Identifier
Created
Classification
Origin
07BAGHDAD2189
2007-07-02 17:43:00
CONFIDENTIAL
Embassy Baghdad
Cable title:  

PRIME MINISTER DIRECTS MINISTER OF PLANNING TO

Tags:  IZ PGOV PREL ECON ENRG EPET 
pdf how-to read a cable
VZCZCXRO1317
OO RUEHBC RUEHDE RUEHIHL RUEHKUK
DE RUEHGB #2189 1831743
ZNY CCCCC ZZH
O 021743Z JUL 07 ZFF4 ZDK
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC IMMEDIATE 2003
INFO RUCNRAQ/IRAQ COLLECTIVE PRIORITY
C O N F I D E N T I A L BAGHDAD 002189 

SIPDIS

SIPDIS

E.O. 12958: DECL: 07/03/2017
TAGS: IZ PGOV PREL ECON ENRG EPET
SUBJECT: PRIME MINISTER DIRECTS MINISTER OF PLANNING TO
HELP RESTORE SUNNI POLITICAL ENGAGEMENT


Classified By: Deputy Chief of Mission Daniel V. Speckhard for reasons
1.4 (b) and (d).

C O N F I D E N T I A L BAGHDAD 002189

SIPDIS

SIPDIS

E.O. 12958: DECL: 07/03/2017
TAGS: IZ PGOV PREL ECON ENRG EPET
SUBJECT: PRIME MINISTER DIRECTS MINISTER OF PLANNING TO
HELP RESTORE SUNNI POLITICAL ENGAGEMENT


Classified By: Deputy Chief of Mission Daniel V. Speckhard for reasons
1.4 (b) and (d).


1. (C REL GBR) Summary: In a meeting with the Deputy Chief
of Mission on Sunday, July 1, Minister of Planning Ali Baban
said that the Prime Minister called him back from a visit
with his family in England to help solve "the problem he
created," with regard to Tawafuq's denial of support for the
draft hydrocarbon laws pending consideration in the Council
of Ministers. Baban told the PM on Saturday that he intended
to participate in Cabinet meetings on the critical
hydrocarbon legislation despite a general Tawafuq withdrawal
from participation Cabinet meetings because of his concerns
over both the framework law and the revenue management law.
The PM urged Baban to assist in calming down Tawafuq, riled
by a perceived disinclination of PM Maliki to engage the
Sunni as partners. Minister Baban expressed support for the
limited application of Section 607 funds for the importation
of fuel for the Ministry of Electricity. End summary.

-------------- --
Legal Allegations Exacerbate Sunni Disaffection
-------------- --

2. (C REL GBR) Minister Baban said that legal action pending
against Sunni Minister of Culture Dr. Asad Al Hashemi has
been interpreted as an unequal application of justice
considering the numerous GOI officials with latent
accusations against them. He said that the allegations have
exacerbated a perceived disinclination of PM Maliki to engage
the Sunni as partners. Baban said that Tawafuq members are
not uniformly in favor of the withdrawal from Cabinet
meetings, but stated that the majority of supporters do not
believe that the Sunni have gained anything from
participation in the national unity government.

-------------- ---
Maintaining the Hydrocarbon Legislation Dialogue
-------------- ---

3. (C REL GBR) Minister Baban told the PM on Saturday that he
intended to participate in Cabinet meetings on critical
hydrocarbon legislation despite a general Tawafuq withdrawal
from participation Cabinet meetings. He said he is willing to
keep negotiating on the laws, but remains intransigent on his
"technical" objections, such as strengthening the language
empowering the Federal Oil and Gas Council to authorize
contracts, adding specific restrictions to the conclusion of
Production Sharing Agreements (PSAs),preserving a greater
role for the federal budget in the revenue management
process, and ensuring central oversight over the budgets of
regions. The Minister said that, as a political assurance,
the PM offered to oppose PSAs when they reached the Council
of Ministers, but that Baban insisted that conditions be
included in the law that limit use of this type of contract.
Baban agreed that he could stand by his objections while
other Tawafuq members approved the laws ) that he had even
had a conversation with Vice President al-Hashemi on the
matter, but told us that other Cabinet officials also shared
his concerns.


4. (C REL GBR) The DCM urged the Minister to take a more
constructive approach to the issue, noting that Tawafuq may
be overplaying its hand and had a great deal to lose by
blocking this legislation. He underlined the strong role for
the central government in both pieces of legislation, the
ability to address additional issues through implementing
regulations, and the importance of locking in the agreement
with the Kurds that had ceded additional authorities to the
central government.

--------------
Support for Limited Use of Section 607 Funds
--------------

5. (C REL GBR) On the topic of the use of Section 607 funds
to help meet immediate Iraqi needs, Baban expressed support
for the limited application of the vehicle for the
importation of fuel for the Ministry of Electricity (MoE).
The DCM described a plan outlined to him earlier by the
Minister of Electricity in which $50M of MoE resources would
be allocated for a 607 contract while $100M would be used by
the MoE to directly contract for fuel. Baban said that such
an arrangement should dispel misgivings of officials that
utilization of the 607 vehicle would undermine the function
of the GOI, and he promised to be supportive.
CROCKER