VZCZCXRO3951
RR RUEHBC RUEHDA RUEHDE RUEHIHL RUEHKUK
DE RUCNDT #1202/01 3582138
ZNR UUUUU ZZH
R 232138Z DEC 08
FM USMISSION USUN NEW YORK
TO RUEHC/SECSTATE WASHDC 5595
INFO RUCNRAQ/IRAQ COLLECTIVE

UNCLAS SECTION 01 OF 02 USUN NEW YORK 001202 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL UNSC IZ
SUBJECT: SECURITY COUNCIL RENEWS DFI PROTECTIONS FOR IRAQ 
 
REF: STATE 133293 
 
¶1. (SBU) Summary:  On December 22 the Security Council 
unanimously passed resolution 1859, providing for a one-year 
extension of protections for Iraqi assets, including the 
Development Fund for Iraq (DFI) and a Security Council review 
of all resolutions pertaining to Iraq since the adoption of 
resolution 661 (1990).  Iraqi FM Zebari gave a statement in 
which he stressed Iraq's security and political progress, but 
noted that challenges remain and therefore Iraq still 
requires these protections so that resources will be 
available for Iraq's recovery and reconstruction projects. 
Italy, France, Indonesia, the UK, and the U.S. all gave brief 
statements welcoming Iraq's progress and pledging continued 
support by the international community.  End Summary. 
 
¶2. (SBU) In a December 22 meeting the Security Council 
unanimously passed resolution 1859 providing for a one-year 
extension of arrangements and immunities associated with the 
Development Fund for Iraq (DFI), Iraq's oil and gas exports, 
and Iraqi revenues.  It also provides for a Security Council 
review of all resolutions pertaining to Iraq since the 
adoption of resolution 661 (1990).  Iraqi Foreign Minister 
Zebari was present for the vote and gave a statement in which 
he stressed Iraq's security and political progress, but noted 
that challenges remain.  He highlighted Iraq's national unity 
government, describing it as pushing ahead with national 
reconciliation, and emphasized Iraq's rejection of extremism. 
 "Iraq has stepped back from the brink of civil war," Zebari 
said.  He pointed to improvements in the Iraqi Security 
Forces and Iraq's progress in taking responsibility for its 
own security; and underlined its commitment to human rights 
and rule-of-law. 
 
¶3. (SBU) The recently-completed agreements with the U.S. on 
withdrawal of troops and strategic framework, Zebari noted, 
direct the future bilateral partnership and define the 
temporary presence of U.S. troops in Iraq.  He noted that 
2011 is a realistic date for the withdrawal of all U.S. 
forces.  The expiration of the MNF-I mandate on December 31 
marks "a turning point for Iraq and the end of an important 
era for the UN," Zebari said.  He thanked the MNF-I troop 
contributing countries for their accomplishments and 
sacrifices, and noted that Iraqi is entering this new phase 
of security arrangements with "cautious confidence." 
 
¶4. (SBU) Zebari acknowledged that Iraq will continue to 
require a significant level of security and military support, 
and will also require the international community's 
continuing support, including through UNAMI, the ICI, and the 
Neighboring Countries mechanism.  He thanked UNAMI SRSG 
Staffan de Mistura for UNAMI's crucial work in supporting the 
government and people of Iraq, and reiterated the GOI's 
pledge to provide $25 million for the new UN compound in 
Baghdad, plus another $25 million when construction actually 
begins. 
 
¶5. (SBU) Although the GOI is moving ahead with extensive 
reconstruction and reconciliation projects, it needs 
assurances that Iraqi assets will be protected so that 
"resources and financial assets are available for the 
country's recovery program," Zebari asserted.  That is why 
Iraq requested the extension of protections just approved in 
UNSCR 1859.  He emphasized that Iraq is "fully committed to 
the resolution of all legitimate claims, and to complying 
with its obligations under international law."  He added that 
in particular, "Iraq is fully committed to implementing all 
binding resolutions concerning Kuwait with respect to Kuwaiti 
borders, sovereignty, and settlements for the aggression from 
the former regime."  But this process will take time, he 
explained, and so Iraq needs protection for its critical 
assets in order to continue this process. 
 
¶6. (SBU) The situation in Iraq is fundamentally different now 
than it was when UNSCR 661 was passed in 1990, Zebari 
continued.  "Iraq is no longer a rogue state."  Iraq now has 
democratic institutions, seeks peaceful coexistence with its 
neighbors and is a partner in the fight against global 
terrorism.  This changed situation, he said, is why Iraq is 
eager for the review of all Security Council resolution 
pertaining to Iraq as called for in the newly-passed UNSCR. 
However, he stressed, "Iraq is fully committed to abiding by 
our obligations under Security Council resolutions." 
 
¶7. (SBU) Italy spoke briefly, reaffirming its support for 
Iraq's efforts to move forward, but cautioning that the 
review process for resolutions pertaining to Iraq must be 
carried out with care, to avoid any unintentional impact on 
situations or signed contracts that were in place before the 
implementation of sanctions regimes.  France noted that this 
marks a new stage Iraq's return to full sovereignty and said 
France will continue to support Iraqi progress towards peace 
 
USUN NEW Y 00001202  002 OF 002 
 
 
and security and its reintegration into the international 
community.  Indonesia noted that support by the international 
community is still necessary for Iraq's continued progress, 
and stated that most important issue for Iraq is to continue 
inclusive national dialogue and reconciliation, which will 
lead to long-term stability.  The UK PermRep welcomed the end 
of the MNF-I mandate and noted that UK forces in Iraq will 
complete their tasks in the first months of 2009 and then 
withdraw; welcomed the continuation of arrangements for DFI; 
and commen 
ted that an important decision had been taken by the Council 
in stating its intention to review the Saddam-era 
resolutions.  This will be a priority for the Council, he 
said, and should be done with a view to terminating those 
resolutions as soon as possible. 
 
¶8. (SBU) Ambassador Khalilzad congratulated the Iraqi 
government and people for their progress and stressed the 
need for continued support for Iraq.  He emphasized three 
vital elements of the resolution.  First, he noted, it 
recognizes progress in all areas in Iraq -- security, 
political, and economic.  Second, it plays an important role 
in helping to facilitate further progress in Iraq, since the 
protections extended by the resolution will help the Iraqi 
government implement its economic development plans.  And 
finally, the commitment by the Security Council to review 
resolutions that pertain to Iraq will be a key step forward 
for Iraq.  The situation in Iraq is fundamentally different 
now than it was when resolution 661 was adopted in 1990, 
Ambassador Khalilzad said, and so this review is a reasonable 
request and we look forward to the Secretary General's 
report. 
 
Khalilzad