10.2  |  Reconstruction: July 2004 to July 2009

• Agreed to establish and fund the Basra Development Fund, which would provide

investment and credit for small and medium sized enterprises.

• Begun work on an investment plan and budget to upgrade Basra International

Airport, using Iraqi funds, to meet international standards.

826.  At the national level, the Iraqi Government was establishing a National Investment

Commission and had announced its intention to set up a National Development Fund to

provide loans to small enterprises across the country.

827.  General Richard Dannatt, Chief of the General Staff, visited Baghdad and Basra

from 5 to 7 September.477 He reported that the situation in Basra was “tentatively quiet”.

There was probably only a very narrow window of opportunity to reinforce the success

that had been achieved on the ground; the emphasis had to shift away from the military

line of operation:

“… sustainability … will only be possible if we now begin to deliver some results

on the ground in terms of reconstruction and development. This effort cannot

be delivered by the Army – the FCO and DFID must now be prepared to rapidly

increase their overall effort, not draw it down …

“Perhaps it is even time to consider whether we should be pushing the FCO or DFID

into a more leading role?”

828.  Mr Brown and Mr Miliband, accompanied by ACM Stirrup and officials, met

General David Petraeus, Commanding General MNF-I, and US Ambassador Ryan

Crocker478 on 18 September.479 The discussion focused on PIC in Basra.

829.  Mr Brown said that economic development of the South remained a major UK

priority. Gen Petraeus said there were a number of initiatives on which the UK should

engage, including the clearance of Basra port.

830.  At the end of the discussion, Mr Brown highlighted three areas for follow up:

• further discussion, including with the Iraqis, of the timeframe for Basra PIC;

• an enhanced UK effort on economic development, including the Basra port; and

• further US/UK discussion of long-term force requirements.

831.  Mr Brown visited Iraq on 2 October.480 The objectives for the trip were to underline:

• the UK’s commitment to Iraq;

• the importance of building on progress on security by making a decision soon

to transfer to PIC in Basra;

477  Minute Dannatt to CDS, 10 September 2007, ‘CGS Visit to Iraq 5-7 Oct’.

478  Ambassador Crocker took up post as the US Ambassador to Iraq in March 2007.

479  Letter Fletcher to Gould, 18 September 2007, ‘Prime Minister’s Meeting with General Petraeus and

Ambassador Ryan Crocker, 18 September’.

480  Letter Fletcher to Forber, 3 October 2007, ‘Prime Minister’s Visit to Iraq, 2 October’.

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