(SBU) SALAH AD DIN LEADERS SPLIT OVER PRIVATE SECTOR

C O N F I D E N T I A L SECTION 01 OF 02 KIRKUK 000038

SIPDIS

SIPDIS

BAGHDAD FOR POL, ECON, IRMO AND NCT

E.O. 12958: DECL: 2/18/2016
TAGS: ECON PGOV EAID IZ
SUBJECT: (SBU) SALAH AD DIN LEADERS SPLIT OVER PRIVATE SECTOR
DEVEOPMENT

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CLASSIFIED BY: Scott Dean, Regional Coordinator (Acting),Reo
Kirkuk, Department of State .
REASON: 1.4 (b),(d)




1. (U) This is a SET Tikrit cable.

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SUMMARY
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2. (C) SET and IRMO Tikrit discussed Salah Ad Din province
economic development planning with provincial leadership.
Although the discussion was candid, it brought to light concerns
the provincial council chairman had about extending his
authority, and that of the council. Though several people
supported an idea to go seek new companies to locate in the
province, the provincial council chairman refused to consider
any agenda aimed at increasing private company ownership in
Salah Ad Din Province. END SUMMARY.


3. (SBU) On February 13, SET Officer and IRMO representative met
with Salah Ad Din Provincial Council Chairman Rashid Ahmad
Osman, Governor Hamad Hamud Shukti, Deputy Governor Abdullah
Hussein Mohammed, and the Deputy Governor for Technical Affairs,
Khataan Hamadi Saleh. SET and IRMO briefed on the concept of
establishing an industrial park to entice foreign companies to
invest. They also spoke about establishing a provincial
economic development committee whose primary purpose would be to
attract foreign business.


4. (C) Reaction proved illuminating. The first to speak was the
provincial council chairman. He said that the country was still
trying to decide about the national government: "we will be
removing the concept of regions from the constitution."
Additionally, it would be illegal to establish this industrial
area because the national government had not told the provincial
council to do this. He argued more government-owned industries
were needed to provide jobs; private industry could not be
brought in until the national government directed.


5. (C) He was followed by the deputy governor, who was very
supportive, but outlined several real obstacles. He talked
about the need to provide clear ownership of property to be used
by foreign companies. He predicted that either sale or rental
to foreign companies would prove very difficult; he spoke from
the experience of having interested companies tire of waiting
for solid assurances in the past. He talked about the need to
provide a quality work force, and though he believed Salah ad
Din had one, it was difficult to prove to potential investors.


6. (C) The governor spoke next; he very strongly supported the
idea. He spoke of the need to establish a commission to set
goals and prepare to bring companies into the province.


7. (C) However, the most supportive and most eloquent speaker
went last, the Deputy Governor for Technical Affairs, an
engineer by trade. He spoke of his dream to bring foreign
companies to the province and to have jobs for many types of
people, especially highly trained engineers. He spoke about
combining an airport and industrial area for security and
convenience. (One could see the vision on his face.) He is
ready to proceed with establishing a commission to study the
idea, and present a plan to improve the economic situation in
the province. He believes that the first province to act will
win big with foreign investors.

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COMMENT
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8. (C) The discussion of economic development in Salah Ad Din
Province ran the full spectrum: from absolutely not, to yes, we
must. Unfortunately, the man with arguably the most power in
the province, the provincial council chairman, stands very much
against the idea. Though this was anticipated, the strength of
his concern was not. He expects that the central government is
going to tell him how to run his province. He predicts that the
constitution will be changed to remove federalism, and Iraq will
get back to a strong central government which will tell the
provinces how to operate. The governor said that the chairman
was not living in the current world; he (the governor) did not
believe federalism would be removed. He said the province
needed to plan for the future as if they would have a lot of
authority. The discussion was very open and frank.


9. (C) Looking ahead, there can not be substantive change
without provincial council support; we may see some small

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actions, but not the commission envisioned by the Governor.
Change will come when provincial council elections bring a much
different council to the table this summer. Because of the
January 30, 2005, boycott by Sunni Arabs, three major cities are
not now represented. The council will see representation drop
from Tozkhurmato, in the far eastern end of the province, in
favor of Sunni Arab cities, like Samarra, along the Tigris River.
DEAN