks" uncovered in the course of the investigation be
returned to the Development Fund for Iraq (DFI). He said
that he would send an official written reply to this effect
in response to our diplomatic note.


4. (C) Najib was likewise well-briefed about our other OFF
request that the GOI continue funding the U.N. IIC chaired by
Paul Volcker for an additional three to six months beyond its
December 31, 2005 expiration date (ref B). Najib agreed that
funding the continued operations of the IIC is necessary to
ensure the continued use of the documentary evidence it has
assembled. The GOI will fund the extension, he said, or the
funds will be taken from the DFI. Najib said that these
instructions would be sent to Iraq's U.N. mission by week's
end and that their Deputy Permanent Representative would also
inform Ambassador Bolton. The GOI prefers a six-month
extension.
KHALILZAD