BARHAM SALIH ON SFA/SOFA, JORDAN TRIP, TALABANI'S

C O N F I D E N T I A L SECTION 01 OF 02 BAGHDAD 001518

SIPDIS

E.O. 12958: DECL: 05/14/2018
TAGS: PREL PGOV PINS PINR IZ
SUBJECT: BARHAM SALIH ON SFA/SOFA, JORDAN TRIP, TALABANI'S
HEALTH

Classified By: Ambassador Ryan C. Crocker for reasons 1.4 (b) and (d).


1. (C) SUMMARY: Deputy Prime Minister Barham Salih on May 13
updated the Ambassador on the Iraqi side of SFA/SOFA
negotiations. He highlighted the Iraqis' top two concerns at
present: a stronger pledge to protect Iraq against external
aggression, and stronger protection of Iraqi assets against
Saddam-era claims. Both, he said, would make the rest of the
agreements more palatable on the Iraqi political scene,
although he caveated that Prime Minister Maliki is generally
pessimistic about SOFA talks thus far. Salih reported on his
successful visit to Jordan, during which King Abdallah
pledged to invite Maliki to Amman and encourage his Saudi and
Gulf allies to open a new chapter in relations with Iraq.
The DPM updated the Ambassador on negotiations for Tawafuq's
return to the cabinet, saying they remain laborious but that
Maliki will give Rafe al-Issawi a chance in the second DPM
job. The Ambassador briefed Salih on President Talabani's
health, visibly distressing the DPM, and on Iraqi dealings
with Iranian banks that violate United Nations Security
Council Resolutions. End summary.

SOFA: Iraqis Want Protection from Invasion and Creditors
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2. (C) Salih identified what he called the two most
pressing SOFA issues at this moment. First, the Iraqis need
a much stronger pledge to defend Iraq from external
aggression. If the final language bulks up Washington's
assurances without sounding like a treaty, it will be the
sugar coat that makes the rest of the SOFA go down easier for
Iraqis. Second, the Iraqis need better protection of funds
outside Iraq against claims dating from the Saddam era. The
current vague language on protecting Iraqi assets is
insufficient; Salih,s remedy is to seek an UNSCR
specifically safeguarding them. He predicted the permanent
members of the Security Council could be convinced to support
such a resolution, with the possible exception of Russia.
The Ambassador said such a move would be difficult and has
little or no precedent; Salih conceded the latter point, but
called the protection of Iraqi assets abroad the least
negotiable portion of the agreement.


3. (C) Salih reported that Maliki is very pessimistic on
the SOFA -- the Prime Minister says he can never accept the
detention and operational rights the U.S. is demanding -- but
lead SOFA negotiator Muhammad Hajj Hammoud is more upbeat.
Maliki had considered asking Hammoud to brief the Political
Council for National Security (PCNS) on the progress of
negotiations; Salih recommended Hammoud brief the Executive
Council instead to avoid a divisive political melee, and the
Ambassador reported that Maliki earlier that day had indeed
advocated an Executive Council briefing.

Optimism on Ties to Jordan, Tawafuq Return
--------------


4. (C) Salih outlined his productive recent trip to
Amman. He conceded to Jordanian King Abdallah that Prime
Minister Maliki is not the secular Arab nationalist hero the
Arab neighbors dream of, but his attack on Iran-backed
militias in Basrah showed courage that few Shia leaders would
have mustered. Abdallah said he would invite Maliki to Amman
and encourage Saudi Arabia and the Gulf states to open a new
era in relations. The Jordanian king claimed already to have
told Saudi King Abdallah that he must stop personalizing the
Saudi-Iraq bilateral relationship.


5. (C) Salih agreed that Tawafuq is close to returning to
the cabinet. Maliki has doubts about Rafe al-Issawi as
Deputy Prime Minister, preferring Sadun al-Dulaymi (who Vice
President Hashemi has nominated as Culture Minister),but
Salih says Maliki will give Issawi a try. Salih shared
Maliki,s qualms about Ziyad al-Aswad and Dhafir al-Ani as
ministerial nominees, and cautiously forecast they will not
make the final cut.

Talabani: Returning but not Healthy
--------------


6. (C) Salih reported that President Talabani would
return to Baghdad on Saturday, having opted against knee
surgery in Germany. The Ambassador summarized the very
serious health conditions which had made the surgery in
Germany unsafe. Visibly shaken, Salih said Talabani had
casually suggested getting the knee surgery in Suleimaniya,
which the DPM viewed as a sign of Talabani's perennial
optimism and perhaps a measure of denial.

Iranian Banks Violate UNSCR
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7. (C) Finally, the Ambassador noted that some Iranian
banks operating in Iraq have put Baghdad in violation of UN
Security Council Resolutions. He reminded the DPM that going
before the UN to protect Iraqi assets would be difficult to
justify if Bank Sepah and others have placed the Iraqis afoul
of past UN decisions. Salih acknowledged the concern and
requested a formal note specifying the violations.
CROCKER