TALABANI VISIT ON TRACK

C O N F I D E N T I A L PARIS 006907 SIPDIS E.O. 12958: DECL: 6/18/2016 TAGS: EAID ECON EFIN ETRD FR IZ PGOV PREL SUBJECT: TALABANI VISIT ON TRACK REF: A. (A) STATE 165112 ¶B. (B) PARIS 6831 Classified By: Political Minister-Counselor Josiah Rosenblatt, reasons 1.4 (b) and (d). ¶1. (C) On Oct. 19, PolMC briefed Iraqi Ambassador Mouaffak Abboud on the results (reported Ref B) of our latest demarche to the French on supporting the Iraq Compact. PolMC noted that the UK Embassy delivered a similar demarche to the French in mid-September and urged Abboud to also raise the points mentioned in Ref A in his meetings with French officials. Abboud agreed to do so, predicting that Talabani would discuss French support of the Iraq Compact with President Chirac, along with France's offer to train members of the Iraqi security services, during his Nov. 2 visit to Paris (which, as far as Abboud was concerned, was still on track). Talabani will be accompanied by FM Zebari, Minister of Industry Hariri, Minister of Education al-Khuzai, and Minister of Science and Technology Jahid. Abboud did not indicate that the French have promised movement on the training offer or any other deliverables for the visit. ¶2. (C) Abboud estimated that France still holds approximately 4 million euros in frozen Iraqi assets, after setting aside 19 million euros worth of assets against commercial claims from French firms. In addition, France has frozen control of a villa in Cannes that Saddam Hussein's family purchased through a Swiss front company for their personal use. Abboud said he has repeatedly raised the release of these assets with the MFA and the Ministry of Finance, and French officials assured him last year that special legislation authorizing the transfer of these assets to the Development Fund for Iraq would be introduced in the National Assembly in early 2006. The legislation was never introduced, and Abboud has concluded that France "is not seriously trying to solve the problem." While the sums involved are small, Abboud said that return of the assets remains a matter of principle for the Iraqis and indicated President Talabani might raise the subject during his visit. Abboud complained that France is not meeting its obligation to release all frozen assets pursuant to UNSCR 1483. Please visit Paris' Classified Website at: http://www.state.sgov.gov/p/eur/paris/index.c fm STAPLETON