10.1  |  Reconstruction: March 2003 to June 2004

meant restrictions on funds reaching ministries would be the result of “imperfect

procedures” rather than lack of money.

• Supporting Iraqi ministries. The US/CPA was still considering the form and

extent of its support after 30 June. DFID programmes to build the capacity of the

Ministries of Finance, Planning, and Municipalities and Public Works had begun.

DFID might retain “a few” of the current CPA advisers in Baghdad, but most

would be withdrawn by 30 June.

• CPA(South) transition. DFID would maintain a Development Section in the

British Embassy Office Basra and a team of consultants working with the four

southern governorates. A visit by DFID officials later in the month would:

{{develop recommendations for DFID staffing in the British Embassy

Office Basra;

{{agree with the PMO any requirements for support from CPA(South)

infrastructure specialists; and

{{assess whether any other CPA(South) staff should be retained, and if so

in what organisation.

963.  The Annotated Agenda for the AHMGIR meeting reported that the CPA envisaged

that international advisers would become part of a new agency, run by a US national

and reporting jointly to the Iraqi Prime Minister and the US Ambassador.563 The US saw

this as a way of retaining US control after the transition. The UK would continue to argue

against this; the Coalition needed to establish Iraqi authority and be seen to do so.

964.  The AHMGIR agreed the Transition Plan but asked for a Transition Plan for the

South, identifying where the UK needed to lobby the US.564

965.  Mr Benn visited Baghdad and Basra from 22 to 23 March.565 He reported to

Mr Blair:

“There is steady progress, but the challenges remain immense …

“The economy is picking up well. Reconstruction is starting to produce visible

results …

“Success is bringing new challenges. Maintaining infrastructure will require difficult

political decisions for the new Government such as charging more for electricity and

fuel. Donor money may add to inflationary pressures … I encouraged Bremer to

promote transparency in the use of the oil revenues after 30 June. We need the IMF

and World Bank to be fully involved in this, and other economic management issues,

as soon as possible.”

563 Annotated Agenda, 17 March 2004, Ad Hoc Group on Iraq Rehabilitation meeting.

564  Minutes, 18 March 2004, Ad Hoc Group on Iraq Rehabilitation meeting.

565  Letter Benn to Blair, 24 March 2004, [untitled].

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