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10.1  |  Reconstruction: March 2003 to June 2004
co-ordination of UN, IFI, NGO, ICRC and CPA operational activity;
implementation of UK-funded reconstruction projects; and
preparation of regular progress reports to the AHMGIR.
458.  The IPU would continue to have responsibility for administering UK secondments
to the CPA and for SSR.
459.  DFID sought the FCO’s agreement to the draft proposal.251 An IPU official advised
Mr Straw’s Private Secretary that, while there was a good case for setting up a DFID-led
Group to co-ordinate and implement development activity in Iraq, the proposal as drafted
risked fragmenting UK policy-making. It should explicitly state that the IPU remained the
“policy lead for CPA issues as a whole” (and not just for administering UK secondments
and SSR).
460.  Sir Michael Jay agreed with that advice.252
461.  Mr Straw agreed that DFID should set up the IROG but, to ensure a coherent UK
interface with the CPA, stated that it should report to the AHMGIR through the IPU.253
462.  The DFID-led IROG met for the first time on 15 June.254 The first IROG Action Plan
would be put to the AHMGIR on 3 July.
Advice on the UK’s responsibilities as an Occupying Power
463.  A paper on the management of the DFI was submitted to the 5 June meeting of the
AHMGIR (chaired by Mr Straw).255
464.  The paper stated that while resolution 1483 made the UK jointly responsible (with
the US) for disbursements from the DFI, it contained little detail on how the DFI should
be managed. The UK needed to settle that issue quickly with the US; spending decisions
could start being made in the next few weeks. The management arrangements needed
to meet the UK’s objectives in terms of transparency and accountability; in particular, the
arrangements needed to meet the commitments in the resolution to use resources in the
DFI “in a transparent manner” and to ensure that oil sales were “made consistent with
international best practice”.
465.  The Annotated Agenda stated that the CPA had circulated a draft regulation which
gave the US Administration “sole oversight” over DFI spending.256 Such an arrangement
251  Minute IPU [junior official] to PS/Straw, 11 June 2003, ‘Iraq: Management Arrangements’.
252  Manuscript comment Jay on Minute IPU [junior official] to PS/Straw, 11 June 2003, ‘Iraq: Management
Arrangements’.
253  Minute Owen to IPU [junior official], 13 June 2003, ‘Iraq: Management Arrangements’.
254  Minute Dodd to Manning, 18 June 2003, ‘Iraq: Rehabilitation’.
255 Annotated Agenda, 5 June 2003, Ad Hoc Group on Iraq Rehabilitation meeting attaching Paper,
[undated], ‘Implications of and Modalities for the Development Fund for Iraq’.
256 Annotated Agenda, 5 June 2003, Ad Hoc Group on Iraq Rehabilitation meeting.
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