Cablegate: Guidance: Voting Instruction On Dfi Resolution,

DE RUEHC #3293/01 3562132
O 212124Z DEC 08



E.O. 12958: N/A

1.(SBU)This is an action request. USUN is to vote in favor of
adoption of a UNSC resolution to extend arrangements and
immunities associated with the Development Fund for Iraq
(DFI), Iraq's oil and gas exports, and revenues, so long
as text does not change substantively from that in para
2. If text varies substantively, USUN is to request
further instructions. Suggested talking points for use by
USUN following adoption are contained in para 3.

2. (SBU) Begin Resolution text:

The Security Council:

PP1. Welcoming the efforts of the democratically elected,
constitutionally based, national unity Government of Iraq
in fulfilling its detailed political, economic, and
security programme and national reconciliation agenda, and
encouraging in that regard the holding of inclusive and
peaceful provincial elections,

PP2. Recalling all of its previous relevant resolutions on

PP3. Reaffirming the independence, sovereignty, unity, and
territorial integrity of Iraq and reaffirming further the
importance of the principle of non-interference in the
internal affairs of Iraq,

PP4. Noting the progress that is taking place in Iraq,
particularly in achieving security and stability, and in
strengthening the armed forces and other Iraqi security
forces, and noting likewise Iraq's progress in the
political and economic fields,

PP5. Welcoming the continuing work of the Government of
Iraq towards a federal, democratic, pluralistic and
unified Iraq, in which there is full respect for human

PP6. Noting the Government of Iraq's progress in pursuing
an atmosphere in which sectarianism is totally rejected,
underscoring the importance of inclusive political
dialogue and national reconciliation,

PP7. Recognizing that international support for security
and stability is essential to the well-being of the people
of Iraq as well as the ability of all concerned, including
the United Nations, to carry out their work for the
benefit of the people of Iraq, and expressing appreciation
for Member State contributions in this regard under
resolution 1483 (2003), resolution 1511 (2003), resolution
1546 (2004), resolution 1637 (2005), resolution 1723
(2006), and resolution 1790 (2007),

PP8. Recognizing also that Iraq is still in need of
regional and international support so that it can continue
to make progress, so that its people can flourish and
prosper in peace,

PP9. Welcoming continuing progress under the International
Compact with Iraq, an initiative of the Iraqi Government
that has created a new partnership with the international
community and is building a strong framework for Iraq's
continued political, economic and security transformation
and integration into the regional and global economy, as
confirmed in the Stockholm Declaration on 29 May 2008, and
welcoming also the important role that the United Nations
is playing by jointly chairing the Compact with the
Government of Iraq,

PP10. Recalling the establishment of the United Nations
Assistance Mission for Iraq (UNAMI), and affirming that
the United Nations should continue to play a leading role
in supporting the efforts of the Iraqi Government to
strengthen institutions for representative government,
promote political dialogue and national reconciliation,
engage neighboring countries, assist vulnerable groups,
including refugees and internally displaced persons, and
promote the protection of human rights and judicial and
legal reform in accordance with resolution 1770 (2007) and
resolution 1830 (2008),

PP11. Calling upon the international community,
particularly countries in the region and Iraq's neighbors,

STATE 00133293 002 OF 004

to support the Iraqi people in their pursuit of peace,
stability, security, democracy and prosperity, welcoming
the Expanded Neighbors' Conferences held in Sharm
El-Sheikh, Istanbul and Kuwait and their role in
supporting the efforts of the Government of Iraq to
achieve security and stability in Iraq, and the positive
results thereof on regional and international peace and
security, welcoming also the fact that the Expanded
Neighbors' Conference, held in Kuwait on 22 April 2008
approved the terms of reference of the support mechanism,
and noting that the successful implementation of this
resolution will contribute to regional stability,

PP12. Noting the letter from the Prime Minister of Iraq to
the President of the Security Council, dated 7 December
2008, which is annexed to this resolution, welcoming the
Prime Minister's affirmation of Iraq's commitment to
living in peace with its neighbors in a manner that
contributes to the security and stability of the region,
and recognizing the expiration of the mandate of the
multinational force at the end of 31 December 2008,

PP13. Recognizing the positive developments in Iraq and
that the situation now existing in Iraq is significantly
different from that which existed at the time of the
adoption of resolution 661 (1990), and further recognizing
the importance of Iraq achieving international standing
equal to that which it held prior to the adoption of
resolution 661 (1990),

PP14. Recognizing that the letter from the Prime Minister
of Iraq also reaffirms the commitment by the Government to
resolve the debts and settle the claims inherited from the
previous regime, and to continue to address those debts
and claims until they are resolved or settled, and
requests the continued assistance of the international
community, as the Government of Iraq works to complete
this process,

PP15. Recognizing the significant role of the Development
Fund for Iraq and the International Advisory and
Monitoring Board, and the provisions of paragraph 22 of
resolution 1483 (2003) in helping the Government of Iraq
to ensure that Iraq's resources are being used
transparently and accountably for the benefit of the Iraqi
people, and recognizing also the need for Iraq during 2009
to transition to successor arrangements for the
Development Fund for Iraq and the International Advisory
and Monitoring Board, to include the Committee of
Financial Experts,

PP16. Reaffirming that acts of terrorism must not be
allowed to disrupt Iraq's political and economic
transition, and further reaffirming the obligations of
Member States under resolution 1618 (2005) of 4 August
2005 and other relevant resolutions and international
conventions with respect, inter alia, to terrorist
activities in and from Iraq or against its citizens,

PP17. Recognizing that the Government of Iraq will
continue to have the leading role in coordinating
international assistance to Iraq and reaffirming the
importance of international assistance and development of
the Iraqi economy and the importance of coordinated donor

PP18. Acting under Chapter VII of the Charter of the
United Nations,

OP1. Decides to extend until 31 December 2009 the
arrangements established in paragraph 20 of resolution
1483 (2003) for the depositing into the Development Fund
for Iraq of proceeds from export sales of petroleum,
petroleum products and natural gas and the arrangements
referred to in paragraph 12 of resolution 1483 (2003) and
paragraph 24 of resolution 1546 (2004) for the monitoring
of the Development Fund for Iraq by the International
Advisory and Monitoring Board and further decides that,
subject to the exception provided for in paragraph 27 of
resolution 1546 (2004), the provisions of paragraph 22 of
resolution 1483 (2003) shall continue to apply until that
date, including with respect to funds and financial assets
and economic resources described in paragraph 23 of that

OP2. Decides further that the provisions in the
above paragraph for the deposit of proceeds into the
Development Fund for Iraq and for the role of the
International Advisory and Monitoring Board and the

STATE 00133293 003 OF 004

provisions of paragraph 22 of resolution 1483 (2003) shall
be reviewed at the request of the Government of Iraq or no
later than 15 June 2009;

OP3. Requests the Secretary-General to report to
the Council on a quarterly basis, with the first briefing
no later than 31 March 2009 and with a written report on a
semiannual basis, on the activities of the Development
Fund for Iraq and the International Advisory and
Monitoring Board, including on progress made in
strengthening financial and administrative oversight of
the Development Fund for Iraq and on progress made in
transitioning to successor arrangements for the
Development Fund for Iraq and the International Advisory
and Monitoring Board, to include the Committee of
Financial Experts;

OP4. Encourages the International Monetary Fund and
the World Bank, as members of the International Advisory
and Monitoring Board, to brief the Council in January

OP5. Decides to review resolutions pertaining
specifically to Iraq, beginning with the adoption of
resolution 661 (1990), and in that regard requests the
Secretary General to report after consultations with the
Government of Iraq, on facts relevant to consideration by
the Council of actions necessary for Iraq to achieve
international standing equal to that which it held prior
to the adoption of such resolutions,

OP6. Decides to remain actively seized of the

End text.

3. (SBU) Begin suggested remarks:

The United States welcomes the adoption of this critical
resolution extending the arrangements related to the
Development Fund for Iraq. This action clearly
demonstrates that the Security Council recognizes the
tremendous progress that Iraq has achieved. Furthermore,
it secures the Iraqi Government's ability to use its
resources to engage in vital activities that will
safeguard the future of the Iraqi people.

The extension of immunities for Iraq's funds will provide
Iraq additional time to resolve the debts and settle the
claims inherited from the previous regime. The United
States looks forward to Iraq taking the necessary steps to
address those debts and claims.

While it is imperative that Iraq receive the sustained
support of the international community - we must also
recognize that Iraq has become increasingly capable,
democratic, and stable. The Iraqi government and the
Iraqi people can take great pride in the progress that has
been made. 2008 has been a year of significant achievement
for Iraq -- not only in the security sector, but also in
the political and economic fields, in rule of law,
reconstruction, and productive, positive engagement with
neighbors and the international community.

Iraq's responsible actions - at home and abroad - from the
passage of key legislation and work toward national
reconciliation. . . to the fruitful participation in the
Neighbors' process and the International Compact with Iraq
- tangibly demonstrate Iraq's progress and the need for
rapid and complete reintegration into the community of

Adoption of Resolution [####] today sends an important
signal that the Council is firmly committed to reviewing
resolutions that pertain specifically to Iraq.

Circumstances in Iraq have fundamentally changed since
many of these resolutions were first considered. Iraq
today is significantly different than it was when
Resolution 661 was adopted in 1990.

Today, the Government of Iraq is committed to working with
its neighbors and others as a trusted and credible
international partner. Therefore, a review regarding
continuation of all outstanding Chapter VII resolutions
specifically related to Iraq is justified; the time is
ripe for a reconsideration of these outstanding
resolutions based upon current facts.

STATE 00133293 004 OF 004

The United States looks forward to the Secretary General's
report on relevant facts and the Council's swift
consideration of actions to return Iraq to its rightful
place in the community of nations. We are committed to
working with the Council and with the Government of Iraq
to restore that international standing as soon as

End remarks.

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