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13.1  |  Resources
Funding for civilian activities in the post‑conflict period
Initial funding for reconstruction
513.  At Prime Minister’s Questions on 19 March 2003, Mr David Rendel asked for an
assurance that sufficient funds for post‑conflict reconstruction would be made available
quickly.308
514.  Mr Blair replied:
“ … we will ensure that funds are available – indeed, funds have already been
earmarked for the purpose and the Secretary of State for International Development,
the Ministry of Defence and the Treasury are doing all they can to make sure that we
co‑ordinate with American allies and also with other UN partners to ensure that the
funds are available … so that in the post‑conflict situation in Iraq the people of Iraq
are given the future that they need.”
515.  The Coalition began military action against Iraq on the night of 19/20 March. At that
time, the Government had made no provision for funding for reconstruction.
516.  Ms Short wrote to Mr Boateng on 21 March, to request £120m from the Reserve
for humanitarian relief in Iraq.309 Ms Short advised that her bid did not include any funds
for reconstruction:
“In the longer term, we will need to consider reconstruction costs. We agree with you
that there should be broad international burden sharing of any financing gap unmet
by oil revenues, with a major role for the IFIs. But we will need to discuss these
issues further at the appropriate time in the coming weeks, once the post‑conflict
situation is clearer and we have an IFI led needs assessment.”
517.  Mr Straw sent Mr Blair four FCO papers in advance of Mr Blair’s meeting with
President Bush at Camp David on 26 and 27 March, including one on post‑conflict Iraq
(see Section 10.1).310 The FCO stated that Ms Short was considering where the UK
might help with “reform and reconstruction”; however:
“Public finances are tight. If we are to keep Armed Forces in Iraq, the scope for
a major effort on reform and reconstruction will be limited.”311
518.  In his 9 April Budget statement to the House of Commons, Mr Brown announced
that he had set aside “an additional US$100 million” to “back up the UN and the work
of reconstruction and development”.312
308 House of Commons, Official Report, 19 March 2003, column 930.
309 Letter Short to Boateng, 21 March 2003, ‘Iraq Humanitarian Funding: Reserve Claim’.
310 Minute Straw to Blair, 25 March 2003, ‘Camp David: Post‑Iraq Policies’.
311 Paper FCO, 25 March 2003, ‘Iraq: Phase IV Issues’.
312 House of Commons, Official Report, 9 April 2003, columns 271‑288.
529
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