VZCZCXRO9666
PP RUEHBC RUEHDE RUEHIHL RUEHKUK
DE RUEHGB #4252/01 3191501
ZNY CCCCC ZZH
P 151501Z NOV 06
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC PRIORITY 8022
INFO RUCNRAQ/IRAQ COLLECTIVE
RUEKJCS/SECDEF WASHINGTON DC
RHEHAAA/WHITE HOUSE WASHINGTON DC//NSC//

C O N F I D E N T I A L SECTION 01 OF 04 BAGHDAD 004252 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 11/14/2016 
TAGS: PGOV PREL KDEM JKJUS EINV ECON IZ
SUBJECT: PRT/REO POLITICAL AND ECONOMIC ROUNDUP (OCTOBER 25 
-  NOVEMBER 10, 2006) 
 
Classified By: Political Counselor Margaret Scobey for reasons 1.4(b) 
and (d). 
 
¶1. (C) SUMMARY. Embassy Baghdad has initiated a regular 
roundup cable of short political and economic items 
submitted by Provisional Reconstruction Teams and Regional 
Embassy Offices in Iraq.  This is intended to complement 
other reporting and provide insight on events and 
developments across the country.  Issues covered in this 
roundup include: 
 
- ANBAR: Provincial Council Expands to Include Sheikhs 
- BABIL: Sadrists Hold Reconciliation Conference, without 
Sunnis 
- KARBALA: Police Chief Cracks Down; Sheikh Keeps Power Going 
 
- NAJAF:  Governor Seeks to Lure Investment, Tourism 
- DIWANIYAH: Elections Chief Concerned about Fate of Moderate 
Parties 
- WASIT:  Sunnis, CoR Member Receive Death threats 
- BAGHDAD: PC Member Lauds Investment Law, Laments Failures 
of Reconciliation Plan 
- SALAH AD DIN: Local IIP Leaders Claim Tawafuq May Withdraw 
from Government 
- NINEWA: Micro-Loans have Macro Impact 
 
End Summary. 
 
-------------- -------------------------------------- 
ANBAR: Provincial Council Expands to Include Sheikhs 
-------------- -------------------------------------- 
 
¶2. (C) Anbar provincial and federal government leaders met 
November 9 to discuss the addition of eight new seats to the 
Provincial Council (PC) for representatives of the Anbar 
Salvation Council (SAA), an association of select Anbar 
sheikhs.  The sheikhs had previously obtained agreement from 
PM Maliki to 
add seats to the PC in exchange for tribal cooperation 
against 
terrorists.  Participants at the meeting included Anbar 
Governor 
Ma'amoun Sami Rasheed Al-Awani, senior Anbar Provincial 
Council 
(PC) members, including PC President Abdul Al-Salam, and a 
representative from the Commission on National 
Reconciliation. 
MNF-W DCG and Anbar PRT Leader also attended and were 
regularly 
consulted.  The modalities for adding the new seats had been 
under intense discussion for several weeks.  Provincial 
leaders 
had reportedly been frustrated by repeated changes by the 
sheikhs' of their list of proposed representatives for the 
PC. 
PC members also expressed distrust of SAA tribal spokesman 
Sheikh Sattar Al-Rishawi, whom they characterized as 
disorganized.  The PC will reconvene on Nov 14 to confirm the 
legality of expanding the legislative body in this manner, at 
which point the PC is also expected to approve the final list 
of 
the eight tribal representatives.  In addition to guarantees 
on 
security, the PC also seeks tribal support for the legitimacy 
of 
the governor, PC, and other government institutions. 
 
------------------- ------------------------------------ 
BABIL: Sadrists Hold Reconciliation Conference, without 
Sunnis 
-------------------- ----------------------------------- 
 
¶3. (SBU) The Babil Sadrists held a reconciliation conference 
in 
al-Hillah on November 8 ostensibly in support of Muqtada al- 
Sadr's recent call to stop the shedding of Iraqi blood. 
Conference organizers reportedly sought to make the event a 
forum for reconciliation both among Babil's Shia groups and 
between Shia and the province's shrinking Sunni population. 
After a speech by a local sheikh blaming sectarian violence 
on 
the United States, conference participants formed a committee 
comprised entirely of Shia to monitor reconciliation efforts. 
 
There were reportedly no Sunnis at the event. 
 
--------------------------- -------------------------------- 
KARBALA: Police Chief Cracks Down; Sheikh Keeps Power Going 
---------------------------- ------------------------------- 
 
 
BAGHDAD 00004252  002 OF 004 
 
 
¶4. (SBU) The local Iraqi Police chief is pushing forward with 
his plan to reduce violence and clean up the Karbala police. 
His crackdown resulted in the successful arrest of ten 
suspected 
terrorists in northern Karbala.  The individuals were 
apprehended and a significant cache of small arms, explosives 
and other equipment were found in their hideout on a farm. 
In 
Karbala, several individuals were also arrested for planning 
an 
attack on the holy shrines. 
 
¶5. (U) According to press reports, local Shiekh Al Ameer Al 
Himiary imported 43 solar powered generators to increase 
power 
generation and continuity.  These generators are expected to 
provide continuous electricity for a fee of 1500 Iraqi 
Dinar/amp 
and reduce community dependence on fuel, black market or 
otherwise.  The mayor's office is supporting the effort. 
 
--------------------------- ----------------------- 
NAJAF:  Governor Seeks to Lure Investment, Tourism 
---------------------------- ---------------------- 
 
¶6. (SBU) The governor of Najaf, Asaad Al Taee, traveled to 
Kuwait and Jordan in recent weeks in an attempt to lure 
investment, both private and public.  With Najaf's 
reconstruction effort well underway and seeing a degree of 
success, the governor and members of the Provincial Council 
have 
set out to portray Najaf as a tourism destination.   While 
the 
service industry continues to grow, Najaf officials consider 
the 
refurbishment of portions of a highway from the city center 
to 
Saudi Arabia a necessary next step. 
 
¶7. (SBU) Najaf sees its population grow exponentially during 
important Muslim holidays and has been the beneficiary of a 
tourism boom that has grown since the overthrow of the 
Hussein 
regime.  The desire to complete the Saudi Arabia-Najaf 
highway 
is driven by the potential for pilgrims to travel to Najaf at 
any time of the year.  The head of Najaf's chamber of 
commerce 
met with REO staff November 7 in order to solicit assistance 
in 
completion of the highway project. 
 
---------------------------- ------------------------------- 
DIWANIYAH: Elections Chief Concerned about Fate of Moderate 
Parties 
----------------------------- ------------------------------ 
 
¶8. (C) Independent Electoral Commission of Iraq (IECI) 
provincial head Saad Madhloom expressed concern to IPAO 
November 6 that the apparent delay in holding provincial 
elections may result in the 
disappearance of a number of smaller, moderate parties.  He 
noted his extensive travel in the United States as the basis 
for 
his desire to see moderate parties compete fairly in future 
elections.  "We have a responsibility to ensure that all 
voices 
are heard," Madhloom said.  He noted with some forcefulness 
that 
he did not believe the Marja'iya were responsible for the 
problems facing smaller parties, but the inherent costs of 
running a viable political organization.  He asserted that if 
the moderates vanish from the political landscape it will be 
because of the crushing expense of day to day operations. 
 
--------------------------------------------- --- 
WASIT:  Sunnis, CoR Member Receive Death threats 
--------------------------------------------- --- 
 
¶9. (SBU) Sunni families in Wasit's capital city of Al-Kut 
recently received written death threats according to Wasit's 
IP 
Chief, General Hussein.  The threatening letters were signed 
by 
a group calling itself the Al-Istiqamah (Straight) Army, an 
organization not previously known to local officials.  An 
investigation is currently underway to determine the true 
identity of the individual(s) behind this hostile act.  Sunni 
leaders have met with the provincial government and police 
officials on this matter and local contacts report police 
 
BAGHDAD 00004252  003 OF 004 
 
 
patrols have been stepped-up in the predominately Sunni areas 
of 
the city. 
 
¶10. (SBU) Lamya Ane'amah (Shi'a Coalition/Independent), 
Council of Representatives (COR) 
member for Wasit Province, received an unsigned death threat 
late last week.  According to police officials, the letter 
states that Ms. Ane'ama's life is now in danger due to the 
vote 
she cast to rescind prosecutorial immunity from fellow COR 
member Masha'an Al-Joboori.  (NOTE:  The COR lifted Masha'an 
Al- 
Joboori's 
immunity October 8.  END NOTE.)  Al-Joboori is facing 
numerous 
charges related to his alleged involvement in the 
misappropriation of tens of millions of dollars related to oil 
pipeline protection. The stripping 
of prosecutorial immunity from Al-Jaboori clears the way for 
the 
courts to proceed with their case against him. 
 
----------------------------- ------------------------------- 
BAGHDAD: PC Member Lauds Investment Law, Laments Failures of 
Reconciliation Plan 
------------------------------ ------------------------------ 
 
¶11. (C) Former Provincial Council (PC) Chairman and current 
Chairman of the PC Strategic Vision Committee Mazen Makiya 
expressed optimism to IPAOs on November 7 that the national 
Investment Law passed in October would open Iraq to companies 
from all over the world and would be a key to success and 
growth. He hoped that companies and governments alike would 
now 
invest in projects in Iraq and lend their technical expertise 
to 
design projects from housing to retail space.  Makiya 
envisioned 
a time when 75 percent of all construction projects could be 
done by the private sector and said he believed that 
companies 
could invest in Iraq even under the current security 
constraints 
by subcontracting to Iraqi firms. 
 
¶12. (C) Makiya, an independent Shi'a, called the Government 
of 
Iraq's reconciliation plan "a failure" and expressed his view 
that Sunni and Shi'a people "don't have problems, it is the 
political parties that are the problem."  He would like to 
see 
more "modern" people and a political party that doesn't just 
represent a particular sect or group.  He blamed the growing 
numbers of IDPs on the Sunni and Shi'a political parties and 
on 
Al Qaeda, who had the support of "regional neighbors who are 
scared of a Shi'a-led government and democracy." 
 
------------------------------ 
--------------------------------- 
SALAH AD DIN: Local IIP Leaders Claim Tawafuq May Withdraw 
from 
Government 
------------------------------- 
-------------------------------- 
 
¶13. (C) Iraqi Islamic Party (IIP) leaders in Salah ad Din 
(SaD) 
discussed with PRT officers November 8 a number of key 
political 
issues, including the recent unrest in Balad (Baghdad 3927) 
and 
support for instituting internal rules and procedures for the 
Provincial Council.  While blaming outside forces such as al- 
Qaeda (AQI), Iran, and Sadr's Mehdi Army for instigating the 
sectarian violence in Balad, IIP leaders claimed that Baghdad 
is 
indifferent and unresponsive to violence in Sunni areas. 
Reflecting real frustration, they claimed that Tawafuq, the 
Sunni political block (including Vice President Tariq al- 
Hashimi), plans to withdraw from the national political 
process 
on November 22 if implementation of federalism is not delayed 
until distribution of Iraq's petroleum resources is resolved 
to 
Sunni satisfaction. (Embassy Baghdad Comment: This statement 
most likely reflects general frustrations among Sunni 
political 
figures with the political process than an actual planned 
 
BAGHDAD 00004252  004 OF 004 
 
 
withdrawal.  These frustrations have been reflected in the 
strong - but often contradictory - media statements with 
regard 
to a possible Tawafuq withdrawal from the government, 
including 
by Vice President Tariq Al-Hashimi.  Post will report further 
septel.  End Comment). 
 
------------------------------------- 
NINEWA: Micro-Loans have Macro Impact 
------------------------------------- 
 
¶14. (U) PRT Members on November 8 visited the Ninewa Business 
Center (NBC), a model for sustainable business development in 
Iraq and the only self-sustaining Coalition-created business 
center in the country.  One of the NBC's key initiatives is 
its 
microlending program -- the center has made more than 400 
microloans for a total for more than USD 1.6 million in loans 
outstanding.  Only about fifteen percent of its loans are at 
risk.  The NBC also rents space to NGOs and other 
international 
organizations and provides a business referral service, as 
well 
as a facility to post Provincial Reconstruction and 
Development 
Council project bid offers. 
Speckhard