VZCZCXRO1182
OO RUEHBC RUEHDE RUEHIHL RUEHKUK
DE RUEHGB #2238/01 1780601
ZNY CCCCC ZZH
O 270601Z JUN 06
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5382
INFO RUCNRAQ/IRAQ COLLECTIVE

C O N F I D E N T I A L SECTION 01 OF 02 BAGHDAD 002238 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 06/26/2016 
TAGS: PGOV ECON EAID PREL PINR IZ EUN IR GCC
SUBJECT: EU TROIKA QUESTIONS URGENCY OF IRAQ COMPACT 
 
 
Classified By: Ambassador Khalilzad for reasons 1.4 (b) and (d). 
 
¶1. (C) SUMMARY: Ambassador and A/DCM Speckhard met June 24 
with an EU Troika delegation (participants listed para 10) to 
discuss EU policy toward Iraq, particularly with regard to 
the Compact process.  The EU delegation expressed the EU's 
desire that the Compact be more than "just a pledging 
exercise," preferring a broader approach toward reform.  The 
EU believes that backing from Gulf states would be key and 
that it would take time to bring them on board.  The 
delegation said that the EU could offer lawyers to help Iraq 
with constitutional review, but the U.S. would have to 
encourage the Iraqis to accept them.  The EU is unwilling at 
this time to send personnel to PRTs, and the Commission 
representative implied that the EU would have a difficult 
time in increasing the amount of EU assistance.  Austrian MFA 
Political Director Mayr-Harting also expressed skepticism 
that the GOI could move forward quickly on its end of the 
Compact.  END SUMMARY. 
 
----------------------------------- 
INTERNATIONAL COMPACT/EU ASSISTANCE 
----------------------------------- 
 
¶2. (C) Ambassador and A/DCM Speckhard met June 24 with an EU 
Troika delegation to discuss EU policy toward Iraq, 
particularly with regard to the Compact process Austrian MFA 
Political Director Mayr-Harting said that the EU does not 
have an agreed position on the Compact process, particularly 
on timing.  It is important that the Compact not be just a 
pledging exercise that is measured by how much money it 
brings, Mayr-Harting said.  Instead, he explained that the EU 
prefers a broader approach and that backing from the Gulf 
states would be key and would take time. 
 
¶3. (C) Mayr-Harting said that the EU could offer lawyers to 
help Iraq with constitutional review, but the U.S. would have 
to encourage the Iraqis to accept them.  Constitutional 
review did not seem to be a priority with the Iraqis whom the 
delegation had met, Mayr-Harting remarked.  A/DCM responded 
that the Iraqis still are organizing themselves and might be 
open to assistance offers by mid-July.  Mayr-Harting 
recounted that the EU had been reluctant to include a 
reference to PRTs in the U.S.-EU Summit Declaration; the EU 
found it easier for the time being to support Iraq assistance 
"from back home."  The EU could offer assistance, especially 
legal assistance, for national reconciliation. 
 
¶4. (C) Commission Deputy PolDirector Lundin said that what 
the Iraqis would promise in exchange for "carrots" from the 
EU is important.  Lundin said that the EU would raise its 
representation in Baghdad to ambassadorial level and wants to 
start negotiations with Iraq to set a contractual basis for 
trade.  For that, Lundin explained, the Iraqis need to form a 
proper interministerial committee.  The EU could offer 
assistance in rule of law and the normal range of EU programs 
-- from human rights to finance to customs.  Lundin added 
that the EU is interested in moving toward a more "normal" 
assistance relationship.  The EU is "not unhappy" with the 
current level of EU support of 700 million euros, Lundin 
noted. 
 
¶5. (C) When A/DCM pointed out that Deputy PM Saleh is moving 
ahead rapidly with its economic program and that the Compact 
process needs to keep pace, Mayr-Harting responded that Saleh 
is dynamic but would need to get the whole GOI moving. 
Ambassador noted that the U.S. is helping the Iraqis to set 
up a PM-led committee to oversee economic reform, similar to 
the existing Ministerial Committee on National Security. 
Mayr-Harting said that such a committee would serve as a good 
interlocutor for the EU in negotiating a trade and investment 
pact. 
 
--------------------------------- 
FINNISH PRESIDENCY REPRESENTATION 
--------------------------------- 
 
¶6. (SBU) Finnish MFA DG Polho told PolOff that Finland would 
work through the German Embassy in Baghdad since Finland has 
not had any Finnish-based personnel in Baghdad since 1991. 
(BIONOTE: Polho had been assigned to Baghdad in 1979-1981. 
END BIONOTE.) 
 
¶7. (U) EU delegation members included: 
 
-- Amb. Thomas Mayr-Harting, Political Director, Austria MFA 
-- Aapo Polho, Africa and Mideast Dept. DG, Finland MFA 
-- Lars-Erik Lundin, Deputy Political Director, European 
Commission 
-- Christian Jouret, Director, EU Council Secretariat 
-- Gudrun Harrer, Special Envoy of the Austrian EU-Presidency 
in Iraq/Austrian Charge 
-- Ana Gallo, EU Commission Delegation Charge 
 
BAGHDAD 00002238  002 OF 002 
 
 
-- Gunter Eisl, Counselor, Austrian Embassy 
-- Karl Seyser, Counselor, Austrian Embassy 
KHALILZAD