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10.1  |  Reconstruction: March 2003 to June 2004
622.  The Inquiry asked Mr Bearpark if the UK’s assumption of “lead responsibility” for
the South had given rise to an American assumption that the UK would provide a higher
level of financing for CPA(South) than it did.343 Mr Bearpark said that at a senior level the
US believed that the UK was making a “reasonable and fair contribution” in the South,
in terms of both personnel and funding. There was a problem, however, at the “middle
level”, which was exacerbated by repeated stories in the UK media that the US could
learn from the exemplary job that the UK was doing in the South:
“A result of that was that … there were certainly American officials within
CPA(Baghdad) who would say to me, ‘Look, why are you coming whinging at us yet
again … to try to get some resources for CPA(South)? You Brits know how to do it
so well, why don’t you fund it as well, if you are that clever about it?’”
623.  Mr Bearpark also told the Inquiry that, while in theory his responsibilities included
staffing, life support and the flow of funds to all CPA regional offices, in practice there
was “a big difference between CPA(South) … and the other CPA regional offices,
because CPA(South) was British and run in a particular way … as a British operation”.344
624.  Sir Jeremy Greenstock told the Inquiry:
“… I think we did a good job in the early stages in Basra. But we [the UK] were
very short of money, and we got virtually no American money because DFID
concentrated on that. The Americans said let the Brits look after Basra.”345
Responding to deteriorating security
625.  Security in Iraq deteriorated in August 2003. Concerns about progress on
reconstruction in the South and the implications for the level of consent enjoyed by
UK forces led the UK to develop the Essential Services Plan, which aimed to improve
essential services rapidly and visibly.
626.  On 10 and 11 August, Basra experienced severe rioting.346 Mr Richmond reported:
“The immediate cause of the disturbances is clear. Supplies of petrol and diesel in
Basra’s service stations ran out on 9 August … This was combined with a major
blackout in Basra because of a failure in the transmission line which rippled through
the entire system. (The system is so fragile that the only surprise is that it has not
happened before.)
“There is no doubt that political elements … exploited the situation … There is also
some evidence of pre-planning … But without the fuel and electricity crisis agitators
would not have found much purchase.”
343  Public hearing, 6 July 2010, page 75.
344  Public hearing, 6 July 2012, pages 5 and 7.
345  Private hearing, 26 May 2010, page 54.
346  Telegram 114 IraqRep to FCO London, 12 August 2003, ‘Situation in Basra’.
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