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10.2  |  Reconstruction: July 2004 to July 2009
533.  They also stated that the “refocusing” of the US effort from infrastructure to
capacity-building might have (unspecified) implications for DFID.
534.  The British Embassy Baghdad reported the following week that, according to a
report issued by the Iraqi Oil Inspector General, some US$4.2bn worth of oil products
had been smuggled out of Iraq in the previous year.306
Turning Basra around
535.  The Basra PRT was established on 14 May 2006, and was expected to be fully
operational within three weeks.307 Its first Head was Mr Mark Etherington (a consultant
contracted by PCRU).
536.  PCRU funded three new posts in the Basra PRT (its Head, a Communications
Manager and an Office Manager).308 It was otherwise staffed by bringing together the
existing US, UK and Danish teams.309
537.  Mr Etherington wrote to a Cabinet Office official on 17 May outlining the challenges
facing the Basra PRT, the most significant of which was a lack of “operational
coherence”:
“Military and civilian lines of activity are not integrated, and the separation between
military headquarters … and the Consulate in Basra Palace [the British Embassy
Office Basra] has made the formulation and execution of sophisticated unitary
approaches … very difficult. Our outputs are hence fragmentary, prone to duplication
and intrinsically wasteful of resources; and neither are they subsumed to an
over‑arching strategy.
“This is because no over-arching, integrated strategy has yet been articulated,
although the need for one has been identified … UK ‘policy’ in S[outhern] Iraq is
hence little more than an aggregation of departmental approaches …” 310
538.  While the PRT’s work “must focus overwhelmingly upon Basra”, it should have a
“low-key southern Iraq co-ordination role”.
539.  Mr Etherington advised that “reporting was fragmented and lines of authority
divided”. He therefore intended to establish a “Basra Steering Group”, bringing together
MND(SE), the British Embassy Office Basra and the PRT. Its aim would be to “create a
306  eGram Baghdad to FCO London , 9 May 2006, ‘Iraq: Corruption – Inspector General’s Report’.
307  Minute Etherington to Cabinet Office [junior official], 17 May 2006, ‘Basra PRT: Challenges and
Opportunities’.
308  Minute Teuten to PCRU [junior official], 31 July 2006, ‘Visit to Baghdad and Basra, 19 – 25 July’; Minute
Etherington to Cabinet Office [junior official], 17 May 2006, ‘Basra PRT: Challenges and Opportunities’.
309  Minute DFID [junior officials] to Mr Anderson, 31 July 2006, ‘Iraq: Allocation of Governance Resources
to PRT in southern Iraq’.
310  Minute Etherington to Cabinet Office [junior official], 17 May 2006, ‘Basra PRT: Challenges and
Opportunities’.
285
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