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The Report of the Iraq Inquiry
715.  Mr Chaplin advised Sir Michael Jay on 9 September that the ideal way to
meet Ministers’ demands for quicker results in Iraq would be to put the new DFID
Iraq Directorate into an FCO-based structure.394 There was, however, very little chance
of DFID agreeing to that. The “next best thing” would be an enhanced FCO unit and
strengthened liaison with other Whitehall departments. The FCO would have to
“rely on the Sheinwald group [the Iraq Strategy Group] to crack the whip over DFID
when necessary”.
716.  Later that day, Mr Straw approved the creation of a new FCO Iraq Directorate
as the inter-departmental body responsible for co-ordinating the growing volume of
Iraq‑related work across Whitehall. The Directorate is described in more detail later
in this Section.
717.  Baroness Amos wrote to Mr Boateng on 10 September to request £6.5m from the
Reserve to cover immediate further needs in Iraq, and that a further £33.5m should be
“ear-marked” for anticipated requirements later in the financial year.395 Baroness Amos
stated that DFID’s budget for Iraq for 2003/04 was now fully committed. Of the £33.5m,
£20m could be required for a further contribution to the Essential Services Plan if US
funding proved insufficient.
718.  Baroness Amos wrote to Mr Blair the following day to advise that DFID’s immediate
operational priorities were to ensure that the Essential Services Plan was fully funded
and to help the UN return to Iraq.396 On the former, Baroness Amos advised:
“… our overall approach has been predicated on CPA delivering more than it
has, and we have had negligible influence on them, or the Pentagon, to try and
turn it around. Immediate measures are now needed to maintain the Iraqi
population’s consent.”
719.  The Essential Services Plan would help to improve essential services, but solving
the underlying problems in infrastructure would require billions of dollars and an Iraqi
Government to determine policy. Systemic problems within the CPA continued to delay
the transfer of promised CPA resources to the South. Baroness Amos concluded:
“If CPA HQ and [the] US Government fail to get its act together quickly, then we can
only plug the gap if my earlier Reserve claim … is approved.”
720.  Baroness Amos also advised that the UK’s objectives for the forthcoming Madrid
Donors Conference in October were to get the Iraqi citizens in the driving seat, and to
secure a “credible outcome on pledges”, which required a credible Iraqi budget.
394  Minute Chaplin to PUS [FCO], 9 September 2003, ‘Iraq: Restructuring IPU’.
395  Letter Amos to Boateng, 10 September 2003, ‘Iraq Reconstruction Funding: Reserve Claim’.
396  Telegram 1 DFID to IraqRep, 11 September 2003, ‘Iraq Reconstruction: Cabinet Discussion on
11 September’.
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