PM MALIKI TELLS CODEL PELOSI: IRAQ WANTS

C O N F I D E N T I A L SECTION 01 OF 02 BAGHDAD 001582

SIPDIS

E.O. 12958: DECL: 05/22/2018
TAGS: PREL PGOV IZ
SUBJECT: PM MALIKI TELLS CODEL PELOSI: IRAQ WANTS
FRIENDSHIP, NOT TO BE A BURDEN

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


1. (C) Summary. Prime Minister Nuri al-Maliki told CODEL
Pelosi and the Ambassador on May 17 that Iraq is making great
political and security strides this year. When asked about
Iraq's relationship with its Arab neighbors, PM Maliki
responded that Iraq receives little support and added Iraq
should not be saddled with Saddam-era debts to these
countries. Regarding Iran, he asked the United States not to
put Iraq in the middle of its conflicts. Regarding the
Strategic Framework Agreement (SFA),PM Maliki commented that
it would first receive approval from the Political Council on
National Security (PCNS),which he added should ease its
passage through the CoR. When pressed by CODEL Pelosi on
spending Iraq's budget surplus and passing an oil law, Maliki
said that a USD 10 billion supplemental as well as the draft
oil law should be transmitted soon to the Council of
Representatives (CoR). When Rep. Pelosi pressed PM Maliki on
the diminishing patience of the United States, Maliki asked
for ongoing friendship and support in achieving Iraq's goals.
End summary.

IRAQ ON A POSITIVE PATH
--------------


2. (C) PM Nuri al-Maliki opened his meeting with CODEL Pelosi
(Speaker of the House, Nancy Pelosi, D-CA; Rep. Steny Hoyer,
D-MD; Rep. ADAM Putnam, R-FL; Rep. John Larson, D-CT; Rep.
Howard Berman, D-CA; Rep. Gary Ackerman, D-NY; Rep. Alcee
Hastings, D-FL; and Rep. Jane Harman, D-CA) by painting a
positive picture of Iraq's progress this year. He said the
Iraqi Security Forces (ISF) are making significant strides in
improving security, and noted the current operation in Mosul
as another accomplishment. He noted that Coalition Forces
were of great help there as well as during recent operations
in Basra and Baghdad. He discussed improvements in building
political consensus among the political blocs, adding Iraq is
now "liberated" to move on to its economic challenges. He
thanked the United States for its contributions in security
and other areas. When asked by Rep. Putnam regarding
security gains this year, Maliki responded that Iraq had once
been on the verge of a civil war, but that problems in
Baghdad and elsewhere have now improved. In response to some
comments from Rep. Jane Harman (D-CA) regarding improvements
in the Ministry of Interior, Maliki noted that sectarianism
has decreased significantly.

IRAQ'S NEIGHBORS, IRAN
--------------


3. (C) When asked by House Foreign Relations Committee
Chairman Rep. Berman (D-CA) about Iraq's relationship with
neighboring countries such as Saudi Arabia and Iran, Maliki
said there is a national decision that Iraq is completely
sovereign and should have good, normal relations with all its
neighbors. In the past divisions among Iraqis brought
foreign intervention. The Iraqis will not permit Iranian
interference. The U.S.-Iranian conflict is another matter.
Iraq will not allow Iran to attack the U.S. in Iraq -- and
vice versa. Maliki said that Iraq is receiving little
support from Saudi Arabia and its other neighbors. He added,
"We need to develop relations with them, we do not need their
money." Regarding Iraq's debt to its neighbors, Maliki
blamed these on Saddam's regime and stressed Iraq should not
have to repay these debts. "We paid instead with blood
because of his wars," he said. He also asked that Iraq's
neighbors provide support to Iraq in preventing foreign
fighters and terrorists from transiting their borders.

STRATEGIC FRAMEWORK AGREEMENT
--------------


4. (C) Asked whether Iraq's Council of Representatives (CoR)
would consider the Strategic Framework Agreement (SFA),PM
Maliki said the Iraqi negotiating team would take the
agreement to the Political Council on National Security
(PCNS) first to obtain guidance. He told CODEL Pelosi there
is progress in moving past points of friction. He explained
that the PCNS includes leaders of all parties, making it
easier for the Iraqi negotiating team to resolve any issues
before it is sent to the CoR. When asked whether the SFA
would include provisions if Iraq is attacked by a neighboring
country, the PM responded that this is what Iraq is seeking.
When pressed as to what the U.S. response was, Maliki said,
"We will find out." Speaker Nancy Pelosi then stressed that
in this case, the SFA would need to go to Congress. She
noted this doesn't mean it wouldn't be passed, but stressed
that approval from Congress would be necessary. PM Maliki
responded to Speaker Nancy Pelosi, "You know your own
system." He then added that if the SFA was a Memorandum of
Understanding instead, it would be non-binding and would not
need to go to the CoR.

BAGHDAD 00001582 002 OF 002



IRAQ'S BUDGET
--------------


5. (C) Rep. Alcee Hastings (D-FA) asked about Iraq's USD 30
billion budget surplus. PM Maliki explained there is
actually only a USD 10 billion surplus, with another USD 20
billion in the Central Bank of Iraq (CBI) not under direct
control of the GOI. Maliki continued to explain the budget
for 2008 was USD 48 billion. The USD 10 billion surplus, he
said, will be part of a supplemental request that will be
submitted to the CoR. He also noted the CoR approved a USD 5
billion reconstruction plan for infrastructure improvements
in oil, electricity, transportation, and other sectors. Rep.
Hastings then pressed PM Maliki hard on the lack of resources
devoted towards internally displaced people (IDPs) from Iraq.
PM Maliki noted in response that the GOI offered USD 25
million to Syria, Lebanon, and Jordan to help them with
refugee support. He explained the GOI is working hard to
bring IDPs back to Iraq and that the Ministry of Migration
and Displacement is leading this effort through financial
support (i.e. rehabilitating homes). He also added that USD
200 million in a reserve fund is allocated to support this
effort. "Many of them have expertise we need here," he said.
He also asked for help and commented he hasn't seen much
assistance from the international community on the issue.

REDUCING DEPENDENCE
--------------


6. (C) Rep. John Larson (D-CT) stressed the high cost of USG
assistance to Iraq, remarking that USD 3 trillion dollars has
been spent on the war. PM Maliki sympathized, responding, "I
understand you have paid in treasure and blood." He agreed
that more needs to be done to minimize the cost on the United
States and to push more of these costs on the GOI. "This
year," he said, "we will see Iraqi Security Forces (ISF) take
on more security, which will help to reduce the dependency on
U.S. forces."

"WE WANT FRIENDSHIP, NOT TO BE A BURDEN"
--------------


7. (C) In a response to a question from Rep. Gary Ackerman
(D-NY) regarding the status of the oil law, PM Maliki
expressed optimism the law would pass soon. He said there is
agreement on the Council of Ministers (CoM) draft from
February 2007 and added it will be sent to the CoR shortly.
He was also optimistic about the provincial elections law.
In closing, Rep. Pelosi highlighted that the war in Iraq is
rapidly losing popularity in the United States. In response,
PM Maliki expressed understanding and thanked the United
States for its help in ridding Iraq from a dictatorship. "We
want friendship," he noted, "not to be a burden."


8. (U) Rep. Pelosi did not have the opportunity to clear this
cable before departing.
CROCKER