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The Report of the Iraq Inquiry
205.  Mr Fernie continued:
“Mr [Mark] Lowcock’s [DFID Director Finance and Corporate Performance] advice
is that the best time to extract maximum funds from the central Reserve is when
the political pressure is at its height. We might guess that such a time will come in
a month or so – by which time budgets for our existing programmes would be more
secure, with our 2003/04 framework finalised and on its way to publication.”
206.  Ms Short commented: “No – I don’t want to ring Ch X [the Chancellor of the
Exchequer] … I wanted to put humanitarian considerations into Gov[ernment] mind not
just to squeeze some money.”101 Rather than write or speak to Mr Brown, she would
write to Mr Blair. That letter was sent on 5 February.102
207.  On 31 January, in response to a further request from Ms Short, a DFID official
provided advice on how much the UK might be expected to contribute to “humanitarian
relief/reconstruction” in Iraq.103 Assuming the UK provided 5.6 percent of the total
humanitarian/reconstruction costs (in line with the UK’s share of OECD Gross National
Income), the UK’s contribution could reach US$640m (£400m) a year for the next
three years.
208.  The official added:
“It is important to consider that DFID ‘traditionally’ (Balkans/Afghanistan) contributes
between 8-10 percent for total relief/reconstruction costs … This would mean that
under a high case military scenario, with low oil revenues and where reparation/debt
claims are not reduced, annual costs to HMG [Her Majesty’s Government] could
be in excess of US$1bn.”
209.  The minutes of the 3 February FCO Iraq Morning Meeting recorded that DFID
was coming under pressure to step up its humanitarian planning after the House of
Commons debate on 30 January.104 Dr Brewer had explained to the meeting that there
were serious domestic and international financial constraints.
210.  DFID’s financial resources are addressed in more detail in Section 13.1.
211.  FCO lawyers advised UK participants in the post-Washington talks on the
rights of the Occupying Power that, under international law, aspects of the
post-conflict reconstruction of institutions and infrastructure could fall outside
the competencies of an Occupying Power.
101 Manuscript comment Short, 22 January 2003, on Minute Fernie to PS/Secretary of State [DFID],
21 January 2003, ‘Iraq contingency planning: financial provision’.
102 Email DFID [junior official] to Fernie, 22 January 2003, ‘Iraq: submission of 21 January’.
103 Minute DFID [junior official] to PS/Secretary of State [DFID], 31 January 2003, ‘Iraq: cost of
humanitarian relief/reconstruction and potential UK contribution’ attaching Paper [draft], ‘Iraq: Relief and
reconstruction: implications for UK Government’.
104 Minute Tanfield to PS/PUS [FCO], 3 February 2003, ‘Iraq Morning Meeting: Key Points’.
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