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The Report of the Iraq Inquiry
575.  Mr Browne also advised that in response to Mr Blair’s visit to Iraq in late May:
“… the southern Iraq Steering Group has been set up, chaired by [the] Consul
General with participation from across departments and agencies to co-ordinate
delivery of a coherent strategy for southern Iraq, focused on Basra. Much of the
work on governance, rule of law and infrastructure will now be delivered in a
coherent fashion through the new UK-led Provincial Reconstruction Team in Basra,
drawing together inputs from the US, Danes and other international partners.”
576.  The Basra PRT was now fully staffed, but lacked funding for project work
and would need funding for running costs from December 2006. US funds had not
yet arrived.
577.  The 6 July meeting of DOP(I) discussed Mr Browne’s letter to Mr Blair and agreed
his proposals in principle.330
578.  Mrs Beckett and Mr Benn said that their budgets for Iraq were fully committed,
but were asked to look again at reprioritising their spending to fund the Better Basra
projects.
579.  Ministers agreed that there was a need for a comprehensive communications plan
to highlight UK activity on reconstruction to politicians in Baghdad and Basra. The plan
should include other donors’ activity, to give a clear picture of the totality of development
assistance that the UK presence was bringing to southern Iraq.
580.  Ministers also recognised the risk to locally engaged staff, who were being
targeted. At least three locally engaged members of staff working for the Coalition had
been killed. FCO and DFID locally engaged staff were being offered the chance to
resign, work at home, or work at a different location.
581.  Discussions on funding the Better Basra Action Plan continued into August.
582.  A Treasury official advised Mr Stephen Timms, Chief Secretary to the Treasury,
on 15 August that departments had agreed to provide a total of £20.4m from existing
resources to fund the Better Basra Action Plan, now costed at £26.5m (due to the later
start for some of the work).331 The FCO had contributed £12.4m (of which £7m was from
the GCPP Reserve), the MOD £4m and DFID £4m. Negotiations had been difficult, with
the MOD offering “considerable resistance” to the need to find its contribution from the
core defence budget.
583.  Mr Timms wrote to Mr Browne the same day, welcoming the successful conclusion
of negotiations and agreeing to provide an additional £4m for the Plan from the central
Reserve.332
330  Minutes, 6 July 2006, DOP(I) meeting.
331  Minute Treasury [junior official] to Chief Secretary, 15 August 2006, ‘Better Basra Plan’.
332  Letter Timms to Browne, 15 August 2006, ‘Better Basra’.
292
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