VZCZCXYZ0002
OO RUEHWEB

DE RUCNDT #0527/01 1681913
ZNR UUUUU ZZH (CCY AD00A53BB3 TOQ3009 632)
O 161913Z JUN 08 ZDS
FM USMISSION USUN NEW YORK
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4433
INFO RUCNRAQ/IRAQ COLLECTIVE IMMEDIATE
RUEHGG/UN SECURITY COUNCIL COLLECTIVE IMMEDIATE
RUEHNO/USMISSION USNATO IMMEDIATE 1594

UNCLAS USUN NEW YORK 000527 
 
SENSITIVE 
SIPDIS 
 
C O R R E C T E D  COPY (PARA 3 SHOULD READ SBU) 
 
E.O. 12958: N/A 
TAGS: PREL PARM ECON UNSC IZ
SUBJECT: UNSC AGREES TO ZEBARI REQUEST TO CONTINUE MNF-I 
MANDATE THROUGH 2008 
 
Summary 
-------- 
 
¶1. (SBU)  As mandated by UNSCR 1790, the Security Council 
discussed June 13 the mandate of MNF-I and arrangements 
regarding DFI and the IAMB, and agreed to their continuation 
for the remainder of the calendar year.  Amb Khalilzad 
reported on behalf of MNF-I, highlighting the decrease in 
security incidents and improved proficiency of the ISF. 
Iraqi Foreign Minister Hoshyar Zebari also participated in 
the meeting and provided an update on current developments in 
Iraq, reporting that ISF "still are short of being able to 
independently assume full responsibility for the maintenance 
of security in all Iraqi territory."  At the request of the 
Russian delegation, UN Comptroller Warren Sach briefed on the 
status of the DFI and the IAMB, focusing on the 2007 External 
Audit, including weaknesses in internal controls.  UN Adviser 
Ibrahim Gambari delivered a briefing on behalf of UNAMI in 
which he called for a redoubling of efforts to address human 
rights issues, IDPs, and refugees. 
 
¶2. (SBU) Russian PR Churkin warned that the SOFA should not 
"enshrine" the indefinite presence of U.S. troops, and argued 
a timetable for withdrawal would facilitate reconciliation. 
He also said Russia believes there is a need to keep the 
presence of MNF-I within the scope of the Security Council's 
attention, and criticized the detention of minors.  He 
alleged a "chronic lack of transparency" in the management of 
the DFI, and lamented the Security Council had taken no 
"decisive measures" to deal with oil smuggling and 
contracting irregularities.  The South African DPR echoed 
Russian views on the DFI and urged MNF-I to uphold 
international humanitarian and human rights law.  All Council 
members welcomed the progress in Iraq, especially the 
improvements in security, but several expressed concern about 
the detainees, DFI management, IDPs and refugees. 
 
Remarks by Iraqi Foreign Minister 
--------------------------------- 
 
¶3. (SBU) Iraqi Foreign Minister Zebari provided a comprehensive 
update on the situation, highlighting the strengthened 
capacity of the ISF and GOI's willingness to take action 
regarding security, political, and economic measures to 
strengthen national reconciliation.  He cited ISF operations 
in Basra and Sadr City as two examples of the GOI confronting 
unlawful militias.  Zebari credited Iraqis with reversing the 
sectarian war in Iraq.  He stated that the ISF are still 
short of conducting independent operations and said Iraq 
continues to need the assistance of MNF-I.  Zebari also asked 
for the continuation of the DFI and the IAMB arrangement, but 
reiterated Iraq's request that the Council reconsider Iraq's 
UNCC obligations, which he argued put pressure on the Iraqi 
budget and reconstruction efforts.  Of note, the Foreign 
Minister deleted a sentence from his prepared remarks that 
called upon the international community "to free Iraq from 
the designation of Chapter VII of the UN Charter and 
reinstate Iraq" as a member of the international community. 
 
Sach Represents IAMB, Gambari Represents UNAMI 
--------------------------------------------- - 
 
¶4. (SBU) UN Controller Warren Sach provided a brief summary 
of the scope of the DFI and IAMB arrangements.  Sach reviewed 
the results of the 2007 External Audit of DFI, stating that 
the report highlighted a number of previously identified 
weaknesses in Iraq's internal controls, namely "incomplete 
record keeping at the Ministry of Finance, lack of a 
comprehensive (oil) metering system, sale of oil and oil 
products outside of the DFI, (and) incomplete contract 
information associated with US Agencies' contracts."  Sach 
reported that there has been less than a 15 percent 
implementation rate of audit recommendations.  He called for 
the expeditious implementation of oil metering, a key factor 
necessary to ensure accountability and transparency over oil 
resources.  Sach noted that although there has been some 
reduction in barter transactions for oil sales, the Iraqi 
State Oil Marketing Organization (SOMO) continued to barter 
during 2007.  In conclusion, Sach stated that in May 2008 the 
IAMB had unanimously approved a recommendation to negotiate 
with the current auditors (Ernest & Young) to conduct another 
audit in 2008. 
 
¶5. (SBU)  UN Adviser Ibrahim Gambari delivered a briefing on 
behalf of UNAMI in which he recognized the improved security 
and political situation in Iraq but cautioned that the 
situation is still "fragile."  (Note:  SRSG de Mistura and 
DPA U/SYG Pascoe  were unable to attend.  End Note.)  Gambari 
emphasized UNAMI's effort to help Iraq resolve its internal 
 
 
boundary dispute and the issue of Kirkuk.  He discussed 
UNAMI's support of the Iraqi High Electoral Commission (IHEC) 
in preparation for the upcoming governorate council 
elections.  He welcomed the fact that some member states, 
including Bahrain, Jordan, and the UAE, had indicated their 
intention to appoint ambassadors to Iraq in the near future. 
Gambari called for a re-doubling of efforts to address the 
Iraqi refugee and IDP issue, and he stated that a great deal 
more needs to be done to promote the protection of human 
rights and the rule of law in Iraq.  In conclusion, Gambari 
urged Iraq to take steps to broaden the national 
reconciliation process and he pledged continued UN support to 
Iraq. 
 
Views on MNF-I Mandate and Conduct 
---------------------------------- 
 
¶6.  (SBU) All delegations welcomed the security progress in 
Iraq.  Russian PR Churkin warned that the prospective SOFA 
should not "enshrine" the indefinite presence of U.S. troops 
in Iraq, and said Russia believes there is a need to keep the 
presence of MNF-I within the Council's "scope of attention." 
He argued that a timetable for withdrawal would facilitate 
reconciliation, and said the presence of foreign troops 
should not/not undermine Iraqi sovereignty "in any way."  He 
expressed concern about MNF-I detention of minors, and called 
on MNF-I to uphold international humanitarian law.  A number 
of other member countries also expressed concern about the 
detainee situation in Iraq, including Libyan PR Ettalhi who 
raised the issue of minors detained by Coalition Forces. 
Panama and France expressed concern about human rights and 
due process of detainees.  China, South Africa, and Libya 
also explicitly called on MNF-I to adhere to international 
humanitarian law. 
 
Complaints About DFI 
-------------------- 
 
¶7. (U) Keying off of UN Controller Sach's presentation, a 
number of delegations expressed concern about the management 
of the Development Fund for Iraq (DFI).  Russia alleged a 
"chronic lack of transparency" and said the Council had 
failed to take "decisive measures" against oil smuggling and 
contracting irregularities, particularly contracts with U.S. 
sub-contractors.  South Africa called for more transparency 
and additional independent auditors for the IAMB, noting that 
$23 billion has not been accounted for and suggesting that 
some of the reported irregularities could constitute 
violations of UNSCR's.  France, Indonesia, Vietnam, Burkina 
Faso, and Panama all highlighted the importance of the IAMB's 
oversight role, particularly in seeking increased 
transparency in the funding process. 
 
Need for Attention to IDPs, Refugees 
------------------------------------ 
 
¶8. (SBU) A number of delegations expressed concern regarding 
the IDP and refugee situation in Iraq.  Italy, Panama, Libya, 
Burkina Faso, Belgium, Indonesia, and France all mentioned 
these matters as deserving more attention from the GOI, UNAMI 
and the Security Council.  Many delegations also expressed 
support for UNAMI, and welcomed the UN's involvement in the 
upcoming provincial elections. 
 
¶9. (SBU) The text of the adopted by the Security Council 
confirming the continuation of the MNF-I mandate and DFI/IAMB 
arrangements through 2008 can be found at 
http://www.un.org/News/Press/docs//2008/sc935 8.doc.htm. 
Khalilzad