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10.2  |  Reconstruction: July 2004 to July 2009
584.  Mr Dinham told the Inquiry that the Better Basra Action Plan was a “proper, agreed,
bought-into, cross-Whitehall plan”, which had led to greater unity of purpose across the
UK effort.333 He added that the Plan did not seek to reflect the totality of the UK effort; for
example, major DFID projects to increase power supply were starting to come on stream
and contributed to achieving the UK’s objectives.
585.  Mr Etherington told the Inquiry that the Better Basra Action Plan was “a set of
aspirations” rather than a plan.334
586.  Mrs Beckett told Cabinet on 13 July that responsibility for security in Muthanna
had been handed from British to Iraqi forces earlier that day.335
587.  On 19 July, the JIC judged that violence was at the highest sustained level since
April 2003, outpacing the Iraqi Government’s ability to respond.336 “Spiralling sectarian
violence” was the most immediate threat to Iraq’s progress.
588.  Mr Patey’s valedictory report from Baghdad on 20 July opened with the warning:
“Strategic failure in Iraq a distinct possibility but not inevitable.” 337
589.  Mr Patey advised that:
“Without progress on security the encouraging start made by DPM [Deputy Prime
Minister] Barham Salih and his economic team will be stillborn. The exodus of
businessmen and the Iraqi middle class continues due to security concerns. They
will take some persuading to return a second time but their entrepreneurial skills
will be vital if the country is to thrive.”
590.  Mr Patey’s valedictory report was passed to Mr Blair on 21 July.338
591.  The ISG reflected on reporting from Baghdad, and its implications for the existing
strategy, on 27 July.339 The ISG agreed that although success or failure in Baghdad
would be critical to overall campaign success in Iraq and was therefore the coalition’s
highest priority, the “best way for the UK to contribute to the wider military campaign was
to continue to focus our limited resources on MND(SE), in particular, on Basra”.
592.  At the meeting, Mr Dinham argued that the UK should focus its future support on
central government and in particular on budgetary management and critical economic
reforms. Iraq was now enjoying increased revenue as a result of higher oil prices and
slowly rising exports; the challenge was to ensure those revenues were redirected from
wasteful and damaging subsidies to investment in public services. The security situation
333  Public hearing, 17 December 2009, page 67.
334  Public hearing, 9 July 2010, page 26.
335  Cabinet Minutes, 13 July 2006.
336  JIC Assessment, 19 July 2006, ‘Iraq: Insurgency, Sectarianism and Violence’.
337  eGram 31514/06 Baghdad to FCO London, 20 July 2006, ‘Iraq: Valedictory’.
338  Minute Banner to Prime Minister, 21 July 2006, ‘Iraq: Update and Maliki Meeting’.
339  Minute Cabinet Office [junior official] to Sheinwald, 27 July 2006, ‘Iraq Strategy Group, 27 July’.’
293
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