IRAQ/US/UK JOINT DEMARCHE ON IRAQ COMPACT;

C O N F I D E N T I A L SECTION 01 OF 02 BERLIN 003045

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E.O. 12958: DECL: 10/19/2016
TAGS: EAID EINV ETRD PGOV PREL EFIN IZ GM
SUBJECT: IRAQ/US/UK JOINT DEMARCHE ON IRAQ COMPACT;
GERMAN-IRAQI ECONOMIC ENGAGEMENT

REF: SECSTATE 165112

Classified By: Minister-Counselor for Economic Affairs Robert F. Cekuta
for Reasons 1.4 (b) and (d)


1. (C) Iraqi Embassy Counselor Qais Naif Abboud and Attache
Bashar F. Al-Bander, UK Embassy Poloff Neil Holland, and
Global Affairs Officer jointly delivered ref demarche October
16 to MFA Iraq Working Group Chief Ruediger Lotz and two of
his staff including desk officer Christofer Burger. Abboud
asked for more German engagement in Iraq and sought German
training in Iraq because the north, the south, and other
parts of Iraq outside of Baghdad were safe. UK PolOff
Holland said he was familiar with the "version zero" draft of
the Iraqi Compact and said there was more Germany could do in
Iraq especially in the context of its upcoming 2007 EU and
G-8 presidencies. Global Affairs Officer noted reftel's
request for additional financial support and for other
countries to host Iraq Compact meetings and pointed out that
the two presidencies might be a particularly suitable time
for Germany to host an Iraq Compact meeting; Abboud agreed.


2. (C) Lotz responded Germany would continue to be engaged in
Iraq and mentioned ongoing discussions about resumed police
training and ongoing assistance via two German political
foundations to those in Iraq drafting proposed changes to the
Constitution. Lotz mentioned Germany would open an honorary
Consulate in Arbil in November. On economic ties, Lotz and
Abboud recalled the recent visit to Germany of Deputy Prime
Minister Salam Al-Zawba'i and his delegation, including the
Construction Minister and the Industry Minister, which had
expanded German-Iraqi commercial ties (see below). Lotz
presented a one-page German paper with points for insertion
in the Iraq Compact. Lotz said the paper is also being
conveyed by the German Embassy in Baghdad. The proposal is
to the Iraqi Compact's section 4.6 ("Education, Culture, and
Civil Society"). Post is faxing the document to NEA/I and
EUR/AGS.

Other German Involvement in Iraq
--------------


3. (C) MFA Iraq desk officer Burger talked separately with
Global Affairs Officer about the Sept 19 visit of the Deputy
PM. Burger said Al-Zawba'i has warm feelings for Germany
because he did some study here in his youth and had told the
German Ambassador in Baghdad he wanted Germany to be his
first foreign trip. Al-Zawba'i brought the Construction and
Housing Minister, the Industry Minister, and the Deputy
Electricity Minister. The delegation met MFA State Minister
Erler, Economics Minister Glos, and Interior Ministry State
Secretary Hanning. Burger said the delegation appeared

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"heavily Sunni" and that some businessmen in the delegation
were known to have connections with extremists. Burger said
their coming to Germany was in part to thank them for their
help in getting German hostages released and obtaining the
bodies of Germans officials killed in Iraq. Burger said
Al-Zawba'i attended a bilateral economic conference September
19 which was largely organized by the German Federation of
Industries (BDI); attendance was good among those German
companies already engaged in business in Iraq. No new
contracts were signed, however.


4. (C) On police training, Burger reported Iraq sent Germany
a list in mid-September listing Iraqi training needs.
Included are training in the DNA analysis of bodies that need
to be buried before there is time to identify them and
training in explosive ordnance disposal. Burger said a one
million dollar ordnance disposal robot is still in Berlin,
awaiting a Government of Iraq decision naming three Iraqi
officials to receive training on its use. Germany is still
considering its response to the Iraqi letter, but Burger was
certain training will resume in the UAE.


5. (C) In a separate meeting to discuss German-Iraqi economic
engagement, Hans-Dieter Spohn, Head of Division for the
Ministry of Economics' Northern Africa, Near and Middle East
Office, told Econoff Germany is considering reviving the
former Germany-Iraq Economic Commission. The German
government sees the body, which existed under the previous
Iraqi government until 1993, as a way to resume economic ties
with the Iraqi government and re-establish a forum for
fostering commercial and business ties. Germany has also
supplied an English version of the draft agreement to the
Iraqi Embassy. The German MFA is examining the text of the
document to assess the legal issues associated with reviving
such an agreement, Spohn said. He added that the Economic
Ministry has its reservations, however, about resuscitating
this Commission due to the security situation on the ground.
He also questioned the value-added of having another
minister-level commission. Nevertheless Germany is still
looking at re-establishing the Commission as a possible way

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to boost ties with the new Iraqi Government.
KOENIG