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The Report of the Iraq Inquiry
311.  The “Key Judgements” in the February Assessment included:
“I. The threat from Al Qaida will increase at the onset of any military action against
Iraq. They will target Coalition forces and other Western interests in the Middle
East. Attacks against Western interests elsewhere are also likely, especially in
the US and UK for maximum impact. The worldwide threat from other Islamist
terrorist groups and individuals will increase significantly.
III. Al Qaida associated terrorists in Iraq and in the Kurdish Autonomous Zone
in Northern Iraq could conduct attacks against Coalition forces and interests
during, or in the aftermath of, war with Iraq.”
312.  An updated Assessment, produced on 12 March, judged that: “Senior Al Qaida
associated terrorists may have established sleeper cells in Iraq, to be activated during
a Coalition occupation.”154
313.  Treasury briefing for Mr Brown on 11 February warned of the possibility
of substantial pressure on the UK to make a disproportionate contribution to
post‑conflict Iraq.
314.  On 11 February, Treasury officials invited Mr Brown’s views on their “preliminary
thinking” on the Treasury’s interests in a post-Saddam Hussein Iraq.155 The paper
drew on earlier Treasury work in September 2002 on the implications of war in Iraq
for the global, regional and Iraqi economies.156 Officials advised that the Treasury’s
main interest was to ensure Iraq’s prosperity and stability while sharing fairly the cost
of achieving that outcome. The cost was difficult to predict but “potentially massive”.
It comprised:
peacekeeping costs; the peacekeeping force in Yugoslavia had numbered
40,000 at its peak, with the cost to the UK of the Kosovo Force (KFOR) reaching
£325m in 1999/2000. Iraq would probably need more troops, given its ethnic and
religious tensions, the likelihood of score-settling and its sheer size;
humanitarian expenditure;
environmental costs arising, for example, from the use of WMD or oil fires;
“general reconstruction”, which could cost between US$1.5bn and US$8bn a
year (including humanitarian costs); and
economic stabilisation, through an IMF programme.
154 JIC Assessment, 12 March 2003, ‘International Terrorism: War with Iraq: Update’.
155 Minute Treasury [junior official] to Chancellor, 11 February 2003, ‘HMT policy on post-Saddam Iraq’
attaching Paper CEP/HMT, [undated], ‘What should HMT policy be on post-war Iraq?’
156 Email [Treasury junior official] to Bowman, 6 September 2002, ‘What would be the economic impact of a
war in Iraq?’ attaching Paper HMT, September 2002, ‘What would be the economic impact of war in Iraq?’
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