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.

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DoS-Held Properties
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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.

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Tensions Between the MFA and PM's Office on Sites
for Foreign Embassies and Ambassadorial Appointments
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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,

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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