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Viewing cable 09BAGHDAD2337, FINANCE MINISTER JABR: MOF RESUMING ACTIVITY

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Reference ID Created Released Classification Origin
09BAGHDAD2337 2009-08-30 13:32 2011-08-24 16:30 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Baghdad
VZCZCXRO4450
PP RUEHBC RUEHDA RUEHDE RUEHDH RUEHIHL RUEHKUK
DE RUEHGB #2337/01 2421332
ZNR UUUUU ZZH
P 301332Z AUG 09
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC PRIORITY 4512
INFO RUCNRAQ/IRAQ COLLECTIVE PRIORITY
UNCLAS SECTION 01 OF 02 BAGHDAD 002337 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON EFIN EPET IZ PGOV PREL
SUBJECT: FINANCE MINISTER JABR: MOF RESUMING ACTIVITY 
 
Summary 
 
1. (SBU) During an August 26 meeting with Ambassador Haslach, 
Finance Minister Jabr made special note of his good 
relationship with former deputy PM and KRG PM Barham Salih. 
Ambassador Haslach delivered condolence letters from 
Ambassador Hill and Department of Treasury Acting Assistant 
Secretary Baukol to Jabr and offered USG help in the 
aftermath of the August 19 bombings. The Minister confirmed 
that he will attend the October investment conference in 
Washington and that work is progressing on an IMF Stand-By 
Arrangement and possible additional budget support from the 
World Bank.  Ambassador Haslach welcomed the issuance of a 
T-bill to help fund the GE contract, noting that this will 
send a positive signal to potential investors. End summary. 
 
Optimism on Revenue Sharing 
 
2. (SBU) While the meeting was dominated by discussion of the 
upcoming investment conference and the aftermath of the 
Finance Ministry bombing, Jabr did note in response to a 
question from Ambassador Haslach that he had a positive 
relationship with KRG PM Salih.  Without sharing specifics, 
Jabr said that his good relationship with Salih left him 
optimistic about the chances of reaching a compromise on oil 
revenue sharing.  &We will find solutions,8 Jabr emphasized. 
 
MOF Damaged, but Resuming Activities 
 
3. (U) The Minister thanked Ambassador Haslach for the USG 
offer of assistance, as well as those of other governments, 
citing Germany, Spain, and UAE offers to care for the 
seriously injured.  He recounted that 256 people had been 
hospitalized with injuries, 10-12 of whom were in serious 
condition.  Eight bodies had been found in the rubble and two 
victims had died in the hospital. 
 
4. (U) The Minister reported that the MoF main building was 
no longer usable. He was confident, however, that the Budget 
and the Accounting Departments, the &heart of the 
government,8 would be resuming operations by the end of the 
week in new locations.  &Terrorists bombs cannot stop the 
life of the Iraqis.8  He did not have any specific 
assistance requests of the USG, but being an engineer 
himself, he knew that Iraq does not have many experts who 
could assess the damaged building to ascertain whether it 
could be rehabilitated.  He said that he would follow up if 
he had any specific requests for assistance. 
 
Investment Conference and DEC: Minister to Attend 
 
5. (SBU) The Minister reported that he would attend the 
U.S.-Iraq investment conference in Washington in October. 
The Prime Minister, according to his information, would not 
lead the delegation.  The former Deputy Prime Minister (DPM) 
and newly named KRG Prime Minister, Barham Salih, would 
likely lead the delegation, according to the Minister. 
Explaining that he had not been active in the US-Iraq 
Dialogue for Economic Cooperation (DEC), the Minister said he 
would be more active in the October 19 DEC meeting. The head 
of the DEC delegation has not yet been decided. Barham Salih 
chaired the Iraqi delegation when he was the DPM. 
 
IMF and World Bank: Work Continues on Possible Budget Support 
 
6. (U) The Minister confirmed that work on a Stand-By 
Arrangement with the IMF is continuing.  In addition, the 
Minister has sent a letter to the World Bank seeking 
additional budget support to supplement the IMF program. 
Jabr said he would travel to Istanbul in early October to 
attend the IMF/World Bank Annual Meeting.  He expects to 
discuss these programs with the Fund and Bank and hopes to 
meet with US Treasury officials. 
 
General Electric 
 
7. (U) Ambassador Haslach expressed appreciation for the 
MoF,s authorization of a T-bill valued at USD 2.4 billion to 
QMoF,s authorization of a T-bill valued at USD 2.4 billion to 
pay General Electric.  This will send a positive signal to 
investors when they gather for the conference in Washington, 
she said. 
 
8. (U) The Minister noted that the authorization document had 
signed had been lost in the post-bombing rubble, but his 
staff eventually found it and sent it to the Central Bank. 
(Note: the Deputy Governor of the Central Bank confirmed that 
the T-bill has been issued with the funds placed on the 
MoF,s account. These funds are to be used by the Ministry of 
Electricity. End note). 
 
Comment 
 
BAGHDAD 00002337  002 OF 002 
 
 
 
9. (SBU) By the Minister,s own account, his friendship with 
Barham Salih is solid, although we are uncertain whether 
Salih shares this sentiment.  When Salih knew he would be 
away from Baghdad to join the election campaign in the KRG, 
Salih asked Jabr to chair the High Economic Committee and to 
assume responsibility for preparing for a ministerial meeting 
on the International Compact with Iraq.  In a previous 
meeting with Ambassador Hill, Jabr thought that it would be a 
good signal if Barham, as the Prime Minister of the KRG, were 
to lead the GOI delegation to the Washington investment 
conference.  If the Minister is correct that the good 
relationship will remain intact, it could auger well for 
resolving some of Iraq,s more nettlesome internal issues 
with the KRG. At the national level, it also speaks to the 
longstanding relationship between the Kurds and Islamic 
Supreme Council of Iraq (ISCI). 
HILL