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10.2  |  Reconstruction: July 2004 to July 2009
43.  Section 9.3 describes the Sadrist uprising in Najaf in early August, and the
deteriorating security situation across Iraq.
44.  Mr Blair concluded at the end of August that Prime Minister Allawi needed “help
now”. That help included accelerating the pace of reconstruction, so that Iraqis saw
improvements before the January 2005 elections.
45.  Mr Phillipson wrote to the Cabinet Office on 20 August to commission a:
“… full picture of the situation in Iraq after the National Conference,18 how we are
going to get from here to successful elections in January, and the challenges we
will face.” 19
46.  Mr Phillipson advised that the request followed a “long discussion” the previous day
with Mr Blair, who had observed that the security situation, the slow rate at which the ISF
was being trained and equipped, and “ongoing difficulties” with reconstruction posed a
real risk to the achievement of the UK’s objectives in Iraq.
47.  The British Embassy Office Basra reported by telegram on 24 August that the PCO
Regional Co-ordinator had now arrived.20 The Co-ordinator expected the PCO to “have
an impact on the ground” in the last quarter of 2004; the British Embassy Office doubted
that the PCO could meet that timeline.
48.  On 27 August, in response to Mr Phillipson’s commission, the IPU provided a paper
for the Cabinet Office.21 Mr Neil Crompton, the Head of the IPU, advised Mr Straw’s
Private Office that the paper contained “little new in policy terms”.
49.  The IPU paper concluded that the strategy agreed by DOP on 15 July was the right
one, but would require regular fine-tuning.22 Its key judgements included:
The IIG had made a good start, but needed to deliver results soon, particularly
on security but also on essential services.
There was growing “disquiet” in the “previously benign” South, reinforced by
a sense that Baghdad and the US were neglecting its interests. Politically,
Basra and Maysan were paralysed by power struggles, hindering work on
reconstruction and security.
Iraq was “awash with reconstruction funds”. The challenge was delivering
quickly on the ground. Security was a major hindrance.
18  From 15 to 18 August a National Conference was held to select an Iraqi Interim National Council (IINC)
of 100 members to oversee the Iraqi Interim Government until the election of the Transitional National
Assembly in January 2005.
19  Letter Phillipson to Fergusson, 20 August 2004, ‘Iraq: Next Steps’.
20  Telegram 130 Basra to FCO London, 24 August 2004, ‘southern Iraq: PCO and Saudi Development
Fund’.
21  Minute Crompton to Private Secretary [FCO], 27 August 2004, ‘Iraq: Next Steps’ attaching Paper IPU,
27 August 2004, ‘Iraq: Next Steps’.
22  Paper IPU, 27 August 2004, ‘Iraq: Next Steps’.
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