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10.2  |  Reconstruction: July 2004 to July 2009
895.  The ISG discussed a further draft strategy for Iraq on 14 February.525 Mr McDonald
again emphasised that Mr Brown was focused on achieving economic effect in 2008,
and that the UK should make every effort to do so in the limited time available.
896.  On 18 February, Lt Gen Rollo reported that Gen Petraeus had asked to see
Mr Wareing during his upcoming visit to Iraq.526 The meeting would be a useful
opportunity to explain how the BDC would deliver on “what Petraeus sees as a British
commitment to kick-start the economy of the South”. Gen Petraeus believed that
campaign success in Iraq depended on the regeneration of the country’s economy.
897.  Lt Gen Rollo assessed that the UK could do more to support Mr Wareing and,
by extension, economic development in the South. This included establishing a Basra
Development Office in Baghdad “to leverage US and Iraqi initiatives and work to remove
the many legal and political obstacles to investment in Basra”.
898.  Mr Wareing made his first visit to Basra on 18 and 19 February, to participate in the
first meeting of the BDC.527 Maj Gen White-Spunner described the visit as “excellent”:
Mr Wareing had met Governor Waili and had had a genuine exchange of views with his
Iraqi colleagues at the BDC and key opinion formers. The BDC had agreed to produce
a Basra Economic Development Strategy by June 2008, with the aim of stimulating the
economy and fostering private sector development.
899.  Mr Wareing was unable to travel to Baghdad to meet Gen Petraeus because of
bad weather.528
900.  Section 9.6 describes the deteriorating security situation in Basra from the end
of January, and the development by the Iraqi Government of plans to confront militias
in Basra.
901.  Mr Alexander agreed on 20 February to increase DFID’s security headcount
limit (the number of staff allowed in post at any one time) from seven to nine for Basra
and from five to six for Baghdad.529 The new post in Baghdad would have specific
responsibility for facilitating the Basra economic initiatives. A DFID official advised that
the increase:
“… should be characterised as organising ourselves to give the Basra economic
initiatives the best chance of delivering in the shortest timeframe. It is not a ‘surge’
but nor is it business as usual.”
525  Minute Cabinet Office [junior official] to McDonald, 15 February 2008, ‘Iraq Strategy Group,
14 February’.
526  Minute Rollo to CDS, 18 February 2008, ‘SBMR-I’s Weekly Report (288) 17 Feb 08’.
527  Letter White-Spunner to CJO, 21 February 2008, ‘GOC MND(SE) Weekly Letter – 21 February 2008’.
528  Manuscript comment on Letter White-Spunner to CJO, 21 February 2008, ‘GOC MND(SE) Weekly
Letter – 21 February 2008’.
529  Minute DFID [junior official] to PS/Secretary of State [DFID], 20 February 2008, ‘Iraq: Delivering the
Basra Economic Initiatives’.
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