VP ADIL ABD AL-MAHDI TELLS AMBASSADOR THAT

C O N F I D E N T I A L SECTION 01 OF 02 BAGHDAD 001542 SIPDIS E.O. 12958: DECL: 06/13/2019 TAGS: PREL PGOV KDEM KU IR IZ SUBJECT: VP ADIL ABD AL-MAHDI TELLS AMBASSADOR THAT MOMENTUM FAVORS SA REFERENDUM DELAY REF: BAGHDAD 01441 Classified By: Ambassador Christopher R. Hill for reasons 1.4 (b) and ( d). ¶1. (C) Summary. Momentum to delay a referendum on the U.S.-Iraq Security Agreement has built, Vice President Adil Abd al-Mahdi told the Ambassador June 11. He recommended that the U.S. raise its concerns over GOI payments to GE directly with the PM, and said that debt and border issues with Kuwait should be dealt with through diplomatic channels rather than via public posturing. Abd al-Mahdi mentioned that because Prime Minister Maliki felt politically "surrounded," he had called for the Political Council on National Security (PCNS) to meet that evening. Abd al-Mahdi and the Ambassador also discussed Iran's election. End Summary. Momentum to Delay SA Referendum -------------- ¶2. (C) Vice President Adil Abd al-Mahdi told Ambassador Hill there is momentum to delay the Security Agreement (SA) referendum until national elections. This was a good option, Abd al-Mahdi said. He also predicted national elections would be held on time. The Ambassador asked whether the Iraqi people are aware of the positive aspects of the SA, such as the handover of many U.S. military bases and release of thousands of detainees. Abd al-Mahdi said the public is seeing the SA "much more positively." Energy Sector Cooperation -------------- ¶3. (C) The Ambassador said as part of the U.S. effort to work closely with the GOI on economic issues, in late June a U.S. energy expert will visit Iraq to help the GOI improve its oil industry. Abd al-Mahdi said he would like to meet this expert, especially since, at the request of Prime Minister Maliki, Abd al-Mahdi will take over more economic responsibility in light of Deputy Prime Minister Barham Salih's probable move to Irbil to become the next Kurdistan Region Prime Minister. New Tone in Bilateral Relationship -------------- ¶4. (C) The Ambassador emphasized the importance of setting a new tone in the U.S.-Iraq relationship, moving beyond security issues. He said during PM Maliki's expected trip to Washington this summer, we hope to emphasize growing economic ties between the U.S. and Iraq. In this context, he observed that the Iraqi Fulbright program is now the largest in the Middle East, allowing more Iraqi students to become "ambassadors" to the U.S. ¶5. (C) EMIN told Abd al-Mahdi the U.S. is encouraged to see the recent purchase of spare parts for the Nasiriyah water treatment facility (ref A),and urged the GOI to continue to provide funding for operations and maintenance of this and other assets transferred to Iraq. Abd al-Mahdi acknowledged that it took too long to obtain spare parts and promised he would raise the issue with the relevant cabinet official. ¶6. (C) The Ambassador asked Abd al-Mahdi about Baghdad's stalled $1 billion payment to General Electric for an electrical generator, and expressed concern that Iraq might gain a reputation as a difficult place to do business if this remains unresolved. Abd al-Mahdi advised bringing up the issue directly with PM Maliki and said he hoped that since oil prices are above $70 a barrel, parliament would not block the deal. Chapter VII and Iraq-Kuwait Relations -------------- ¶7. (C) The Ambassador told Abd al-Mahdi the U.S., in line with the Security Agreement, remains committed to helping Iraq secure lifting of UNSC Chapter VII sanctions. At the QIraq secure lifting of UNSC Chapter VII sanctions. At the same time, he said Iraq has responsibilities to fulfill, and it would be helpful for Iraq and Kuwait to tone down the public rhetoric. Abd al-Mahdi agreed that the debt and border issues with Kuwait should be resolved through diplomatic channels. He said there is "no dispute" about the current land border with Kuwait, but Iraq and Kuwait must still work out their maritime border. Abd al-Mahdi said Kuwait had a moral obligation to help end Iraq's sanctions but at the same time Iraq must be realistic in what can be done about UN sanctions in the short term. PCNS to Meet BAGHDAD 00001542 002 OF 002 -------------- ¶8. (C) Abd al-Mahdi confirmed that the Political Council on National Security (PCNS) would meet that evening (June 11). (Note: The PCNS is a forum comprised of PM Maliki, other important ministers, the three Presidents and all party bloc leaders, whose aim is to gain consensus on the most contentious pieces of legislation. The PCNS last met in November when parliament was debating whether to approve the U.S.-Iraq Security Agreement. End note.) When asked why Maliki had called the PCNS, Abd al-Mahdi said Maliki "feels he is surrounded" by his opponents. Abd al-Mahdi said President Talabani convinced Maliki to convene the PCNS to widen political dialogue. VP on Iranian Elections -------------- ¶9. (C) Abd al-Mahdi noted a shift the Iranian election in favor of Mir Hossein Mousavi. The street-level rallies against the reelection of President Ahmadinejad have been "spontaneous," Abd al-Mahdi said, and represent a positive development for Iran. Abd al-Mahdi criticized Ahmadinejad for saying "many foolish things." The Ambassador stressed there is room for Iran to play a positive role but it must stop sending weapons into Iraq. Some rockets that have targeted the International Zone and the U.S. Embassy were produced in Iran, the Ambassador said. HILL