DEMARCHE: DELIVERABLES FOR THE US-EU INTERNATIONAL

C O N F I D E N T I A L OTTAWA 001776 SIPDIS E.O. 12958: DECL: 06/07/2013 TAGS: IZ PREL PGOV EAID EIND ECON CA SUBJECT: DEMARCHE: DELIVERABLES FOR THE US-EU INTERNATIONAL CONFERENCE ON IRAQ REF: A. A BAGHDAD 2179 (MICHAEL BELL ON DONOR COORDINATION) ¶B. B 04 OTTAWA 888 ¶C. C 04 OTTAWA 545 ¶D. D SECSTATE 103222 Classified By: DCM John Dickson, reasons 1.4 (b) (d) ¶1. (C) Charge delivered reftel talking points to Deputy Minister of Foreign Affairs Peter Harder June 7 and Poloff followed up with FAC Deputy Director for the Middle East Ann Flanagan-Whalen June 8. We were told that it is not clear whether Minister Pettigrew will be attending the Brussels meeting due to the still volatile political situation in Ottawa. (Note: the current session of Parliament ends on June 23 and there is still an off chance that the government could be subject to a no-confidence motion in which every vote would count. End Note). ¶2. (C) Charge stressed to Harder the importance of the Brussels Conference as a tangible show of support for the Interim Iraqi Government, and thanked Canada for all it has done to coordinate donors and support Iraqi reconstruction. Asked if Canada would consider additional funding pledges, Flanagan-Whalen said no decision has been made, but Canada would stress the previous pledges it has made and encourage other donors to do likewise. She said she would discuss with her CIDA colleagues the possibility of doing more in the areas of rule of law, human rights, justice reform, and de-mining as we suggest. Frozen Iraqi Assets ¶3. (SBU) Separately, Econoff discussed the question of the $80,000 in frozen Iraqi assets (refs B & C). As of October 19, 2004, Canadian financial institutions that froze Iraqi assets in compliance with the UN resolution must report to the GOC the amount of assets frozen. The assets must then be transferred to the Development Fund for Iraq in compliance with UNSCR 1483. The GOC confirmed that one financial institution reported frozen assets and has transferred them to the DFI. The other one that was known to be holding Iraqi assets has not yet filed a report and GOC regulators are following up with that institution to confirm that compliance officers are aware of the regulation. ¶4. (SBU) Should we learn of further assets that have not been transferred, the GOC will follow up with financial institutions to confirm that they comply with the regulations. The link to the United Nations Iraq Regulations in the Canada Gazette (the equivalent of the Federal Register) is http://canadagazette.gc.ca/partII/2004/200411 03/html/sor221-e. Visit Canada's Classified Web Site at http://www.state.sgov.gov/p/wha/ottawa DICKSON