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O 201800Z MAY 08
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC IMMEDIATE 7464
INFO RUCNMEM/EU MEMBER STATES COLLECTIVE PRIORITY
RUCNRAQ/IRAQ COLLECTIVE PRIORITY
RHMFISS/HQ USCENTCOM MACDILL AFB FL PRIORITY
RHMFISS/HQ USEUCOM VAIHINGEN GE PRIORITY
RUEKJCS/JOINT STAFF WASHDC PRIORITY
RUEKJCS/SECDEF WASHINGTON DC PRIORITY
RUEHBS/USEU BRUSSELS PRIORITY
RHEHAAA/WHITE HOUSE WASHINGTON DC PRIORITY

UNCLAS SECTION 01 OF 02 BAGHDAD 001565 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EAID ECIN ETRD PREL EU IZ
SUBJECT: CHANGING EUROPEAN UNION ATTITUDES TOWARD IRAQ 
 
Changing Attitude 
------------------ 
 
¶1. (SBU) During a May 6 presentation to the Defense Attache 
Association in Iraq (DAAI), the Ambassador of the European 
Commission to Iraq, Ilkka Uusitalo, noted a rapidly changing 
view within the EU towards Iraq. Admitting that the EU has 
been strongly divided since 2003, Uusitalo emphasized that 
"the EU now sees a requirement to actively participate in the 
stabilization of Iraq." He cited two key events in the past 
year which contributed to this positive political atmosphere: 
the visit to Baghdad by French Foreign Minister Kouchner in 
August 2007 and the recent visit of Prime Minister Maliki to 
Brussels in April. The success of the Maliki visit, he added, 
prompted Secretary General Solana to agree to a reciprocal 
visit to Iraq in the near future. 
 
Expanding Trade 
--------------- 
 
¶2. (SBU) Recounting the historic ties between Europe and 
Iraq, Uusitilo noted Iraq and the EU were about to begin the 
fifth round of negotiations on a Trade Framework Agreement in 
Brussels on June 18 - 20. He maintained the agreement would 
be signed by the end of the year. On energy, he noted the EU 
is also negotiating a formal agreement with the GOI on 
natural gas, with the stated intent of diversifying European 
energy sources. As part of these processes, he said the EU 
would continue to assist the Iraqi Government in their 
development of trade structures meeting international 
standards towards a goal of Iraq's eventual entry into the 
World Trade Organization. 
 
Expanding Assistance 
-------------------- 
 
¶3. (SBU) Turning to EU assistance to the GOI, Uusitalo 
estimated economic grant assistance from 2003 to 2008 at 
about 829 Million Euros (1.2 Billion dollars). He noted that 
most of these grants were administered through United Nations 
and World Bank programs primarily to support health and 
educational services, and in support of democratic political 
processes like elections and constitutional reform. Included 
in this figure were over 600 Million Euros for the 
International Reconstruction Fund Facility for Iraq (IRFFI) 
and over 100 Million Euros for humanitarian assistance. 
Additionally, Uusitalo handed out a brochure which estimates 
the total EU assistance (European Community and Member 
States) since 2003 at 14,000 Million Euros, including grants, 
debt relief, and loans. The brochure also highlights the role 
of the EU as a co-chair of the International Compact with 
Iraq and notes an annual contribution of almost 60 million 
Euros to the Compact Secretariat and teh 
agriculture/environment, education, governance, health, and 
infrastructure sectors. (Note: There are more details about 
EU assistance efforts in Iraq on their local web site: 
http://delirq.ec.europa.eu. End Note.). 
 
Expanding Baghdad Presence 
-------------------------- 
 
¶4. (SBU) Regarding expansion of its presence in Baghdad, 
Ambassador Uusitilo recalled the EU had virtually no 
representation in Iraq between 2003 and 2005, except for aid 
distribution and liaison organizations. In December 2005, 
however, the EU made the decision to establish a small 
diplomatic office within the UK embassy compound. Although 
currently manned at only five people including an Ambassador, 
First Secretary, and Commercial Attache (with the remaining 
staff in Amman), Uusitalo said he intended to consolidate all 
staff operations in Baghdad, but he gave no timeline. 
Ambassador Uusitalo outlined his Mission's current 
responsibilities as political reporting, economic/trade 
development, and aid distribution primarily in health and 
educational areas. He said that his future Baghdad staff will 
include experts in energy policy, human rights, World Trade 
Organization (WTO), and scientific/technical cooperation. 
 
 
¶5. (SBU) COMMENT:  Although Ambassador Uusitalo's 
presentation was bereft of detail, the overall message to the 
local Defense Attache community was clear: the European Union 
intends increase its presence in Iraq and to adopt a more 
pragmatic and positive approach towards the GOI. Part of its 
 
BAGHDAD 00001565  002 OF 002 
 
 
increasing presence in Baghdad is clearly influenced by the 
improving security environment, but it also represents 
progress by the GOI in re-integrating itself into the 
international community.  END COMMENT. 
CROCKER