SECURITY COUNCIL BRIEFINGS ON IRAQ/KUWAIT, DFI/IAMB

UNCLAS USUN NEW YORK 000403 SENSITIVE SIPDIS E.O. 12958: N/A TAGS: PREL PGOV UNSC IZ KU SUBJECT: SECURITY COUNCIL BRIEFINGS ON IRAQ/KUWAIT, DFI/IAMB ¶1. (SBU) Summary: On April 16, the Security Council received two Iraq-related briefings. The first briefing, by high-level coordinator for Kuwaiti missing persons/archives Gennady Tarasov, focused on the lack of real progress on this issue over the past year. Tarasov asked for an additional 15 months to continue confidence-building measures. The Security Council approved a 6-month extension of funding for Tarasov,s mandate but made clear that it was open to future extensions if there was still no progress. Separately, A/SYG and Comptroller Jun Yamazaki briefed on the activities of the International Advisory and Monitoring Board (IAMB). Yamazaki noted that the IAMB "believes COFE (the Iraqi Committee of Financial Experts) is ready to assume oversight of the DFI (Development Fund for Iraq)", although he added that Iraq still needed to improve internal controls and overcome corruption challenges. End summary. KUWAIT MISSING PERSONS/ARCHIVES ¶2. (SBU) Following issuance last week of a comprehensive report on Kuwaiti missing persons/archives, high-level coordinator Gennady Tarasov briefed the Council on April 16. He outlined several positive developments: Iraqi agreement for Tarasov,s earlier visit to Baghdad, as well as the return from Iraq to Kuwait of Kuwaiti audio and videotapes. Despite this progress, the overall objectives - to make progress in identifying the remains of missing Kuwaitis and to find any trace of the Kuwaiti national archives - are no closer to completion, said Tarasov. He called on both parties to be more "results oriented" and urged Council acceptance of a 15-month confidence building period. He specifically suggested focusing on 1) interviewing former Iraqi leaders for any information about the archives; and 2) ensuring that Kuwaiti teams have access to mass gravesites in Iraq. Noting the Council,s broad agreement for a 6-month extension, Tarasov said progress during this shorter period was highly unlikely because of the heat in Iraq and the general lack of momentum from both sides. ¶3. (SBU) Council members had similar reactions to Tarasov,s briefing. They expressed disappointment at the lack of progress over the last year and called on both sides to turn their words into actions. The UK, U.S. and France noted the upcoming review of all Security Council resolutions related to Iraq, and said this would be another opportunity to review progress in this particular issue. Tarasov and Russian PR Churkin emphasized that Tarasov,s mandate was purely humanitarian and therefore should not be linked to any broader review. Churkin further noted that Russian acceptance of a six-month extension was a compromise on Russia,s part; without real progress, "the mandate will continue." DFI/IAMB ¶4. (SBU) UN Comptroller Jun Yamazaki briefed on the activities of the IAMB. He noted the IAMB,s determination that the COFE is ready to "assume the oversight responsibilities and conduct competent and independent oversight of the DFI." The IAMB also considered the preliminary results of the 2008 audit of the DFI, which highlighted concern regarding controls over oil extraction and use of oil resources. The IAMB also noted that more work needs to be done by the government of Iraq to implement earlier IAMB recommendations and to strengthen Iraq,s system of internal controls. Regarding oil metering, the IAMB strongly urged the Iraqi government to develop a time-bound action plan, endorsed by the Council of Ministers, to ensure completion of this project. ¶5. (SBU) Russian PR Churkin criticized the closed and opaque process of the DFI and said nothing is being done to address the DFI,s shortcomings in this regard. He voiced disappointment that the IMF and World Bank did not respond to the Security Council,s request for a briefing from them. He added that the work of the DFI/IAMB should be considered in the context of the upcoming overall review of Iraq-related Security Council resolutions. China and France urged continued Council review of the DFI/IAMB, and said the Comptroller,s briefing was helpful. Ambassador DiCarlo noted U.S. concern regarding the COFE, and said the U.S. was working with Iraq to alleviate the need for Iraqi/DFI immunities past 2009. Rice