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Cablegate: Iraq Compact: Updating Un Member States On

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FM USMISSION USUN NEW YORK
TO RUEHC/SECSTATE WASHDC IMMEDIATE 0767
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UNCLAS SECTION 01 OF 02 USUN NEW YORK 002164

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E.O. 12958: N/A
TAGS: PREL PGOV IZ
SUBJECT: IRAQ COMPACT: UPDATING UN MEMBER STATES ON
NOVEMBER 13

1. (U) Summary: On November 13, the UN invited all
member-states to an update on the Iraq Compact. Over 70
countries heard remarks from Iraqi Minister of Planning Ali
Baban, Deputy Secretary General Mark Malloch Brown, and UNDP
Associate Administrator Ad Melkert. All three speakers said
the Iraq Compact document was nearly complete, and
underscored that the Compact would be a core component of
Iraq,s relationship with the international community. The
EU, Turkish, Australian, Korean, Canadian and UK delegations
were very supportive of the Compact. Egypt and Iran, while
supporting the Compact, said the process must be accompanied
by political benchmarks, and called for the withdrawal of
"foreign troops." End summary.

2. (U) Deputy Permanent Representative Alex Wolff led the
U.S. delegation, and was accompanied by Treasury DAS Ahmed
Saeed and USUN POL Peter Kujawinski (note taker). Over 70
countries participated, including all members of the
Preparatory Group, Turkey, Australia and Iran.

-----------------------
UN, IRAQI PRESENTATIONS
-----------------------

3. (U) Deputy Secretary General Mark Malloch Brown began the
session by noting that Iraq is at a critical juncture, and
the broad support of the international community is vital for
Iraq,s success. The Iraq Compact document, said Brown, is
nearly finalized, and is characterized by a common commitment
and vision shared by Iraq and the international community.
Iraqi Minister of Planning Ali Baban also noted that the
document was nearly complete, and described the Compact
process as a vehicle for Iraq to regain its "lofty place"
among nations. He said that the Iraqi government is
encouraging private sector investment, reform of the
hydrocarbon sector, and is working towards a free market
economy. Baban called for countries to forgive all Iraqi
debt. Baban specifically thanked China for its support, and
noted the importance of Turkey and Iran as Iraq's neighbors.

4. (U) In his intervention, associate UNDP Administrator Ad
Melkert said the Compact is significant in that it reflects a
new Iraqi consensus in support of economic reform. He also
emphasized the interlinking of political, security and
economic reforms, and the need to restore regional ties and
normalize Iraq,s international relations. He was pointed in
stating that the Compact is not based on conditionality. He
closed by stating that while the Compact document needed to
pay proper attention to political and security benchmarks it
was nearly complete.

----------------------
MEMBER STATE RESPONSES
----------------------

5. (U) The Egyptian PermRep noted that the second draft of
the Compact document was much improved. He noted, however,
that there was no timeframe for the removal of foreign troops
from Iraq in the Compact. Also, he noted that Iraq was a
"rich country" and asked how much Iraq would contribute to
the work of the Compact. Iran, in a less tendentious
statement than Egypt's, said it stood by to help Iraq, was
very worried about violent activities in that Iraq, and
supported Egypt,s call for a timeline regarding the
withdrawal of foreign troops. Turkey and Australia voiced
their support for Iraq and the Compact, noted that they were
not part of the Preparatory Group, and said they are ready to
assist the Compact process. Italy stressed that it was "a
very convinced supporter of the International Compact with
Iraq" and that this was a "unique change to rationalize the
international communities commitment to Iraq," while also
noting that it was important the Compact not be limited to
economic issues. The Kuwaiti delegate expressed continued
strong support for the Compact. The EU noted that it
commends the work to date on the Compact and is very pleased
with the Compact document, which has incorporated many of the
comments expressed by the EU and others. The UK voiced
support for the Compact and called for reporting on and
monitoring of the national reconciliation plan. The U.S.
expressed its appreciation for Baban,s speech, and called on
all member states to support the Compact, noting that Iraq
had worked hard to manage an open and transparent process
while also satisfying its urgent need for progress on the
Compact. South Korea also expressed their strong support for
Iraq and the Compact, noting that it was successful in
disbursing 70% of its $260 million Madrid pledge through use
of multilateral vehicles.

6. (U) In reaction to these interventions, Baban said that
Iraq and the coalition were working towards the withdrawal of
foreign forces, and progress in the security area would help

USUN NEW Y 00002164 002 OF 002


in this regard. Baban agreed that political and security
issues certainly affect economic development and that
progress in these areas will certainly help Iraq,s economic
situation. (Note: Baban did not, however, support the call
to benchmark political and security issues. End note)

7. (U) In concluding remarks, Malloch Brown said Baban,s
presence at the meeting demonstrates Iraq,s commitment to
the Compact and to the Compact,s spirit of openness and
transparency. He said that the Preparatory Group,s
activities were coming to an end, and the Compact would soon
be an open process that welcomes the contributions of all
member states. Malloch Brown added that the Compact is a
process that depends on the evolution of other discussions,
and "one eye" is on the discussions in Washington and on
possible changes in policy that may or may not occur.
Discussions in Baghdad will also have an impact, said Malloch
Brown. As a final note, he said it is important for Iraq,s
neighbors to be transparent in their support of Iraq.
BOLTON

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