Identifier
Created
Classification
Origin
08RIYADH1400
2008-09-14 13:45:00
CONFIDENTIAL
Embassy Riyadh
Cable title:
SAUDIS WAITING ON IRAQIS TO MOVE FORWARD ON DEBT
how-toVZCZCXRO2443 PP RUEHDE RUEHDIR DE RUEHRH #1400 2581345 ZNY CCCCC ZZH P 141345Z SEP 08 FM AMEMBASSY RIYADH TO RHEHNSC/NSC WASHDC PRIORITY RUEHC/SECSTATE WASHDC PRIORITY 9167 RUEATRS/DEPT OF TREASURY WASHDC PRIORITY INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE PRIORITY RUEHGB/AMEMBASSY BAGHDAD PRIORITY 0709 RUEHJI/AMCONSUL JEDDAH PRIORITY 9744 RUEAIIA/CIA WASHDC PRIORITY RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
C O N F I D E N T I A L RIYADH 001400
SIPDIS
DEPT FOR NEA/ARP, EEB, NEA/I(TAECKER)
E.O. 12958: DECL: 09/06/2018
TAGS: EFIN EAID ECIN ECON SA IZ
SUBJECT: SAUDIS WAITING ON IRAQIS TO MOVE FORWARD ON DEBT
RELIEF
Classified By: Deputy Chief of Mission David Rundell for reasons 1.4 (b
) and (d)
C O N F I D E N T I A L RIYADH 001400
SIPDIS
DEPT FOR NEA/ARP, EEB, NEA/I(TAECKER)
E.O. 12958: DECL: 09/06/2018
TAGS: EFIN EAID ECIN ECON SA IZ
SUBJECT: SAUDIS WAITING ON IRAQIS TO MOVE FORWARD ON DEBT
RELIEF
Classified By: Deputy Chief of Mission David Rundell for reasons 1.4 (b
) and (d)
1. (C) In a September 6 courtesy call, Econoff discussed
Iraqi debt relief with Deputy Finance Minister Dr. Hamid
al-Baz'y. Dr. al-Baz'y said that though there had been
significant progress toward an agreement on the amount of the
debt's principal at a previous meeting in September 2007,
there have been no subsequent meetings. He elaborated that
the SAG had not received a request from the Government of
Iraq (GOI) for another meeting to address issues that remain
outstanding.
2. (C) The deputy minister told Econoff the SAG was both
"willing to and interested in" resolving the question of
Iraqi debt relief and judged that this could be done
relatively quickly. Dr. al-Baz'y said he expected questions
on the numbers involved, i.e. principal and interest owed,
could be addressed in one or two further meetings, after
which discussions could proceed to the timing and other
details of debt relief implementation.
4. (C) Despite public Saudi commitments to forgive a
substantial portion of Iraqi debt, including speeches at both
a September 2006 UN high-level meeting in New York and at the
May 2007 International Compact with Iraq conference,
questions on the amounts involved have plagued discussions
since 2004. Estimates of the outstanding debt range from $16
billion to $39 billion, with neither side able to document
their position effectively.
3. (C) Comment: While the deputy minister's relatively
upbeat assessment may not fully reflect Saudi Arabia and
Iraq's apparent inability to resolve the debt issue after
several years of slow progress, we believe technical
negotiations on this are worth pursuing and could prove
successful. Post is eager to work with the SAG, NEA/I, and
Embassy Baghdad to arrange future meetings on this issue with
the GOI. We believe a final agreement is within reach and
could prove a valuable step in improving Saudi-Iraqi
bilateral relations. End comment.
FRAKER
SIPDIS
DEPT FOR NEA/ARP, EEB, NEA/I(TAECKER)
E.O. 12958: DECL: 09/06/2018
TAGS: EFIN EAID ECIN ECON SA IZ
SUBJECT: SAUDIS WAITING ON IRAQIS TO MOVE FORWARD ON DEBT
RELIEF
Classified By: Deputy Chief of Mission David Rundell for reasons 1.4 (b
) and (d)
1. (C) In a September 6 courtesy call, Econoff discussed
Iraqi debt relief with Deputy Finance Minister Dr. Hamid
al-Baz'y. Dr. al-Baz'y said that though there had been
significant progress toward an agreement on the amount of the
debt's principal at a previous meeting in September 2007,
there have been no subsequent meetings. He elaborated that
the SAG had not received a request from the Government of
Iraq (GOI) for another meeting to address issues that remain
outstanding.
2. (C) The deputy minister told Econoff the SAG was both
"willing to and interested in" resolving the question of
Iraqi debt relief and judged that this could be done
relatively quickly. Dr. al-Baz'y said he expected questions
on the numbers involved, i.e. principal and interest owed,
could be addressed in one or two further meetings, after
which discussions could proceed to the timing and other
details of debt relief implementation.
4. (C) Despite public Saudi commitments to forgive a
substantial portion of Iraqi debt, including speeches at both
a September 2006 UN high-level meeting in New York and at the
May 2007 International Compact with Iraq conference,
questions on the amounts involved have plagued discussions
since 2004. Estimates of the outstanding debt range from $16
billion to $39 billion, with neither side able to document
their position effectively.
3. (C) Comment: While the deputy minister's relatively
upbeat assessment may not fully reflect Saudi Arabia and
Iraq's apparent inability to resolve the debt issue after
several years of slow progress, we believe technical
negotiations on this are worth pursuing and could prove
successful. Post is eager to work with the SAG, NEA/I, and
Embassy Baghdad to arrange future meetings on this issue with
the GOI. We believe a final agreement is within reach and
could prove a valuable step in improving Saudi-Iraqi
bilateral relations. End comment.
FRAKER