MOFAT DISCUSSES IRAQI PM MALIKI'S VISIT TO ROK AND

C O N F I D E N T I A L SEOUL 001120

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E.O. 12958: DECL: 04/17/2017
TAGS: PREL PGOV EAID EFIN KS IZ
SUBJECT: MOFAT DISCUSSES IRAQI PM MALIKI'S VISIT TO ROK AND
ICI

REF: SEOUL 1068

Classified By: A/DCM Joseph Y. Yun. Reasons 1.4 (b/d)


1. (C) SUMMARY: On April 17, A/DCM met with Ma Young-sam,
MOFAT'S Director-General for Middle Eastern and African
Affairs, to discuss the April 11-13 visit of Iraqi Prime
Minister Maliki to South Korea. Ma said that the main
purpose of Maliki's visit was improving bilateral economic
cooperation, particularly to encourage ROK companies to
invest in Iraq. ROKG officials told Maliki that Seoul (1)
intended to send a high-level delegation, possibly headed by
ROK Foreign Minister Song, to the May 3 International Compact
with Iraq (ICI) event; and (2) planned to actively
participate in the ICI meeting, suggesting that Seoul might
make an additional financial pledge. Maliki in his official
meetings did not comment about possible changes in the ROK
troop levels in Iraq, but at a press conference noted
optimistically that with the improving political and security
situation, at some point fewer Coalition troops would be
needed in Iraq. Ma said. END SUMMARY.


2. (C) In an April 17 meeting with A/DCM, MOFAT's
Director-General for Middle Eastern and African Affairs, Ma
Young-sam, provide a readout of Iraqi Prime Minister Maliki's
April 11-13 visit to South Korea. Maliki met with ROK Prime
Minister Han Duck-soo and dined on April 11, held a April 12
breakfast meeting with ROK businessmen, which was followed by
a meeting and lunch with ROK President Roh Moo-hyun. He held
a press conference in Seoul before visiting Busan on April

12. He visited the Hyundai Heavy Industries plants in Busan
and Ulsan and depart South Korea on April 13.

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ECONOMIC COOPERATION
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3. (C) Ma stated that Maliki's visit to South Korea was
primarily intended to promote ROK investment in and trade
with Iraq. Maliki said that the Iraqi political situation
was improving and sectarian violence was decreasing. Now
that the Iraqi police were getting things under control, the
reconcilation policy was working, not only in the northern
regions, where ROK soldiers and businesses were concentrated,
but also in central and southern regions. Maliki encouraged
the ROKG to lift its travel advisories and restrictions to
allow ROK companies to operate more freely in Iraq, which he
hoped, would promote more ROK investment. President Roh
responded that it was encouraging news that conditions in
Iraq were improving, and although the ROKG could not tell ROK
companies to invest in Iraq, Seoul would try to encourage
getting economic cooperation, Ma said.


4. (C) Ma explained that ROK economic interest in Iraq was
largely in oil, energy, construction, and information
technology fields. LG Electronics had a regional branch
office in Irbil, where the ROK Zaytun unit was located.
Iraqi officials seemed interested in greater ROK investment
in oil sectors, electricity and power generation
construction, as well as bridge and factory construction. Ma
noted that Iraq and South Korea signed a MOU on oil
cooperation. During Maliki's visit to the Hyundai Heavy
Industries plant in Ulsan, the Iraqi delegation made an
on-the-spot order of 52 generators. Iraqi officials made the
point that power generation and distribution were key goals
of the government to address living conditions of Iraqi
citizens.

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ICI
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5. (C) ROKG officials, including President Roh, Prime
Minister Han, and others noted that Seoul intended to send a
high-level delegation to the May 3 International Compact with
Iraq (ICI) event that will be held in Egypt, Ma said. There
the ROKG would be prepared to participate actively. Ma
elaborated that Seoul was aware that Secretary Rice and
Japanese Foreign Minister Aso planned to attend the ICI
event, so the ROKG was considering whether it could send
Foreign Minister Song Min-soon. Regardless of his
participation, Seoul would send a high-level team that
probably would make an additional financial pledge, although
Ma said that nothing was final yet.


6. (C) Ma added that per the letter from Treasury Deputy
Secretary Kimmitt that the Ambassador delivered to Foreign

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Minister Song last week (Ref A),MOFAT officials, in meetings
with the Iraqi State Minister for Foreign Affairs, encouraged
Maliki's delegation to pass the revenue sharing and
hydrocarbons law and implement regulations for the investment
law that was passed last year. The ROKG also encouraged Iraq
to pass the pension law. Iraqi officials said that the
revenue sharing law should be passed at the latest by June

2007.

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ROK TROOPS IN IRAQ
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7. (C) Asked whether Maliki made any requests about ROK
troop levels in Iraq, Ma said that Maliki made no such
mention during his official meetings. However, during the
April 12 press conference, in response to a reporter's
question about a possible reduction in ROK troops, Maliki
spoke optimistically that given the improving political and
security situation, at some point, fewer Coalition forces
would be needed in Iraq. Ma indicated that the ROKG
assessment of the security situation in Iraq was not as
optimistic as the case made by Maliki. This difference was
understandable if Maliki's objective was to drum up more ROK
investment and trade, Ma added.

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ROKG IMPRESSIONS
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8. (C) Ma said that the ROKG received a favorable impression
of Prime Minister Maliki from the visit. There were not many
good options in Iraq, so the ROKG hoped that Maliki's
leadership would deliver more stability, which was a key
objective for Seoul in Iraq. However, following Maliki's
visit, press reports about defections from Maliki's coalition
government, particularly from supporters of Moktada al-Sadr,
tended to undercut Maliki's argument about an improved
political situation.
STANTON