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The Report of the Iraq Inquiry
63.  The CIG judged that the situation in MND(SE) remained “fragile” and that there
had been considerable loss of public support for the MNF. Most Shia were likely to
continue to support the political process, but their consent depended on expectations
being met, including elections held on schedule and a government that reflected
their majority status.
64.  A continuing failure to improve public order, restore public services or create jobs
would also increase disillusionment, risking renewed unrest.
65.  During Mr Benn’s visit to Iraq, officials in the British Embassy Office Basra raised
concerns over the operation of the World Bank and UN Trust Funds.30
66.  DFID responded to those concerns on 6 September:
“Basra are right that getting PCO and Trust Fund programmes moving faster is
critical, but not that our contribution to the Trust Funds is pointless.”
67.  The Trust Funds had several purposes:
to deliver reconstruction on the ground;
to allow donors to pool resources and streamline procedures. This reduces
their overheads, and gives the Iraqis fewer donors with their own priorities
and procedures to negotiate with; and
to encourage the UN and the World Bank to re-engage”.
68.  The World Bank and the UN had now started disbursing money from the Trust
Funds, and the Iraqi Minister for Planning and Development Co-ordination had told
Mr Benn that he was “much happier” with collaboration with the World Bank and UN.
69.  DFID concluded the Trust Funds had been set up “to deliver medium-term benefits
to Iraq rather than quick fixes”. The test now was delivery.
70.  On 9 September, Sir Nigel Sheinwald and Mr David Quarrey, a Private Secretary to
Mr Blair, sent Mr Blair a minute reporting on their recent visit to Iraq, for use in Mr Blair’s
video conference with President Bush later that day.31
71.  The minute stated that a “joined up programme” was needed, including:
an effective counter-insurgency strategy to “regain control of cities in the
Sunni triangle”;
an IIG strategy for Sunni outreach;
support for Prime Minister Allawi’s office; and
30  Telegram 1 DFID to FCO Baghdad, 6 September 2004, ‘Southern Iraq: Trust Funds’.
31  Minute Sheinwald and Quarrey to Blair, 9 September 2004, ‘Iraq’.
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