Identifier
Created
Classification
Origin
07BAGHDAD2142
2007-06-28 14:46:00
CONFIDENTIAL
Embassy Baghdad
Cable title:  

DPM SALEH DISCUSSES WAY FORWARD ON HYDROCARBONS

Tags:  IR IZ PGOV PREL 
pdf how-to read a cable
VZCZCXRO8510
PP RUEHBC RUEHDE RUEHIHL RUEHKUK
DE RUEHGB #2142/01 1791446
ZNY CCCCC ZZH
P 281446Z JUN 07
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC PRIORITY 1934
INFO RUCNRAQ/IRAQ COLLECTIVE
C O N F I D E N T I A L SECTION 01 OF 02 BAGHDAD 002142 

SIPDIS

SIPDIS

E.O. 12958: DECL: 06/27/2017
TAGS: IR IZ PGOV PREL
SUBJECT: DPM SALEH DISCUSSES WAY FORWARD ON HYDROCARBONS
LEGISLATION, MASHHADANI

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

C O N F I D E N T I A L SECTION 01 OF 02 BAGHDAD 002142

SIPDIS

SIPDIS

E.O. 12958: DECL: 06/27/2017
TAGS: IR IZ PGOV PREL
SUBJECT: DPM SALEH DISCUSSES WAY FORWARD ON HYDROCARBONS
LEGISLATION, MASHHADANI

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


1. (C) SUMMARY: In a June 24 meeting, Deputy Prime Minister
Barham Saleh and the Ambassador discussed the remaining
hurdles to passing the hydrocarbons framework and revenue
management laws in the Iraqi Council of Representatives.
They discussed the current impasse over the removal of
Council of Representatives Speaker Mahmoud Mashhadani and the
Anfal trial verdict. Saleh updated the Ambassador on the
status of the 607 agreement and budget execution review and
conveyed Iranian concern about Maliki and the Erbil 5. END
SUMMARY.

--------------
Way Forward for Hydrocarbons
--------------


2. (C) The Ambassador said the Iraqis need to begin thinking
actions required after the revenue management law passes the
Council of Ministers (CoM). The Iraqis must think about
getting the revenue management law through the Shura Council
and on to the Council of Representatives (CoR),as well as
how to effectively manage it in the CoR. (Note: PM Maliki
decided to table the law at the CoM at the last minute in the
face of Sunni Tuwafuq party bloc concerns. End note.) Saleh
said that only the revenue management law will need a vote on
June 26, after which it does not technically need to go to
the Shura Council, but they can get it through in 2-3 days.
He identified potential obstacles to its passage in the CoR,
including the uncertain status of CoR Speaker Mashhadani. He
said the laws would have to go through two or three
committees. If the Iraqi Islamic Party can get Tawafuq under
control, then the CoR can get the law through smoothly.
Saleh intended to recommend that Oil Minister Sharistani,
Minister of Planning Ali Baban, and himself brief the CoR on
the law. Both Saleh and the Ambassador agreed that a PR
campaign on this should begin when the law passes the CoM.

-------------- --
Tawafuq: We Want to Remove Mashhadani Ourselves
-------------- --


3. (C) Saleh said Baban told him Tawafuq wants to remove
Mashhadani itself. It proposed reinstating him for two
months and then removing him once CoR reconvenes in

September. Saleh also proposed that Mashhadani receive a
"retirement" package should he choose to resign. The
Ambassador said that the problems with the Speaker could
seriously hinder efforts to get key legislation like the
hydrocarbon laws passed before the August recess. The
Ambassador suggested that if there was no clear solution,
then Mashhadani's removal should wait until after the
hydrocarbon law was finished.


4. (C) Saleh explained that Tawafuq had resolved not to give
the current government "a success." He observed an emerging
dynamic between Baban and Iraqi Vice-President and Iraqi
Islamic Party leader Tariq al-Hashimi; Baban was inclined to
take the opposing side of Hashimi's arguments. The
Ambassador said that Tawafuq needed to give the US a success.
Saleh concurred but pointed out that, should Hashimi move
too far, Tawafuq would disintegrate.


5. (C) According to Saleh, the Kurds do not like Mashhadani,
but they have stayed out of the forefront of this effort to
remove him. If Mashhadani retains the speakership, then it
would be a seen as a failure of the parliament for keeping
him after they voted to remove him. The Ambassador
reiterated that a deadlock preventing the key legislation
from passing before the CoR recess would have serious
repercussions in Washington.

--------------
Anfal Trial Verdict "Historic"
--------------


6. (C) Saleh declared that the Anfal trial verdict delivered
earlier that day showed the world why the liberation of Iraq
from the Saddam Regime was crucial and an "historic change."
Saleh agreed that a press conference featuring both GOI
leaders and survivors or families of the victims of the Anfal
would remind the world of the brutality of the regime.

--------------
607 Agreement
--------------


7. (C) Saleh expressed doubt that the CoM could achieve a
deal on the framework for the 607 agreement, but he said CoM
had approved one agreement that would get them "over the
first hurdle." CoM had agreed to give the Ministry of
Electricity authority to sign deals with the US and others to

BAGHDAD 00002142 002 OF 002


import gas for use in making electricity. He argued that the
decision did not have to go to parliament because it was
simply a solution to a delivery problem that the US could
help solve. He passed the Ambassador a copy of the signed
decision.

--------------
Budget Review
--------------


8. (C) Saleh remarked that GOI budget execution has proceeded
much better than last year, and the GOI is preparing a budget
execution review. All the ministries are aware that a review
is coming, and the budget for next year is looming. Saleh
said they have already told a number of ministries that they
plan to launch the program in a week to 10 days. This meant
the supplementary budget would get pushed to July as it has
to go through the CoR. He noted that they could also reroute
funds through the Ministry of Planning. The Ambassador
observed that if the review slides, then there will be
problems on the back end.

-------------- --------------
Iranians Concerned about Maliki Government, Erbil 5
-------------- --------------


9. (C) Saleh said the Iranian Ambassador to Iraq was visibly
concerned about the Maliki government and the incidents in
Amarah which allegedly involved British soldiers and resulted
in the deaths of 20 civilians. Saleh thought another Amarah
would shake the PM's government. The Iranians conveyed to
Saleh their irritation at Maliki's blaming of Iran for many
of the problems in Iraq.


10. (C) According to Saleh, the families of the Iranian
detainees known as the Erbil 5 want to visit them, but the
Iranian Ambassador and Consul General would like to see them
first. He reminded the Ambassador that the 5 were in the
Kurdistan Region at the invitation of the Kurdish leadership.


CROCKER