VZCZCXRO4879
PP RUEHBC RUEHDE RUEHKUK
DE RUEHIHL #0101/01 1621745
ZNY CCCCC ZZH
P 111745Z JUN 06
FM REO HILLAH
TO RUEHC/SECSTATE WASHDC PRIORITY 0653
RUEHGB/AMEMBASSY BAGHDAD PRIORITY 0639
INFO RUCNRAQ/IRAQ COLLECTIVE
RUEHIHL/REO HILLAH 0704

C O N F I D E N T I A L SECTION 01 OF 02 HILLAH 000101 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL:  6/11/2016 
TAGS: PGOV PROP KISL SCUL IZ
SUBJECT: BAGHDAD THREATENS REGIONAL NEWSPAPERS 
 
HILLAH 00000101  001.2 OF 002 
 
 
CLASSIFIED BY: Douglas Meurs, DRC, REO Al Hillah, Department of 
State. 
REASON: 1.4 (b), (d) 
 
 
 
¶1.  (SBU)  SUMMARY:  Baghdad-based Iraqi Media Network (IMN) and 
national Al-Sabah newspapers are threatening to cut subsidies to 
South Central regional independent newspapers, potentially 
forcing the closure of journals Al-Fayhaa in Babil, Al-Diwaniyah 
in Diwaniyah, and Al-Ilam Al-Iraqi in Karbala.  These newspapers 
have limited circulation (two to five thousand copies), little 
advertising, and probably cannot currently go it alone.  One 
paper has already announced it intends to close if subsidies are 
shut off.  The others are protesting the decision and weighting 
whether or not to accept a forced merger into IMN's own national 
newspaper (Al-Sabah) as a combined four-page regional weekly 
supplement, an option that would force them to lay off nearly 
all staff.  Either option would deal a shattering blow to the 
morale of the secular and moderate community in South Central. 
END SUMMARY 
 
¶2. (U)  The Irai Media Network decision came as bitter news to 
newspapers already reeling from increasing threats and 
intimidation.  Editors attributed the decision to a power grab 
by the IMN national newspaper Al-Sabah.  IMN management offered 
regional papers a take-it-or-leave-it option of continuing to 
publish as combined regional weekly supplemented bundled with 
Al-Sabah. 
 
¶3. (SBU)  The three newspapers, Al-Fayhaa, Al-Diwaniyah, and 
Al-llam Al-Iraqi, have circulations of under five thousand 
copies per run.  Their editorial content is tightly 
circumscribed by the need to avoid offending political parties, 
politicians, and militias.  The Al-Fayhaa recently carried an 
article detailing the Mahdi Militia abduction of a music shop 
owner from his hospital bed.  Two days later, grenades were 
thrown at Al-Fayhaa's offices and the newspaper quickly printed 
a retraction and Mahdi Militia's version of the incident (see 
the May 15 REO Al-Hillah Media Report for details).  Since then, 
Al-Fayhaa has prominently carried articles about Muqtada 
al-Sadr's activities.  An editor for Al-Diwaniyah described for 
REO staff how he is careful not to name names and "walks a fine 
line" in deciding what to print. 
 
¶4. (U)  Nonetheless, these newspapers are virtually the only 
local source of neutral, nonpolitical party affiliated news in 
the five South Central provinces.  They regularly report on 
agricultural developments, NGO activity, reconstruction 
progress, and economic news.  In doing so, they focus attention 
on the ability of provincial governments to deliver public 
services.  If they were to cease publication, the ever-shrinking 
moderate and secular community in South Central would sink 
further into isolation.  The editor of Al-Fayahaa told REO staff 
that their last issue would come out on Wednesday, July 78.  The 
other newspapers are pondering their options, but have so far 
refused to merge into Al-Sabah. 
 
¶5. (U)  Unfortunately, no regional paper here has consistently 
generated a profit - in part because of IMN's subsidy of 
printing costs.  Management has focused on providing content and 
has consistently failed to recruit advertising staff, cut costs, 
and improve distribution (often delegated to provincial 
government offices). 
 
¶6. (C)  In a meeting at the REO on June 7, editors from the 
three newspapers and a local editor from Al-Sabah (please 
protect) discussed their dilemma.  The editors stated that they 
believe IMN's action is illegal under TNA Decree 66, which gives 
regional newspapers autonomy and forbids the firing of an 
editor-in-chief by the editorial management of another 
newspaper.  They attributed the decision to end subsidies to a 
power play by IMN Deputy Director Director Al-Shabbot.  The 
Deputy Director, they said, hoped to slash Al-Sabah's red ink 
and gain favor with political parties by eliminating independent 
newspapers in the South Central region and boosting Al-Sabah's 
circulation outside of Baghdad. 
 
¶7. (C)  The regional Al-Sabah editor was reluctant to defend his 
newspaper.  He confirmed the independents' suspicion that if 
these newspapers were to become part of a weekly four-page 
supplement, their staff would be slashed to a handful of 
reporters at best.  He noted that until recently, Al-Sabah and 
IMN policy had been to encourage the creation of independent 
newspapers in each province.  In fact, he noted, Al-Sabah was 
assisting the opening of two new regional newspapers in the 
Kurdish provinces. 
 
¶8. (U) The editors noted that Al-Sabah has benefited from taking 
over national printing presses and the revenue streams from each 
of the regional newspapers.  They noted that if South Central 
papers had access to their own press and took steps to lower 
 
HILLAH 00000101  002.2 OF 002 
 
 
printing costs (reduce the number of pages and the use of 
color), printing costs could be reduced from one million Dinars 
to 250,000 Dinars per issue, putting their newspapers on the 
road toward non-subsidized operation. 
 
¶9. (U)  COMMENT:  Circulation figures are small for these 
regional newspapers, but there are no alternative media outlets 
for the news they print.  Al-Sabah has perhaps two articles per 
week that cover Babil Province.  While these newspapers tread 
cautiously in covering political parties, they do keep the 
public informed about social services, the state of 
reconstruction, the local economy, and the performance of 
Provincial Councils and Governors.  They cannot be replaced by a 
supplement in a national newspaper.  If the status quo cannot be 
restored, rather than folding, as the editors are threatening, 
these newspapers will likely become subsidized publications for 
political parties, further diminishing the already circumscribed 
space left in South Central for moderate, non-partisan debate 
about the region's affairs.  END COMMENT 
MEURS