MOFAT DISCUSSES IRAQI PM MALIKI'S VISIT TO ROK AND

C O N F I D E N T I A L SEOUL 001120 SIPDIS SIPDIS NSC FOR CHA 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. -------------- ECONOMIC COOPERATION -------------- ¶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. --- ICI --- ¶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 SIPDIS 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. -------------- ROK TROOPS IN IRAQ -------------- ¶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. -------------- ROKG IMPRESSIONS -------------- ¶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