VZCZCXRO7361
RR RUEHBC RUEHDA RUEHDE RUEHIHL RUEHKUK
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ZNR UUUUU ZZH
R 252105Z MAY 07
FM SECSTATE WASHDC
TO RUEHGB/AMEMBASSY BAGHDAD 0644
INFO IRAQ COLLECTIVE

UNCLAS SECTION 01 OF 03 STATE 072784 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EAID IR IZ MOPS PREL SY
SUBJECT: IRAQ AMBASSADORS' FORUM - MAY 17, 2007 
 
 
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SUMMARY 
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¶1.  (SBU) SUMMARY.  The Political Military Bureau hosted an 
Iraq Ambassadors' Forum on May 17.  Ambassador David 
Satterfield, the Senior Advisor to the Secretary of State and 
Coordinator for Iraq, briefed on the successful launching 
event of the International Compact with Iraq (ICI) and the 
subsequent Expanded Neighbors Ministerial Conference held in 
Sharm el-Sheikh, Egypt, on May 3-4.  He also discussed the 
responsibilities of the Government of Iraq and its neighbors 
(including Syria and Iran) in ensuring progress in Iraq.  END 
SUMMARY. 
 
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INTRODUCTION 
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¶2.  (SBU) The Political Military (PM) Bureau hosted an Iraq 
Ambassadors' Forum on May 17 to discuss the outcome of the 
recent conferences in Sharm el-Sheikh, Egypt.  Ambassadors 
from all contributing coalition nations, NATO, G-5, Iraq, and 
its neighbors were invited, with 40 representatives attending. 
 
¶3.  (SBU) After a brief introduction by PM Deputy Assistant 
Secretary Michael Coulter, Ambassador Satterfield noted that 
 
SIPDIS 
the ICI and Expanded Neighbors Ministerial are two sides of 
the same coin:  an effort to foster a more substantive 
dialogue between Iraq and its neigbhors as well as the entire 
region and international community.  It is important for 
everyone to have an accurate sense of what the Government of 
Iraq (GOI) is doing as it seeks to address the major 
political, economic, and security issues it faces. 
Ambassador Satterfield stressed that Iraq needs the support 
of its neighbors and the international community, politically 
and economically. 
 
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THE INTERNATIONAL COMPACT WITH IRAQ 
----------------------------------- 
¶4.  (SBU) The ministerial launch of the ICI is a product of 
more than a year of hard work by Iraq, its neighbors, and the 
international community.  It is an exceptional document, 
laying out a road map of changes that will make Iraq an 
economically liberal state based on free trade.  Ultimately, 
these changes depend on the political and security situations 
as well.  The ICI is a contract between the Iraqi government 
and its people, who need and expect the support of Iraq's 
neighbors and international partners. 
 
¶5.  (SBU) Ambassador Satterfield noted that significant 
pledges had been made at the ICI launch, including $686 
million in grants and loans.  On a particularly positive 
note, Saudi Arabia offered forgiveness on 80% of Iraq's debt 
to Saudi Arabia ($15.4 billion), meeting Paris Club levels. 
This pledge, a product of negotiations with Saudi 
counterparts, will be finalized in the coming months.  It is 
essential that Iraq receive such public displays of support. 
The ability of the GOI to provide jobs to its people is a 
consequence of economic development that such support will 
enable. 
 
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ECONOMIC TASKS FOR THE GOI 
-------------------------- 
 
¶6.  (SBU) While the GOI must bear primary responsibility for 
its own budget execution, it does need help.  Ambassador 
Satterfield reminded his audience of the oft-cited World Bank 
estimate that approximately 100 billion dollars were needed 
for Iraq's reconstruction.  Iraq needs technical expertise 
from its international partners as well.  Key to progress is 
the approval of a comprehensive package of hydrocarbon 
reforms.  This will provide for all Iraqis, whoever and 
wherever they may be, both now and in the future because 90% 
of Iraq's current income is in the petroleum sector. 
Agriculture is a promising area for future development, 
however.  Ambassador Satterfield noted that many had heard 
the refrain that the hydrocarbons package was imminent.  The 
legislation should have been passed in March but work is 
still needed and the United States is working with the 
central government and Kurdish leaders to ensure that a good 
law is passed.  All of the more than 60 members present at 
the ministerial launch of the ICI were very positive in their 
remarks towards Iraq.  There were no dissenters to the belief 
that a stable, economically prosperous Iraq is in the best 
interest of everyone. 
 
STATE 00072784  002 OF 003 
 
 
 
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NEIGHBORS MINISTERIAL CONFERENCE 
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¶7.  (SBU)  The Neighbors Ministerial represents the other 
side of the coin.  Very positive statements were made by all 
parties at the conference except one:  Iran chose to focus on 
what it termed "the occupation" as the source of all evil in 
Iraq.  Ambassador Satterfield noted that everyone must 
recognize that the GOI faces increasing skepticism about the 
ability of the Prime Minister and the government to move the 
nation forward in a non-sectarian fashion.  Everyone must see 
some movement on both the economic and political fronts. 
Only this can overcome the deep, over-abiding reserve on the 
part of all Iraq's neighbors about the GOI's ability to unite 
its people and move forward.  The Ministerial presented an 
excellent opportunity for Prime Minister Maliki to speak to 
this skepticism, and he did admirably well.  However, we and 
the neighbors are well beyond the point for rhetoric alone. 
Action is needed now. 
 
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IRAQ'S RELATIONS WITH ITS NEIGHBORS 
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¶8.  (SBU) Virtually none of Iraq's neighbors have any 
representation in Iraq itself (aside from the Iranians who 
have too much).  Typically in a conflict arena, there would 
be extensive ties.  Iraq's neighbors, especially Sunnis, have 
no eyes and ears in Iraq right now.  The information these 
countries receive comes almost exclusively through the eyes 
and ears of self-interested Sunnis, often in opposition to 
the political process and anxious to undermine the GOI.  We 
must acknowledge this hill, if not mountain, that must be 
climbed.  Iraq must show a national consensus to move 
forward.  The GOI has failed to demonstrate to its own 
people, much less neighbors, that the national consensus and 
will is there. 
 
¶9.  (SBU) We all can help and encourage the GOI, neighbors 
included.  Progress on constitutional reform, hydrocarbons 
laws, a provincial election law, and de-Ba'athification 
reform will demonstrate the GOI's commitment to working for 
all its citizens, regardless of sect or affiliation.  This is 
an enormous challenge and Iraq needs all the help it can get. 
 
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TWO MESSAGES FOR SUNNI NEIGHBORS 
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¶10.  (SBU) Iraq needs a clear, unequivocal message from its 
Sunni neighbors that they accept the reality of a 
post-Saddam, democratic, Iraqi government.  The second 
message to Sunnis both inside and outside Iraq who engage in 
violence is that this method is unacceptable.  This violence 
is literally destroying the life of the Sunni Arab community 
and terrorist elements pose a threat to their way of life in 
all respects.  Neither message has been sent in a sufficient 
manner.  Our senior government leaders have clearly stated 
this message to our friends in the region, asking them to 
address these issues directly. 
 
¶11.  (SBU) Our message to the GOI has been clear.  Most 
members of the Senate and many in the House of 
Representatives have visited Iraq on multiple occasions, 
communicating directly what the President has called the 
"diminishing patience" of the American people.  Their 
commitment to stay on this path depends on proving that there 
is a partner in Iraq with whom to move forward - not just the 
Prime Minister but other political leaders as well.  Now, 
progress is needed and not just rhetoric. 
 
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ENGAGING SYRIA 
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¶12.  (SBU) As we consider how best to move forward, there are 
two neighbors to whom we have not previously spoken:  Iran 
and Syria.  Our meetings at the Neighbors Ministerial focused 
entirely on Iraq.  There was no discussion or mention of 
anything other than Iraq.  We noted to the Syrians that the 
flow of terrorists and Takfiris through Syria continues 
unabated.  Virtually all suicide bombers cross into Iraq 
through Syria.  They have killed thousands of innocent Iraqis 
and continue to kill hundreds each week.  Syria is concerned 
about this, they have taken some measures but more can 
definitely be done to prevent it.  It will be difficult to 
pursue sectarian reconciliation in an environment where 
Shiites are killed by these Sunni bombers.  Others do not - 
and should not have to - discern between sectarian and other 
violence.  They see only a violent nation.  There must be 
changes on the ground if the dialogue with Syria is to 
continue.  Syria would like to see a higher level of 
representation from the USG, although this was not discussed 
 
STATE 00072784  003 OF 003 
 
 
specifically. 
 
¶13.  (SBU) There was no substantive discussion with Iran, 
just procedural and technical arrangements to establish 
channels for talks only on Iraq.  There are, of course, other 
fora for discussing the nuclear issue.  As the Iranians 
recently mentioned in the press, there will be talks in 
Baghdad with Ambassador Crocker as the U.S. representative. 
We do not yet know the identity of the Iranian counterpart. 
All this is a challenge to the GOI to move forward in the 
best interests of its people. 
 
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Q & A 
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¶14.  (SBU)  Following his remarks, Ambassador Satterfield was 
asked by Italian Embassy Counselor Perrone about feedback 
from Vice-President Cheney's trip to the region.  Ambassador 
Satterfield responded that the Vice-President had presented 
exactly the same message as was given today and the response 
he got did not change that significantly.  His theme was the 
need to move forward and be clear that violence has no 
support from Sunni Arab regions outside Iraq. 
 
¶15.  (SBU)  Canadian PolCouns Brown asked about the status of 
the three working groups announced at the previous Neighbors 
Conference in Baghdad.  Ambassador Satterfield replied that 
while all three (focusing on fuel and electricity, border 
security, and refugee isssues) had been agreed upon with 
non-neighbors in an advisory capacity, their substantive 
agenda would have to proceed as Iraq and its neighbors 
decide.  There has not yet been a definitive decision on the 
subject although it is something the USG wants to see 
transpire in keeping with the plenary nature of the Neighbors 
Conference. 
RICE