VZCZCXRO2228
RR RUEHBC RUEHDA RUEHDE RUEHIHL RUEHKUK
DE RUEHGB #4066 3481608
ZNR UUUUU ZZH
R 141608Z DEC 07
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC 4852
INFO RUCNRAQ/IRAQ COLLECTIVE

UNCLAS BAGHDAD 004066 
 
SIPDIS 
 
SBU 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON EFIN ENRG IZ POL
SUBJECT: U/S JEFFERY'S MEETING WITH PLANNING MINISTER BABAN 
 
¶1. (SBU) Minister of Planning and Development Cooperation 
(MoPDC) Ali Baban's key message to the U/S Reuben Jeffery 
during a December 6 meeting was that the current government's 
lack of decisionmaking undercuts Iraq's political and 
economic development.  He stressed that the Iraqi government 
needs to make the difficult decisions and that delay makes 
the problems bigger.  Baban said he had given a "strategic 
economic plan" to the Council of Ministers 40 days ago, which 
included a 4 to 5 year budget plan for some larger projects 
as well as proposals for streamlining public sector staffing 
and some food subsidies.  However, Baban said he has received 
no feedback on the MoPDC draft plan.  Baban also bemoaned the 
MoPDC's "very limited authority in implementing the capital 
budget" and said that capital budget execution will be "very 
low this year, not exceeding 40 percent". 
 
¶2. (SBU)  When asked by U/S Jeffery what was the major 
stumbling block to passing the hydrocarbons legislation, 
Baban described the problem as "100 percent political". 
Although Baban claimed to have a "direct line" to Prime 
Minister Nuri Al Maliki, he said there would not be much he 
could do because PM Maliki is constrained by the political 
situation and has some "conflicts of interest".  Baban then 
noted that even though he was a Kurd, he believed if the 
Kurds were successful in developing their own resources then 
other regions, like Basrah, which currently has 80 percent of 
production, would follow and this would "destroy Iraq". 
Baban opined that the best way to get the hydrocarbons 
legislation passed would be to offer the Kurds "some 
incentive" to buy into a national plan.  In particular, he 
said whatever incentive should be channeled to political 
leaders to get buy-in as quickly as possible. 
 
¶3. (SBU)  Baban closed the meeting by stressing "Iraq's 
fortune and unity depend on oil," because 96-97 percent of 
the resources for the budget come from that resource.  In 
order to reach a hydrocarbons legislation agreement, he once 
again noted the role parties play and said it is up to the 
political leaders.  Baban noted this is a unique opportunity 
for Iraq to invest in its economy with historically high 
world oil prices, but unless the hydrocarbons legislation is 
passed the opportunity will pass by his country. 
BUTENIS