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The Report of the Iraq Inquiry
the need for a large peace‑keeping force “to keep a lid on the ethnic and
religious tensions that Saddam’s dictatorship has hidden for so long”; and
the pressure for a “generous [reconstruction] package, given the perception
in the region that invading Iraq is of dubious legality and worth”.
186.  On who would pay for that generous package, the official assessed that:
“… the US might expect Iraq to pick up the bill after a short ‘bridging’ period,
especially as – with investment – oil revenues could quickly exceed US$20 billion
per year.
“But it is more likely that strong pressure will come to bear on the US and its allies
to pay the lion’s share, given their role in the war …”
187.  The official did not consider what the UK’s contribution to meeting post‑war costs
might be.
188.  The Inquiry has seen no evidence that Mr Brown responded to this analysis, or that
it was circulated outside the Treasury.
189.  Mr Brown told the Inquiry that the Treasury was among the first to consider the
challenges involved in reconstruction.124
190.  From 20 September 2002, the Ad Hoc Group on Iraq (AHGI) co‑ordinated all
non‑military cross‑government work on post‑conflict issues (see Section 6.4). The AHGI
was chaired by the Cabinet Office.
191.  Mr Alistair Fernie, Head of DFID’s Middle East and North Africa Department,
circulated a draft paper on the potential humanitarian implications of conflict in Iraq to
members of the AHGI on 11 October, with the caveat that the paper had not yet been
seen by Ms Short or other departments.125
192.  The draft paper stated that:
“Any large‑scale UK humanitarian response would require additional funding from
the Central Reserve. DFID’s existing small (£6m) humanitarian programme in Iraq
is fully committed; available humanitarian funds within CHAD [DFID’s Conflict and
Humanitarian Affairs Department] are likely to be grossly insufficient and most of
DFID’s Contingency Reserve has already been allocated.”
193.  On 4 November, Mr Fernie invited Ms Short to agree that a revised version of
the paper should be shared with the US as a work in progress.126 He advised that the
124 Public hearing, 5 March 2010, page 19.
125 Letter Fernie to Dodd, 11 October 2002, ‘Iraq: Humanitarian Contingency Planning’ attaching Paper
[draft] DFID, 11 October 2002, ‘Iraq: Potential Humanitarian Implications’.
126 Minute Fernie to Private Secretary/Secretary of State [DFID], 4 November 2002, ‘Iraq: Contingency
Planning: Humanitarian Paper’ attaching Paper DFID, 5 November 2002 [sic], ‘Iraq: Potential
Humanitarian Implications’.
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