VZCZCXYZ1601
RR RUEHWEB

DE RUEHGB #3267/01 3531219
ZNY CCCCC ZZH
R 191219Z DEC 09
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC 5797
INFO RUCNRAQ/IRAQ COLLECTIVE

C O N F I D E N T I A L BAGHDAD 003267 
 
SIPDIS 
 
E.O. 12958: DECL: 12/17/2019 
TAGS: PINS PGOV EWRG ECON IZ
SUBJECT: AMBASSADOR AND CG DISCUSS OIL AND SECURITY ISSUES 
WITH PM MALIKI 
 
REF: BAGHDAD 3245 
 
Classified By: Ambassador Christopher R. Hill for Reasons 1.4 (b) and ( 
d) 
 
¶1. (C) SUMMARY. In a December 17 meeting, Ambassador Hill 
congratulated Prime Minister Maliki on the recent successful 
and transparent oil development bidding round, but cautioned 
the PM to resist pressure to renegotiate the terms of the 
signed contracts.  Maliki agreed the contracts should stand 
as signed.  In the wake of intense media coverage in which 
Kurdish leaders have stated that the USG promised to support 
a referendum on the Kirkuk issue in exchange for Kurdish 
acceptance of the election law compromise, the Ambassador 
reinforced with the PM that USG policy only aims to implement 
the provisions enshrined in the Iraqi constitution, including 
a consensus-based solution to Kirkuk.  General Odierno 
briefed the Prime Minister on a recent joint U.S.-UK naval 
survey of a potential marine oil terminus site.  The CG 
continued by discussing the reorganization of GOI 
investigative and intelligence organizations in the wake of 
recent bombings, suggesting to the PM that he create a 
national target list and consider developing an Iraqi "most 
wanted" show as a tool for capturing terrorists. END SUMMARY. 
 
NO CHANGE IN KIRKUK POLICY 
-------------------------- 
 
¶2. (C) The Ambassador opened his weekly meeting with Prime 
Minister Nouri al-Maliki by providing assurances that the 
recent White House statement expressing USG support for the 
Article 140 process and a timely census does not indicate a 
policy shift, as has been publicly claimed by Kurdish leaders 
who have stated that Kurdish acquiescence over the 
election law compromise was secured by U.S. promises of 
support for a process that would lead to the eventual 
annexation of Kirkuk into the Kurdistan Region (KR). 
Emphasizing support for the UNAMI process, Ambassador Hill 
further clarified that while the USG does not oppose a 
referendum on the status of Kirkuk, it would only support one 
that confirmed  a negotiated, consensus-based agreement. The 
PM agreed that the process outlined in Article 140 has many 
different stages and that it will be up to the next 
government and the new Iraqi President to move forward on the 
issue. Maliki also noted that Kirkuk is not the only disputed 
territory in Iraq and that other disputes in southern Iraq 
must also be resolved. 
 
STAYING ON TRACK WITH OIL CONTRACTS 
----------------------------------- 
 
¶3. (C) Congratulating the Prime Minister on the highly 
successful and transparent process the Iraqis adopted for the 
recent oil bid round (reftel), the Ambassador said that the 
event should serve as a model for the region.  Building on a 
strong joint demarche by EU ambassadors the day before, the 
Ambassador cautioned the Prime Minister against allowing 
actors within his government to "get too greedy" and re-open 
recently signed oil contracts.  Maliki responded that the GOI 
understands the finality of the contracts signed and noted 
his pride in the transparent way the process was conducted. 
The Prime Minister opined that the oil round should curb bad 
publicity surrounding the Iraqi oil sector.  The fact that 
oil contracts went to a geographically diverse array of oil 
consortiums also proves that favoritism played no role in 
awarding contracts.  Maliki commented that the fact only two 
U.S. firms won contracts shows that the U.S. invasion was not 
a strategy to secure oil resources for the United States - an 
erroneous opinion the Prime Minister feels is still held by 
some of Iraq's Arab neighbors.  Commenting on the positive 
effect increased oil revenues will have on national unity, 
Qeffect increased oil revenues will have on national unity, 
the Ambassador told the Prime Minister that "the glue that 
will help bind Kurdistan to the rest of Iraq is produced in 
Basra." 
 
SURVEY ON OIL PIPELINES COMPLETED 
--------------------------------- 
 
¶4. (C) General Odierno briefed the Prime Minister on a 
recently completed joint U.S.-UK naval survey concerning the 
seabed in Um Qasr port where the GOI plans to construct a new 
oil terminus to replace the aging infrastructure still in 
use.  The General said that the survey had identified 
hundreds of items, mostly shipwrecks, but also possibly some 
mines, that must first be cleared before the project can 
commence.  The survey report has been given to Foster 
Wheeler, the oil services company charged with laying the 
underwater pipes for the terminus.  The Prime Minister noted 
that a modern oil terminus was key to Iraq being able to 
greatly increase oil exports.  Despite a difficult political 
relationship with Syria, Maliki also commented that the GOI 
will continue to pursue the option of constructing an 
 
overland pipeline through Syria to Turkey. 
 
CONSOLIDATION OF GOI INVESTIGATION AND INTELLIGENCE 
--------------------------------------------- ------ 
 
¶5. (C) Inquiring about the newly consolidated security 
structures the GOI has established in the wake of recent 
bombings, General Odierno asked the Prime Minister to confirm 
that investigative activities are now clustered under the 
Ministry of Interior, whereas the Ministry of State for 
National Security Affairs (MSNSA) has the lead for all 
intelligence matters.  The Prime Minister confirmed this 
arrangement, but noted that the intelligence structure was 
already centralized under his leadership through the MSNSA. 
General Odierno advised the Prime Minister that his 
intelligence organization should create a national target 
list and encouraged him to consider creating an Iraqi "most 
wanted" show which could be useful in apprehending Iraq's 
25-100 most sought after terrorists, citing previous MNF-I 
success using this method. The General continued that 
offering rewards for information on these individuals could 
lead the GOI to garner information from the public on their 
whereabouts.  The Prime Minister noted that his government 
recently announced a 100 million dinar reward for any 
information related to the manufacture of explosive devices. 
The Prime Minister stated that Iraq's legal framework may not 
allow for a public list of wanted terrorists, but that the 
Higher Judicial Council might be amenable to such an idea in 
the interest of national security. 
 
PM DOWNPLAYS INFILTRATION OF SECURITY SERVICES 
--------------------------------------------- - 
 
¶6. (C) Concerned that public trust in the security services 
is already damaged after the recent coordinated bombings, 
General Odierno cautioned the Prime Minister against public 
statements by GOI officials that imply that the ranks of the 
Iraqi police and army have been infiltrated by insurgents. 
The Prime Minister assured the General that any such comments 
were in reference to the security forces several years ago. 
General Odierno opined that if the public were to lose faith 
in the security forces, there could be a resurgence of 
sectarian militias.  The Prime Minister concluded by noting 
that while there may be a few bad officers who need to be 
removed, both the police and army are much more professional 
and reliable than they were just a few years ago. 
 
HILL