JUNE 22 I-ESC - FUEL, WATER, AND RECONCILIATION

C O N F I D E N T I A L SECTION 01 OF 03 BAGHDAD 002117

SIPDIS

SIPDIS

E.O. 12958: DECL: 06/26/2017
TAGS: ECON IZ PGOV PINS PREL
SUBJECT: JUNE 22 I-ESC - FUEL, WATER, AND RECONCILIATION

Classified By: Ambassador Ryan C. Crocker for reasons 1.4 (b) and (d).


1. (C) Summary. On 22 June, for the first time in several
weeks, Prime Minister Nouri al-Maliki was present and chaired
the weekly Iraq-Executive Steering Committee (I-ESC) whose
function is to support the implementation of the Baghdad
Security Plan ("Fardh Al-Qanoon"). The meeting featured
discussions of three prominent issues: 1) improving Baghdad's
fuel supply, which included the need to address 166 fuel
trucks stuck at the Kuwaiti border for 6 months over a pay
dispute; 2) the need to further reconciliation as a means to
fight terrorism, which included an announcement by PM Maliki
that a Reconciliation Committee will be formed based on the
"Defeating Terrorism" study by Dr. Hachim Hassani; and 3) the
Governor of Baghdad raised concerns about Baghdad's water
supply, suggesting catastrophic failure of water delivery
throughout the city should a main water pipeline running
through Karkh not be protected and repaired.

THREAT TO BAGHDAD'S WATER SUPPLY


2. (C) The Baghdad Governor highlighted new concerns
regarding the city's water supply, specifically regarding
water pipeline protection. He mentioned one of the two main
pipelines carrying water to the city is currently unusable
and should the other be rendered inoperable by terrorist
attack "there will be no water in all of Baghdad." Attendees
agreed the issue should be discussed further and next week's
meeting.

IMPROVING BAGHDAD'S FUEL SUPPLY


3. (C) The Minister of Defense (MoD) stated that security
forces had undertaken challenging operations to allow
temporary repairs to be made to the 10" and 14" oil pipelines
from Latafiyah to Baghdad, but that such pipelines need a
constant security presence. The Minister also said that
security measures to protect fuel truck convoys from Bayji
had also increased. General Petraeus, highlighting the value
of one day's flow of oil through the pipeline, urged PM
Maliki to increase funding for the Ministry of Defense.
Petraeus stated that this successful Iraqi led operation
shows that the Iraqi military can be successful if given
necessary resources.


4. (C) PM Maliki provided an update to the situation of more
than 160 fuel tanker trucks that have been stuck at the
Kuwaiti border for several months over a dispute about how
much fuel is in the trucks and when payment should be made.
The Ministry of Electricity, the purchaser of the fuel,
contends that they should be charged for the amount of fuel
unloaded from the trucks rather than quantity loaded. PM
Maliki noted that Iraq's neighbors are taking advantage of
them in desperate times and agreed to send a negotiation team
next week to expedite adjudication of the dispute. (Comment:
During the I-ESC pre-meeting, DCM Daniel Speckhard suggested
to National Security Advisor Mowaffuk Rubaie that with US $10
billion in the bank, the Iraqi government should just pay the
bill. Septel is being prepared on this issue. End Comment)


5. (C) Citing success in Kurdish areas, PM Maliki said that
his government is in favor of any private sector or
provincial initiatives that reduces the burden of the central
government to provide fuel and has instructed the Ministry of
Oil to fully support such efforts. However, he added that
with the current security situation in Baghdad no private
sector companies are interested.

SAMARRA SHRINE REBUILD, CUREW REGULATIONS, AND SADR MARCH


5. (C) PM Maliki stated the Iraqi Government and UNESCO would
sign a high profile agreement to rebuild the Samarra Shrine
on 23 June 2007 at the Iraqi Embassy in Jordan and that a
private Turkish company would begin refurbishment as soon as
security operations allow. In response to an inquiry by
General Petraeus as to whether security forces could begin to
remove rubble immediately as a means to show progress, PM
Maliki said that due to the holy and valuable nature of
Shrine tiles within the rubble, that such operations had to
be carried out by UNESCO.


6. (C) The I-ESC followed-up last week's discussions that led
to loosening curfew restrictions to improve public access to
essential services during the aftermath of the Samarra Shrine
Attack. NSA Rubaie stated that the I-ESC Services
Sub-Committee and the Baghdad Operations Command would be
meeting to discuss if such ad hoc decisions should be built
into more comprehensive curfew policy.

7.(C) The I-ESC discussed Moqtada Sadr's planned July 5 mass
Shia march on Samarra. PM Maliki said that the issue would
be addressed within in the Crisis Cell, but that the march
would only be allowed to go ahead if the security situation

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is sufficient. PM Maliki added that armed marchers would be
breaking the law.

HASSANI STUDY TO DEFEAT TERRORISTS


8. (C) Dr. Hassani's study has been approved by PM Maliki.
The study, which focuses on improving services and promoting
reconciliation as keys to defeating terrorists, had been
enthusiastically presented and received at the 15 June I-ESC
and. PM Maliki has asked for names to be submitted to lead a
to-be-established Committee on Reconciliation. This
committee will determine a mechanism for integrating
reconcilable militant actors into the government security
apparatus. Hassani stated that the latest version of his
study is entitled "Investing Opportunities," and it has been
delivered to LTG Lamb.


9. (C). General Petraeus delivered pointed remarks to PM
Maliki regarding the PM's public comments that the US had
been "arming tribes." Petraeus said that the CF is not
arming tribes, that such tribes already had plenty of arms,
and that Coalition Forces were only "applauding them when
they fought Al Qaeda and not us or Iraqi Forces." Petraeus
also stated the ultimate goal of security interactions with
tribes is to have them integrated within the framework of the
Iraqi Government. General Petraeus told PM Maliki that now
is the time for his government to take risks because a
failure to show progress in reconciliation could likely have
consequences for decisions made in Washington in September.


10. (C) PM Maliki responded that he is well aware that now is
a time to take risks. He explained that the issue regarding
dealing with the tribes is not whether the tribes are Sunni.
Moreover, the issue is the Iraqi government's policy of never
giving arms to tribes or militias unless the groups are under
government control. He said that one must be wary of the
tribe as a political unit and pointed to the Committee on
Reconciliation as a means to separate those who can be
integrated from those who must be eliminated.

OTHER ISSUES DISCUSSED


11. (C) Other issues touched on at the I-ESC included:
-- Raising the maximum payout for citizens informing on
terrorists. No decision was reached, and the NSA's office
shall analyze the issue.

-- Ratifying Professor Tahssen Shekly as Civilian Spokesman
for FAQ. PM Maliki said he liked the idea, but stopped short
of actual ratification.

-- Increasing the amount of displaced families receiving
government payments. The Governor of Baghdad listed the many
steps holding up the process, and PM Maliki told him to
expedite things.

-- Accelerating the refurbishment of Government Owned
Buildings not in use. DPM Zawbai stated that individual
ministries must allocate in their own budgets and should
start design plans now. If the ministry had no money they
should provide an estimate to the Council of Ministers for
review. General Petraeus strongly recommended that
Ministries should prioritize and focus on key buildings. No
decision was noted by PM Maliki on the issue.

-- Returning displaced families to their homes. Dr. Ahmed
Chalabi suggested initially focusing on two neighborhoods
with a goal of bringing back middle class families with
professional skills. This issue is to be discussed in
sub-committee.

-- Advancing the reconstruction of the iconic Muthanabi
Street. DPM Zawbai stated that the Ministry of Culture is
leading the effort and that meetings will be held next week
at Baghdad University to discuss designs and themes.

-- The "negative actions" of the media. The Arab media was
described as putting a negative slant on things. Ministers
discussed the need to embed Arab and Iraqi media with Iraqi
forces, and Dr. Chalabi said that standard instructions
should be given to individuals speaking in the name of the
Iraqi Government.

-- General Petraeus noted the help of the local populace in
Diyala who have provided information on locations of cache of
explosives and identified booby trapped buildings. Petraeus
noted the need to publicize actions such as these to
encourage others to do the same.

-- Progress of the pontoon replacement for the Sarafiya
Bridge. The Ministry of Defense said it is ready to provide
security for the movement of several needed pontoons.


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CROCKER