Identifier
Created
Classification
Origin
06BAGHDAD406
2006-02-10 14:37:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Baghdad
Cable title:
MESSAGE FOR THE SECRETARY: AGRIBUSINESS FUNDING
how-toVZCZCXYZ0003 OO RUEHWEB DE RUEHGB #0406 0411437 ZNR UUUUU ZZH O 101437Z FEB 06 FM AMEMBASSY BAGHDAD TO RUEHC/SECSTATE WASHDC IMMEDIATE 2618 RHEHNSC/WHITE HOUSE NSC WASHDC IMMEDIATE RUEKJCS/SECDEF WASHINGTON DC IMMEDIATE
UNCLAS BAGHDAD 000406
SIPDIS
STATE FOR SECRETARY AND S/I
SIPDIS, SENSITIVE
E.O. 12958: N/A
TAGS: MARR PINS ODIP OFDP PREL IZ
SUBJECT: MESSAGE FOR THE SECRETARY: AGRIBUSINESS FUNDING
NEEDED IN FY06 SUPPLEMENTAL
UNCLAS BAGHDAD 000406
SIPDIS
STATE FOR SECRETARY AND S/I
SIPDIS, SENSITIVE
E.O. 12958: N/A
TAGS: MARR PINS ODIP OFDP PREL IZ
SUBJECT: MESSAGE FOR THE SECRETARY: AGRIBUSINESS FUNDING
NEEDED IN FY06 SUPPLEMENTAL
1. (SBU) I appreciate all the work you and the Department have
done in getting a strong supplemental request for assistance
to Iraq. It was good news to see that OMB had agreed to
include the funding for national capacity development.
2. (SBU) I believe we are in good shape, with one exception -
funding for agribusiness development. We have talked a lot
about the importance of agriculture development as an
employment generator in Iraq. Many in Congress also have
shared their sense of the importance of facilitating the
development of this sector.
3. (SBU) Restoration of the agriculture sector is critical to
stabilization in Iraq, both for employment and revenue
generation. Agribusiness in particular needs to be a key
focus of our activities. There is little Iraqi capacity to
process, package, market and distribute agribusiness foods and
services. The result is that Iraq ends up importing many
processed goods that it could provide itself and loses the
employment and revenue.
4. (SBU) We also need to focus the next government on subsidy
reduction. We can expect a number of allies in this effort,
but it will continue to be politically challenging. Success
in reducing food subsidies will depend, in part, on increasing
production and availability of processed goods in the domestic
market.
5. (SBU) I understand the OMB logic of preferring to put these
types of programs in regular appropriations bills. However,
we did not get the funding for which we asked in the regular
FY06 appropriation, and FY 07 funding is unlikely to be
available for another year. After the first OMB passback, we
already cut our supplemental request in half.
6. (SBU) I am concerned about missing this opportunity. I
believe that revitalizing the private agriculture sector and
generating new employment can play a key role in our efforts
to undermine the counterinsurgency.
7. (SBU) I recommend appealing this one item with OMB. If
you like, I would also be willing to call Josh Bolton to
reinforce the point. Thanks, Zal
KHALILZAD
SIPDIS
STATE FOR SECRETARY AND S/I
SIPDIS, SENSITIVE
E.O. 12958: N/A
TAGS: MARR PINS ODIP OFDP PREL IZ
SUBJECT: MESSAGE FOR THE SECRETARY: AGRIBUSINESS FUNDING
NEEDED IN FY06 SUPPLEMENTAL
1. (SBU) I appreciate all the work you and the Department have
done in getting a strong supplemental request for assistance
to Iraq. It was good news to see that OMB had agreed to
include the funding for national capacity development.
2. (SBU) I believe we are in good shape, with one exception -
funding for agribusiness development. We have talked a lot
about the importance of agriculture development as an
employment generator in Iraq. Many in Congress also have
shared their sense of the importance of facilitating the
development of this sector.
3. (SBU) Restoration of the agriculture sector is critical to
stabilization in Iraq, both for employment and revenue
generation. Agribusiness in particular needs to be a key
focus of our activities. There is little Iraqi capacity to
process, package, market and distribute agribusiness foods and
services. The result is that Iraq ends up importing many
processed goods that it could provide itself and loses the
employment and revenue.
4. (SBU) We also need to focus the next government on subsidy
reduction. We can expect a number of allies in this effort,
but it will continue to be politically challenging. Success
in reducing food subsidies will depend, in part, on increasing
production and availability of processed goods in the domestic
market.
5. (SBU) I understand the OMB logic of preferring to put these
types of programs in regular appropriations bills. However,
we did not get the funding for which we asked in the regular
FY06 appropriation, and FY 07 funding is unlikely to be
available for another year. After the first OMB passback, we
already cut our supplemental request in half.
6. (SBU) I am concerned about missing this opportunity. I
believe that revitalizing the private agriculture sector and
generating new employment can play a key role in our efforts
to undermine the counterinsurgency.
7. (SBU) I recommend appealing this one item with OMB. If
you like, I would also be willing to call Josh Bolton to
reinforce the point. Thanks, Zal
KHALILZAD