Cablegate: Debt Relief for Iraq: Follow-Up

VZCZCXYZ0000
RR RUEHWEB

DE RUEHRB #2134 3211338
ZNR UUUUU ZZH
R 171338Z NOV 06
FM AMEMBASSY RABAT
TO SECSTATE WASHDC 5211

UNCLAS RABAT 002134

SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: EFIN ECON IZ MO
SUBJECT: DEBT RELIEF FOR IRAQ: FOLLOW-UP

REF: A. RABAT 2082

B. STATE 181094

1. (SBU) Econ Counselor pursued the issue of Moroccan debt
relief for Iraq in a November 16 meeting with Ambassador
Mohammed Azeroual, Director General for Arab and Islamic
Affairs at the Ministry of Foreign Affairs. Azarwal noted
that the GOM has been in repeated contact with Iraqi
officials on debt relief, and that Minister of Finance
Oualalou had discussed the matter with his Iraqi counterpart
on the margins of this year's IMF meetings in Singapore.
Azarwal stressed that there is no government-to-government
debt between Morocco and Iraq; what is outstanding is
approximately USD 30 million in debts owed to private
companies (primarily in the textile field) from before the
first Gulf War. Morocco paid off a portion of these
companies' losses through export insurance policies that they
had taken out, but the entire debt was not covered.

2. (SBU) In Singapore, the two ministers agreed that Morocco
would not pursue the debt, which Azerwal said the government
had never done in any case. He added, however, that it would
be necessary to "convince the companies" concerned to abandon
their claims. Because the debt is private and not public,
Azerwal said, Morocco had told Iraq that it would not be
appropriate to notify the Paris Club of the agreement.

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Visit Embassy Rabat's Classified Website;
http://www.state.sgov.gov/p/nea/rabat
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Riley

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