S/I SATTERFIELD DISCUSSES IZ PROPERTIES, FOREIGN

C O N F I D E N T I A L SECTION 01 OF 02 BAGHDAD 002424 SIPDIS E.O. 12958: DECL: 08/03/2018 TAGS: AGMT ABLD PGOV PREL IZ SUBJECT: S/I SATTERFIELD DISCUSSES IZ PROPERTIES, FOREIGN EMBASSIES AND AMBASSADORIAL APPOINTMENTS WITH MFA Classified By: S/I David Satterfield. Reasons 1.4 (b,d). ¶1. (C) Summary: S/I Satterfield and Management Counselor Austin-Ferguson met August 2 with Ambassador Srood Najib, the MFA's point person on the transfer of U.S.-held properties in the International Zone (IZ). The discussion focused on the various IZ properties currently in Department of State (DoS) possession. Satterfield outlined that while properties in DoD possession are to be covered in the Status of Forces Agreement (SOFA) now awaiting PM Maliki's approval, DoS-held properties will need to be dealt with separately through a letter from Ambassador Crocker to Foreign Minister Zebari. Najib recommended that, for clarity, such a letter deal only with DoS-held IZ properties the USG planned to vacate and turn over to the GOI by December 31, 2008. IZ properties the DoS intends to use after December 31 -- either through a lease arrangement or other modalities -- should be dealt with separately. During the meeting, Najib also vented his frustration with the PM Office's interference with MFA plans to utilize the IZ villa properties for foreign embassies, as well as Prime Minister Maliki's continued non-action on the nominations of six career ambassadors for postings to key Arab countries. End Summary. -------------- DoS-Held Properties -------------- ¶2. (SBU) S/I Satterfield told Najib the U.S. was considering presenting the MFA with a comprehensive list of DoS-held properties divided into three categories: (a) properties the DoS intends to vacate and transfer to the GOI by December 31, 2008; (b) properties the USG will formally transfer to the GOI by December 31 but will have a continued need to use and for which lease arrangements will be required; and (c) properties the USG will continue to occupy but will not lease or otherwise pay for as they provide support and services to the GOI and the Iraqi people. Satterfield underlined the U.S. desire to structure this information in a manner to help generate support for the SOFA and sought the MFA's guidance on how best to do that. In response Najib made clear that the proposed U.S. letter should only include properties the U.S. intended to vacate and transfer to the GOI by December ¶31. Arrangements on the other properties should be dealt with separately. Najib also underlined the importance of ensuring that the inventory of U.S.-held property we wish to retain be complete and accurate when conveyed to the GOI as it will be very difficult to add to it later. ¶3. (SBU) In a conversation on the issue of properties currently used by private contractors and not under DoD or DoS control, Najib said the clear preference would be to deal only with the Embassy on these issues. Satterfield agreed that that made sense and underlined again that these are privately held properties and not under DoS or DoD control. -------------- -------------- Tensions Between the MFA and PM's Office on Sites for Foreign Embassies and Ambassadorial Appointments -------------- -------------- ¶4. (C) During the course of the meeting, Najib made no effort to mask tensions between the MFA and the PM's office on dispensation of IZ properties and stalled ambassadorial appointments to key Arab countries. Najib said the PM's office continues to press for control of the villas properties near the NEC which they want for various GOI officials. Such efforts, he noted, run counter to the plan developed by the Embassy and MFA to utilize these properties for future diplomatic missions. S/I Satterfield reaffirmed the Embassy's intention to work this issue formally through the MFA and the policy imperative of facilitating the standing up key foreign embassies. He noted, however, that smooth resolution of the issue would necessitate informal Embassy communication with the PM's office. ¶5. (C) Najib noted that while interest in the villas runs high (just last week, he noted, Canada had approached the MFA seeking one of them) the MFA intends to make them available only to countries that establish diplomatic representation at the level of Ambassador. In this context, PM Maliki's continued inaction on the six career ambassadors proposed by FM Zebari for key Arab neighbors is complicating efforts to have those countries establish Embassies in Baghdad. Several have made clear that they will send their Ambassador only when Iraq has publicly announced their own. Najib noted ruefully that Iraq has Ambassadors in only four of twenty-two Arab countries and that at many other key posts around the world Iraqi embassies are staffed only with lower ranking officials -- something that greatly limits their effectiveness. S/I Satterfield said the U.S. has repeatedly underlined to the PM the importance of resolving this issue, BAGHDAD 00002424 002 OF 002 and the political costs of not doing so. He noted he would be pressing Arab countries on this issue during his next trip around the region later this summer. The GOI's non-action on its own ambassadorial nominees can only undercut that effort. Summing up succinctly what the next step should be, Najib said "We need a phone call the President on this; it's the only way," something S/I Satterfield said he would recommend. CROCKER