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Reference ID	Created	Released	Classification	Origin
06BAGHDAD4536	2006-12-13 09:10	2011-08-24 16:30	UNCLASSIFIED	Embassy Baghdad

VZCZCXRO3653
OO RUEHBC RUEHDA RUEHDE RUEHIHL RUEHKUK
DE RUEHGB #4536 3470910
ZNR UUUUU ZZH
O 130910Z DEC 06
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC IMMEDIATE 8456
RUEATRS/DEPT OF TREASURY WASHDC IMMEDIATE
INFO RUCNRAQ/IRAQ COLLECTIVE PRIORITY

UNCLAS BAGHDAD 004536 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON EFIN IZ
SUBJECT: IRAQ COMPACT: DEC 10 BCG MEETING CREATES "A 
FEELING OF SUCCESS" 
 
REF: CLASSIFIED BY AMBASSADOR KHALILZAD FOR REASONS 
 
     1.4 (B) AND (D). 
 
¶1.  (SBU) SUMMARY.  On December 10, 2006 Iraq,s Prime 
Minister Nouri al-Maliki convened a session of the Baghdad 
Coordination Group (BCG) attended by several Ambassadors 
posted in Baghdad, including Ambassador Khalilzad.  Deputy 
Prime Minister Salih and three key GOI Ministers including 
Planning, Finance, and Oil were also in attendance.  The 
Prime Minister announced the completion of the International 
Compact for Iraq (ICI) documents (distributing Arabic and 
English copies to the group) and that a signing ceremony 
would be convened in early 2007.  The guests applauded this 
accomplishment and reiterated their support for Iraq.  Prime 
Minister al-Maliki noted the positive atmosphere and 
indicated that it gave him &a feeling of success8 to see 
that the momentum still exists. End Summary. 
 
-------------------- 
The Signing Ceremony 
-------------------- 
 
¶2.  (SBU)  The Prime Minster indicated that the Compact 
Working Group (CWG) is currently engaging several countries 
about hosting the final conference and hopes to announce a 
date and venue in the near future.  He urged the group to 
encourage their respective capitals to send senior level 
representation to the final ceremony noting that it will be 
an opportunity to discuss Iraq,s vision for the security and 
economic climate, as well as political reconciliation and its 
relationship with neighboring countries. Ambassador Khalilzad 
praised the GOI for their progress and reiterated the 
importance of announcing a date and venue very soon, and to 
use the time in between to firm donor commitments.  The EU 
Ambassador echoed this sentiment, noting that January &is 
tight8 in European capitals, although overall the group 
seemed eager for an early signing conference.  The Italian 
Ambassador expressed an eagerness for the final meeting and 
assured senior level Italian attendance.  In DPM Salih,s 
closing remarks, he announced that the final conference would 
take place the second or third week of January. 
 
----------------- 
Donor Commitments 
----------------- 
 
¶3.  (SBU)  Prime Minister al-Maliki announced that Iraqi debt 
exceeds $75B and he hopes that Iraq,s friends will consider 
&liberating Iraq from this burden8 in order to spur the 
economy and reconstruction.  Ambassador Khalilzad echoed this 
thought and encouraged debt forgiveness from all countries, 
specifically noting that some countries &have not moved at 
all (to forgive debt).8  Ambassador Khalilzad also asked 
that countries consider commitments beyond debt forgiveness. 
In response the Italian Ambassador noted that Italy is 
currently engaged in bilateral negotiations regarding 
donations and the consideration of a soft loan package to 
Iraq.  The EC Ambassador indicated the EC is working with 
member States to see what support it could offer Iraq.  The 
Japanese Ambassador commented, &when invited, you come with 
something,8 and noted that Tokyo is &doing its homework8 
regarding what commitments it will bring to the table.  The 
Prime Minister announced a $1.6B soft loan package from Japan 
to improve oil export facilities, electrical generation and 
refurbishment of oil refineries; he noted that it is the 
first of its kind and hopes many more will follow. 
 
--------------------------------------------- 
Political, Security and Economic Connectivity 
--------------------------------------------- 
 
¶4.  (SBU)  Several Ambassadors (Italy, the European 
Presidency, and A/UN) noted the strong relationship between 
the political, security, and economic strands in the 
document; Prime Minister al-Maliki reinforced this message. 
KHALILZAD

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Viewing cable 06BAGHDAD4536, IRAQ COMPACT: DEC 10 BCG MEETING CREATES "A