AMBASSADOR'S APRIL 25 MEETING WITH BULGARIAN

S E C R E T SECTION 01 OF 02 BAGHDAD 001430

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NOFORN
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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.

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POSITIVE EXPECTATIONS FOR PRESIDENT BUSH'S TRIP IN JUNE
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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.

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SHARM EL SHEIKH: BULGARIA LEERY OF DEBT FORGIVENESS TALKS
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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.

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BULGARIAN INVESTMENT, ARMS DONATIONS
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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.

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BULGARIAN FORCES AT CAMP ASHRAF
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6. (S/NF) Ratchev noted that the Bulgarian government had

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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.

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PROPOSED SUPPORT TO DEVELOPING IRAQI GOVERNANCE
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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.

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BULGARIAN EMBASSY NOT YET ESTABLISHED
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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