VZCZCXRO4987
RR RUEHBC RUEHDA RUEHDE RUEHDH RUEHIHL RUEHKUK
DE RUEHGB #1875/01 1930314
ZNR UUUUU ZZH
R 120314Z JUL 09
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC 3886
INFO RUCNRAQ/IRAQ COLLECTIVE
RUEAWJA/DEPT OF JUSTICE WASHDC

UNCLAS SECTION 01 OF 02 BAGHDAD 001875 
 
SENSITIVE 
 
SIPDIS 
 
DEPT FOR INL, NEA/I 
JUSTICE PASS TO PHIL LYNCH, ANDREW NORMAN 
 
E.O. 12958:   N/A 
TAGS: IZ
SUBJECT:  COMMERCIAL LAW DEVELOPMENT PROGRAM (CLDP) ASSISTANCE TO 
COME TO IRAQ. 
 
¶1.  (U) SUMMARY:  On his recent visit, Marc Tejtel, U.S. Department 
of Commerce Deputy Chief Counsel of the Commercial Law Development 
Program (CLDP), through discussions and cooperation with CLA, 
Treasury, ROLC, INL, ECON,  and Iraqi officials, initiated project 
proposals for commercial capacity-building programs in multiple GoI 
institutions, to include the Higher Judicial Council (HJC), the 
National Investment Commission (NIC), the Iraqi Ministry of Trade 
(MOT), the Shura Council, and the Administrative Court.  With 
increased awareness of the convergent interests of various Embassy 
sections and the interdependency of GOI competencies in contracting, 
arbitration, legislative drafting, and dispute resolution, CLDP's 
new Iraq presence holds promise to further Embassy objectives in 
growing a better foreign investment environment in Iraq.  CLDP's 
activities also help to reinforce our capacity building efforts 
under the Economic and Energy, as well as the Law Enforcement and 
Judicial Cooperation Committees (JCC) of the Strategic Framework 
Agreement.  END SUMMARY. 
 
BACKGROUND 
 
¶2.  (U) Commercial law practices were unpredictable in the prior 
regime; investments were barred under sanctions and for investors 
that engaged Iraq prior to 1990, contractual negotiations often fell 
through, obligations were sometimes not observed, and corrupt 
practices ensured minimal transparency.  In this risky environment, 
investment and development were stymied, antiquated laws reflecting 
the needs of an inward-looking socialist system remained on the 
books, and the expertise of the judiciary in resolving international 
commercial law suits languished.  Furthermore, although Iraq's 
current oil contracts contain several clauses referring disputes to 
international arbitration, Iraq still has yet to ratify the 
International Convention on the Enforcement and Recognition of 
International Arbitral awards.  Failure to ratify this Convention, 
compounded by the lack of judicial capacity in resolving commercial 
disputes, poses a serious impediment to investment. 
 
¶3.  (U) CLDP has various initiatives throughout the world, including 
commercial law modernization and judicial capacity building in 
Bahrain, Kuwait, Oman, Qatar, the UAE, and Yemen.  The program has 
enabled the development of international arbitration procedures in 
Tunisia, Intellectual Property Law development in Manila, fair trade 
practices in Ukraine, and expanded customs capabilities in Oman, 
among many other programs. 
 
 
COMMERCIAL LAW COURSES OFFERED TO THE IRAQ JUDICIARY. 
 
¶4.  (U) Mr. Tejtel met with Chief Judge Medhat on June 22, 2009 to 
discuss judicial education opportunities in commercial law.  On 
behalf of CLDP, he proposed a one-year intensive course, with 
approximately twenty participants, culminating in a study tour to 
the United States for participants to view the courts of the 
practitioner instructors.  Chief Judge Medhat found this approach 
appealing and offered classroom space for the program at the 
Judicial Education Development Institute (JEDI).  CLDP will submit a 
formal proposal for the program within three weeks.  At a later 
meeting with INL and the JEDI curriculum project board, Chief Judge 
Jaffer of CCC-I Rusafa, submitted a list of HJC priorities in 
commercial law judicial education, to wit:  "international sales, 
international trade companies and its registrations, banking 
operations, letter[s] of credit, documentary credit, safe deposit 
rent, international transportation, arbitration, electronic crimes, 
Qrent, international transportation, arbitration, electronic crimes, 
[and] electronic signature." 
 
SHURA COUNCIL CAPACITY BUILDING INITIATIVES PROPOSED. 
 
¶5.  (U) CLA and Mr. Tejtel discussed the potential for a study tour 
to France or Tunisia for the Shura Council to see a working model of 
an organization that reviews laws for constitutionality and 
coherence. During the study tour, CLDP hopes to arrange a meeting 
between the head of the Administrative Court of Iraq and experts to 
explore potential initiatives to strengthen Iraq's administrative 
law adjudication. 
 
STUDY TOUR TO EXPOSE IRAQIS TO UAE INTERNATIONAL ARBITRATION 
CENTER. 
 
¶6.  (U) In cooperation with CLA, CLDP is tentatively arranging an 
"International Arbitration and the Judicial Enforcement of Arbitral 
Awards" study tour for members of the Shura Council International 
Arbitration Drafting Committee and key GOI officials in positions to 
advance legislation that could assure investors that arbitral awards 
would be recognized in Iraq if merited.  The objective of the 
program is outlined by CLDP's preliminary project proposal : "To 
help key decision-makers in the Iraqi judiciary and in key 
ministries reach a consensus on the importance for Iraq of the 
 
BAGHDAD 00001875  002 OF 002 
 
 
judicial enforcement of international arbitral awards, and to pave 
the way, as a result, towards Iraq's eventual signing of the New 
York Convention."  CLDP has also proposed a DVC on Arbitration with 
a Tunisian expert judge to dispel any misconceptions held by Iraqis 
about the international arbitration process and the role of the 
judiciary.  CLA is assessing the implications of the current lack of 
international arbitral awards recognition dispute resolution 
capacity within the current Iraqi legal framework. 
 
CLDP SUPPORT FOR THE NATIONAL INVESTMENT COMMISSION (NIC) 
 
¶7.  (U) CLDP, CLA, and ROLC met with Dr. Sami Al-Araji, Chairman of 
the National Investment Commission (NIC), who requested CLDP's 
support in three primary ways.  First, he expressed that technical 
assistance discussed between the Minister of Industry and Minerals 
and CLDP a year ago is now more urgently needed.  Last year, when 
CLDP met in Dubai with Iraqi's Minister of Industry and Minerals and 
Dr. Sami, the Minister requested that CLDP train the general 
counsels of Iraq's State-Owned Enterprises (SOEs).  CLDP reports in 
its Project Proposal Draft that "[t]he Minister envisions joint 
ventures as the most realistic way for key SOEs, [which currently 
employ approximately 650,000 Iraqis], to receive the managerial, 
technological, and capital they desperately need to create jobs in 
the short term, and to be eventually privatized."  CLDP offered to 
train 10-12 General Counsels in the legal basics of joint-venture 
formation and negotiation through a series of workshops and seminars 
taught over a six-month period.  Funding is now available and CLDP 
agreed to provide this assistance, but will be unable to start the 
program until the fall. 
 
¶8.  (U) Dr. Sami also requested Mr. Tejtel's assistance in arranging 
meetings with potential investors and risk guarantee and financial 
institutions during his upcoming visit to the States with the Prime 
Minister.  CLDP agreed to facilitate contracts with possible 
investors. 
 
¶9.  (U) NIC is seeking funding to retain the services of an 
international organization or law firm to prepare tender contracts 
with selected bidders for a planned Infrastructure Investment 
Program, which the NIC is currently preparing to submit to the 
Council of Representatives (COR).  CLDP suggested that NIC approach 
the World Bank as a potential funding source if this program is 
passed by the COR. 
 
MINISTRY OF TRADE COMMERCIAL ATTACHE TRAINING DISCUSSED. 
 
¶10.  (U) CLDP initiated discussions with Abdul Hadi K. Al-Hamiri, 
Director General and Advisor to the Ministry of Trade, who is 
interested in training for commercial attachs.  CLDP offered their 
expertise in training lawyers and helping develop procedures, 
processes, and standard documents to ensure that import contracts, 
as well as government procurement, comply with international best 
practices.  Dr. Al-Hamiri and Mr. Tejtel will continue discussions 
over email regarding potential training initiatives. 
 
¶11.  (U) COMMENT:  The CLDP project proposals resulting from the 
CLDP Deputy Chief Counsel's visit will further Embassy priority 
objectives and provide synergistic effects.  As became evident 
through meetings with various sections and GOI institutions, lack of 
capacity in one GOI function, such as dispute resolution, tends to 
compound difficulties in other GOI functions.  Equally, as Iraq 
continues in its efforts to draft new laws meeting international 
standards, capacity building can dispel misconceptions and create 
competencies in areas to facilitate the drafting of more 
Qcompetencies in areas to facilitate the drafting of more 
sophisticated provisions, which are needed to give investors and 
potential trade partners confidence in Iraq's obligations and 
stability.  CLDP's training cross-cuts various ministries, further 
reinforcing our capacity building message under the Strategic 
Framework Agreement, including the Economic and Energy and Law 
Enforcement and Judicial Cooperation JCCs.  End comment.