SECURITY COUNCIL RENEWS DFI PROTECTIONS FOR IRAQ

UNCLAS SECTION 01 OF 02 USUN NEW YORK 001202 SENSITIVE SIPDIS E.O. 12958: N/A TAGS: PREL UNSC IZ SUBJECT: SECURITY COUNCIL RENEWS DFI PROTECTIONS FOR IRAQ REF: STATE 133293 ¶1. (SBU) Summary: On December 22 the Security Council unanimously passed resolution 1859, providing for a one-year extension of protections for Iraqi assets, including the Development Fund for Iraq (DFI) and a Security Council review of all resolutions pertaining to Iraq since the adoption of resolution 661 (1990). Iraqi FM Zebari gave a statement in which he stressed Iraq's security and political progress, but noted that challenges remain and therefore Iraq still requires these protections so that resources will be available for Iraq's recovery and reconstruction projects. Italy, France, Indonesia, the UK, and the U.S. all gave brief statements welcoming Iraq's progress and pledging continued support by the international community. End Summary. ¶2. (SBU) In a December 22 meeting the Security Council unanimously passed resolution 1859 providing for a one-year extension of arrangements and immunities associated with the Development Fund for Iraq (DFI),Iraq's oil and gas exports, and Iraqi revenues. It also provides for a Security Council review of all resolutions pertaining to Iraq since the adoption of resolution 661 (1990). Iraqi Foreign Minister Zebari was present for the vote and gave a statement in which he stressed Iraq's security and political progress, but noted that challenges remain. He highlighted Iraq's national unity government, describing it as pushing ahead with national reconciliation, and emphasized Iraq's rejection of extremism. "Iraq has stepped back from the brink of civil war," Zebari said. He pointed to improvements in the Iraqi Security Forces and Iraq's progress in taking responsibility for its own security; and underlined its commitment to human rights and rule-of-law. ¶3. (SBU) The recently-completed agreements with the U.S. on withdrawal of troops and strategic framework, Zebari noted, direct the future bilateral partnership and define the temporary presence of U.S. troops in Iraq. He noted that 2011 is a realistic date for the withdrawal of all U.S. forces. The expiration of the MNF-I mandate on December 31 marks "a turning point for Iraq and the end of an important era for the UN," Zebari said. He thanked the MNF-I troop contributing countries for their accomplishments and sacrifices, and noted that Iraqi is entering this new phase of security arrangements with "cautious confidence." ¶4. (SBU) Zebari acknowledged that Iraq will continue to require a significant level of security and military support, and will also require the international community's continuing support, including through UNAMI, the ICI, and the Neighboring Countries mechanism. He thanked UNAMI SRSG Staffan de Mistura for UNAMI's crucial work in supporting the government and people of Iraq, and reiterated the GOI's pledge to provide $25 million for the new UN compound in Baghdad, plus another $25 million when construction actually begins. ¶5. (SBU) Although the GOI is moving ahead with extensive reconstruction and reconciliation projects, it needs assurances that Iraqi assets will be protected so that "resources and financial assets are available for the country's recovery program," Zebari asserted. That is why Iraq requested the extension of protections just approved in UNSCR 1859. He emphasized that Iraq is "fully committed to the resolution of all legitimate claims, and to complying with its obligations under international law." He added that in particular, "Iraq is fully committed to implementing all binding resolutions concerning Kuwait with respect to Kuwaiti borders, sovereignty, and settlements for the aggression from the former regime." But this process will take time, he explained, and so Iraq needs protection for its critical assets in order to continue this process. ¶6. (SBU) The situation in Iraq is fundamentally different now than it was when UNSCR 661 was passed in 1990, Zebari continued. "Iraq is no longer a rogue state." Iraq now has democratic institutions, seeks peaceful coexistence with its neighbors and is a partner in the fight against global terrorism. This changed situation, he said, is why Iraq is eager for the review of all Security Council resolution pertaining to Iraq as called for in the newly-passed UNSCR. However, he stressed, "Iraq is fully committed to abiding by our obligations under Security Council resolutions." ¶7. (SBU) Italy spoke briefly, reaffirming its support for Iraq's efforts to move forward, but cautioning that the review process for resolutions pertaining to Iraq must be carried out with care, to avoid any unintentional impact on situations or signed contracts that were in place before the implementation of sanctions regimes. France noted that this marks a new stage Iraq's return to full sovereignty and said France will continue to support Iraqi progress towards peace USUN NEW Y 00001202 002 OF 002 and security and its reintegration into the international community. Indonesia noted that support by the international community is still necessary for Iraq's continued progress, and stated that most important issue for Iraq is to continue inclusive national dialogue and reconciliation, which will lead to long-term stability. The UK PermRep welcomed the end of the MNF-I mandate and noted that UK forces in Iraq will complete their tasks in the first months of 2009 and then withdraw; welcomed the continuation of arrangements for DFI; and commen ted that an important decision had been taken by the Council in stating its intention to review the Saddam-era resolutions. This will be a priority for the Council, he said, and should be done with a view to terminating those resolutions as soon as possible. ¶8. (SBU) Ambassador Khalilzad congratulated the Iraqi government and people for their progress and stressed the need for continued support for Iraq. He emphasized three vital elements of the resolution. First, he noted, it recognizes progress in all areas in Iraq -- security, political, and economic. Second, it plays an important role in helping to facilitate further progress in Iraq, since the protections extended by the resolution will help the Iraqi government implement its economic development plans. And finally, the commitment by the Security Council to review resolutions that pertain to Iraq will be a key step forward for Iraq. The situation in Iraq is fundamentally different now than it was when resolution 661 was adopted in 1990, Ambassador Khalilzad said, and so this review is a reasonable request and we look forward to the Secretary General's report. Khalilzad