VP ABD AL-MEHDI SAYS SHIA ISLAMIST COALITION

C O N F I D E N T I A L SECTION 01 OF 02 BAGHDAD 000224 SIPDIS SIPDIS E.O. 12958: DECL: 01/26/2016 TAGS: EPET PGOV PREL IZ SUBJECT: VP ABD AL-MEHDI SAYS SHIA ISLAMIST COALITION SHORTCHANGED IN ELECTION BUT WILL ABIDE BY RULES REF: BAGHDAD 195 Classified By: Ambassador Zalmay Khalilzad for reasons 1.4 (B) and (D) ¶1. (C) Summary: In a January 23 meeting, Ambassador Khalilzad and Deputy President (and Prime Minister contender) Adel Abd al-Mehdi agreed that Iraq should take steps to increase oil production in southern Iraq promptly to boost Iraq's income stream. Abd al-Mehdi said Deputy Prime Minister Chalabi already is working on this. The Ambassador emphasized that steps need to be taken to secure Iraq's oil infrastructure, and he urged stiff penalties on saboteurs. Turning to the formation of the next government, Abd al-Mehdi claimed that the Independent Electoral Commission of Iraq (IECI) had unfairly taken seats from his Shia Islamist coalition, the United Iraqi Coalition (UIC 555). However, he pledged that the Shia coalition would abide by whatever ruling comes down from the Transitional Election Panel. On government structure, the Ambassador recommended security, finance, and services as three "pockets" of government ministries, each of which could be controlled by a Deputy Prime Minister or a special representative of the Prime Minister. Abd al-Mehdi said he could consider this. Abd al-Mehdi promised the Ambassador that the Iraqi Government would do whatever it could to help secure the release of kidnapped U.S. journalist Jill Carroll. End Summary. -------------- Electricity and Oil -------------- ¶2. (C) Ambassador Khalilzad on January 23 reminded Deputy President Adel Abd al-Mehdi that hours of available electricity have decreased to subsistence levels. Baghdad has been hit especially hard by power shortages, largely because of interdiction of linear infrastructure and scheduled and unscheduled maintenance. Both also noted that there appears to be a purposeful effort to strangle Baghdad. Abd al-Mehdi expressed cautious confidence in Ahmed Chalabi's infrastructure security coordination efforts, calling him "efficient." Abd al-Mehdi emphasized that power plants must be repaired in order to prevent power outages in summer 2006. Both agreed that Iraq also must make payments on the 1 billion USD in arrears it owes Turkey for petroleum product imports. ¶3. (C) The Ambassador recommended to Abd al-Mehdi that Iraq rehabilitate and uncap 60 oil fields in southern Iraq. The U.S., for its part, has already invested 40 million USD to complete this project. This effort would increase Iraqi oil production by 450,000 barrels per month, which in turn would provide Iraq with urgently needed additional income. This task could be completed by the end of 2006. Abd al-Mehdi agreed and said DPM Ahmed Chalabi already is working on this effort. ¶4. (C) The Ambassador and Abd al-Mehdi agreed on the need to secure Iraqi's energy infrastructure. The Ambassador reported that three Iraqis were recently captured attempting to blow up an oil pipeline. One of the suspects was the manager of the Bayji thermal power plant, and the other two were members of Security Infrastructure Battalions charged with protecting the pipeline. The Ambassador pressed Abd al-Mehdi to impose draconian penalties on such criminals. -------------- Government Formation -------------- ¶5. (C) Abd al-Mehdi told the Ambassador that the IECI has allocated to the United Iraqi Coalition (UIC 555) fewer seats in the Council of Representatives than it should have received. Abd al-Mehdi assured the Ambassador, however, that UIC 555 would abide by the ultimate ruling of the Transitional Electoral Panel. ¶6. (C) The Ambassador suggested to Abd al-Mehdi that security, finance and services may be formed into three "pockets" of government ministries, each of which could be overseen by a Deputy Prime Minister. If creating a third DPM were not feasible due to the need for a constitutional amendment, the Ambassador recommended examining other options. This could include creating a special assistant to the PM for the third pocket. Abd al-Mehdi said he would consider this idea. ¶7. (C) The Ambassador and Abd al-Mehdi then discussed the Ambassador's recent trip to discuss government formation with the Kurdish leadership and Ayad Allawi (reftel). KDP leader Masoud Barzani will soon travel to Baghdad to start BAGHDAD 00000224 002 OF 002 negotiations in earnest on government formation. Also related to government formation, Abd al-Mehdi put forward Jawad Maliki of Dawa and independent Kassim Daoud as possible candidates for Minister of Interior. ¶8. (C) The Ambassador informed Abd al-Mehdi that he had contacted Minister of Interior Bayan Jabr to help secure the release of U.S. journalist Jill Carroll. Abd al-Mehdi agreed that GOI would assist in the case. KHALILZAD