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10.2  |  Reconstruction: July 2004 to July 2009
supporting the handover of power to the new government, through the
DFID‑funded consultancy team;133
pressing the UN, IMF and other donors to engage;
completing the design of DFID’s new £40m power and infrastructure programme
for the South; and
deciding on ways to expand visible job creation work in the South.
222.  ITG ownership of governance and reconstruction would be crucial. The UK would
strengthen the ITG’s strategic communications capacity, to ensure that successes were
promulgated.
223.  The strategy also identified a number of economic priorities:
ensuring the UK “plays its part” in achieving a “fair and sustainable” solution to
Iraq’s debt problems. Iraq would need to secure comparable debt relief from
non-Paris Club debtors;
encouraging Iraq to complete its IMF programme;
continuing to support economic reform;
promoting an “efficient, outward looking and transparent” oil and energy industry
and the transparent management of Iraq’s oil reserves; and
advising on an effective response to inflationary risks.
224.  The strategy stated that the UK’s current posture in Iraq was costing around
£1bn a year, but did not comment on whether this amount was appropriate or sufficient.
225.  In discussion, Ministers commented that it was essential that the security,
political and reconstruction tracks were synchronised if the UK was to achieve its
objectives in Iraq.134 If necessary, the UK should push ahead with plans for security and
reconstruction in MND(SE), in advance of developments in the rest of the country.
226.  The Group approved the strategy and agreed that No.10 should pass an updated
version to the US, raising the issue of diversion of US funding for reconstruction projects
from the South to other parts of the country.
227.  The Group also agreed that Mr Blair and Mr Benn should press Mr Annan and
Mr James Wolfensohn, President of the World Bank, to deploy staff to Basra.
228.  Sir Nigel Sheinwald sent a revised version of the strategy to Mr Stephen Hadley,
US National Security Advisor, on 11 February.135
133 A reference to DFID’s £4.2m Emergency Public Administration Programme, which was developed
to help establish the Prime Minister’s Office and the Cabinet and committee system.
134  Minutes, 9 February 2005, Ad Hoc Ministerial Group on Iraq meeting.
135  Letter Sheinwald to Hadley, 11 February 2005, ‘Iraq’ attaching Paper, ‘Iraq: Strategy for 2005’.
233
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