PM MALIKI EXPRESSES CONFIDENCE TO SECDEF GATES

C O N F I D E N T I A L SECTION 01 OF 02 BAGHDAD 003990 SIPDIS SIPDIS E.O. 12958: DECL: 12/08/2017 TAGS: PGOV PREL PINS MARR MOPS ECON EFIN IZ SUBJECT: PM MALIKI EXPRESSES CONFIDENCE TO SECDEF GATES Classified By: Charge d'Affaires Patricia A. Butenis for reasons 1.4 (b ) and (d). ¶1. (C) Summary. In a December 5 meeting, PM Maliki repeatedly noted to Defense Secretary Gates the positive impact of progress in the security situation. Improved security was facilitating positive developments in Iraq's internal political situation as well as Iraq's relationships with the United States and the Coalition. PM Maliki also expressed confidence in his government's ability to pass important legislation like hydrocarbons and justice and accountability, to develop long-term security arrangements, and to pass and execute the budget. End Summary. -------------- Impact of Improved Security -------------- ¶2. (C) PM Maliki declared to Defense Secretary Gates in their December 5 meeting that positive effects resulting from dramatic security improvements and cooperation between Iraq and the Coalition were being realized. He stated that Al Qaeda was retreating and that terrorism could be defeated. He cautioned that measures needed to be taken to prevent terrorists from regrouping; progress and projects for the Iraqi people had to be increased. PM Maliki stated that every time terrorists saw a bus return to Iraq with former refugees, it was like a strike of lightning upon the heads of Al Qaeda. ¶3. (C) PM Maliki noted that the accomplishments in security were having a positive impact on services and politics. He noted that parties were more willing to make progress, and even some ministers wanted to return to their positions. These developments would help legislation to pass. -------------- Advancing Key Legislation -------------- ¶4. (C) Secretary Gates thanked PM Maliki for his cooperation with the November 26 Declaration of Principles. Secretary Gates then inquired about the prospects for advancing the hydrocarbon law and the accountability and justice law. ¶5. (C) PM Maliki responded that the accountability and justice law was "practically done," and it was already at the second reading. Problems from the initial reading were due to the presentation of the wrong draft. Although it is a complicated issue, the PM was confident that it would be passed. ¶6. (C) PM Maliki opined that attention will shift to the hydrocarbon law after the passage of the accountability and justice law. On hydrocarbon law, PM Maliki stated that the draft approved by the Council of Ministers was the most acceptable to all parties. Kurds and other groups had caused problems with the advancement of the legislation. -------------- Long-Term Security -------------- ¶7. (C) Noting successful completion of the Declaration of Principles and the imminent renewal of the UN Security Council Resolution, PM Maliki expressed confidence in the future agreement on long-term security. Although he acknowledged that there would be political complications, "In the end, it will be done." He noted that the Declaration of Principles was a political success because Iraqi leaders thoroughly discussed the document with other groups in advance. (Note: Prior to signing the Declaration, the Prime Minister's senior advisors deliberately briefed ministers, political party leaders, and finally the Council of Representatives on the elements within the Declaration. End Note.) PM Maliki stated that although the negotiations will take a long time, both the Iraqi and U.S. sides were intent on concluding a bilateral agreement, so it would be "easy." He observed that the Declaration of Principles, the UNSCR renewal, and the long-term relationship would have been very difficult to get done if it had not been for the improvements in the security situation. -------------- Budget -------------- ¶8. (C) Responding to Secretary Gates' question about passing the budget, PM Maliki again expressed confidence in his government. The PM acknowledged that Iraq benefits from high oil prices and that Iraq obtained more revenue from oil than BAGHDAD 00003990 002 OF 002 other sources. He was optimistic that the funds would be properly spent. In comparison to previous years, PM Maliki explained that the Government of Iraq was now more experienced in budget execution. BUTENIS