Identifier
Created
Classification
Origin
08BAGHDAD3517
2008-11-07 13:37:00
CONFIDENTIAL
Embassy Baghdad
Cable title:  

KARBALA WELCOMES IRANIAN TOURISTS BUT WARY OF

Tags:  PGOV PREL PTER EFIN IR IZ 
pdf how-to read a cable
VZCZCXRO5801
PP RUEHBC RUEHDE RUEHIHL RUEHKUK
DE RUEHGB #3517 3121337
ZNY CCCCC ZZH
P 071337Z NOV 08
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC PRIORITY 0242
INFO RUCNRAQ/IRAQ COLLECTIVE
C O N F I D E N T I A L BAGHDAD 003517 

SIPDIS

DEPARTMENT FOR NEA/I AND NEA/IR
NSC STAFF FOR OLLIVANT

E.O. 12958: DECL: 11/07/2018
TAGS: PGOV PREL PTER EFIN IR IZ
SUBJECT: KARBALA WELCOMES IRANIAN TOURISTS BUT WARY OF
IRANIAN INFLUENCE

Classified By: Classified By: Senior Advisor Gordon Gray for reason 1.4
(b) and (d).

C O N F I D E N T I A L BAGHDAD 003517

SIPDIS

DEPARTMENT FOR NEA/I AND NEA/IR
NSC STAFF FOR OLLIVANT

E.O. 12958: DECL: 11/07/2018
TAGS: PGOV PREL PTER EFIN IR IZ
SUBJECT: KARBALA WELCOMES IRANIAN TOURISTS BUT WARY OF
IRANIAN INFLUENCE

Classified By: Classified By: Senior Advisor Gordon Gray for reason 1.4
(b) and (d).


1. (C) Summary: Karbala business leaders and government
officials discussed their concerns about Iranian influence
and reliance on tourism revenue from Iranian pilgrims in a
visit November 2-3 by Senior Advisor Gordon Gray. Governor
Aqeel al-Khazali (Da,wa) hinted that the Iranians were
behind two recent plots to assassinate him, but still
welcomed Iranian commercial activity in the province and said
that current Iranian investment levels were modest. Mohsen
al-Kenani, an independent Provincial Council member,
expressed concern about Iranian produce filling Iraqi
markets, arguing that the solution is more GOI support for
domestic agricultural production. Another independent
councilman, Kadhum as-Safi, called for Iraq's other neighbors
to ease visa restrictions on Iraqi businessmen, who now find
it easier to do business with Iran than with neighboring Arab
countries with more stringent visa requirements. While none
of our contacts expressed affection for Iranians, they
acknowledged the economic benefits of Iranian tourism and
investment while seeking a counterweight to Iranian
influence. End summary.


2. (C) Governor Aqeel al-Khazali said the province needs
foreign investment for economic development, emphasizing that
he is willing to work with any investor whose plans are good
for Iraq. He singled out a need for Gulf investment as well
as Iranian investment in the tourism industry, estimating
that the province receives up to 14 million tourists a year,
including about 10 million Iranians who visit the shrines of
Imam Hussein and Imam Abbas. But Karbala will not tolerate
any political interference, he said, adding that a "group"
had paid $100,000 for a contract to assassinate him.
Al-Khazali, who has previously blamed Iran for this and a
previous assassination attempt, stressed in this meeting that
Syria poses the greatest threat to Iraq by harboring
terrorists. Iranian goods fill local markets because "we're
living in poverty," and Iraqi production capacity is severely
degraded, he said.


3. (C) Mohsen al-Kenani, an independent Provincial Council
member, said that Iraqi produce cannot compete with Iranian
and Syrian produce in local markets because the GOI fails to
provide farmers subsidized fertilizer and water. He added
that smugglers bring in guns and explosives with agricultural
imports, but said that border controls have improved lately,
lessening the risk.


4. (C) Another independent councilman, Kadhum as-Safi, told
us that it is hard for Iraqi businessmen to travel to Syria
and Jordan to develop business relationships, but easy for
them to travel to Iran. As-Safi also demonstrated disdain
for Iranians, noting that many Iraqis died in the Iran-Iraq
war. He commented that Iranian religious
sense-of-superiority is unwarranted: Shi,ism came to Iraq
before it came to Iran. The problem regarding Iranian
influence is not that Iran is in Iraq, the problem is that no
one else is in Iraq, he said.


5. (C) Also remembering the Iran-Iraq war, Chief Appellate
Judge Abid Nour Farhan al-Fatlawi told the delegation that
Karbala continues to suffer from the consequences of a wave
of refugees from Basra during the war, which caused to a
steep decline in the standard of living during recent
decades. He said that Iranian officials visiting the
province have failed to fulfill promises to assist with
redevelopment.


6. (C) Hotel and Restaurant Association President Mohammed
told us that Iranian tour operators had
attempted to monopolize the religious tourism market by
establishing Iranian-owned and -staffed restaurants in
Karbala, insisting that pilgrims eat in these restaurants and
negotiating low, flat rates at hotels. However, the
provincial government closed the Iranian-owned restaurants,
and the hotel association was able to negotiate more
lucrative rates, he said.


7. (C) Comment: While Karbala has long-standing religious
and commercial ties to Iran, these meetings reinforced our
sense that the residents of the province will tend to resist
political interference by Iran due to their deep sense of
Iraqi nationalism. End comment.
CROCKER