Identifier
Created
Classification
Origin
09BAGHDAD3267
2009-12-19 12:19:00
CONFIDENTIAL
Embassy Baghdad
Cable title:  

AMBASSADOR AND CG DISCUSS OIL AND SECURITY ISSUES

Tags:  PINS PGOV EWRG ECON IZ 
pdf how-to read a cable
VZCZCXYZ1601
RR RUEHWEB

DE RUEHGB #3267/01 3531219
ZNY CCCCC ZZH
R 191219Z DEC 09
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC 5797
INFO RUCNRAQ/IRAQ COLLECTIVE
C O N F I D E N T I A L BAGHDAD 003267 

SIPDIS

E.O. 12958: DECL: 12/17/2019
TAGS: PINS PGOV EWRG ECON IZ
SUBJECT: AMBASSADOR AND CG DISCUSS OIL AND SECURITY ISSUES
WITH PM MALIKI

REF: BAGHDAD 3245

Classified By: Ambassador Christopher R. Hill for Reasons 1.4 (b) and (
d)

C O N F I D E N T I A L BAGHDAD 003267

SIPDIS

E.O. 12958: DECL: 12/17/2019
TAGS: PINS PGOV EWRG ECON IZ
SUBJECT: AMBASSADOR AND CG DISCUSS OIL AND SECURITY ISSUES
WITH PM MALIKI

REF: BAGHDAD 3245

Classified By: Ambassador Christopher R. Hill for Reasons 1.4 (b) and (
d)


1. (C) SUMMARY. In a December 17 meeting, Ambassador Hill
congratulated Prime Minister Maliki on the recent successful
and transparent oil development bidding round, but cautioned
the PM to resist pressure to renegotiate the terms of the
signed contracts. Maliki agreed the contracts should stand
as signed. In the wake of intense media coverage in which
Kurdish leaders have stated that the USG promised to support
a referendum on the Kirkuk issue in exchange for Kurdish
acceptance of the election law compromise, the Ambassador
reinforced with the PM that USG policy only aims to implement
the provisions enshrined in the Iraqi constitution, including
a consensus-based solution to Kirkuk. General Odierno
briefed the Prime Minister on a recent joint U.S.-UK naval
survey of a potential marine oil terminus site. The CG
continued by discussing the reorganization of GOI
investigative and intelligence organizations in the wake of
recent bombings, suggesting to the PM that he create a
national target list and consider developing an Iraqi "most
wanted" show as a tool for capturing terrorists. END SUMMARY.

NO CHANGE IN KIRKUK POLICY
--------------


2. (C) The Ambassador opened his weekly meeting with Prime
Minister Nouri al-Maliki by providing assurances that the
recent White House statement expressing USG support for the
Article 140 process and a timely census does not indicate a
policy shift, as has been publicly claimed by Kurdish leaders
who have stated that Kurdish acquiescence over the
election law compromise was secured by U.S. promises of
support for a process that would lead to the eventual
annexation of Kirkuk into the Kurdistan Region (KR).
Emphasizing support for the UNAMI process, Ambassador Hill
further clarified that while the USG does not oppose a
referendum on the status of Kirkuk, it would only support one
that confirmed a negotiated, consensus-based agreement. The
PM agreed that the process outlined in Article 140 has many
different stages and that it will be up to the next
government and the new Iraqi President to move forward on the

issue. Maliki also noted that Kirkuk is not the only disputed
territory in Iraq and that other disputes in southern Iraq
must also be resolved.

STAYING ON TRACK WITH OIL CONTRACTS
--------------


3. (C) Congratulating the Prime Minister on the highly
successful and transparent process the Iraqis adopted for the
recent oil bid round (reftel),the Ambassador said that the
event should serve as a model for the region. Building on a
strong joint demarche by EU ambassadors the day before, the
Ambassador cautioned the Prime Minister against allowing
actors within his government to "get too greedy" and re-open
recently signed oil contracts. Maliki responded that the GOI
understands the finality of the contracts signed and noted
his pride in the transparent way the process was conducted.
The Prime Minister opined that the oil round should curb bad
publicity surrounding the Iraqi oil sector. The fact that
oil contracts went to a geographically diverse array of oil
consortiums also proves that favoritism played no role in
awarding contracts. Maliki commented that the fact only two
U.S. firms won contracts shows that the U.S. invasion was not
a strategy to secure oil resources for the United States - an
erroneous opinion the Prime Minister feels is still held by
some of Iraq's Arab neighbors. Commenting on the positive
effect increased oil revenues will have on national unity,
Qeffect increased oil revenues will have on national unity,
the Ambassador told the Prime Minister that "the glue that
will help bind Kurdistan to the rest of Iraq is produced in
Basra."

SURVEY ON OIL PIPELINES COMPLETED
--------------


4. (C) General Odierno briefed the Prime Minister on a
recently completed joint U.S.-UK naval survey concerning the
seabed in Um Qasr port where the GOI plans to construct a new
oil terminus to replace the aging infrastructure still in
use. The General said that the survey had identified
hundreds of items, mostly shipwrecks, but also possibly some
mines, that must first be cleared before the project can
commence. The survey report has been given to Foster
Wheeler, the oil services company charged with laying the
underwater pipes for the terminus. The Prime Minister noted
that a modern oil terminus was key to Iraq being able to
greatly increase oil exports. Despite a difficult political
relationship with Syria, Maliki also commented that the GOI
will continue to pursue the option of constructing an

overland pipeline through Syria to Turkey.

CONSOLIDATION OF GOI INVESTIGATION AND INTELLIGENCE
-------------- --------------


5. (C) Inquiring about the newly consolidated security
structures the GOI has established in the wake of recent
bombings, General Odierno asked the Prime Minister to confirm
that investigative activities are now clustered under the
Ministry of Interior, whereas the Ministry of State for
National Security Affairs (MSNSA) has the lead for all
intelligence matters. The Prime Minister confirmed this
arrangement, but noted that the intelligence structure was
already centralized under his leadership through the MSNSA.
General Odierno advised the Prime Minister that his
intelligence organization should create a national target
list and encouraged him to consider creating an Iraqi "most
wanted" show which could be useful in apprehending Iraq's
25-100 most sought after terrorists, citing previous MNF-I
success using this method. The General continued that
offering rewards for information on these individuals could
lead the GOI to garner information from the public on their
whereabouts. The Prime Minister noted that his government
recently announced a 100 million dinar reward for any
information related to the manufacture of explosive devices.
The Prime Minister stated that Iraq's legal framework may not
allow for a public list of wanted terrorists, but that the
Higher Judicial Council might be amenable to such an idea in
the interest of national security.

PM DOWNPLAYS INFILTRATION OF SECURITY SERVICES
-------------- -


6. (C) Concerned that public trust in the security services
is already damaged after the recent coordinated bombings,
General Odierno cautioned the Prime Minister against public
statements by GOI officials that imply that the ranks of the
Iraqi police and army have been infiltrated by insurgents.
The Prime Minister assured the General that any such comments
were in reference to the security forces several years ago.
General Odierno opined that if the public were to lose faith
in the security forces, there could be a resurgence of
sectarian militias. The Prime Minister concluded by noting
that while there may be a few bad officers who need to be
removed, both the police and army are much more professional
and reliable than they were just a few years ago.

HILL