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 -------------- - ¶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 -------------- BAGHDAD 00001518 002 OF 002 ¶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