10.2 | Reconstruction: July 2004 to July 2009

750. A DFID official advised Mr Benn that that commitment, added to the

£544m pledged at the Madrid Donors Conference in October 2003 and the

£100m announced by Mr Brown in November 2006 (when it had been thought the

launch of the Compact was imminent), brought the UK’s total “Iraq reconstruction

pledge” to £744m.427 £660m of that had already been spent and £730m was forecast

to be spent by the end of 2008. The pledge therefore required only very modest

expenditure on Iraq between the end of 2008 and 2012 (the end of the Compact period).

The International Compact with Iraq was formally launched by Prime Minister Maliki and

UN Secretary-General Ban Ki-moon on 3 May 2007.428

Preparatory work on the Compact began in early 2006. The UK hoped that the Compact

would draw in international support (with the UN and World Bank at the centre) to help

Iraq deliver its National Development Strategy.429 Delivery of residual Madrid Donor

Conference pledges and non-Paris Club debt relief would complement the Compact.

The UK progressively lowered its expectations. Mr McDonald reported to ISOG on

3 November 2006 that there was a “clash of objectives”, with Iraq asking for funding and

the international community requesting “evidence of progress”.430 ISOG agreed the UK

should focus its effort on the period after the launch, to ensure “robust implementation”.

Later that month, a DFID official advised Mr Benn that the Compact was likely to have

“very little developmental value”.431 It did not reflect Iraq’s slide into sectarian conflict, and

Iraqi ownership of and commitment to reform was limited.

Deputy Prime Minister Barham Salih discussed the launch of the Compact with

Sir Nigel Sheinwald on 12 April 2007.432 Mr Salih requested the “UK’s leadership” in urging

Europe to commit resources to Iraq over the next four to five years. Sir Nigel agreed.

Mr Salih also asked the UK to lobby European partners to agree to write off 100 percent

of Iraqi debt.

Mr Blair was advised the following day that departments were considering what more

the UK and other European countries could do, but that encouraging investment in the

current security climate and in the absence of progress on the reconciliation agenda

would be difficult.433

751. Mr Blair announced on 10 May that he was standing down as Leader of the Labour

Party and would be resigning as Prime Minister on 27 June.434

427 Minute Winterton to Private Secretary [DFID], 27 April 2007, ‘Iraq: Compact launch and UK statement’.

428 United Nations, 27 April 2007, Fact Sheet on the International Compact with Iraq.

429 Minute Asquith to Private Secretary [FCO], 24 May 2006, ‘Iraq: DOP-I: 24 May’.

430 Minute Cabinet Office [junior official] to Sheinwald, 6 November 2006, ‘Iraq Senior Officials Group’.

431 Minute DFID [junior official] to Private Secretary [DFID], 13 November 2006, ‘Iraq: briefing’ attaching

Paper DFID, November 2006, ‘Iraq: International Compact’.

432 Letter No.10 [junior official] to Hickey, 12 April 2007, ‘Iraq: Nigel Sheinwald’s conversation with Barham

Saleh, 12 April’.

433 Minute No.10 [junior official] to Prime Minister, 13 April 2007, ‘Iraq Update, 13 April’.

434 BBC News, 10 May 2007, Blair will stand down on 27 June.

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