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Viewing cable 07BAGHDAD204, RRT COORDINATOR LUNCH WITH IRAQI PRESIDENT TALABANI

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Reference ID Created Released Classification Origin
07BAGHDAD204 2007-01-18 17:55 2011-08-22 16:00 CONFIDENTIAL Embassy Baghdad
VZCZCXRO1841
PP RUEHBC RUEHDE RUEHIHL RUEHKUK
DE RUEHGB #0204/01 0181755
ZNY CCCCC ZZH
P 181755Z JAN 07
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC PRIORITY 9165
INFO RUCNRAQ/IRAQ COLLECTIVE
RHEHWSR/WHITE HOUSE SITUATION ROOM WASHINGTON DC
RHEHAAA/WHITE HOUSE WASHINGTON DC//NSC//
C O N F I D E N T I A L SECTION 01 OF 02 BAGHDAD 000204

SIPDIS

E.O. 12958: DECL: 01/18/2017
TAGS: PGOV PINS PREL PTER EINV ENRG IZ TU
SUBJECT: RRT COORDINATOR LUNCH WITH IRAQI PRESIDENT TALABANI

(U) Classified By: Regional Coordinator James Yellin for reasons 1.4 (b) and (d).

1. (U) This is an Iraqi Kurdistan Regional Reconstruction Team (RRT) cable.

2. (C) SUMMARY: At a lunch with Regional Coordinator and Regional Reconstruction Team (RRT) Officers on January 11, Iraqi President Jalal Talabani praised the speech by President Bush on the new Iraq strategy. Talabani asked for assistance in encouraging U. S. private investment in the Kurdistan Region, especially in public utilities. Talabani agreed on the need to rein in corruption and provide a legal and regulatory framework to support foreign investment. Talabani claimed there are no Kurdistan Workers Party (PKK) offices in Sulaimaniyah province. Qubad Talabani, his son, expressed support for reforming the Kurdistan Regional Government (KRG) press law and improving the quality and independence of media in the region. END SUMMARY.

Talabani Praises Bush For Way Forward In Iraq
---------------------------------------------

3. (C) Iraqi President Jalal Talabani hosted a lunch for Regional Coordinator and RRT Officers at Patriotic Union of Kurdistan (PUK) party headquarters in Sulaimaniyah on January 11. In attendance were KRG Minister of Public Works Emad Ahmed and Qubad and Bafel Talabani, his sons. (Note: Qubad Talabani is PUK representative in Washington and Bafel Talabani is a counter-terrorism official of the PUK.) From the RRT, the lunch was attended by Regional Coordinator Yellin, USAID Representative Patterson, and RRT Officers Crifo and Mergy.

4. (C) Talabani commented during the lunch that the January 10 speech by President Bush on the way forward in Iraq was excellent and signaled his continuing commitment to reconstruction in Iraq. Talabani continued that 17 percent of the 10 billion dollars in Iraqi government funds earmarked for economic reconstruction that was mentioned in the speech should come to the KRG. (Note: The KRG and Iraqi central government have agreed that 17 percent of the national budget revenues will be allocated to the KRG, minus a &sovereignty fee.8)

Talabani Admits Corruption Prevents Investment
--------------------------------------------- -

5. (C) President Talabani asked for assistance in encouraging U. S. private investment in his home province of Sulaimaniyah. He said that although the standard of living had increased in the province since the fall of Saddam, most residents of the province still only receive two hours of electricity per day because of a lack of generating capacity and inadequate distribution systems. He asked what could be done to encourage U. S. firms to invest in electricity infrastructure in the province.

6. (C) Regional Coordinator replied that potential investors in the electricity sector would want to be assured of a cost-recovery system in which fees are adequate and subscribers pay their bills. Talabani said he was open to increasing subscriber fees to attract investors, but it should be in a two-tiered system in which poorer residents are charged at a lower rate. He added that ultimately the provincial government would guarantee cost recovery to investors. (Note: Electricity in Sulaimaniyah is highly subsidized; user fees are insufficient to cover generating costs. A metering and billing system is in place, but there is virtually no penalty for non-payment and many subscribers do not pay their bills.)

7. (C) In response to a question by Talabani on barriers to U. S. investment, Regional Coordinator cited corruption and the lack of a transparent legal and regulatory framework. Talabani agreed on both counts, emphasizing that corruption was a challenge that his party needed to address. He said that at a PUK plenum meeting held the previous week he appointed a special committee to tackle the issue.

Talabani Says No PKK Offices in Sulaimaniyah
--------------------------------------------

8. (C) Regional Coordinator called on the Sulaimaniyah authorities to close all offices of the Kurdish terrorist group the PKK, and refuse safe haven to its members. Talabani responded that there are no PKK offices in Sulaimaniyah and claimed "e are not friendly with the PKK." He pledged to try to convince the PKK to end its fighting with Turkey, but said the Turks are not serious in their discussions with U. S. Special Envoy for Countering the PKK General Ralston. Talabani said Turkey always needs someone to fight.

A New Press Law is Needed
-------------------------

9. (C) Regional Coordinator stressed the importance of freedom of the press in an open society. President Talabani agreed, commenting that two prominent independent newspapers are based in Sulaimaniyah. Qubad Talabani continued by explaining the need for the KRG to establish a press law that protects freedom of expression while reforming the legal procedures that hold journalists and newspapers accountable for publishing libelous statements. He continued that journalists in the Kurdistan Region need better training to improve their reporting and ethical standards, commenting that no universities in the Kurdistan Region have a proper journalism department. He said the Kurdistan Region would benefit from more publications that are truly independent.

10. (C) Note: In 2006 a committee of the Kurdistan National Assembly (KNA) took up the issue of developing a regional press law. However, the draft law was written by the KDP-dominated Kurdistan Journalists Syndicate and has been criticized for insufficient input from independent journalists. End Note.

11. (C) Comment: Corruption is pervasive, not only in Sulaimaniyah province, but in the rest of the KRG. We doubt that the PUK will be able to deal effectively with the problem. Despite the claim by Talabani that there are no PKK offices in Sulaimaniyah province, at least one office of the affiliated organization Democratic Solution Party of Kurdistan is open and continues to operate. In addition, the PKK maintains bases of operations in the Qandil Mountains along the border between Sulaimaniyah province and Iran, using them to help move people, drugs and arms westward across the border.

12. (C) Comment (cont'd): Most press and media outlets in the region are funded and run by the political parties. Sulaimaniyah province is host to two prominent independent newspapers--Hawlatee and Awene. However, their journalists are subject to frequent criminal prosecution for libel claims and extrajudicial intimidation by junior or mid-level party officials. For example, earlier this month Hawlatee editor-in-chief Tawana Osman resigned as editor to avoid a six-month jail sentence. The result is that criticism of the highest level government and party officials remains off-limits to the media.

KHALILZAD