VZCZCXRO0498
RR RUEHBC RUEHDA RUEHDH RUEHKUK
DE RUEHGB #0213/01 0280441
ZNR UUUUU ZZH
R 280441Z JAN 10
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC 6325
INFO RUCNRAQ/IRAQ COLLECTIVE

UNCLAS SECTION 01 OF 02 BAGHDAD 000213 
 
SBU 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON EIND PGOV EINV IR IZ
SUBJECT: PRT BABIL: EXPO '09: BABIL BUSINESSES STRUT THEIR 
STUFF 
 
BAGHDAD 00000213  001.2 OF 002 
 
 
 ¶1.  (U) This is a Babil PRT reporting cable. 
 
Summary 
- - - - 
¶2.  (U) From December 8 to 11, the Babil Tourism Business 
Group hosted &Expo8; a combination trade fair, tourism 
conference and investment promotion meeting at the Babylon 
Conference Center.  The event, the first of its kind in many 
years, attracted some 500 visitors including the Governor and 
most members of the Provincial Council and the Investment 
Commission.  The 46 exhibitors, from a freelance photographer 
to the Lebanese Tourism Board to a wholesale grocer, were 
uniformly optimistic about the prospects for Babil,s 
economy, the tourism sector, and their own businesses. 
Investor interest was muted ) 15 Iranian companies came for 
discussions on the first day, but did not attend the 
conference and some did not even tour the exhibition 
(septel).   The PRT contributed $25,000 to the conference. 
Trade Fair 
- - - - - - 
¶3.  (SBU) For the trade fair, the 46 exhibitors (one from 
Lebanon, some 10 from Baghdad, the rest from Babil), many 
with no connection to tourism, took advantage of the 
opportunity presented by Hillah,s first &Expo8 to display 
a wide variety of wares.  The Babylon Conference Center, a 
secure facility on the Hillah River a few hundred yards from 
ancient Babylon, housed the event.  The slightly amateurish 
organization did nothing to dampen the exuberance of most 
participants.  Several reported concluding sale or 
representation agreements. 
Conference 
- - - - - - 
¶4.  (U) The conference consisted of presentations and 
speeches by the Governor, PRT Team Leader and tourism 
advisor, and investment commission.  The upbeat theme was 
that the region is ready to cash in on a growing tourism. 
There is increasing awareness that Babil should be able to 
capitalize on the large numbers of pilgrims (probably at 
least 10 million), many of whom pass through Hillah on their 
way, often by foot or on their knees, to the Shi'a shrines of 
Karbala and Najaf.   This multitude is now largely served by 
Iranian travel agencies, and Iranian managed hotels and other 
tourist facilities in Iraq. 
Investment Meetings 
- - - - - - - - - - 
¶5.  (SBU) The investment promotion portion apparently 
attracted only 15 private Iranian potential investors, 
invited by the organizer on instructions from PC members 
without the knowledge of the PRT.  These were given VIP 
treatment by conference organizers on the guarantee of the 
PC.  When the PC failed to settle the tab, the Iranian group 
left without paying their bill for ID 12 million 
(approximately USD 10,400).  More details about the Iranian 
companies and their presence at the conference will be 
reported septel. 
The Exhibitors 
- - - - - - - - 
¶6.  (U) The PRT's grantee, the Babylon Center for Business 
Community Development filled the large tent completely 
applying discriminatory pricing.  The Center based their fee 
on ability and willingness to pay, proximity to Hillah, and 
other obscure criteria.  As a result, a booth went for 
between nothing and $20,000 (Zain). 
¶7.  (U) The booths in the main tent were extremely varied. 
Although there were numerous interesting highlights, a few 
warrant special mention.  For example, the Ministry of 
Agriculture advertised land it has available for agribusiness 
investors.  There was also a British-educated maker of 
plastic spacers for reinforced concrete who reported that he 
reopened a few months ago after closing down in 2004.  He 
credited the government's relaxation of its restrictions on 
hiring foreigners.  He explained that Iraqis constantly 
&disappear,8 so he hired four Bangladeshis in management 
Q&disappear,8 so he hired four Bangladeshis in management 
positions.  He is growing his business and plans to replace 
his 30-year old British injection machines &after the 
elections.8 
¶8.  (U) Three parastatals exhibited:  the Hillah Textile 
Company, the State Company for Automobile Manufacture, and 
the Handmade Carpet Company).  They were among those that the 
Center did not charge for their booths.  A Baghdad-based food 
importer (Kellogg,s Corn Flakes, German honey) found a local 
distributor and sold him his entire display inventory.  The 
display was enough to comfortably fill a medium-sized store. 
Nunu Dairy's exhibitor, based in North Babil, said people 
were amazed that his professionally packaged yoghurt, cheese, 
and cream were actually made in Iraq.  He also found new 
distributors. 
Conclusion & Comment: 
- - - - - - - - - - - 
¶9.  (SBU) While some of the enthusiasm must be attributed to 
Hillah,s long period of isolation, it was also a genuine 
 
BAGHDAD 00000213  002.2 OF 002 
 
 
reflection of a brimming optimism for the economy in general 
and tourism in particular.  Tourism especially is a sector 
that embodies Iraqi aspirations to rejoin the world.  The 
investor portion may have been a failure.  The comments from 
many Iraqis were negative. 
HILL