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12.1  |  Security Sector Reform
178.  Mr Sawers had reported to the FCO in London on 20 May that the question of
“what to do about military pay and pensions” was one of the “problems in the pipeline”.143
No further details were provided.
179.  Maj Gen Cross prepared a note for Mr Blair on 22 May setting out some points to
make in a forthcoming discussion with President Bush.144 Those included a reference to
the recent de‑Ba’athification announcement having “created some inevitable difficulties”.
180.  Maj Gen Cross also raised a concern about what he understood to be the
emerging policy decision not to pay pensions to former military personnel. He
commented that “there are dangers in excluding such a large and possibly well armed
group” from arrangements that were to apply to other members of the public sector.
181.  Although no details of the amount of that payment and the arrangements for
receiving it were given in the Order itself, those dismissed by CPA Order No.2 were
entitled to a termination payment (unless they were a “Senior Party Member” within the
terms of the de‑Ba’athification Order).145 Those who had previously been receiving a
pension from one of the dissolved organisations would continue to receive that pension
(again, unless they were a “Senior Party Member”).
182.  A telegram from FCO London to Washington, dated 30 May, identified the problem
of large numbers of people (and in particular those with military training) out of work and
without prospect of further employment.146 The FCO commented:
“… the Coalition needs a policy to reduce the perverse incentives for … [that group]
to drift towards the hard core actively opposing the Coalition … one solution might
be to create a workfare scheme – a pool of labour drawn specifically from those left
unemployed by the disbandment of the security apparatus, to meet urgent short
term requirements …
“In the medium term, Security Sector Reform (SSR) will make a significant
contribution to resolving this issue.”
183.  An alternative proposal for re‑employing former army personnel was put forward
by the Cabinet Office in the Annotated Agenda for the AHMGIR on 12 June.147 Officials
suggested “pioneering the re‑employment of former Iraqi service personnel as static
guards in the UK‑led military sectors”.
184.  The minutes of the meeting do not record a discussion of the proposal.148
143  Telegram 18 IraqRep to FCO London, 20 May 2003, ‘Iraq: Bremer’s Impact’.
144  Letter Williams to Rycroft, 23 May 2003, ‘Iraq Reconstruction’ attaching Paper Cross, 22 May 2003,
‘Iraq Reconstruction: Some Thoughts for the PM in his Discussions with President Bush’.
145  Coalition Provisional Authority Order Number 2, 23 May 2003, Section 3(5).
146  Telegram 251 FCO London to Washington, 30 May 2003, ‘Iraq: Dismantling the Ba’athist State’.
147 Annotated Agenda, 12 June 2003, Ad Hoc Group on Iraq Rehabilitation meeting.
148  Minutes, 12 June 2003, Ad Hoc Group on Iraq Rehabilitation meeting.
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