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Viewing cable 09BAGHDAD46, WAIVER REQUESTED -- Section 565 Waiver of Prohibition

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Reference ID Created Released Classification Origin
09BAGHDAD46 2009-01-08 15:38 2011-08-24 16:30 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Baghdad
VZCZCXRO2350
RR RUEHBC RUEHDA RUEHDE RUEHIHL RUEHKUK
DE RUEHGB #0046 0081538
ZNR UUUUU ZZH
R 081538Z JAN 09
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC 1148
INFO RUCNRAQ/IRAQ COLLECTIVE
UNCLAS BAGHDAD 000046 
 
SIPDIS 
SENSITIVE 
 
DEPT FOR NEA/RA 
 
E.O. 12958: N/A 
TAGS: KBCT ABLD PHUM AL ECON AMGT ASUP AFIN IZ
SUBJECT: WAIVER REQUESTED -- Section 565 Waiver of Prohibition 
Against Contracting with Firms that comply with the Arab League 
Boycott or Discriminate in the Basis of Religion 
 
REF: (A) 08 BAGHDAD 3826 (B) 08 STATE 132944 
 
1. (SBU) Section 565 of Title V, Part C of the Foreign Relations 
Authorization Act, Fiscal Years 1994 and 1995 (PL 103-236, 22 USC 
2679c) prohibits the Department of State from entering into any 
contract, except real estate leases and contracts below the small 
purchase threshold (currently $100,000), that expends funds 
appropriated to the Department of State with a foreign person that 
complies with the Arab League boycott of Israel, or with any foreign 
or United States person that discriminates in the award of 
subcontracts on the basis of religion. 
 
2. (SBU) Reftel requested that Posts that will not be able to carry 
on diplomatic functions while meeting either or both of the 
requirements of Section 565 send a cable requesting a waiver of the 
relevant requirement(s) and justifying the request. 
 
 
3. (SBU) Post's experience over the contracting year has indicated 
that, despite previous presumptions to the contrary, local firms 
contracting with Post's GSO Contracting Officer have in almost all 
cases been able to provide the certification necessary under Section 
565. The Embassy's ability to obtain essential supplies and 
services, to the extent that these are procured in-country, has not 
been hampered.  Nonetheless, not all agencies at Post have been able 
to obtain the necessary certification. 
4. (SBU) Iraq does not maintain diplomatic relations with Israel. 
While the Department of State has included the boycott noncompliance 
clause outlined under Section 565 in all 
GSO-originated contracts in 2008, the current requirements of Iraqi 
law remain unclear. Generally speaking,  removal of offending 
contract language has occurred on a case-by-case basis, with most 
cases originating in three specific GOI entities.  Post therefore 
must request a waiver because of ambiguities under Iraqi law and 
potential compliance with the boycott by subcontracting entities. 
 
5. (SBU) For the reasons stated in para 5 above, Post requests a 
waiver of the relevant requirement(s) of Section 565. 
CROCKER