VZCZCXYZ0000
OO RUEHWEB

DE RUEHGB #0234/01 0300909
ZNY CCCCC ZZH
O 300909Z JAN 10
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6355
RUCNDT/USMISSION USUN NEW YORK PRIORITY 0962
INFO RUCNRAQ/IRAQ COLLECTIVE
RUCNDT/USMISSION USUN NEW YORK 0963

C O N F I D E N T I A L BAGHDAD 000234 
 
SIPDIS 
 
E.O. 12958: DECL: 05/27/2018 
TAGS: IZ KU PGOV PREL SY
SUBJECT: A/S FELTMAN AND FM ZEBARI CO-CHAIR DIPLOMATIC JCC- 
PART II: CHAPTER VII 
 
REF: 09 BAGHDAD 130342 
 
Classified By: Acting Deputy Chief of Mission Gary A. Grappo for reason 
 1.4 (b) and (d). 
 
¶1.  (C)  Summary:   On January 24, Assistant Secretary for 
Near Eastern Affairs Jeffrey Feltman, A/DCM, and a delegation 
of experts on Chapter VII issues met with Iraqi Foreign 
Minister Hoshyar Zebari and an interministerial committee of 
Iraqi experts at the Ministry of Foreign Affairs in Baghdad. 
The discussion marked the inaugural meeting of the Diplomatic 
Joint Coordination Committee (JCC), and focused on regional 
relations and the way forward on a host of Chapter VII 
issues, as well as plans for future bilateral engagement and 
cooperation.  This cable focuses on the latter half of the 
JCC, which consisted of a discussion of Chapter VII issues. 
Part I of this series focuses on the JCC's discussion of 
regional relations. End summary. 
 
 ¶2.  (C)  NEA A/S Jeffrey Feltman co-chaired the first 
meeting of the Diplomatic and Political Joint Coordination 
Committee with FM Hoshyar Zebari at the MFA on January 24. 
The Iraqi interministerial committee at the meeting included 
Zebari's COS Sroud Najib, DFM Labeed Abbawi, Senior Policy 
Advisor Fareed Yasseen,  Ambassador Mohammed al-Hamameidi, PM 
legal advisor Fadel Jawad Kadhum, and PM Advisor Sadiq 
Rikabi, as well as other experts.  The U.S. side included 
A/DCM, Deputy Pol/C, NEA Senior Advisor Elissa Slotkin, USUN 
Deputy Political Counselor Ellen Germain, NSC Advisor Peter 
Vrooman, Attorney Advisor Jeremy Sharpe, IO officer Bill 
Haldeman, and Iraq desk officer Wa'el Alzayat.  FM Zebari 
welcomed A/S Feltman and his delegation to Iraq and stated 
that the messages conveyed by Vice President Biden during his 
visit the previous weekend "reinforced the depth of the 
U.S.-Iraq relationship". 
 
CHARTING A PATH FORWARD ON WMD 
------------------------------- 
 
¶3.   (C)   International Organizations Director Mohammed 
Hamameidi initiated the JCC's discussion of WMD, stating that 
the GOI is moving towards resolution of outstanding WMD 
requirements within the prescribed timeframe.  Hamameidi laid 
out next steps in the WMD discussion, recapping that FM 
Zebari sent a letter along the lines of the draft proposed in 
ref A to the President of the Council and the Director 
General of the IAEA.  He said this would be followed by a 
determination and letter from the IAEA verifying Iraq's 
compliance with WMD requirements and hopefully a resolution 
within the Security Council before March 1.  Attorney Advisor 
Jeremy Sharpe raised the issue that the letter submitted by 
the MFA displayed several material differences from the draft 
suggested by the USG.  PM Legal Advisor Fadel responded that 
the MFA can work with the USG to iron out any material 
differences from the suggested draft that require resolution. 
 Deputy Pol Counselor Germain noted that the letter generated 
"good atmospherics" and a generally positive response from 
Security Council groups within the first hours of its 
receipt.  She stressed that as the letter is forwarded to 
world capitals, the USG and MFA should work together to form 
an effective presidential statement. 
 
¶4.   (C)   FM Zebari added that the GOI has a plan for 
ratifying the Additional Protocol (AP) and that it is 
currently on the agenda in the Iraqi Parliament, but remains 
unaddressed due to failures to reach quorum.  A/S Feltman 
echoed VP Biden's points earlier in the week, emphasizing 
that resolving WMD before the March 7 elections would send 
the right message to the international community, and that 
Qthe right message to the international community, and that 
the USG needs the GOI to work with members of the Security 
Council so that the way forward does not appear to be a USG 
initiative.  The FM agreed to the U.S. suggestion to dispatch 
a high-level team to New York next month to advocate lifting 
WMD resolutions. 
 
U.S. VICTIMS CLAIMS AND THE QUEST FOR A NUMBER 
--------------------------------------------- ---- 
 
¶5.  (C)   PM Legal Advisor Fadel opened the discussion of 
American victims claims, stating that the GOI is awaiting the 
USG's response on the text it proposed.  Fadel elaborated 
that a committee is deliberating an amount for the GOI 
counterproposal, which will require agreement from the Prime 
Minister and Parliament before it can be offered to the USG. 
Attorney Advisor Sharpe asserted that a counterproposal from 
the GOI on American claims is not dependent on a a final text 
of the settlement document, adding that because the scope of 
the agreement is closed, a counterproposal from the Iraqi 
side is the most important catalyst for moving forward on the 
claims issue.  Sharpe also raised the point that because the 
 
claimants took their cases to Congress, the latter is now an 
essential piece of the negotiations and cannot be overlooked. 
 
¶6.  (C)   PM Advisor Rikabi offered the view that excluding 
September 11 and Oklahoma City cases from the amount will 
complicate discussions on the Iraqi side, as will the recent 
Blackwater developments.  Special Advisor Slotkin noted 
Rikabi's viewpoint and stated that the USG is willing to help 
by working on putting together correct language for the 
counteroffer, but that the USG will then need an amount from 
the GOI.  FM Zebari concluded the discussion, stating that 
the Council of Ministers (COM) originally formed a commission 
to resolve the claims and DFI issue, and that the MFA 
recently formed a new commission on Chapter VII with some of 
the members of the former commission.  Claims, and other 
Chapter VII-related issues are "MFA territory," he asserted, 
and then wryly intimated to the group that GOI decisionmakers 
already "have a number" in mind to settle the Amcit claims. 
 
OIL FOR FOOD AND DEVELOPMENT FUND FOR IRAQ 
------------------------------------------- 
 
¶7.  (C)   FM Zebari shifted the JCC's focus to Oil For Food 
(OFF), thanking the U.S. delegation for its assistance with 
the passage of UN Resolution 1905 and sharing that the GOI is 
currently clearing 76 disputed OFF contracts in two GOI 
committees and examining alternatives to the Development Fund 
for Iraq (DFI).  He stated that on April 1, the GOI will 
issue a letter outlining next steps, which will include 
opening an account at the Federal Reserve Bank as a 
substitute for the DFI, to be managed by the Central Bank of 
Iraq (CBI), or opening an account directly at the CBI.  Head 
of the Supreme Auditor's Office Abdul Basit Saeed pointed out 
that the protection of immunities could be a potential issue 
if the account is opened directly at the CBI.  A/S Feltman 
proposed that the US Embassy work with Dr. Abdul Basit to 
explore the two options and find a way forward. 
 
¶8.  (C)   The FM stressed that the GOI is making progress on 
both WMD and OFF issues.  He said that A/DCM alerted him that 
the GOI would receive a letter stating it will have 90 days 
to resolve claims, but that the GOI needs to resolve disputed 
contracts in order to pay for these claims.  FM Zebari said 
he is hopeful the GOI will meet its obligations under 1905 
and submit both required reports by April.  Zebari also asked 
the USG to secure a host of archived Iraqi documents on OFF 
that are currently in a palace under USG control.  Post is 
prepared to facilitate this request. 
 
¶9.  (C)   Senior MFA advisor Mohammed al-Haj Hamoud urged the 
USG to renew a presidential order, scheduled to expire in 
May, for one year until the GOI can resolve claims.  PM Legal 
Advisor Fadel added that another concern is the GOI's need to 
prepare itself for next year by securing the GOI's accounts 
and assets around the world and, with USG support, find a way 
to get out of Chapter VII and resolve the DFI.  A/S Feltman 
proposed initiating involved conversations between U.S. 
Embassy Baghdad's legal advisors, A/DCM, and Dr. Abdul Basit 
to resolve the particulars of the DFI issue.  Because the DFI 
has been extended for a year and there has been some progress 
on claims, he further stated, there may be justification for 
seeking an extension of the executive order.  NSC Advisor 
Vrooman indicated that the group would work with economic and 
treasury experts to lay the groundwork to extend the 
Qexecutive order.  Attorney Advisor Sharpe stressed that the 
U.S. victims claims issue drives the DFI, and the most 
important next step is to resolve the victim claims before 
May to remove "the single, greatest impediment" to an 
extension. 
 
BILATERAL INITIATIVES AND NEXT STEPS 
------------------------------------ 
 
¶10.  (C)   Upon concluding the discussion of Chapter VII 
issues, Senior MFA Policy Advisor Fareed Yasseen asked A/S 
Feltman whether Iraq is still an agenda item in meetings with 
the P-5 and other countries.  A/S Feltman responded that 
discussions about Iraq differ from a few years ago, and 
currently focus on an emphasis that Iraq is a sovereign state 
with which the U.S. has a partnership.  To this end, the A/S 
asked Iraq Desk Officer Alzayat to share plans for the 
upcoming Mid-level Diplomats Program.  Alzayat conveyed the 
USG's anticipation of the third visit of Iraqi diplomats to 
Washington this year to attend courses at Georgetown 
University and participate in an orientation tour of USG 
agencies and offices.  He stated that Washington will work 
with the MFA and the U.S. Embassy to finalize a list of 
participants.  A/S Feltman and FM Zebari adjourned the JCC 
meeting by agreeing to a February JCC working group session 
via videoconference. 
 
 
¶11.  (C)   The JCC identified several action items for 
various JCC participants, the U.S. Embassy in Baghdad, and 
the Department.  Embassy discussions following the JCC 
revealed the following JCC-related action items: 
 
- Resolve material differences between the MFA's letter to 
the IAEA and Security Council and the draft proposed by the 
USG (reftel). Action: Legal and USUN 
 
- Determine the best timing for Senior Iraqi MFA 
interventions on WMD at the Security Council. Action: USUN 
 
- Address Iraq,s stated need to amend Article 5 of the draft 
U.S.-Iraqi Claims Settlement Agreement to provide for a 
mechanism to study potential Iraqi claims against the United 
States. Action: Legal 
 
- Identify when the UNSC letter regarding terms of payment 
for OFF will be sent. Action: USUN 
 
- Examine options for establishing the groundwork for an 
extension of the executive order scheduled to expire in May 
and whether an extension should be used as leverage for 
conclusion of the U.S. citizen claims agreement, noting 
renewed interest by Rep. Braley and other members of Congress 
in pursuing a legislative solution if a claims agreement is 
not soon concluded. Action: Econ, Legal 
 
- Continue to work with MFA to determine how best to transfer 
archived documents to MFA custody. Action: Econ, MFA 
 
- Suggest terms of payment via a Federal Reserve account for 
the GOI and explore options for setting up the account 
Action: Econ, Treasury, Legal 
 
- Structure and move forward with the Mid-level Diplomats 
Program discussed at the JCC. Action: NEA/I, POL 
 
¶12. (U) Assistant Secretary of State for Near Eastern Affairs 
Jeffrey Feltman approved this cable. 
HILL