10.1  |  Reconstruction: March 2003 to June 2004

in establishing a representative Iraqi Government and assurances from the CPA that

there would be budgetary transparency and accountability.

509.  On 24 June, Mr Blair held a meeting to discuss Iraq, attended by Mr Straw,

Mr Hoon, Baroness Amos, CDS and officials.276

510.  Mr Hoon reported that Ambassador Olsen, Head CPA(South), was considering

resigning over the lack of funding provided for CPA(South) by CPA(Baghdad). This was

an opportunity to replace him with a British official. Mr Cannon’s record of the meeting,

which was copied to Baroness Amos, asked the FCO for advice on that point.

511.  A draft of the CPA’s strategic plan was provided to the 26 June meeting of the

AHMGIR.277 The Annotated Agenda described the draft as “a good basis for further work”

but “still deficient”; it did not include dates for the restoration of a full sovereign Iraqi

Government, lacked reference to macro-economic management and the environment,

exaggerated the role of the free market, did not include proper linkage to resolution

1483, and was “not in a form digestible to Iraqi and regional audiences”.

512.  The AHMGIR agreed that officials should push for improvements to the CPA’s

strategic plan, particularly on macro-economic issues and linkage to resolution 1483.278

513.  The AHMGIR also asked for a weekly assessment of progress in “each of the key

areas” and a daily update. Reports should bring out what was being done in the South,

what the MOD and DFID could do and what would need CPA intervention.

514.  The first of those weekly assessments was produced for the next meeting of the

AHMGIR, on 3 July.

515.  Mr Blair spoke to President Bush on 26 June.279 Mr Blair set out the huge scale of

the reconstruction task and suggested that he and President Bush should hold a video

conference to work through all the reconstruction issues.

516.  Dr Condoleezza Rice, US National Security Advisor, called on Mr Blair on the

same day.280 Mr Blair emphasised the need for the CPA to be “empowered”. Problems

remained in moving funds from CPA(Baghdad) to CPA(South). Mr Blair hoped that, with

some “easy wins” on infrastructure, the South could become a “showcase”, since the

situation was easier there.

517.  Dr Rice called on Mr Hoon on 27 June.281 Reflecting on Mr Blair’s conversation

with President Bush the previous day, she said that they had agreed that “we were

276  Letter Cannon to Owen, 25 June 2003, ‘Iraq: Prime Minister’s Meeting, 24 June’.

277 Annotated Agenda, 25 June 2003, Ad Hoc Group on Iraq Rehabilitation meeting attaching Paper CPA,

[undated], ‘OCPA Strategic Plan’.

278  Minutes, 26 June 2003, Ad Hoc Group on Iraq Rehabilitation meeting.

279  Letter Rycroft to MacDonald, 26 June 2003, ‘Prime Minister’s Discussion with President Bush, 26 June’.

280  Letter Rycroft to McDonald, 26 June 2003, ‘Prime Minister’s Meeting with Condi Rice, 26 June’.

281  Letter Williams to McDonald, 27 June 2003, ‘Defence Secretary’s Meeting with Condi Rice –

27 June 2003’.

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