Identifier
Created
Classification
Origin
07BAGHDAD697
2007-02-25 14:05:00
CONFIDENTIAL
Embassy Baghdad
Cable title:
BUSINESS LEADER OF IRAQI KURDISTAN ON OPENNESS IN
how-toVZCZCXRO7034 PP RUEHBC RUEHDE RUEHIHL RUEHKUK DE RUEHGB #0697 0561405 ZNY CCCCC ZZH P 251405Z FEB 07 FM AMEMBASSY BAGHDAD TO RUEHC/SECSTATE WASHDC PRIORITY 9884 INFO RUCNRAQ/IRAQ COLLECTIVE
C O N F I D E N T I A L BAGHDAD 000697
SIPDIS
SIPDIS
E.O. 12958: DECL: 02/24/2017
TAGS: PGOV ECON IZ
SUBJECT: BUSINESS LEADER OF IRAQI KURDISTAN ON OPENNESS IN
PARTY POLITICS
Classified By: RRT Erbil Leader James Yellin, reasons 1.4 (b) and (d)
This is an Iraqi Kurdistan Regional Reconstruction Team (RRT)
cable.
C O N F I D E N T I A L BAGHDAD 000697
SIPDIS
SIPDIS
E.O. 12958: DECL: 02/24/2017
TAGS: PGOV ECON IZ
SUBJECT: BUSINESS LEADER OF IRAQI KURDISTAN ON OPENNESS IN
PARTY POLITICS
Classified By: RRT Erbil Leader James Yellin, reasons 1.4 (b) and (d)
This is an Iraqi Kurdistan Regional Reconstruction Team (RRT)
cable.
1. (C) SUMMARY: The most prominent businessman in
Sulaimaniyah Province, Faruk Mustafa Rassool, told RRT Off on
February 10 the two dominant political parties in Iraqi
Kurdistan must put their rivalry aside and allow free-market
practices to drive economic development. He told party
leaders that for political longevity, they must integrate
moderate Islamic parties and move towards a multi-party
system with free elections. In Iraqi Kurdistan, politics so
far continue often to trump free-market principals. END
SUMMARY
-------------- --------------
PARTY POLITICS INTERFERES WITH BUSINESS DEVELOPMENT
-------------- --------------
2. (C) Faruk Mustafa Rassool believes that the economy is
the infrastructure of politics and the best type of economy
is open-market and private sector-driven. Rassool stressed
that political interests of the two dominant Kurdish parties
) the Kurdistan Democratic Party (KDP) and the Patriotic
Union of Kurdistan (PUK) should not interfere with
competition in the market. The telecommunications sector is
a case in point.
3. (C) In 1999, when Rassool founded Asia-Cell it was the
first to offer GSM service in Iraq. Rassool notes Asia-Cell,
however, is prohibited from working in Erbil and Dohuk
Provinces which are controlled by the KDP and the Korek cell
phone network monopoly. He mentioned that he had spent 40
million dollars to obtain a license from the KRG Ministry of
Communications, that he had set up the transmission towers
and network, and that he had closed the agreement to operate.
4. (C) According to Rassool, the Korek Company along with
the intelligence arm of the KDP is preventing him from
actually activating the business because Asia-Cell is
associated with the PUK. (Note: The chairman of Korek is
Sirwan Mustafa, nephew of KDP leader Massoud Barzani and an
advisor to Prime Minister Nechirvan Barzani (KDP).)
--------------
ROLE OF FS AS POLITICAL INTERMEDIARY
--------------
5. (C) When questioned on the role the PUK has played in his
success, Rassool commented in part it has helped him by
providing a secure environment for investors but it has also
limited potential for economic growth. Rassool noted he is
PUK member but a friend of KRG President and KDP member
Massoud Barzani. Rassool told RRT Off he advised the KRG
President that PUK and KDP must both be strong political
forces. He told RRT off that he endorses a multi-party
system and free elections.
6. (C) In order to move toward a multi-party system that
would strengthen political stability, Rassool advised
President Barzani not to underestimate or exclude the
moderate Islamists. Rassool said he explained to President
Barzani that the KDP must adopt a longer-term view of
politics and integrate and contain the Islamic moderate
parties if he wishes to stay in power.
7. (C) Rassool said that he is aligned with the PUK faction
of Iraqi President Jalal Talabani and that Talabani has a
more flexible leadership style than Massoud Barzani. That
being said, Rassool continued, Talabani sees the KDP-PUK
rivalry as part of a greater struggle between his so-called
civilized, secular arm of the PUK and the extremist Islamist
parties. This limited view, Rassool commented, may preclude
Talabani and the PUK from cooperating with the moderate
Islamic parties.
8. (C) COMMENT: The career of Faruk Mustafa Rassool
reflects opportunities as well as the limits businesses face
in the Kurdistan Region given the interference in the market
by the two dominant political parties, the PUK and KDP. He
realizes that an open economic system free from undue
influence by the KDP and PUK is necessary to maximize
economic growth. In the Iraqi Kurdistan Region, however,
politics so far continue often to trump free-market
principals.
KHALILZAD
SIPDIS
SIPDIS
E.O. 12958: DECL: 02/24/2017
TAGS: PGOV ECON IZ
SUBJECT: BUSINESS LEADER OF IRAQI KURDISTAN ON OPENNESS IN
PARTY POLITICS
Classified By: RRT Erbil Leader James Yellin, reasons 1.4 (b) and (d)
This is an Iraqi Kurdistan Regional Reconstruction Team (RRT)
cable.
1. (C) SUMMARY: The most prominent businessman in
Sulaimaniyah Province, Faruk Mustafa Rassool, told RRT Off on
February 10 the two dominant political parties in Iraqi
Kurdistan must put their rivalry aside and allow free-market
practices to drive economic development. He told party
leaders that for political longevity, they must integrate
moderate Islamic parties and move towards a multi-party
system with free elections. In Iraqi Kurdistan, politics so
far continue often to trump free-market principals. END
SUMMARY
-------------- --------------
PARTY POLITICS INTERFERES WITH BUSINESS DEVELOPMENT
-------------- --------------
2. (C) Faruk Mustafa Rassool believes that the economy is
the infrastructure of politics and the best type of economy
is open-market and private sector-driven. Rassool stressed
that political interests of the two dominant Kurdish parties
) the Kurdistan Democratic Party (KDP) and the Patriotic
Union of Kurdistan (PUK) should not interfere with
competition in the market. The telecommunications sector is
a case in point.
3. (C) In 1999, when Rassool founded Asia-Cell it was the
first to offer GSM service in Iraq. Rassool notes Asia-Cell,
however, is prohibited from working in Erbil and Dohuk
Provinces which are controlled by the KDP and the Korek cell
phone network monopoly. He mentioned that he had spent 40
million dollars to obtain a license from the KRG Ministry of
Communications, that he had set up the transmission towers
and network, and that he had closed the agreement to operate.
4. (C) According to Rassool, the Korek Company along with
the intelligence arm of the KDP is preventing him from
actually activating the business because Asia-Cell is
associated with the PUK. (Note: The chairman of Korek is
Sirwan Mustafa, nephew of KDP leader Massoud Barzani and an
advisor to Prime Minister Nechirvan Barzani (KDP).)
--------------
ROLE OF FS AS POLITICAL INTERMEDIARY
--------------
5. (C) When questioned on the role the PUK has played in his
success, Rassool commented in part it has helped him by
providing a secure environment for investors but it has also
limited potential for economic growth. Rassool noted he is
PUK member but a friend of KRG President and KDP member
Massoud Barzani. Rassool told RRT Off he advised the KRG
President that PUK and KDP must both be strong political
forces. He told RRT off that he endorses a multi-party
system and free elections.
6. (C) In order to move toward a multi-party system that
would strengthen political stability, Rassool advised
President Barzani not to underestimate or exclude the
moderate Islamists. Rassool said he explained to President
Barzani that the KDP must adopt a longer-term view of
politics and integrate and contain the Islamic moderate
parties if he wishes to stay in power.
7. (C) Rassool said that he is aligned with the PUK faction
of Iraqi President Jalal Talabani and that Talabani has a
more flexible leadership style than Massoud Barzani. That
being said, Rassool continued, Talabani sees the KDP-PUK
rivalry as part of a greater struggle between his so-called
civilized, secular arm of the PUK and the extremist Islamist
parties. This limited view, Rassool commented, may preclude
Talabani and the PUK from cooperating with the moderate
Islamic parties.
8. (C) COMMENT: The career of Faruk Mustafa Rassool
reflects opportunities as well as the limits businesses face
in the Kurdistan Region given the interference in the market
by the two dominant political parties, the PUK and KDP. He
realizes that an open economic system free from undue
influence by the KDP and PUK is necessary to maximize
economic growth. In the Iraqi Kurdistan Region, however,
politics so far continue often to trump free-market
principals.
KHALILZAD