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10.1  |  Reconstruction: March 2003 to June 2004
876.  The Annotated Agenda for the 18 December meeting of the AHMGIR stated that
the CPA was taking forward ideas for a National Reconciliation Strategy.504 Following the
capture of Saddam Hussein, this was:
“… a determined effort by the CPA and the Iraqi Interim Administration to engage
Sunni leaders, alongside establishment of targeted job creation schemes and more
flexible implementation of the de-Ba’athification policy.”
877.  Also on 18 December, Mr James T Baker III, former US Secretary of State, and
President Bush’s personal envoy on Iraqi debt, called on Mr Blair as part of a series
of meetings with major creditors.505 Mr Baker told Mr Blair that the US objective was to
get up to 80 percent debt reduction for Iraq, though that might be “overly optimistic”. He
agreed with Mr Blair’s proposal that debt reduction should be handled through the Paris
Club (rather than bilaterally).
878.  Section 10.3 describes the UK’s efforts to secure generous debt relief for Iraq
through the Paris Club, based on its analysis that debt relief would:
increase Iraq’s ability to fund its own reconstruction (and hence reduce the
pressure on the UK to contribute to reconstruction);
provide a means of sharing the burden of financing Iraq’s recovery (as most of
Iraq’s debt was owed to non-combatant countries including Russia and France);
and
clear the way for multilateral lending to Iraq.
879.  DFID approved the £3m Emergency Public Administration Project (EPAP) in late
December.506 The project aimed to improve policy-making, public administration and
public financial management by providing technical support to key institutions at the
centre of the Iraqi Government, including the Prime Minster’s Office and the Council of
Ministers Secretariat (comparable to the UK Cabinet Office).507 Technical support was
provided by consultants from Adam Smith International Ltd.
880.  The EPAP was the first of three DFID projects during the period covered by the
Inquiry which aimed to improve Iraqi public administration.
881.  Sir Jeremy Greenstock issued two reports at the turn of the year, a review of 2003
and a look ahead at the challenges for the final six months of Occupation.
504 Annotated Agenda, 18 December 2003, Ad Hoc Group on Iraq Rehabilitation meeting.
505  Minute Cannon to Bowman, 18 December 2003, ‘Iraqi Debt: Call on the Prime Minister by James
Baker’.
506  Paper DFID, 4 November 2009, ‘Iraq – DFID Timeline and Financial Commitments: 2003-2009’.
507  Project Completion Report DFID, September 2005, ‘Emergency Public Administration Project (EPAP)’.
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