PRESSING FM ZEBARI OVER DFI, SADDAM-ERA VICTIMS'

C O N F I D E N T I A L SECTION 01 OF 02 BAGHDAD 002924 SIPDIS E.O. 12958: DECL: 08/18/2019 TAGS: PGOV PREL UNSC KJUS IZ KU SUBJECT: PRESSING FM ZEBARI OVER DFI, SADDAM-ERA VICTIMS' CLAIMS; REVIEWING KUWAIT-RELATED CHAPTER VII ISSUES REF: A. STATE 109017 ¶B. STATE 105413 BAGHDAD 00002924 001.2 OF 002 Classified By: Political Minister Counselor Gary A. Grappo, for reasons 1.4 b and d. ¶1. (C) Summary: Pol M/C raised points contained in reftel with FM Zebari on October 23 regarding a final one-year extension of the arrangements for the Development Fund for Iraq (DFI) and the need to settle Saddam-era claims of U.S. victims. Zebari expressed overall support for the approach, including the need for closing out the oil-for-food contracts as soon as possible. Regarding Kuwait-related Chapter VII issues, Zebari emphasized the necessity of the U.S., UNSC, and GOI positions staying in synch, especially concerning the land border and maritime boundary issues. Zebari underscored that if the PM's office "gets any signal, any hint, that we are willing to re-open the border, re-negotiate 833, it will be endless." End Summary. SEEKING CONSENSUS FOR FINAL YEAR OF DFI -------------- ¶2. (C) Pol M/C raised points contained in ref A with FM Zebari on October 23 regarding a final one-year extension of the U.N.-mandated arrangements for the Development Fund for Iraq (DFI). Pol M/C also urged the GOI to conclude an agreement with the United States for the resolution of Saddam-era claims of U.S. victims by the end of the year and noted that the USG had provided GOI Legal Advisor Dr. Fadel Jawad Khadum with a proposed settlement figure. Finally, Pol M/C underlined the importance of the GOI closing out the remaining Oil-for-Food contracts, thought to number around 40, with an estimated value of a little over 300 million dollars. (NOTE: Zebari COS Sroud Najib interjected that he thought there were some 70 contracts still in dispute that needed to be closed out. END NOTE.) SETTLING SADDAM-ERA U.S. VICTIMS' CLAIMS -------------- ¶3. (C) Zebari expressed overall support for the approach. He responded further that the GOI had been working on the issue of settling the U.S. victims' claims for over a year and with a degree of exasperation expressed the hope that "it will work" this time. He insisted that it was taking too long and mused aloud whether the GOI had already agreed on a figure over a year ago, noting that implementation of the agreement was the problem. Pol M/C corrected him and noted that the USG had only proposed a settlement figure in the past couple of weeks (ref B). "If the GOI agrees, we can move forward quickly," Pol M/C urged. (COMMENT: At the first opportunity, we will also raise reftel points with PM senior advisor Sadiq Rakabi. END COMMENT.) Zebari expressed support for closing out the oil-for-food contracts as soon as possible. He did not respond directly to the issue of a year extension of DFI arrangements. ZEBARI ON CHAPTER VII -------------- ¶4. (C) Regarding Kuwait-related Chapter VII issues, Zebari emphasized the necessity of the U.S., UNSC, and GOI positions stay in synch, especially concerning the land border and maritime boundary. Falling into a near-conspiratorial tone, Zebari underscored that if the PM's office "gets any signal, any hint, that we are willing to re-open the border, re-negotiate 833, it will be endless." Zebari claimed that the PM and others in his office "are under the impression that you are willing to re-open the issue." The PM remains adamant, said the Iraqi FM, that he cannot accept 833 border and expects the U.S. to find another solution. Zebari said that he had told the PM clearly that Saddam himself had Qthat he had told the PM clearly that Saddam himself had recognized UNSCR 833 and if Maliki is unwilling to do so, "Iraq will stay under Chapter VII indefinitely." Zebari dismissed what he termed the counterproductive de Mistura package approach and insisted on the necessity of moving in all areas wherever and whenever progress was possible. ¶5. (C) The FM acknowledged that the border is drawn "to our disadvantage" but made the point that the only hope Iraq had of ever getting any adjustment of the maritime boundary would be by fully and publicly re-affirming 833 in its entirety and creating over a period of years a sense of bilateral confidence between the two countries. "The Kuwaitis will not change it now. They are too sensitive about the issue and are right to insist that this is international law." Pol M/C affirmed that the UNSC would not overturn a security council resolution without Iraq's acceptance of 833 conditions in some form. He also endorsed the FM's suggestion that Iraq accept the proposal -- put forward informally at several stages -- to have a maritime commission to address Iraq's BAGHDAD 00002924 002 OF 002 concerns about navigational access and other technical matters relating to the waterway. HILL