AMBASSADOR'S APRIL 25 MEETING WITH BULGARIAN

S E C R E T SECTION 01 OF 02 BAGHDAD 001430 SIPDIS NOFORN SIPDIS E.O. 12958: DECL: 04/26/2017 TAGS: MOPS MARR ECON PTER PREL PGOV IZ BU AF SUBJECT: AMBASSADOR'S APRIL 25 MEETING WITH BULGARIAN AMBASSADOR Classified By: AMBASSADOR RYAN C. CROCKER FOR REASONS 1.4 (B,D). ¶1. (S/NF) SUMMARY: During an April 25 meeting with Ambassador Crocker, Valeri Ratchev, the Bulgarian Ambassador to Iraq, discussed Iraq-related issues that might be raised during President Bush's planned trip to Bulgaria in June and the upcoming International Compact Ministerial meeting at Sharm el Sheikh. Ambassador Ratchev stated that Bulgarian Minister of Foreign Affairs and Deputy Prime Minister Ivaylo Kalfin might join the Sharm el Sheikh meeting. Ratchev discussed Bulgaria's future role in assisting Iraqi development and sought to clarify differences he perceives between the USG and GOI positions on Bulgarian military support for Camp Ashraf, the Mujahudeen-e-Khalq (MEK) refugee camp. He added that he was still seeking a location to establish a Bulgarian embassy within the International Zone (IZ). END SUMMARY. -------------- -------------- POSITIVE EXPECTATIONS FOR PRESIDENT BUSH'S TRIP IN JUNE -------------- -------------- ¶2. (S/NF) Bulgarian Ambassador to Iraq Valeri Ratchev on April 25 informed Ambassador Crocker that he anticipated that Iraq would be a main topic discussed during President Bush's scheduled trip to Bulgaria in June. Ratchev noted that since Bulgaria had extensive engagement with Iraq during Saddam's time, there were high domestic expectations in Bulgaria that a high level of engagement would continue. Responding to Ambassador Crocker's encouragement of continued Bulgarian engagement in Iraq, Ratchev said that he would raise positive expectations with the Bulgarian government in the lead-up to President Bush's visit to Bulgaria. -------------- -------------- SHARM EL SHEIKH: BULGARIA LEERY OF DEBT FORGIVENESS TALKS -------------- -------------- ¶3. (S/NF) Ratchev stated that Bulgaria's wish to avoid discussions of canceling Iraqi debt complicated sending Bulgarian representation to International Compact Ministerial meeting at Sharm el Sheikh. Nonetheless, Bulgarian Minister of Foreign Affairs and Deputy Prime Minister Ivaylo Kalfin might join the Sharm el Sheikh meeting. Ratchev explained that because Iraqi debt to Bulgaria amounted to a significant portion of Bulgaria's GDP, canceling the debt was unpopular domestically. Ambassador Crocker noted that the Sharm el Sheikh meeting would present opportunities similar to the Paris Club and that Saudi Arabia had already pledged to forgive 80% of Iraq's debt to Saudi Arabia. Ratchev responded that based on discussions with Deputy Prime Minister Barham Saleh, he had already informed Sofia of Iraq's expectations on debt forgiveness. -------------- BULGARIAN INVESTMENT, ARMS DONATIONS -------------- ¶4. (S/NF) Ratchev also broached Bulgaria's potential investment in Iraq's in sectors beyond petroleum, such as agriculture and construction of rail-lines and airfields. He said that Bulgarians are interested in increasing Bulgarian business presence in Kurdistan; however, he was concerned that investment in the north might diminish the importance of Iraq's center. Ambassador Crocker assured Ratchev that commercial activity in the north should be considered as creating opportunities for the entire country, and not as furthering separatist tendencies. ¶5. (S/NF) Ratchev said that Bulgaria was still unsure of the needs of the Iraqi military, but pointed out that Bulgaria had just provided 8 million euros worth of munitions to Afghanistan as military aid. Commenting on Ambassador Crocker's suggestion that Iraq could possibly use Mi-17 helicopters, Ratchev stated that if Bulgaria could find money to repair its Mi-17s, perhaps it could donate them to Iraq and buy American helicopters for Bulgaria. -------------- BULGARIAN FORCES AT CAMP ASHRAF -------------- ¶6. (S/NF) Ratchev noted that the Bulgarian government had BAGHDAD 00001430 002 OF 002 received different messages from the USG and GoI on the importance of providing Bulgarian military support to the MEK camp at Camp Ashraf -- the USG stressed its importance, whereas the GoI communicated that the camp should be closed and MEK presence should be cancelled. Ratchev expressed frustration with apparent inconsistencies in the USG and GoI's positions. Ambassador Crocker assured Ratchev that there was ongoing USG-GoI coordination on Camp Ashraf, including consultations with the ICRC. He explained to Ratchev that the GoI long-term goal of resettling the MEK is not inconsistent with the USG goal of maintaining good order at Camp Ashraf in the interim. -------------- -- PROPOSED SUPPORT TO DEVELOPING IRAQI GOVERNANCE -------------- -- ¶7. (S/NF) Ratchev noted that a number of Iraqi politicians seemed interested in studying Bulgaria's unique constitutional experience, which avoided violence during its post-Soviet transition and successfully incorporated governmental representation for its 10% Muslim minority. He asked whether the USG would support intergovernmental coordination between Bulgaria and Iraq on such studies. Ambassador Crocker noted that Prime Minister Maliki had expressed that Iraq could learn much from Eastern European transitions and said he would look into avenues for further cooperation. -------------- BULGARIAN EMBASSY NOT YET ESTABLISHED -------------- ¶8. (S/NF) Ratchev informed Ambassador Crocker that he is still an Ambassador without an embassy. He said that he has tried three times to locate a suitable building within the IZ to house the Bulgarian embassy. Ratchev said in the interim, he would work from the Al-Rasheed Hotel, but hoped that the USG could support his efforts in establishing a more permanent office. CROCKER