IRAQ:BSP PROGRESSING, HYDROCARBON LAW COMPROMISES,

S E C R E T SECTION 01 OF 02 BAGHDAD 000660

SIPDIS

SIPDIS

E.O. 12958: DECL: 02/20/2017
TAGS: PGOV PHUM PREL MOPS IZ
SUBJECT: IRAQ:BSP PROGRESSING, HYDROCARBON LAW COMPROMISES,
"CROSSED SABERS" WILL STAY - FOR NOW

Classified By: Ambassador Zalmay Khalilzad for reasons 1.4 (b) and (d).


1. (S) SUMMARY: During a February 20 meeting with Ambassador
Zalmay Khalilzad, Prime Minister Nuri al-Maliki, Deputy Prime
Minister Barham Salih, and Minister of Oil Husayn
Shahristani, all agreed that necessary compromises to the
draft Hydrocarbon Law are almost complete and that it will be
presented to the Council of Representatives in mid-March.
They also discussed the potential political impact of the
widely reported alleged kidnapping and rape of a Sunni woman
by Iraqi National police. Maliki said he immediately
launched an investigation and that suspects were arrested,
but that medical reports indicate that the woman was not
assaulted. He added that this would not affect the execution
of the new security plan. He strongly criticized what he
characterized as an attempt by VP Hashemi and Speaker
Mashhadani to make this a political issue. He also stated
that he was unaware of reports that the "Crossed Sabers"
monument was being dismantled, commenting that it was a
decision taken under former Prime Minister Ibrahim Ja'afari.
He stated that he would immediately suspend the action
because dismantling it now would be politically problematic.
END SUMMARY.

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Maliki's Response to Alleged Rape
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2. (S) At a February 20 meeting with Prime Minister Nuri
al-Maliki, Ambassador Khalilzad expressed his concern over
Maliki's public statement in response to the alleged rape of
a Sunni woman by Iraqi National Police. The incident, widely
broadcast throughout the Arab world, has angered Iraqi Sunnis
and prompted some Sunni leaders to call the latest Baghdad
Security Plan a failure. The woman was treated and examined
at the Combat Surgical Hospital (CSH). The Ambassador
commented that he was troubled that the Prime Minister's
office released a statement stating that no rape occurred,
despite the fact that the CSH had not released the results of
the victim's examination. Maliki then produced a copy of a
medical report (dated February 18),telling the Ambassador
that they received the report from a Tawafuq Front official
who received it from a CSH employee of "Palestinian origin."
(NOTE: After the meeting the Embassy determined that Tuwafaq
Front officials obtained the victim's medical report from the
patie
nt herself, who was provided them upon discharge. The CSH did
not publicly release details of the investigation. The PM's
office released a copy of the report on February 20. END
NOTE.)


3. (S) Maliki added that he had taken swift action on this
incident, presenting evidence to an investigating committee
and ensuring that charges were filed against the suspected
perpetrators, who he said were not Shia. (NOTE: This has not
yet been confirmed. END NOTE) Maliki opined that it was a
confused story, noting that the alleged victim had been
arrested three times for involvement in terror networks. He
added that this did not excuse any assault and that any
misconduct would be punished. Maliki's stated his concern
that Speaker Mahmoud Mashhadani and Vice President Tariq
Hashemi were attempting to use the rape as a "political
statement" to discredit the positive results of the Baghdad
Security Plan and to call for its suspension. Referring to
these efforts, he wondered aloud "why do they speak this way?"

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Hydrocarbon Law: Major Compromises, Nearing Completion
-------------- --------------


4. (S) The Prime Minister and Ambassador met with key Kurdish
leaders - Deputy Prime Minister Salih and former Deputy Prime
Minister Rowsh Shaways -- to discuss the hydrocarbon law. A
separate meeting with Oil Minister Shahristani followed. The
meetings produced agreement on the cover letter for the
hydrocarbon framework law, setting the stage for the
long-awaited cabinet action on the law. The key to resolving
the impasse was reached when, at the Ambassador's suggestion,
Rowsh received agreement from KRG Prime Minister Nechirvan
Barzani to send a letter to Maliki listing the four contracts
the KRG has already signed for oil/gas exploration and
development since the adoption of the constitution in 2005.
Barzani will also make clear in his letter that the Kurds
will not press their demand for a re-balance of cabinet level
positions in conjunction with the hydrocarbon law. Both

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Maliki and Shahristani agreed to the text of Barzani's letter.


5. (S) The cover letter will state that the Hydrocarbon Law,
including four annexes listing the categories of fields and
exploration blocks and the associated revenue distribution
law, will be submitted to the Council of Representatives by
March 15. The letter also contains a statement of intent
that the entire package of hydrocarbon laws and their
implementation is to be completed by the end of May. (NOTE:
The special Council of Ministers meeting held March 21 failed
to approve the draft law. END NOTE)

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Maliki Visits the Baghdad Streets
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6. (S) Maliki was visibly pleased as he discussed his trip to
a mixed Sunni-Shia neighborhood, describing the people as
being supportive of the new security plan. The Ambassador
approved, saying that such trips send an important message to
the Iraqi people. Maliki said it was good to see the
positive reaction on Baghdad streets. He mentioned that he
visited three checkpoints and handed out bonuses for
exceptional duty performance. He said that he was pleased
with the checkpoints overall, but added that some needed
improvement, including additional soldiers. He commented
that the Iraqi Army needs to go back to cooking its own food
because the contract method is "too expensive and provides
low quality food" that the soldiers do not like.

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The Fall of the Crossed Sabers?
--------------


7. (S) The Ambassador concluded by advising Maliki that there
were rumors that Saddam's "Crossed Sabers" Monument was to be
dismantled beginning Wednesday morning. Maliki responded
that he knew of no such plans, but added that the Cabinet of
Ministers may have made the decision under former Prime
Minister Ja'afari. He added that he would immediately
suspend any action to dismantle the monument, noting that
doing it now would detract from the security plan.
KHALILZAD