PRT BABIL: AWKWARD IRANIAN ATTENDANCE AT BABIL

UNCLAS SECTION 01 OF 02 BAGHDAD 000214 SBU SIPDIS E.O. 12958: N/A TAGS: ECON EIND PGOV EINV IR IZ SUBJECT: PRT BABIL: AWKWARD IRANIAN ATTENDANCE AT BABIL TOURISM EXPO FOSTERS LOCAL ILL WILL REF: BAGHDAD 213 ¶1. (U) This is a Babil PRT reporting cable. ¶2. (SBU) Summary: Fifteen Iranian companies sent representatives to a December 8-11, 2009, tourism conference in Babil Province at the invitation of Babil Province Second Deputy Governor Sadiq Rasool al-Mihanna (INA/Jaafari Trend ) National Reform). Although the companies met with business and government leaders, including Babil Governor al-Zarqani (independent) and Investment Commission Chair Harba (independent),PRTOffs observed that the Iranians were isolated from the main part of the expo. In addition, the Governorate reneged on an earlier promise to cover the Iranians, expenses, leaving the conference organizer in the red. Although Iranian companies are natural investment partners in south-central Iraq, they are viewed with suspicion by many in Hillah. End Summary. ¶3. (SBU) Reftel, 15 Iranian companies sent 26 representatives to the December 8-11, 2009, Babil Tourism Expo in Al Hillah, Iraq. The companies represented interests in construction, electricity, trade, and tourism and hospitality. One company (Al-Ghadir Group) has a pre-existing partnership with the Hillah-based Al-Hakkak company to build a brick factory. The Alicon Group billed itself as an Iranian-UAE-UK joint venture. Conference organizer Salah Bahaya and other local business leaders told the PRT that several Iranian companies had made previous trips to Babil Province in search of investment and business opportunities. ¶4. (SBU) The Iranian companies were isolated in a separate room away from the main exhibition hall. Bahaya told PRTOffs the Iranian representatives met with Iraqi construction, trade, and infrastructure firms. The Babil Investment Commission's (BIC) website also reported the meetings. The Iranians also met with Babil Governor al-Zarqani, BIC chair Harba (independent),PC Chair Toman (Sadrist Trend) representatives from the Hillah-based textile manufacturing para-statal, the state-owned automobile manufacturing plant near Iskandariyah, and from unspecified government departments. Bahaya opined that the Iranians did not appear to accomplish much during these meetings ) &a lot of talking without any concrete results.8 ¶5. (SBU) According to Bahaya, Babil Province Second Deputy Governor Sadiq Rasool al-Mihanna invited the Iranian firms to attend the conference. The invitations were discussed during a November 2009 meeting at the BIC, which Bayaha said he attended along with Mihanna, Harba, Deputy PC Chair Sabah Allawi (Ayad Allawi,s Iraqi National Movement),Sayed Mohamed Ali Hussein Hakkak (owner of the al-Hakkak company in para. 3),and several Babil PC members including Dr. Amira Beklii (INA/Jaafari Trend ) National Reform). Bahaya said he argued against inviting the Iranians. According to Bahaya, Mihanna sent emails to government departments advising them that Iranian companies would be at the conference looking for investment opportunities. ¶6. (SBU) Bahaya told PRTOffs that at the November meeting, the Governorate agreed to cover the Iranians, expenses but later reneged on that arrangement, sticking Bahaya with a bill of some ID 12,000,000 (approximately USD $10,400). Conference fees offset some costs, but Bahaya does not expect the Governorate to reimburse him. ¶7. (SBU) The PRT supported the Expo, which was a combination trade fair, tourism conference, and investment promotion meeting, with a $25,000 QRF grant; exhibitors and sponsors contributed an additional $35,000. The PRT was not informed prior to the event that the provincial government would Qprior to the event that the provincial government would compel Bahaya to invite the Iranian companies. USG funds expended by the PRT provided only incidental support for the conference, in the form of general expenditures such as lunch and facility rental fees that were for the benefit of all attendees. ¶8. (SBU) Comment: Despite the fact that Iranian companies are natural investment partners in south-central Iraq, the PRT's conversations with local business and political leaders over the last few years indicate that many in Hillah view them with suspicion. PRT interlocutors have characterized Iranian companies as Trojan horses for extremism, terrorism, and external control over Iraqi resources. The fact that the event's organizers were stuck with the Iranian's sizable bill also did not sit well. Although the Babil provincial officials felt motivated to invite Iranian companies to the Expo, it is noteworthy that the Iranian companies reportedly did not conclude any new agreements with local firms. End Comment. ¶9. (U) The 15 Iranian companies and their 26 representatives who attended the conference. -- Al-Ghadir Group: Investment (Sayed Mohamed Ali Hussein Al- Hakkak, Ibrahim Arab Zadeh Jemali, Ali Mohamed Bed, Sayed Murtadah Shrafet, and Hamid Falah Herwa) BAGHDAD 00000214 002 OF 002 -- Alicon Group: British company for prefabricated buildings and Rad Iran financial institution (Ghala Muhsin Rad Sreshet and Iyrej Makoni Poor) -- Bars Bomis Company: Roads and bridge construction (Jehangir Adalt Nam, Esfandiar Rahim Zadeh Asal Askony, Mahmood Ghafari, and Hamid Abasi Shkohi) -- Behmen Company: Refrigeration and air cooler industry (no representative listed) -- Berdo Company: waste water treatment plants and construction (Muhsen Fawzi) -- Betro Mustakbel Al-Alem: Housing construction and international consultations (Ali Aymani) -- Kalalah Company: Aluminum sulfate and sulfuric acid industry (no representative listed) -- Kreman Tablow Company: Transmission and distribution of electrical power (Sahba Khuld Brin) -- Nima Sehend Company: Manufacturing machinery and equipment for brick and cement factories (Behmen Ayzadi Zeman Abadi, Ali Ayzadi Zeman Abadi, and Fayroz Jehan Bakhsh) -- Quds Nero Company: Power plants (Shahram Kamali Sraji) -- Sa,adeh Sbiz Jenob Company: Water meters (Rahim Taymorya and Hussein Haji Por) -- Sanair Company: Power plants, water purification, sewage, oil and gas (Nasim Khti, Mohamed Ja,fary Fer- Weza Dard, and Arman Muhakken) -- Sanay, Bend Company (no representative listed) -- Sanay, Roshna,I Arm Company: Electrical industry and lighting equipment (Mohamed Hadi Por Ashki) -- Saniro Company: Power plants (Salih Khmashji) -- No affiliation given: Mustafa Ikbal-Kether Nameh Ndard HILL