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The Report of the Iraq Inquiry
478.  The CPA issued a further regulation on 18 June, detailing the operation of the
PRB.261 Voting members of the PRB included representatives of the Iraqi Ministry of
Finance and the UK. Non-voting members included the representatives of the IMF,
World Bank, UN SRSG and the International Advisory and Monitoring Board (IAMB).
479.  An IPU update on reconstruction, which was sent to No.10 on 20 June, advised
that the DFI Regulations “met some, but not all of our key requirements”.262
480.  The FCO’s covering letter to that update cited the DFI Regulations as one example
of the continuing lack of proper consultation with the UK by the US, but added that the
Regulations did not cross the UK’s “legal red lines”.
481.  The UK’s efforts to scrutinise disbursements from the DFI are considered in
Section 10.3.
The first UK plan for reconstruction in the South, 12 June
482.  Ministers agreed the UK’s first plan for reconstruction in CPA(South) on 12 June.
Although the focus remained on securing US and CPA(Baghdad) resources, the plan
provided limited, additional UK support for CPA(South) and QIPs. The plan identified a
need to agree a source of UK funding to meet the costs of being an Occupying Power,
until other (US or Iraqi) sources of funding became available.
483.  A 12 June PJHQ briefing reported that there was “a trend of intelligence reporting
from the UK AOR showing increasing dissatisfaction of the civil populace”.263 The
briefing attributed that to a lack of food, failure to ensure essential services “such as
water, electricity and security”, a general increase in anti-Coalition rhetoric from Shia
clerics, a lack of accurate information/news reporting, and a lack of progress in the
political process.
484.  The 12 June meeting of the AHMGIR, which was attended by Baroness Amos,
Mr Benn and senior DFID officials, considered a joint DFID/MOD paper entitled ‘UK
Support to the CPA South Area – Next Steps’.264 The paper was the response to the
commission from the 15 May and 22 May meetings of the AHMGIR for an operational
plan for reconstruction in CPA(South).
485.  The paper began by identifying key actions required to make progress in
the South:
clarifying CPA(South)’s remit, and making it fully operational;
261  Coalition Provisional Authority, Regulation No.3, 18 June 2003, Program Review Board.
262  Letter Owen to Rycroft, 20 June 2003, ‘Iraq: Reconstruction Priorities’ attaching Paper IPU, 20 June
2003, ‘Iraq Reconstruction: 30 Day Priorities, 5 June 2003’.
263  Minute DACOS J3(Ops Sp) and DACOS J2(Int) to MA/DCJO(Ops), 12 June 2003, ‘Relations with the
Basrah Population’.
264 Annotated Agenda, 12 June 2003, Ad Hoc Group on Iraq Rehabilitation meeting attaching Paper
DFID/MOD, 11 June 2003, ‘UK Support to the CPA South Area – Next Steps’.
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