PRT/REO POLITICAL AND ECONOMIC ROUNDUP (OCTOBER 25 - NOVEMBER 10, 2006)

C O N F I D E N T I A L SECTION 01 OF 04 BAGHDAD 004252 SIPDIS SIPDIS E.O. 12958: DECL: 11/14/2016 TAGS: PGOV PREL KDEM JKJUS EINV ECON IZ SUBJECT: PRT/REO POLITICAL AND ECONOMIC ROUNDUP (OCTOBER 25 - NOVEMBER 10, 2006) Classified By: Political Counselor Margaret Scobey for reasons 1.4(b) and (d). ¶1. (C) SUMMARY. Embassy Baghdad has initiated a regular roundup cable of short political and economic items submitted by Provisional Reconstruction Teams and Regional Embassy Offices in Iraq. This is intended to complement other reporting and provide insight on events and developments across the country. Issues covered in this roundup include: - ANBAR: Provincial Council Expands to Include Sheikhs - BABIL: Sadrists Hold Reconciliation Conference, without Sunnis - KARBALA: Police Chief Cracks Down; Sheikh Keeps Power Going - NAJAF: Governor Seeks to Lure Investment, Tourism - DIWANIYAH: Elections Chief Concerned about Fate of Moderate Parties - WASIT: Sunnis, CoR Member Receive Death threats - BAGHDAD: PC Member Lauds Investment Law, Laments Failures of Reconciliation Plan - SALAH AD DIN: Local IIP Leaders Claim Tawafuq May Withdraw from Government - NINEWA: Micro-Loans have Macro Impact End Summary. -------------- -------------- ANBAR: Provincial Council Expands to Include Sheikhs -------------- -------------- ¶2. (C) Anbar provincial and federal government leaders met November 9 to discuss the addition of eight new seats to the Provincial Council (PC) for representatives of the Anbar Salvation Council (SAA),an association of select Anbar sheikhs. The sheikhs had previously obtained agreement from PM Maliki to add seats to the PC in exchange for tribal cooperation against terrorists. Participants at the meeting included Anbar Governor Ma'amoun Sami Rasheed Al-Awani, senior Anbar Provincial Council (PC) members, including PC President Abdul Al-Salam, and a representative from the Commission on National Reconciliation. MNF-W DCG and Anbar PRT Leader also attended and were regularly consulted. The modalities for adding the new seats had been under intense discussion for several weeks. Provincial leaders had reportedly been frustrated by repeated changes by the sheikhs' of their list of proposed representatives for the PC. PC members also expressed distrust of SAA tribal spokesman Sheikh Sattar Al-Rishawi, whom they characterized as disorganized. The PC will reconvene on Nov 14 to confirm the legality of expanding the legislative body in this manner, at which point the PC is also expected to approve the final list of the eight tribal representatives. In addition to guarantees on security, the PC also seeks tribal support for the legitimacy of the governor, PC, and other government institutions. -------------- -------------- BABIL: Sadrists Hold Reconciliation Conference, without Sunnis -------------- -------------- ¶3. (SBU) The Babil Sadrists held a reconciliation conference in al-Hillah on November 8 ostensibly in support of Muqtada al- Sadr's recent call to stop the shedding of Iraqi blood. Conference organizers reportedly sought to make the event a forum for reconciliation both among Babil's Shia groups and between Shia and the province's shrinking Sunni population. After a speech by a local sheikh blaming sectarian violence on the United States, conference participants formed a committee comprised entirely of Shia to monitor reconciliation efforts. There were reportedly no Sunnis at the event. -------------- -------------- KARBALA: Police Chief Cracks Down; Sheikh Keeps Power Going -------------- -------------- BAGHDAD 00004252 002 OF 004 ¶4. (SBU) The local Iraqi Police chief is pushing forward with his plan to reduce violence and clean up the Karbala police. His crackdown resulted in the successful arrest of ten suspected terrorists in northern Karbala. The individuals were apprehended and a significant cache of small arms, explosives and other equipment were found in their hideout on a farm. In Karbala, several individuals were also arrested for planning an attack on the holy shrines. ¶5. (U) According to press reports, local Shiekh Al Ameer Al Himiary imported 43 solar powered generators to increase power generation and continuity. These generators are expected to provide continuous electricity for a fee of 1500 Iraqi Dinar/amp and reduce community dependence on fuel, black market or otherwise. The mayor's office is supporting the effort. -------------- -------------- NAJAF: Governor Seeks to Lure Investment, Tourism -------------- -------------- ¶6. (SBU) The governor of Najaf, Asaad Al Taee, traveled to Kuwait and Jordan in recent weeks in an attempt to lure investment, both private and public. With Najaf's reconstruction effort well underway and seeing a degree of success, the governor and members of the Provincial Council have set out to portray Najaf as a tourism destination. While the service industry continues to grow, Najaf officials consider the refurbishment of portions of a highway from the city center to Saudi Arabia a necessary next step. ¶7. (SBU) Najaf sees its population grow exponentially during important Muslim holidays and has been the beneficiary of a tourism boom that has grown since the overthrow of the Hussein regime. The desire to complete the Saudi Arabia-Najaf highway is driven by the potential for pilgrims to travel to Najaf at any time of the year. The head of Najaf's chamber of commerce met with REO staff November 7 in order to solicit assistance in completion of the highway project. -------------- -------------- DIWANIYAH: Elections Chief Concerned about Fate of Moderate Parties -------------- -------------- ¶8. (C) Independent Electoral Commission of Iraq (IECI) provincial head Saad Madhloom expressed concern to IPAO November 6 that the apparent delay in holding provincial elections may result in the disappearance of a number of smaller, moderate parties. He noted his extensive travel in the United States as the basis for his desire to see moderate parties compete fairly in future elections. "We have a responsibility to ensure that all voices are heard," Madhloom said. He noted with some forcefulness that he did not believe the Marja'iya were responsible for the problems facing smaller parties, but the inherent costs of running a viable political organization. He asserted that if the moderates vanish from the political landscape it will be because of the crushing expense of day to day operations. -------------- --- WASIT: Sunnis, CoR Member Receive Death threats -------------- --- ¶9. (SBU) Sunni families in Wasit's capital city of Al-Kut recently received written death threats according to Wasit's IP Chief, General Hussein. The threatening letters were signed by a group calling itself the Al-Istiqamah (Straight) Army, an organization not previously known to local officials. An investigation is currently underway to determine the true identity of the individual(s) behind this hostile act. Sunni leaders have met with the provincial government and police officials on this matter and local contacts report police BAGHDAD 00004252 003 OF 004 patrols have been stepped-up in the predominately Sunni areas of the city. ¶10. (SBU) Lamya Ane'amah (Shi'a Coalition/Independent), Council of Representatives (COR) member for Wasit Province, received an unsigned death threat late last week. According to police officials, the letter states that Ms. Ane'ama's life is now in danger due to the vote she cast to rescind prosecutorial immunity from fellow COR member Masha'an Al-Joboori. (NOTE: The COR lifted Masha'an Al- Joboori's immunity October 8. END NOTE.) Al-Joboori is facing numerous charges related to his alleged involvement in the misappropriation of tens of millions of dollars related to oil pipeline protection. The stripping of prosecutorial immunity from Al-Jaboori clears the way for the courts to proceed with their case against him. -------------- -------------- BAGHDAD: PC Member Lauds Investment Law, Laments Failures of Reconciliation Plan -------------- -------------- ¶11. (C) Former Provincial Council (PC) Chairman and current Chairman of the PC Strategic Vision Committee Mazen Makiya expressed optimism to IPAOs on November 7 that the national Investment Law passed in October would open Iraq to companies from all over the world and would be a key to success and growth. He hoped that companies and governments alike would now invest in projects in Iraq and lend their technical expertise to design projects from housing to retail space. Makiya envisioned a time when 75 percent of all construction projects could be done by the private sector and said he believed that companies could invest in Iraq even under the current security constraints by subcontracting to Iraqi firms. ¶12. (C) Makiya, an independent Shi'a, called the Government of Iraq's reconciliation plan "a failure" and expressed his view that Sunni and Shi'a people "don't have problems, it is the political parties that are the problem." He would like to see more "modern" people and a political party that doesn't just represent a particular sect or group. He blamed the growing numbers of IDPs on the Sunni and Shi'a political parties and on Al Qaeda, who had the support of "regional neighbors who are scared of a Shi'a-led government and democracy." -------------- -------------- SALAH AD DIN: Local IIP Leaders Claim Tawafuq May Withdraw from Government -------------- -------------- ¶13. (C) Iraqi Islamic Party (IIP) leaders in Salah ad Din (SaD) discussed with PRT officers November 8 a number of key political issues, including the recent unrest in Balad (Baghdad 3927) and support for instituting internal rules and procedures for the Provincial Council. While blaming outside forces such as al- Qaeda (AQI),Iran, and Sadr's Mehdi Army for instigating the sectarian violence in Balad, IIP leaders claimed that Baghdad is indifferent and unresponsive to violence in Sunni areas. Reflecting real frustration, they claimed that Tawafuq, the Sunni political block (including Vice President Tariq al- Hashimi),plans to withdraw from the national political process on November 22 if implementation of federalism is not delayed until distribution of Iraq's petroleum resources is resolved to Sunni satisfaction. (Embassy Baghdad Comment: This statement most likely reflects general frustrations among Sunni political figures with the political process than an actual planned BAGHDAD 00004252 004 OF 004 withdrawal. These frustrations have been reflected in the strong - but often contradictory - media statements with regard to a possible Tawafuq withdrawal from the government, including by Vice President Tariq Al-Hashimi. Post will report further septel. End Comment). -------------- NINEWA: Micro-Loans have Macro Impact -------------- ¶14. (U) PRT Members on November 8 visited the Ninewa Business Center (NBC),a model for sustainable business development in Iraq and the only self-sustaining Coalition-created business center in the country. One of the NBC's key initiatives is its microlending program -- the center has made more than 400 microloans for a total for more than USD 1.6 million in loans outstanding. Only about fifteen percent of its loans are at risk. The NBC also rents space to NGOs and other international organizations and provides a business referral service, as well as a facility to post Provincial Reconstruction and Development Council project bid offers. Speckhard