AL-MALIKI STRENGTHENS COMMERCIAL LINKS WITH

C O N F I D E N T I A L CANBERRA 000252

NOFORN
SIPDIS

E.O. 12958: DECL: 03/12/2019
TAGS: PGOV EAID EAGR EPET IZ AS
SUBJECT: AL-MALIKI STRENGTHENS COMMERCIAL LINKS WITH
AUSTRALIA

Classified By: Deputy Political Counselor John W. Crowley for reasons 1
.4 (b) and (d).


1. (SBU) SUMMARY: At a meeting in Canberra March 12, Iraqi
Prime Minister Nouri al-Maliki and Australian Prime Minister
Kevin Rudd agreed to strengthen agricultural and commercial
links. Iraq will again buy wheat from Australia, which will
also provide assistance to the agricultural and petroleum
sectors in Iraq. One hundred and twenty Iraqi agricultural
scientists are training in Australia in dry-land farming and
Australian companies have won tenders to build hospitals near
Baghdad. During their meeting, the prime ministers signed an
economic development agreement, but what Iraq is really
looking for from Australia is agricultural assistance. END
SUMMARY


2. (U) In Canberra at the start of a five-day visit to
Australia, Iraqi Prime Minister Nouri al-Maliki, accompanied
by Foreign Minister Hoshyar Zebari, thanked Australia for its
support in helping rebuild Iraq and said his country would
buy more Australian wheat. The two sides agreed on a
partnership framework in which Australia would lift its
bilateral aid program, already worth $107 million, over three
years. About 120 Iraqis now study agronomy in Australia,
al-Maliki said, and agriculture remained a high priority for
his Government. He added that Australian companies would be
invited to invest in Iraq's agriculture.


3. (U) Prime Minister Rudd said after meeting al-Maliki that
"the Prime Minister and I have agreed that it is time to
build a strong relationship based on our broad commercial and
economic ties." Hosting the first visit to Australia by an
Iraqi prime minister, Rudd said Canberra aimed to increase
assistance to Iraq in six areas, including agriculture,
public health, education and training, and security. In
addition, several Australian firms had tendered successfully
for public hospital construction projects. Rudd said the two
governments would also co-operate closely in the training of
Iraqi personnel in the oil and gas exploration industries as
Australian resource companies sought to invest in the
country. Later this year, Agriculture Minister Tony Burke
will lead a trade delegation to deepen agricultural
cooperation, including assistance for Iraqi farmers in
dry-land farming.


4. (U) At a speech in Sydney March 13, al-Maliki emphasized
improvements in the security situation and in governance,
with elections now based on political platforms, not
religious affiliation. Al-Maliki said, "We have to lure
business and investment to Iraq." When asked what Australia
could contribute, he replied that Iraq wanted help from
Australia in agriculture, and also in energy.

5.(C/NF) COMMENT: Prime Minister Rudd's Foreign Policy
Advisor Philip Green told us that the al-Maliki visit was a
successful manifestation of what Rudd has termed "a new
relationship" between the two countries. When Rudd visited
Iraq in December 2007, he asked what Iraq needed. The reply
was "agricultural assistance." At their meeting, Rudd
suggested signing an agreement by days end and they did so.
The two sides have agreed to complete by the end of June six
memorandums covering implementation of the agreement.
Australia, another country with a dry climate, has
significant expertise in dry-land farming, which is
particularly useful to Iraq.

CLUNE