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13.1  |  Resources
the budget nor the mandate to fund that type of assistance. Mr Hoon said that funding
should come from the “Op TELIC reserve”. Mr Stephens, representing the Treasury,
said that some money could come from the Reserve but that the Treasury would also
want to look at the GCPP.
596.  Mr Boateng’s Private Secretary wrote to Mr Hoon’s Principal Private Secretary
on 18 October, proposing the creation of a ring‑fenced allocation for “ad hoc security
proposals” within the GCPP.367 Copies of the letter were sent to Mr Straw’s and
Mr Benn’s Private Offices.
597.  By 22 October, No.10, Mr Hoon’s Private Office and Mr Benn’s Private Office had
all responded to that letter, rejecting the Treasury’s proposal.368 No.10 commented that
it was imperative that the MOD proposal be funded in full as soon as possible.
598.  Mr Boateng advised the 28 October meeting of the Ad Hoc Ministerial Group on
Iraq that, of the US$107m worth of equipment requested by the MOD, US$29m would
be funded by the US.369 The remaining US$78m (some £40.6m) could be funded by the
Treasury from the Reserve on a “one‑off” basis.
599.  A Treasury official advised Mr Boateng in mid‑November that there had been three
separate occasions where “Ministers and officials from FCO and No.10” had made
promises of military equipment to various organisations “without proper analysis of
the requirement or clarifying the availability of UK funding”.370 Normally effective MOD
internal scrutiny processes had been bypassed. Treasury officials were working with
the MOD to ensure that such proposals were scrutinised, but for this to be effective the
FCO and No.10 needed to “work with the process”.
600.  A Treasury official advised Mr Boateng on 1 December that the Treasury had
received the MOD’s first request for funding in relation to the MOD proposal, totalling
£15m.371 The request was “basically a list of kit that £15m will buy”, but it was not the
right time to “dig our heels in”. The MOD had promised that future requests for funding
would meet UOR standards.
601.  In a Note to President Bush on 10 January 2005, Mr Blair described the Iraqiisation
of security forces as critical but said that he was not convinced that the plan to deliver
this was robust enough.372 Mr Blair confirmed that he had authorised “an extra $78m
from our MOD for the Iraqi Forces in the South”. Although he could not be sure that
funding was essential, “I’ll take the risk rather than find six months later it was.”
367 Letter PS/Boateng to Baker, 18 October 2004, ‘Iraq Security Proposals’.
368 Letter Malik to Rosenfield, 21 October 2004, [untitled]; Letter Rogers to Rosenfield, 21 October 2004,
‘Iraq Security Proposals’; Letter Baker to Rosenfield, 22 October 2004, ‘Iraqi Security Proposals’.
369 Minutes, 28 October 2004, Ad Hoc Ministerial Group on Iraq meeting.
370 Briefing Treasury, [undated], ‘Iraq Ministerial Meeting – Thursday 11 November 2004’.
371 Minute Treasury [junior official] to Chief Secretary, 1 December 2004, ‘£40m Equipment for Iraq Forces’.
372 Letter Sheinwald to Hadley, 10 January 2005, [untitled] attaching Note Blair to Bush, 10 January 2005,
‘Note’.
543
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