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10.2  |  Reconstruction: July 2004 to July 2009
The transition from Occupation to an Iraqi Government
6.  On 28 June 2004, the Coalition Provisional Authority (CPA) formally handed over to
a sovereign Iraqi Government. In the 11 months that followed, the governance of Iraq
was the responsibility of the Interim Iraqi Government (IIG), headed by Prime Minister
Ayad Allawi.
7.  The security situation in Iraq remained difficult.
8.  The core UK Ministerial team was unchanged: Mr Brown remained Chancellor
of the Exchequer, Mr Straw Foreign Secretary, Mr Hoon Defence Secretary, and
Mr Benn International Development Secretary.
9.  Mr Straw continued to chair the Ad Hoc Ministerial Group on Iraq Rehabilitation
(AHMGIR), which met seven times between July 2004 and February 2005, after which
its business was taken up by the Ad Hoc Ministerial Group on Iraq (AHMGI).
10.  Mr David Richmond, the Prime Minister’s Special Representative on Iraq, and
Ambassador Paul Bremer, the CPA Administrator, left Iraq shortly after the handover
ceremony.1
11.  Ambassador John Negroponte, the new US Ambassador to Iraq, presented his
diplomatic credentials to the IIG on 29 June.2
12.  Hard Lessons described how, shortly after arriving in Baghdad and driven by
his concern about worsening security, Ambassador Negroponte put the US$18.4bn
Iraq Relief and Reconstruction Fund (IRRF2) on hold and initiated a “thorough
re-examination” of US priorities.
13.  Ambassador Negroponte concluded that implementing economic development
programmes would be fruitless while security remained a serious problem. Three
reallocations of IRRF2 funds took place in September 2004, December 2004 and
March 2005. Those reallocations provided additional funds for security, the political
process and “project sustainment” at the expense of infrastructure projects. The water
and sanitation sector lost nearly half its funding, and the electricity sector almost a
quarter of its funding.
14.  Mr Edward Chaplin arrived in Baghdad on 5 July to take up post as the first British
Ambassador to Iraq since 1990.
1 Annotated Agenda, 1 July 2004, Ad Hoc Group on Iraq Rehabilitation meeting.
2  Bowen SW Jr. Hard Lessons: The Iraq Reconstruction Experience. U.S. Government Printing
Office, 2009.
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