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The Report of the Iraq Inquiry
450.  Mr Cannon reported the main points from the meeting to Mr McDonald. The
meeting had identified “over-zealous” de-Ba’athification and the CPA’s failure to provide
funding for the South as causes of insecurity there. It had agreed that:
Mr Blair should tell President Bush that the UK needed “the decision-making
process on a different footing, so that problems are rapidly referred to the
highest level and obstacles short-cut”.
Mr Blair should write to Ambassador Bremer listing specific projects in the Basra
area needing immediate CPA funding.
Baroness Amos would visit “the UK sector” to enhance DFID operations.
Ms Hewitt should try to visit Iraq to promote the involvement of UK business.
451.  Mr Blair spoke to President Bush later that day.248 In his report to Mr McDonald
of the conversation, Mr Cannon wrote that Mr Blair had said his main concern was
administration; Ambassador Bremer needed to be able to break through the bureaucratic
obstacles that he faced.
452.  Mr Blair raised the difficulty Ambassador Bremer was having accessing the funding
he needed. UK projects in Basra had been affected. Mr Blair said that he would write to
both Ambassador Bremer and President Bush setting out those projects.
453.  Mr Blair raised delays in Bechtel’s operations, including unnecessary delays in
agreeing a contract for Siemens UK. The US was chasing Bechtel.
454.  Mr Blair also raised the need for action on replacing Iraq’s currency.
455.  The Inquiry has seen no indications that Mr Blair wrote to Ambassador Bremer and
President Bush, listing the projects requiring immediate CPA funding.
456.  The Annotated Agenda for the 11 June meeting of the AHMGIR stated that the
list of projects “which urgently need to be taken forward in and around Basra”, which
Mr Straw had sent to Mr Blair on 5 June, would “for the most part be implemented as
quick impact projects, once additional engineering staff are in place (DFID is undertaking
urgent recruitment)”.249
457.  The Cabinet Office produced a draft proposal for a new, DFID-led Iraq
Rehabilitation Operations Group (IROG) on 10 June.250 The Cabinet Office proposal
stated that, while current administrative structures were “satisfactory and worth keeping”,
now that the UK was moving into an “increasingly operational phase” they were no
longer sufficient. DFID should lead a new Group with a remit to oversee:
priorities for expenditure from the Development Fund for Iraq (DFI), including the
process of reaching decisions on such expenditures;
248  Letter Cannon to McDonald, 6 June 2003, ‘Iraq: Prime Minister’s Conversation with Bush, 6th June’.
249 Annotated Agenda, 12 June 2003 Ad Hoc Group on Iraq Rehabilitation meeting.
250  Minute Bowen to DFID, 10 June 2003, ‘Iraq: Management Arrangements’.
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