IRAQI PRESIDENT AGREES TO FACILITATE HYDROCARBON

S E C R E T SECTION 01 OF 02 BAGHDAD 000362

SIPDIS

SIPDIS

E.O. 12958: DECL: 01/30/2017
TAGS: PGOV PREL IZ IR SY EG SA
SUBJECT: IRAQI PRESIDENT AGREES TO FACILITATE HYDROCARBON
LEGISLATION

Classified By: Ambassador Zalmay Khalilzad per 1.4 (b) and (d)


1. (C) SUMMARY: In a meeting with the Ambassador on January
29, President Jalal Talabani agreed to go to Kurdistan with
the Ambassador on February 3 to discuss the final details of
the hydrocarbon law with KRG President Masud Barzani. The
Ambassador said he would send Talabani a reasonable draft of
the De-Ba,athification law, and Talabani said he would ask
the De-Ba,athification Commission Chairman Ahmed Chalabi to
accept the draft. The Ambassador and Talabani also discussed
options for holding a regional conference in Iraq. END
SUMMARY.

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Latest News on the PCNS and BSP
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2. (C) President Talabani began by describing the most recent
Political Council for National Security meeting (PCNS),
saying the Shia had mixed reactions to his recent trip to
Syria. Talabani said the Iraqi Islamic Party (IIP) wanted to
participate in the Baghdad Security Plan (BSP),and that Vice
President and IIP leader Tariq al-Hashemi insisted his
governing partners either accept him as a "strong" Sunni or
the Sunnis would withdraw from government. Talabani said
everyone assured Hashemi they wanted him as a partner.
Talabani said the January 28 operation in Najaf would
demonstrate that the GOI is fighting Shia, not just Sunnis.

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Trip to Kurdistan on February 3
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3. (C) The Ambassador asked Talabani to accompany him on a
trip to Kurdistan to discuss final details on the hydrocarbon
law with Kurdistan Regional Government President Masud
Barzani. The Ambassador also proposed discussing the
strategic issues surrounding the PKK, Turkey, and Iran. The
President agreed to make the trip with the Ambassador on
February 3.

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Help With De-Ba,athification Law
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4. (C) The Ambassador told Talabani he would send him a
reasonable draft of the De-Ba,athification law in two days.
Talabani said he would push De-Ba,athification Commission
Chairman Ahmed Chalabi to accept it.

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Exchange on Regional Issues and Regional Conference
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5. (C) Regarding the Ambassador,s trip to Saudi Arabia the
next day, Talabani asked the Ambassador to solicit Riyadh,s
help in national reconciliation, saying there is a perception
the Saudis are supporting the Sunnis at the expense of the
Shia. Talabani said the Saudis had developed a relationship
with the PUK Intelligence Service and had invited officials
to Saudi Arabia for training.


6. (C) Talabani opined that Iran is in major trouble because
of dissention within the government, even though Tehran is
"talking big." The Ambassador confided that the USG was
planning to release some information in a "low-key way" to
demonstrate to the Iranians that Washington is not targeting
them without reason. In response to the Ambassador,s
question on whether the Syrians were controlling their border
with Iraq, Talabani said they would have to wait and see.
Words, he said, are not enough.


7. (C) The Ambassador and President discussed the Iraqi
proposal to hold a regional conference in Baghdad. The
Ambassador supported such a conference expressed concern that
many foreign ministers might not come due to security
concerns. The President suggested holding the conference in
Irbil, noting that many countries hold conferences outside
their capitals.

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Discussion of Iraqi Politics
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8. (C) The Ambassador asked whether the President thought
some Arab leaders disappointment in Prime Minister Maliki was
fair. Talabani replied that Maliki is not anti-Sunni, but
that the Arab world does not like religious Shia.
Nevertheless, Talabani continued, Maliki is not "working
well." Talabani said former PM Ibrahim al-Jafari is working
against Maliki because Jafari wants his former job back.


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9. (C) The Ambassador said that National Security Advisor
Mowafaq Rubai is trying to organize a new political party.
Talabani encouraged a new party and said he was ready to help
finance one. The Ambassador relayed that Iraqiyah leader
Ayad Allawi said the GOI arrested a number of Iraqiyah
members. Talabani confirmed the information and said he was
against it. The President opined that Allawi did not know
how to use his popularity and chided Allawi for living
outside the country without reason.
KHALILZAD