ROKG "VERY SATISFIED" WITH INTERNATIONAL COMPACT

C O N F I D E N T I A L SEOUL 001385 SIPDIS SIPDIS E.O. 12958: DECL: 05/09/2017 TAGS: PREL EAID EFIN KS IZ SUBJECT: ROKG "VERY SATISFIED" WITH INTERNATIONAL COMPACT FOR IRAQ RESULTS Classified By: A/DCM Joseph Y. Yun. Reasons 1.4 (b,d). ¶1. (C) On May 9, Do Bong-kae, Deputy Director of Development Cooperation Division, Ministry of Foreign Affairs and Trade (MOFAT) told poloff that ROK Foreign Minister Song Min-soon was "very satisfied" with the results of the International Compact with Iraq (ICI) conference in Egypt. Do said that half of the additional USD 200 million in assistance pledged by FM Song at the ICI conference is slated for grants and half would be provided as soft loans. Do noted that the total sum had been approved by the ROKG, but that interagency meetings to determine assistance details were just getting underway. ¶2. (C) The USD 200 million will be disbursed over the period 2008 to 2011, but the breakdown has not yet been determined, with each year's assistance subject to National Assembly approval through the annual budget process, Do said. Like the ROK assistance pledged at the Madrid Conference in 2003, the USD 200 million will be funneled through Korea International Cooperation Agency (KOICA) programs to be coordinated with the Iraqi government. Do said the ROKG does not anticipate providing any additional debt relief for Iraq, as the majority of remaining debt was provided by private ROK creditors. VERSHBOW