Identifier
Created
Classification
Origin
07BAGHDAD1398
2007-04-24 13:41:00
CONFIDENTIAL
Embassy Baghdad
Cable title:
SENATOR COLEMAN DISCUSSES INVESTMENT IN IRAQ
how-toVZCZCXRO5092 RR RUEHBC RUEHDE RUEHIHL RUEHKUK DE RUEHGB #1398 1141341 ZNY CCCCC ZZH R 241341Z APR 07 FM AMEMBASSY BAGHDAD TO RUEHC/SECSTATE WASHDC 0886 INFO RUCNRAQ/IRAQ COLLECTIVE
C O N F I D E N T I A L BAGHDAD 001398
SIPDIS
SIPDIS
E.O. 12958: DECL: 04/23/2017
TAGS: ECON EINV IZ
SUBJECT: SENATOR COLEMAN DISCUSSES INVESTMENT IN IRAQ
Classified By: Economic Minister-Counselor Daniel Weygandt for reasons
1.4 (b) and (d).
C O N F I D E N T I A L BAGHDAD 001398
SIPDIS
SIPDIS
E.O. 12958: DECL: 04/23/2017
TAGS: ECON EINV IZ
SUBJECT: SENATOR COLEMAN DISCUSSES INVESTMENT IN IRAQ
Classified By: Economic Minister-Counselor Daniel Weygandt for reasons
1.4 (b) and (d).
1. (C) Summary: Senator Coleman (R-MN) met with the Chair of
the National Investment Commission Dr. Abbas Mehdi on April
21, who described a lack of GOI support for a professional
and effective Commission. Senator Coleman noted the
importance of the development of the private sector and
offered support, while emphasizing the limitations of outside
pressure on internal Iraqi decisions. Dr. Medhi raised
concerns about pro-Iranian parts of the GOI wanting control
over the National Investment Commission. End summary.
--------------
Few Resources, and Political Pressure
--------------
2. (C) "My only condition when I took this job," Dr. Mehdi
said, "was that I could participate in the selection of other
board members, in order to ensure that they are qualified."
Since giving the Prime Minister a list of names Dr. Mehdi has
been encouraged to resign from his position, even before his
appointment is brought to the Council of Representatives.
Dr. Mehdi thinks that he has the PM's support, but that the
people around the PM are not giving him good advice.
3. (C) Dr. Mehdi expressed frustration with the lack of
support from the government for the commission which is
responsible for developing the by-laws and implementing
regulations of the Investment Commission. Since his
appointment on February 8 he has received no further support;
he does not have a budget or an office with phone, in spite
of assurances by the PM that support is forthcoming. Dr.
Mehdi said that the Office of the Prime Minister kept sending
him people to hire as advisors. One man said that he had a
master's degree, but upon reviewing his papers Dr. Mehdi
could only see documentation of a high school degree. In
explanation, Dr. Medhi recounted, the applicant said that his
years of struggle against Saddam Hussein's regime should
count at least as much as a master's degree.
--------------
Request for US Support
--------------
4. (C) Dr. Mehdi requested US support to help him establish
a non-partisan commission with qualified candidates. Senator
Coleman said that he admired Dr. Mehdi's dedication, and
would provide support to the extent he could. He noted,
however, that the Iraqi government will determine Dr. Mehdi's
daily environment, and outside pressure would have a limited
effect.
5. (C) Dr. Mehdi later told econoff that he is concerned
that pro-Iranian elements in the government are behind the
pressure he is feeling at the National Investment Commission.
"They understand how important this commission can be to
Iraq's economic growth and the development of the private
sector", he said, "and they think I will attract too much
American investment, rather than looking to Iran."
6. (C) Senator Coleman also discussed the Investment Law
with Deputy Prime Minister Barham Salih at a dinner at the
Chief of Mission residence on April 21. The DPM expressed
disappointment over the delay of the appointment of the
Investment Commission, saying that there has been "some
micromanagement" that added to the delays. He added,
however, that pressure on Baghdad from the provincial
governors to act quickly to implement the law had
intensified, which he hoped would help move the process
forward. He noted that the process of setting up the
commission had become a "political process," but that the
development of regional and provincial investment promotion
organizations had been more effective.
7. (C) DPM Barham Salih acknowledged that security was a
challenge for investment promotion in many parts of Iraq, but
added that some areas, such as Najaf, Karbala and Basra are
"ready to receive investments." He cautioned, however, that
local power struggles, such as the confusion over who has
real control over the port at Umm Qasr, may create additional
barriers to investment.
8. (U) Senator Coleman did not have the opportunity to clear
this message.
CROCKER
SIPDIS
SIPDIS
E.O. 12958: DECL: 04/23/2017
TAGS: ECON EINV IZ
SUBJECT: SENATOR COLEMAN DISCUSSES INVESTMENT IN IRAQ
Classified By: Economic Minister-Counselor Daniel Weygandt for reasons
1.4 (b) and (d).
1. (C) Summary: Senator Coleman (R-MN) met with the Chair of
the National Investment Commission Dr. Abbas Mehdi on April
21, who described a lack of GOI support for a professional
and effective Commission. Senator Coleman noted the
importance of the development of the private sector and
offered support, while emphasizing the limitations of outside
pressure on internal Iraqi decisions. Dr. Medhi raised
concerns about pro-Iranian parts of the GOI wanting control
over the National Investment Commission. End summary.
--------------
Few Resources, and Political Pressure
--------------
2. (C) "My only condition when I took this job," Dr. Mehdi
said, "was that I could participate in the selection of other
board members, in order to ensure that they are qualified."
Since giving the Prime Minister a list of names Dr. Mehdi has
been encouraged to resign from his position, even before his
appointment is brought to the Council of Representatives.
Dr. Mehdi thinks that he has the PM's support, but that the
people around the PM are not giving him good advice.
3. (C) Dr. Mehdi expressed frustration with the lack of
support from the government for the commission which is
responsible for developing the by-laws and implementing
regulations of the Investment Commission. Since his
appointment on February 8 he has received no further support;
he does not have a budget or an office with phone, in spite
of assurances by the PM that support is forthcoming. Dr.
Mehdi said that the Office of the Prime Minister kept sending
him people to hire as advisors. One man said that he had a
master's degree, but upon reviewing his papers Dr. Mehdi
could only see documentation of a high school degree. In
explanation, Dr. Medhi recounted, the applicant said that his
years of struggle against Saddam Hussein's regime should
count at least as much as a master's degree.
--------------
Request for US Support
--------------
4. (C) Dr. Mehdi requested US support to help him establish
a non-partisan commission with qualified candidates. Senator
Coleman said that he admired Dr. Mehdi's dedication, and
would provide support to the extent he could. He noted,
however, that the Iraqi government will determine Dr. Mehdi's
daily environment, and outside pressure would have a limited
effect.
5. (C) Dr. Mehdi later told econoff that he is concerned
that pro-Iranian elements in the government are behind the
pressure he is feeling at the National Investment Commission.
"They understand how important this commission can be to
Iraq's economic growth and the development of the private
sector", he said, "and they think I will attract too much
American investment, rather than looking to Iran."
6. (C) Senator Coleman also discussed the Investment Law
with Deputy Prime Minister Barham Salih at a dinner at the
Chief of Mission residence on April 21. The DPM expressed
disappointment over the delay of the appointment of the
Investment Commission, saying that there has been "some
micromanagement" that added to the delays. He added,
however, that pressure on Baghdad from the provincial
governors to act quickly to implement the law had
intensified, which he hoped would help move the process
forward. He noted that the process of setting up the
commission had become a "political process," but that the
development of regional and provincial investment promotion
organizations had been more effective.
7. (C) DPM Barham Salih acknowledged that security was a
challenge for investment promotion in many parts of Iraq, but
added that some areas, such as Najaf, Karbala and Basra are
"ready to receive investments." He cautioned, however, that
local power struggles, such as the confusion over who has
real control over the port at Umm Qasr, may create additional
barriers to investment.
8. (U) Senator Coleman did not have the opportunity to clear
this message.
CROCKER