Identifier
Created
Classification
Origin
09BAGHDAD1828
2009-07-08 07:45:00
CONFIDENTIAL
Embassy Baghdad
Cable title:  

INTERIM GOI RESPONSE TO DRAFT UNSYG REPORT

Tags:  PREL UNSC IZ KU 
pdf how-to read a cable
VZCZCXYZ0015
PP RUEHWEB

DE RUEHGB #1828/01 1890745
ZNY CCCCC ZZH
P 080745Z JUL 09
FM AMEMBASSY BAGHDAD
TO RUCNDT/USMISSION USUN NEW YORK PRIORITY 0815
RUEHC/SECSTATE WASHDC PRIORITY 3833
INFO RUCNRAQ/IRAQ COLLECTIVE
C O N F I D E N T I A L BAGHDAD 001828 

SIPDIS

E.O. 12958: DECL: 07/06/2019
TAGS: PREL UNSC IZ KU
SUBJECT: INTERIM GOI RESPONSE TO DRAFT UNSYG REPORT

REF: A. SECSTATE 56261

B. KUWAIT 570

C. BAGHDAD 1643

Classified By: Acting Political Counselor Peter Vrooman for reason 1.4
(d).

----------------
Summary/Overview
----------------

C O N F I D E N T I A L BAGHDAD 001828

SIPDIS

E.O. 12958: DECL: 07/06/2019
TAGS: PREL UNSC IZ KU
SUBJECT: INTERIM GOI RESPONSE TO DRAFT UNSYG REPORT

REF: A. SECSTATE 56261

B. KUWAIT 570

C. BAGHDAD 1643

Classified By: Acting Political Counselor Peter Vrooman for reason 1.4
(d).

--------------
Summary/Overview
--------------


1. (C) Deputy Pol/C on June 22 passed MFA North America
Office Director Mohammed Al-Hamaimidi a copy of the draft UN
paper outlining relevant facts for the preparation of the
UNSYG's Iraq UNSCR Report. Caveating that he could not
provide the authoritative GOI response to the UN paper,
Al-Hamaimidi commented on several aspects and provided Deputy
Pol/C with a copy of what appears to be an early draft of the
GOI's formal response. We have e-mailed this document to
NEA/I/POL and USUN. This cable summarizes the GOI draft
responses and conveys Al-Hamaimidi's comments. Deputy Pol/C
emphasized in a follow-up July 2 conversation with
al-Hamaimidi that the U.S. is committed to using its best
efforts to support Iraq as it takes the steps necessary to
return to the status it held prior to the adoption of the
UNSCRs, but emphasized that it is the UN Security Council
that must lift the resolutions, not the USG. This cable was
going to press when we received State 68248. We have passed
the nonpaper outlining U.S. Iraq UNSCRs ideas to Deputy
Foreign Minister Labid Abawwi and will meet him July 8 to
seek GOI views and priorities regarding our suggested
recommendations. End Summary/Overview.

--------------
Compensation
--------------


2. (C) Al-Hamaimidi told Deputy Pol/C that the compensation
issue was of particular concern to the GOI. He said the
continued loss of five percent of oil revenues in
compensation payments is a serious economic hardship for
Iraq, which is experiencing budgetary shortfalls. He
reminded Deputy Pol/C that under the Security Agreement, the
U.S. is obligated to lift Chapter VII restrictions from Iraq.
Deputy Pol/C acknowledged the U.S.'s Security Agreement
commitments, and said the US would live up to all of them,
but he reminded Al-Hamaimidi that Article 25 obligates the
U.S. to use its best efforts to support Iraq as it takes the
steps necessary to fulfill its UNSCR obligations. There are
a number of outstanding issues between Iraq and Kuwait, he
said, stressing that the U.S. is working hard with both

countries for a favorable resolution. He pointed out that it
is the UN Security Council that must lift the resolutions,
not the USG.


3. (C) The GOI draft paper notes that Prime Minister Maliki
sent a letter to the Security Council on December 7, 2008,
formally requesting that the five percent compensation rate
be reduced as much as possible, since "such a high percentage
(compensation rate) creates a financial burden for Iraq at a
time when it is in dire need of those funds to rebuild its
infrastructure." The paper then notes that the Security
Council has already reduced the compensation rate from 30% to
25%, and then from 25% to 5% "without considering this issue
with Iraq or Kuwait, based on the difficult situation in
Iraq." The paper also proposes that the $24 billion in
unpaid UN compensation Commission (UNCC) awards be forgiven
and that the UN paper explicitly state this. (Note: The
Iraqis proposed the total forgiveness of the outstanding $24
billion at the May 31-June 6 UNCC meeting in Kuwait (ref B).)
The GOI would also like to add a sentence stating that it
has fulfilled its obligations on compensation and the
Secretary-General welcomes negotiations between Iraq and
Kuwait to reach a quick settlement due to Iraq,s economic
situation.
Q

4. (C) Comment: Al-Hamaimidi's comments and the draft
paper reiterate themes we have heard from other GOI
officials: that reducing -- or preferably eliminating --
compensation payments is a priority national objective; that
the $24 billion in unpaid UNCC awards should be forgiven; and
that final settlement modalities should be negotiated
bilaterally. The paper seems to suggest that the Security
Council unilaterally reduced the compensation rate before and
that it can (and should) do so again. Al-Hamaimidi
emphasized a history of bilateral negotiations with Kuwait,
arguing that the countries, issues can be worked out without
the UN process. Deputy Pol/Cs said that Iraq should show
support for Kuwaiti sovereignty by publicly reiterating
acceptance of the UNSCR 833-demarcated land border. End
comment.
--------------
Kuwaiti Missing/Archives
--------------


5. (C) The GOI paper asserts that a UNSYG report in 2003
(S/2003/813) endorsed ending the special envoy assigned to
oversee this process and transferring this issue from the UN
to Iraq and Kuwait to be resolved bilaterally. The paper
also notes that the remains of 236 Kuwaitis and others have
been identified, that thousands of Iraqis were killed by
Saddam, and that investigating and finding all these mass
graves is extremely difficult.


6. (C) Comment: This is another issue Iraq would like to
address through bilateral negotiations. That said, the GOI
is making a serious effort to make progress on recovering the
remains of missing Kuwaitis and third country nationals (ref
C). We are assisting this effort. DRL-grantee International
Committee for Missing Persons is helping train Ministry of
Human Rights investigative teams on mass grave exhumations
and identification. Another DRL grantee, Civilian Research
and Development Foundation, is working with scientists at
Iraqi universities to establish a second lab for DNA
processing (the GOI can currently only complete two DNA tests
per day). The Ministry of Human Rights' lead on this issue,
a dynamic officer on loan from the Prime Minister's Office,
has, with our encouragement, invited Kuwait to send an
inspection team to Iraq. The head of Kuwait's delegation has
agreed in principle. This intensified engagement bodes well
for future progress. End comment.

--------------
Disarmament
--------------


7. (C) The GOI paper asserts that UNSCR 1762 and annexed
letters from Secretary Rice noting positive Iraqi action on
WMD is adequate documentation that Iraq has fulfilled its WMD
UNSCR commitments. Al-Hamaimidi reiterated these points
orally. Both the GOI paper's and Al-Hamaimidi's comments
gloss over reference in both UNSCR 1762 and the annexed
letters to additional actions Iraq needs to take.

---
DFI
---


8. (C) The Development Fund for Iraq (DFI) was established
in 2003 to hold proceeds of Iraq,s hydrocarbons exports and
protect them from attachment, garnishment, and execution of
judgments against Iraq. Currently, five percent of these
revenues is contributed to a fund overseen by the UNCC to pay
claims assessed against Iraq for damages caused during the
first Gulf War. The mandate for the body that oversees the
DFI has been extended to December 31, 2009, after which time
the requirement to deposit hydrocarbon revenues into the DFI
will expire along with the immunities , but Iraq will still
have the obligation to pay five percent of its hydrocarbon
revenues to the UNCC fund. The GOI paper had no comments on
this section.

---
OFF
---


9. (C) The Oil For Food program (OFF) was terminated in
November 2003 and handed over to the Coalition Provisional
Authority, which transferred authority for the program to the
GOI in October 2004. Most of the funds were transferred to
the DFI, but $872 million remains in the OFF account. The
GOI paper asks that the UNSYG's Iraq UNSCR report show the
current progress in resolving pending contracts and the GOI's
willingness to cooperate with concerned parties to achieve
this, on condition that the contract funds be transferred to
the DFI as soon as possible (Note: In a May 26 meeting with
EconOffs, Foreign Minister Zebari,s Chief of Staff, Srood
Najib, said that he wants to reduce the number of disputed
OFF contracts from 80 to 30 by the end of June and had urged
cooperation from relevant ministries. He also noted that the
Qcooperation from relevant ministries. He also noted that the
Russians have not been helpful in resolving outstanding
disputed contracts. End note.).

--------------
1518 Committee
--------------


10. (C) The UNSC established the 1518 committee in November
2003 to identify assets that should be frozen and transferred
to the DFI. The committee targeted individuals and entities
associated with the former regime, but has not met since
December 2005. The GOI paper asks for removal of the third
point for the UNSYG section, which states that the Security
Council decided in UNSCR 1518 (2003) that the mandate of the
committee be kept under review, and that the Council would
consider authorizing the committee to undertake the
additional task of observing Member States' fulfillment of
their obligations in connection with the arms embargo on Iraq
as reaffirmed in paragraph 10 or UNSCR 1483. The GOI report
notes that to date, the committee has not been authorized to
undertake any additional task in this regard.

--------------
Other Relevant Mandates (cultural property)
--------------


11. (C) The draft report requires member states to work to
return cultural property stolen from Iraq since August 1990.
The GOI paper had no comments on this section.

--------------
Comment
--------------


12. (C) Al-Hamaimidi's blaming Kuwaiti intransigence for the
lack of progress on lifting Chapter VII restrictions from
Iraq is consistent with what other GOI officials have been
telling us. So is his preference for Iraq and Kuwait to
resolve the range of outstanding issues bilaterally.
Interestingly, Al-Hamaimidi told us that the GOI's preference
would be to postpone the Security Council's Iraq UNSCR review
until August or September, when the U.S. and U.K.,
respectively, would hold the UNSC Presidency (currently held
by Uganda). This way, he explained, a facilitator
experienced in the issue would lead the negotiations. He did
not say Iraq planned to request a delay.
HILL