RECONSTRUCTION DISBURSEMENTS TO IRAQ

C O N F I D E N T I A L MUSCAT 000400 SIPDIS STATE FOR EB/ODF (RDEMARCELLUS),NEA, NEA/I/A, NEA/ARPI E.O. 12958: DECL: 03/08/2015 TAGS: EAID ECON EFIN IZ MU SUBJECT: RECONSTRUCTION DISBURSEMENTS TO IRAQ REF: A. SECSTATE 36580 ¶B. 04 MUSCAT 1645 Classified By: Ambassador Richard L. Baltimore III. Reason: 1.4 (b, d). ¶1. (SBU) On March 6, the Ambassador called on Foreign Ministry Under Secretary Sayyid Badr bin Hamed al-Busaidi to deliver reftel demarche seeking a status report on Oman's pledge to Iraq's reconstruction. Sayyid Badr recalled that Oman had initially pledged USD 3 million at the 2003 Madrid Conference, but subsequently upped its offer to USD 5 million. He understood that Oman was to make its contribution to "the UN fund," but promised to report back to us the status of the disbursement. He asked if we could provide specific instructions on how to deposit the Omani contribution if it had not already been done. Sayyid Badr questioned what difference Oman's modest contribution could make when stacked against the enormous USG commitment, to which the Ambassador replied that every bit of help was appreciated. ¶2. (C) On March 7, the Under Secretary's political advisor contacted Pol/E Chief to report that Oman indeed has not yet deposited its pledged assistance. He said that, in line with recent comments by the Foreign Minister to the Ambassador, Oman is awaiting the post-election formation of a new Iraqi government before disbursing its assistance. P/E Chief pushed back, recalling that similar benchmarks in Iraq's transition had been identified by the Omani government without follow-through on its pledge. Further stages, such as a referendum to approve a new constitution followed by another round of elections, are always on Iraq's horizon but critical assistance requirements cannot be postponed. The MFA official agreed that the January 30 elections were an exceptional achievement for Iraqi democracy, and that Oman would carry out its assistance pledge as soon as there was a government formed in Baghdad, which he expects in the very near future. BALTIMORE