This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS SECTION 01 OF 04 ROME 003257 
 
SIPDIS 
 
 
AIDAC 

FROM U.S. MISSION IN ROME 
 
SENSITIVE 
 
HEADQUARTERS COALITION PROVISIONAL AUTHORITY BAGHDAD 
STATE FOR U/S LARSON, PRM A/S DEWEY, IO A/S HOLMES, EUR/NE, 
EUR/WE, SA/INS, IO/EDA SWINNICK 
USDA/FAS FOR U/S PENN, MCHAMBLISS, RTILSWORTH AND LPANASUK 
USAID FOR ADMINISTRATOR NATSIOS, AA/DCHA WINTER, D/DCHA/OFDA 
BMCCONNELL, D/DCHA/FFP LANDIS 
JOINT STAFF FOR JE/J4/J5 
NSC FOR JDWORKEN 
 
E.O. 12958:  N/A 
TAGS: AORC EAID EAGR IZ FAO WFP
SUBJECT: US MISSION/ROME MEETS WITH FAO ON TRANSITION PLANS 
FOR ITS IRAQ OPERATIONS 
 
REF: A) STATE 194739 
 
SENSITIVE BUT UNCLASSIFIED - PLEASE PROTECT ACCORDINGLY. 
NOT SUITABLE FOR INTERNET POSTING. 
 
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SUMMARY 
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¶1. (SBU) US MISSION MET ON JULY 11 WITH LAURENT THOMAS, FAO 
SENIOR OPERATIONS OFFICER, SPECIAL RELIEF OPERATIONS SERVICE 
TO DISCUSS FAO'S TRANSITION PLANS FOR ITS IRAQ OPERATIONS. 
    FAO IS COGNIZANT OF THE NEED TO KEEP UP A DAILY DIALOGUE 
WITH THE COALITION PROVISIONAL AUTHORITY (CPA) IN "MANAGING" 
THE TRANSITION. FAO NEITHER WANTS TO PROCEED AT THIS STAGE 
WITHOUT PRIOR CONSULTATION WITH CPA NOR TO BE ACCUSED OF NOT 
MOVING SWIFTLY ENOUGH TO MAKE THE TRANSITION "HAPPEN" BY THE 
UNSCR NOVEMBER 21 DEADLINE. US MISSION SHARES FAO'S VIEW 
THAT CFA DEPLOY SOONEST A SENIOR AGRICULTURE OFFICER TO THE 
NORTHERN 3 GOVENORATES TO WORK HAND-IN-HAND WITH FAO TO 
"GUARANTEE" THE PHASE-OVER. END SUMMARY. 
 
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BACKGROUND 
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¶2. (U) US MISSION MET ON JULY 11 WITH LAURENT THOMAS, FAO 
SENIOR OPERATIONS OFFICER, SPECIAL RELIEF OPERATIONS SERVICE 
TO DISCUSS FAO'S TRANSITION PLANS FOR ITS IRAQ OPERATIONS 
PRESENTLY FUNDED BY THE UN OFFICE FOR IRAQ PROGRAMS (OIP) IN 
NEW YORK. 
 
¶3. (SBU) WORK IN THE NORTH - FAO CURRENTLY HAS PROJECTS 
TOTALING USD 671 MILLION THAT HAVE BEEN APPROVED BY OIP.  AS 
OF 11 JULY, USD 478 MILLION HAD BEEN DISBURSED, AND FAO 
EXPECTS THAT AN ADDITIONAL USD 40-60 MILLION WILL BE SPENT 
BEFORE OCTOBER 1, WHICH IS THE DELIVERY DEADLINE THAT FAO 
HAS GIVEN THE VENDORS/SUPPLIERS FOR THE NORTHERN 
GOVERNORATES.  PROJECTS FOR THE USD 40-60 MILLION ARE 
CURRENTLY BEING JOINTLY SUBMITTED FROM FAO AND THE CPA, WHO 
MUST APPROVE EACH PROJECT (AS SPECIFIED UNDER UNSCR 1483) 
BEFORE IT IS SUBMITTED FOR APPROVAL TO FAO/HQ AND OIP.  THE 
ESTIMATED BALANCE OF USD 133-153 MILLION WOULD BE 
    SUPPLEMENTED BY INCOME THAT FAO IS CURRENTLY GENERATING BY 
SELLING EQUIPMENT TO PRIVATE COMPANIES.  IN TOTAL, FAO 
EXPECTS THERE TO BE A BALANCE OF USD 150-160 MILLION IN THE 
13 PERCENT ACCOUNT FOR THE THREE NORTHERN GOVERNORATES WHEN 
THE NOVEMBER 21 DEADLINE ARRIVES.  ALL OF THESE PROJECTS (IN 
FAO'S EYES) WILL BE COMPLETED OR NEARLY COMPLETED BY 
NOVEMBER 21. 
 
¶4. (SBU) FAO IN BAGHDAD HAS BEEN WORKING CLOSELY WITH THE 
CPA IN BAGHDAD, BUT FOR THE NORTH, FAO IS CONCERNED THAT 
DISCUSSION REGARDING THE PHASE-OVER FOR THE NORTHERN THREE 
GOVERNORATES IS BEHIND SCHEDULE. FAO CURRENTLY HAS 40 
INTERNATIONAL STAFF IN IRAQ, ABOUT 60 PERCENT OF WHOM ARE 
WORKING IN THE THREE NORTHERN GOVERNORATES. FAO HAS ABOUT 
550 NATIONAL STAFF IN THE NORTH, MANY OF WHOM HAVE WORKED 
FOR FAO SINCE 1997.  IN ADDITION, THERE ARE 4,000-6,000 
CASUAL LABORERS WHO ALSO HAVE WORKED FAIRLY STEADILY FOR FAO 
OVER THE YEARS.  FAO IS IN THE PROCESS OF DEVISING A LAY-OFF 
PLAN FOR THESE EMPLOYEES, BUT ANTICIPATES THAT THIS WILL NOT 
BE EASY. 
 
ROME 00003257  002 OF 004 
 
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¶5. (U) AFTER THE PASSING OF UNSC 1472 AND 1476, FAO REVIEWED 
THE CONTRACTS THAT HAD BEEN LET BY THE GOVERNMENT OF IRAQ 
FOR SOUTH/CENTRAL AND APPROVED BY OIP UNDER THE 59 PERCENT 
ACCOUNT.  IN REVIEWING AND PRIORITIZING THE CONTRACTS, FAO 
CHOSE THE ONES WHERE IT APPEARED THAT THE VENDOR COULD 
DELIVER ON OR BEFORE JUNE 3 (THE ORIGINAL DATE OF THE 
EXTENSION OF THE OFF PROGRAM) AND WHERE THE FUNDS HAD 
    ALREADY BEEN PLACED INTO A LETTER OF CREDIT FROM OIP.  THESE 
CONTRACTS TOTALED APPROXIMATELY USD 185 MILLION.  MANY OF 
THESE CONTRACTS ARE ALREADY IN THE EXECUTION STAGE; OTHERS 
ARE IN THE FINAL STAGES OF NEGOTIATION. FAO IS SEIZED WITH 
ENSURING THE TIMELY RECEIPT, STORAGE AND DISTRIBUTION OF 
THESE INPUTS, SUPPLIES AND EQUIPMENT. 
 
¶6. (SBU) THE CONTRACTS RELATED TO THIS USD 185 MILLION DO 
NOT INCLUDE AGRICULTURAL PROVISIONS/SUPPLIES FOR THE FALL 
AND WINTER.  FAO HAS BEEN WORRIED ABOUT THE LEAD TIME 
REQUIRED TO PURCHASE SUPPLIES OF SEEDS, PESTICIDES AND 
FUNGICIDES FOR CROPS, ANIMAL VACCINES, IRRIGATION EQUIPMENT, 
ETC. FOR THE SOUTH/CENTRAL REGIONS AS WE NEAR THE FALL 
PLANTING SEASON.  THIS CONCERN HAS LESSENED JUST RECENTLY 
AS, IN THE LAST TEN DAYS, CPA ASKED FAO TO ASSUME USD 700 
MILLION WORTH OF ADDITIONAL CONTRACTS THAT INCLUDES THE 
ABOVE ITEMS.  AND ON JULY 14, CPA TOLD FAO IT WOULD LIKE IT 
(FAO) TO TAKE OVER ALL CONTRACTS IN THE AGRICULTURE SECTOR, 
WHICH COULD AMOUNT TO AN ADDITIONAL USD HUNDREDS OF 
MILLIONS. 
 
¶7. (SBU) NOTE: JUST AS WFP HAD TO DO FOR ALL THE CONTRACTS 
FOR WHICH IT ASSUMED RESPONSIBILITY, FAO WILL HAVE TO RE- 
NEGOTIATE ALL THESE CONTRACTS.  IT IS A FORMIDABLE TASK AS 
NO ONE CONTRACT IS SIMILAR TO ANOTHER.  EACH CARRIES ITS OWN 
UNIQUE QUALITIES/PROBLEMS/CHALLENGES. END NOTE. 
 
¶8. (SBU) IN THE PAST, IRAQ HAD SEVERAL OPERATIONAL 
FERTILIZER FACTORIES IN THE SOUTH/CENTRAL REGIONS. 
HISTORICALLY, IT DID NOT HAVE TO IMPORT FERTILIZER FOR THE 
CROPPING SEASONS UNDER THE OFF PROGRAM.  AS, HOWEVER, THE 
    FERTILIZER FACTORIES ARE PRESENTLY NON-OPERATIONAL, FAO 
ASSERTS THAT FERTILIZER CONTRACTS NOW NEED TO BE ADDED TO 
THE AGRICULTURAL IMPORT SUPPLY LIST.  FAO REPORTS THAT 
JORDAN IS A LARGE PRODUCER OF FERTILIZER SO ACQUIRING IT IN 
A TIMELY FASHION SHOULD NOT BE DIFFICULT, ONCE ANY CONTRACT 
GOES THROUGH THE VARIOUS APPROVAL CHANNELS. 
 
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FAO LIAISON WITH CPA 
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¶9. (SBU) ONE IMPORTANT REQUIREMENT OF ALL UN CONTRACTS IS 
THAT THE VENDOR MUST BE ABLE TO DELIVER PRIOR TO NOVEMBER 
¶21. FAO/HQ HAS ASKED ITS STAFF IN BAGHDAD TO RECEIVE IN 
WRITING FROM THE CPA THAT IT WILL ASSUME THE FOLLOWING 
RESPONSIBILITIES, WHEN GOODS ARRIVE: 
 
-PROVIDE SECURITY FROM THE BORDER POINT TO THE DELIVERY 
POINT, AND IF NEEDED, AT THE DELIVERY POINT; 
-TAKE OWNERSHIP OF THE GOODS AT THE DELIVERY POINT AND DO 
 
ROME 00003257  003 OF 004 
 
STRIBUTIONS. 
 
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NEXT STEPS 
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¶10. (SBU) FAO IS POSITIVE ABOUT ITS RELATIONSHIP WITH CPA IN 
BAGHDAD, BUT STRESSES THAT A CPA AGRICULTURE LIAISON IS 
URGENTLY NEEDED IN THE NORTH.  FAO FEELS THAT CPA WILL HAVE 
TO CONTINUE TO SUPPORT AGRICULTURE AT A HIGH LEVEL FOR A 
    LONGER PERIOD OF TIME THAN IT (CPA) MAY CURRENTLY 
ANTICIPATE, INCLUDING IN THE NORTH, EVEN THOUGH THE LATTER 
REGION IS ADMITTEDLY NOT AS "NEEDY" AS THE REST OF THE 
COUNTRY. 
 
¶11. (SBU) ON JULY 14, AMBASSADOR DAN AMSTUTZ, THE CPA SENIOR 
ADVISOR FOR AGRICULTURE, COMMUNICATED WITH THE FAO/HQ'S 
LAURENT THOMAS, RELATED TO HOW CPA SEES FAO'S EVOLVING 
RESPONSIBILITIES.  NOTE: THOMAS IS QUITE POSITIVE ON 
AMBASSADOR AMSTUTZ'S FORMIDABLE AGRICULTURAL CREDENTIALS AND 
"TAKE-CHARGE" QUALITIES. END NOTE. 
 
--------------------------------------------- ---- 
FAO PREPARATIONS FOR THE OCTOBER DONOR CONFERENCE 
--------------------------------------------- ---- 
 
¶12. (U) FAO, UNDP AND THE WORLD BANK HAVE NOW COMMENCED AN 
OVERALL ASSESSMENT OF THE IRAQI AGRICULTURE SECTOR IN 
PREPARATION FOR THE DONORS MEETING ON IRAQ TO BE HELD THIS 
OCTOBER.  THE FIRST DRAFT OF THE ASSESSMENT IS TO BE 
COMPLETED BY AUGUST 15. 
 
¶13. (U) FAO HAS ALSO PREPARED THE FOLLOWING FINAL DRAFT 
WORKING DOCUMENTS ON THE NORTHERN IRAQ AGRICULTURAL SECTOR, 
AS FOLLOWS: 
 
A) THREE-VOLUMES, RELEASED IN JUNE 2003: 
 
-    SCR 9686 - THREE-YEAR AGRICULTURAL PROGRAM IN THE IRAQI 
  NORTHERN GOVERNORATES - MAIN REPORT & ANNEXES 1 TO 6 
-    ANNEX 7 TO THE MAIN REPORT 
    -    TEN WORKING PAPERS (VOLUME 3); AND 
 
B) FOUR-VOLUMES, RELEASED IN JULY 2003: 
 
-PROJECT PROFILES - COMPONENT 1 (VOLUME 4 OF 6) (PART A); 
-PROJECT PROFILES - COMPONENT 2 (VOLUME 4 OF 6) (PART B); 
-PROJECT PROFILES - COMPONENT 3 (VOLUME 5 OF 6); AND 
-PROJECT PROFILES - COMPONENTS 4 AND 5 (VOLUME 6 OF 6). 
 
NOTE. HARD COPIES OF A COMPLETE SET OF THESE REPORTS HAVE 
BEEN FEDEXED TO MARY T. CHAMBLISS, DA/EC/USDA/FAS. END NOTE. 
 
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COMMENT 
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¶14. (SBU) FAO HAS AT PRESENT A LARGE AND HEAVY PORTFOLIO - 
HELPING SALVAGE THE CURRENT HARVEST BY ACTING AS THE BARLEY 
BUYER OF "LAST RESORT;" ACQUIRING FERTILIZER AND PESTICIDES 
IN AMPLE AND TIMELY QUANTITIES; ENSURING THAT THERE IS SEED 
 
ROME 00003257  004 OF 004 
 
ENT REGIONWIDE SPREAD OF 
DISEASE; TECHNICAL ASSISTANCE TO REHABILITATION OF 
IRRIGATION WORKS; FRUIT TREE AND POULTRY REVIVAL; AND SO ON. 
TO KEEP THE TURNOVER TIMETABLE ON-TRACK, DAILY DIALOGUE WILL 
BE NEEDED BOTH IN BAGHDAD AND IN THE NORTH. FAO NEITHER 
WANTS TO PROCEED AT THIS STAGE WITHOUT PRIOR CONSULTATION 
WITH CPA NOR TO BE ACCUSED OF NOT MOVING SWIFTLY ENOUGH TO 
MAKE THE TRANSITION "HAPPEN" BY THE UNSCR-IMPOSED NOVEMBER 
21 DEADLINE. US MISSION SHARES FAO'S VIEW THAT CFA DEPLOY 
SOONEST A SENIOR AGRICULTURE OFFICER TO THE NORTHERN 3 
GOVENORATES TO WORK HAND-IN-HAND WITH FAO TO "GUARANTEE" THE 
    PHASE-OVER. 
 
¶15. (U) MINIMIZE CONSIDERED.  HALL 
 
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 2003ROME03257 - Classification: UNCLASSIFIED