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The Report of the Iraq Inquiry
would marginalise UK influence and risk presentational problems, but was not settled US
policy. The UK was lobbying in Washington and Baghdad to amend the draft regulation.
466.  Mr Jon Cunliffe, Treasury Managing Director for Macroeconomic Policy and
International Finance, advised Mr Brown the following day that resolution 1483 made
the US and UK jointly responsible, as Occupying Powers, for governing Iraq including,
specifically, for disbursements from the DFI.257 The resolution changed the basis
on which the UK engaged with the US, but the current framework for making and
implementing decisions did not reflect that. As far as economic and financial policy was
concerned, it was “a mess” because:
It was not clear what decisions Ambassador Bremer could take without approval
from Washington.
Ambassador Bremer reported to Secretary Rumsfeld; there was no clear
framework in Washington for involving other US departments.
The UK had no clear involvement in decision-making; what UK-US consultation
there was tended to be between No.10 and the White House.
467.  Mr Cunliffe suggested that this mattered because:
The UK had responsibility without power. If money was wasted on a large scale,
or there was an economic policy failure, or the CPA acted in a way that cut
across its mandate under resolution 1483, the UK would be accountable.
The Treasury had no way to ensure that the right economic and financial policies
for Iraq were pursued. Attempts to give the IMF and World Bank a direct role in
the use of the DFI had failed.
468.  Mr Cunliffe reported that he had raised his concerns at the AHMGIR meeting
the previous day; Mr Straw and Baroness Amos had been sympathetic. Mr Cunliffe
understood that No.10 was considering proposing a joint White House/No.10 group,
to which the CPA would report.
469.  On 9 June, Ms Cathy Adams from the Legal Secretariat to the Law Officers sent
a reply to a letter of 21 May from FCO Legal Advisers seeking advice on resolution
1483.258 The advice relating to the formation of a representative government is described
in Section 9.2.
470.  Ms Adams advised that the resolution clarified the legitimate scope of activity of
the Occupying Powers and authorised them to undertake actions for the reform and
reconstruction of Iraq going beyond the limitations of Geneva Convention IV and the
Hague Regulations. In some cases, such actions had to be carried out in co-ordination
257  Minute Cunliffe to Chancellor, 6 June 2003, ‘Iraq Reconstruction’.
258  Letter Adams to Llewellyn, 9 June 2003, ‘Iraq: Effect of Security Council Resolution 1483 on the
Authority of the Occupying Powers’.
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