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The Report of the Iraq Inquiry
501.  The IPU paper’s broad assumption in favour of administration of a small sector
for a short period was reflected in the guidance for UK officials attending the US
inter‑agency Rock Drill on post-conflict issues on 21 and 22 February.213
502.  The guidance, agreed by Mr Ehrman and Lt Gen Pigott, was submitted to Ministers
on 20 February.214
503.  In the second half of February, Treasury officials expressed concern about
the resource implications of the UK taking on responsibility for a geographical
sector of Iraq.
504.  They advised that the “emerging politics” of post-conflict Iraq pointed
to a much longer and larger commitment than initial MOD estimates suggested.
505.  Papers by No.10 and the Treasury on the financing of post-conflict
reconstruction also emphasised the risk of a significantly higher cost to the UK
in the absence of a UN mandate.
506.  On 19 February, Treasury officials updated Mr Brown on post-conflict issues for
meetings with Mr John Snow, the US Secretary of the Treasury, and other G7 Finance
Ministers:
“Iraqi reconstruction may come up at this meeting. Even if Mr Snow does not raise it,
you may wish to. Our sense is that momentum on the issue is developing very fast,
and there is a risk that the financing agenda could be set by policy decisions taken
in Foreign and Defence Ministries. Sharing ideas with Mr Snow may be a useful way
to begin to redress this balance. An additional approach would be to write round
Whitehall colleagues sharing your concerns (for instance, about the economic and
financing implications of foreign and defence policy decisions).”215
507.  Officials attached a paper identifying three “pitfalls” on the path to achieving
Treasury objectives in Iraq (establishing prosperity and stability while sharing the
cost fairly):
UN cover. Without this, the UK would have to contribute more to the
reconstruction effort, IFIs would find it hard to engage, and the international
community would be unable to resolve crucial financing issues such as debt
rescheduling.
Being realistic about the decisions a transitional Iraqi government could take.
It could be illegitimate and destabilising for the transitional government to take
decisions on Iraqi economic policy.
213 Minute Chilcott to Private Secretary [FCO], 20 February 2003, ‘Iraq: Day-After (Phase IV)’ attaching
Paper [unattributed], ‘Iraq Day After: Guidance for Officials at US ROCK Drill’.
214 Minute Pollard to PS/Secretary of State [MOD], 20 February 2003, ‘Iraq: Day After’.
215 Minute [Treasury junior official] to Chancellor, 19 February 2003, ‘Update on Iraq’ attaching Paper
Country Economics and Policy Team, 19 February 2003, ‘Iraqi reconstruction: pitfalls and process’.
398
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