VZCZCXRO4824
RR RUEHBC RUEHDA RUEHDE RUEHDH RUEHIHL RUEHKUK
DE RUEHGB #1619/01 1710955
ZNR UUUUU ZZH
R 200955Z JUN 09
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC 3557
INFO RUCNRAQ/IRAQ COLLECTIVE

UNCLAS SECTION 01 OF 02 BAGHDAD 001619 
 
SENSITIVE 
SIPDIS 
AIDAC 
 
E.O. 12958: N/A 
TAGS: EFIN ECON ETRD PGOV IZ
SUBJECT: MINPLANNING ON ICI, ASSET TRANSFER, AND POLITICS 
 
SENSITIVE BUT UNCLASSIFIED.  PLEASE PROTECT ACCORDINGLY. 
 
¶1. (SBU) Summary: EMIN met on June 15 with Minister of Planning Ali 
Baban to discuss the International Compact with Iraq (ICI) and the 
transfer of assets from USG to GOI.  Baban said that the ICI will 
only see progress if it is seen by the GoI as politically 
advantageous, and that what is needed first is a "National Compact 
in Iraq."  Regarding assets funded by the USG to be transferred to 
the GoI, Baban noted that DPM Issawi had taken an interest in this 
issue, and that it needs to be coordinated with all line ministries. 
 He accepted the draft MOU on asset transfer and said that his 
office would reply with any changes by June 21.  End Summary. 
 
ICI: Progress Only If 
Politically Advantageous 
------------------------ 
 
¶2.  (SBU) EMIN met June 15 with Minister of Planning and Development 
Cooperation (MoPDC) Ali Baban and asked about the GoI's commitment 
to the International Compact with Iraq (ICI).  Baban said that it is 
unfortunate that the GoI's enthusiasm for the ICI is down and that 
the people who were committed to prepare the ICI framework and 
action items "did not do their job well."  Some people, Baban added, 
look to the ICI as a "political vehicle" and not as a real 
commitment by Iraq to the international community.  The Minister 
said that the MoPDC has been grumbling about the slow process of the 
ICI, but that his Ministry had discovered that "higher officials" 
were not enthusiastic to do more. 
 
¶3.  (SBU) EMIN told Minister Baban that the USG is prepared to 
provide strong support to the ICI only as much as the GoI is itself 
committed to the mechanism, to which Baban responded, "this is the 
problem."  Baban explained that the future of the ICI will depend on 
political circumstances in Iraq.  If it is seen as politically 
advantageous, it will go forward, and if not, it won't.  The MoPDC 
is convinced of the usefulness of the ICI, he added, but said that 
others are not and see it as an example of "U.S. strategy in Iraq," 
and not an international effort.  Baban said that the five-year 
National Development Plan (NDP) currently being formulated would 
refer to the ICI, but he could not guarantee that there would be a 
sustained commitment to the ICI over the next five years. 
 
¶4.  (SBU) Alluding to the uncertain nature of the current GoI's 
commitment to the ICI and to any potential future commitment, Baban 
noted, "this is the democracy that the U.S. has exported to us; 
things change."  Bringing the issue back to the need for the GoI to 
speak with one coherent voice to the international community, Baban 
explained, "What we really need is a National Compact in Iraq before 
an International Compact with Iraq." 
 
Asset Transfer: MOU Delivered 
----------------------------- 
 
¶5.  (SBU) Updated English and Arabic versions of the Asset Transfer 
MOU were handed to Minister Baban, who said that his staff would 
review and respond by June 21 with any changes.  The Minister noted 
that he is traveling often to the provinces and said that he would 
be discussing the transferred assets with Governors and Provincial 
Councils.  He agreed that there would have to be a commitment from 
the GoI to fund personnel, operations, and maintenance for the 
transferred assets, but noted that the Council of Ministers had 
discussed this issue without coming to any conclusions or providing 
any additional funding.  Minister Baban added that it would also be 
the responsibility of the line ministries to take on the new assets 
and manage them appropriately.  He also noted the interest of DPM 
Issawi in the asset transfer issue. 
QIssawi in the asset transfer issue. 
 
 
NDP and Budget Assistance 
-------------------------- 
 
¶6.  (SBU) Twice in the conversation, the Minister praised the 
technical budgetary assistance that the MoPDC had previously 
received from the USG and asked for more.  This request has been 
passed to USAID, which has been assisting the MoPDC in aligning the 
National Development Plan (NDP) with budget priorities.  (Progress 
on the NDP and USAID's assistance with this important initiative to 
be reported septel.) 
 
Politics: Corruption is the Topic of the Day 
--------------------------------------------- 
 
¶7.  (SBU) Turning to politics, Baban said that Iraq is in a period 
of political transition, but that rumors of a cabinet reshuffle 
"will not include the MoPDC."  Corruption is the topic of the day, 
Baban added, noting that all of the political blocs are "after each 
other."  He and his Ministry did not expect to have any problems, 
Baban explained, because "I am an independent Minister and have no 
problems.  We supervise and control everything, but don't implement 
anything." 
 
 
BAGHDAD 00001619  002.2 OF 002 
 
 
¶8.  (SBU) Baban said that rising oil prices would help with the 
budget, but that any additional revenues would just be covering the 
deficit and not providing any additional money.  Proceeds from sales 
of oil out of the KRG would solve half the problem, Baban added, 
with IOC contracts awarded in the upcoming bid rounds solving the 
other half.  He noted that the foreign companies providing services 
in the KRG would need to get paid soon, but that the proceeds were 
going directly into the federal budget. 
 
¶9.  (SBU) Finally, commenting on the just-announced election results 
in Iran and the street protests that followed, Baban said that the 
election and aftermath would "no doubt have an impact" here in Iraq. 
 Particularly noting the strong presence of youth and women in the 
street protests in Iran, Baban said that "maybe some in Iraq will do 
the same," and that, whatever the eventual outcome in Iran, it would 
affect Iraq and the region directly. 
 
Ford