TREASURY DEPUTY SECRETARY KIMMITT MEETS WITH SRSG

C O N F I D E N T I A L SECTION 01 OF 02 BAGHDAD 003650

SIPDIS

TREASURY FOR DEPUTY SECRETARY KIMMITT

E.O. 12958: DECL: 11/17/2018
TAGS: PGOV PREL EAID PREF IZ
SUBJECT: TREASURY DEPUTY SECRETARY KIMMITT MEETS WITH SRSG
DE MISTURA

Classified By: EMIN - Marc Wall, Reason E.O. 12958 1.5 (b,d)


1. (SBU) Summary: On November 1, 2008, Treasury Deputy
Secretary Robert Kimmitt, accompanied by Deputy Assistant
Secretary Andrew Baukol and Treasury Attache Ged Smith, met
with UN Secretary General Special Representative Staffan de
Mistura and members of his team in the United Nations offices
in Baghdad, Iraq. The UN is the de-facto leader of
multi-lateral institutions' efforts inside Iraq, and it plans
to expand its operations. De Mistura sought Kimmitt's
assistance in pressing the UN budget committee to allocate
funds for this purpose. De Mistura discussed ways to support
the International Compact with Iraq (ICI) as well as the
provincial elections process.

De Mistura summarizes UN engagement in Iraq
--------------


2. (SBU) D/S Kimmitt thanked de Mistura for the UN's
ongoing engagement in Baghdad, noting that the UN is ahead of
the IMF and World Bank in Iraq in terms of staff in country
and scope of work. Kimmitt noted that he intended to discuss
the situation with World Bank President Zoellick, and that
the Bank may be more forward leaning about engagement in the
coming months. De Mistura described some of the key
activities that the UN is working on, including border issues
with the KRG, minority rights, and the upcoming provincial
elections. He has been working hard to prevent delays to the
provincial elections, because forward movement on elections
will have positive effects on moving ahead on other critical
legislation, such as the hydrocarbons legislation and the
Status of Forces Agreement. Regarding the World Bank, De
Mistura noted that the Bank's new country manager in Baghdad
is quite junior and that the Bank is trying to fill positions
for Baghdad by volunteers for short-term postings.


3. (C) De Mistura noted that the UN's continued engagement
is tied to the U.S. presence, as the UN depends on U.S.
forces for security and logistical support. Hence,
conclusion of the Status of Forces Agreement or approval of a
new UN Security Council mandate is essential for continued UN
engagement.

Status of the International Compact with Iraq
--------------


4. (SBU) D/S Kimmitt congratulated de Mistura for the
signing of the United Nations Assistance Strategy for Iraq
2008 - 2010. He thanked de Mistura for the UN's steadfast
support of the Compact process, and questioned him about
Government of Iraq (GOI) commitment to the process. He noted
that the ICI could provide an organizing structure and help
Iraq engage with its neighbors on ICI pledges. De Mistura
noted that some in the GOI view the Compact as just part of
Iraq's foreign relations, not as an organizing principle for
domestic policy. He argued that the Iraqi government needs
to strengthen the role of the ICI Secretariat to persuade
Iraqi ministries to use the Compact. The Prime Minister
holds the key to this task. De Mistura noted that PM Maliki
is more serious about the Compact since the conference in
Stockholm in May 2008. But, it is still difficult to get the
rest of the GOI on board. De Mistura noted that the UN was
now contributing two people to the Secretariat on a more or
less full-time
basis.

The UN's role in Iraq/Kuwait relations
--------------


5. (C) D/S Kimmitt described his conversations with Kuwaiti
officials concerning their relations with Iraq. He
encouraged De Mistura to work with the Iraqis to engage
Kuwait, including on UN Compensation Commission claims and
border issues. De Mistura described the UN's ongoing work
with Iraq on border issues, noting that he has been urging
Iraq to go the extra mile to respond to Kuwaiti requests to
help build mutual confidence.

Winding down the UN Trust Fund (UNTF)
--------------


6. (C) De Mistura noted that the IRRFI was winding down,
and noted the upcoming donors' meeting in Italy in
mid-December. He indicated he wants to use the remaining
funds in the UNTF to support Compact related activities.
Resources in the UN Trust Fund had fallen to approximately
$90 million. For some time, the UN was receiving
contributions to merit continued operations of the Trust
Fund, with most of these coming from countries that did not

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participate in the military coalition or that were
withdrawing from military activities. For example, de Mistura
had high hopes for a contribution from Korea, but instead,
Korea elected use funds for projects in the KRG. De Mistura
indicated that the UN would use the $90 million balance in
the UN Trust Fund for work in three main areas cutting across
the work of all the UN agencies in Iraq: decentralization,
private sector development (restructuring state enterprises),
and reform of the public distribution system.

Financing for New UN Headquarters in Baghdad
--------------


7. (C) De Mistura noted that the UN was moving forward to
build its own compound in the International Zone, as they had
been in temporary quarters since their original building was
destroyed in the 2003 explosion that killed Sergio de Mello.
He noted that there was a key discussion on November 4 by a
UN Budget Committee in New York. De Mistura noted that a GOI
contribution to this effort was key, and he had arranged a
vote by PM Maliki's Council of Ministers to help set up the
UN Budget Committee vote. De Mistura asked D/S Kimmitt if he
could help marshal U.S. support for the initiative when it
came before the UN Budget Committee. (Note: The GOI voted
to provide approximately 25 percent of the estimated cost of
a new compound as well as providing some of the land. D/S
Kimmitt flagged this issue with U.N. Ambassador Khalilzad on
November 3. End Note.)

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