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10.2  |  Reconstruction: July 2004 to July 2009
933.  Dr Turner also advised that the UK would need to redouble its effort on the
economy:
“Presentationally, the US effort risks overshadowing UK economic initiatives. The
likelihood is that the US will focus on quick impact projects … Funding will come
from the US military (up to US$70m) and the Government of Iraq (US$100m or
more).
“We will need to ensure our projects are co-ordinated and complementary.
Experience over the past five years in such [quick impact] projects is that they
provide short-term benefits, but are often not sustainable. DFID’s view remains that
economic recovery will require … a resolution to address the deep-seated problems
in the Basra economy and the building of sustainable Iraqi institutions … Our
message to the US will need to be that such work takes time.”
934.  In his weekly report of 17 April, Maj Gen White-Spunner advised that MND(SE)
continued to focus on drawing as much US and Iraqi resource into Basra as possible in
order to take advantage of the “unexpected but very welcome changes” that the Charge
of the Knights had brought.547
935.  A DFID official provided a briefing for Mr Alexander on the impact of the Charge of
the Knights on 18 April.548 Street-life in Basra was “noticeably more confident”, with pop
music and alcohol on sale. Dr al-Safi had set up a committee to review project proposals
from the Provincial Council, the Governor and local Sheikhs, but had said that he did not
want proposals from the coalition. He was determined that the Iraqi Government should
be seen to be in charge and favoured quick impact projects focused on infrastructure,
implemented through line ministries and tribal leaders. On the US side, “large numbers”
of people were flowing into the US CMOC.
936.  The major risk for the UK Government remained that the Provincial Government
would be undermined by the decision to channel funding through line ministries,
tribal leaders and NGOs. The UK continued to engage with the US and Dr al-Safi to
emphasise the advantages of engaging with the Provincial Government, the Provincial
Council and the PRT, rather than creating parallel systems.
937.  Mr McDonald told the 28 April meeting of the ISG that: “It was now clear that there
was a shared UK/US operation in the South, and that we would need to decide on their
tasks and the division of labour.” 549 The UK needed to focus on its remaining political,
economic and military tasks. The first two required provincial elections to take place,
and tangible outcomes from the work of Mr Wareing and the BDC.
547  Minute White-Spunner to CJO, 17 April 2008, ‘GOC MND(SE) Weekly Letter – 17 April 2008’.
548  Minute DFID [junior official] to Private Secretary [DFID], 18 April 2008, ‘Information Note: Latest
Consequences of Iraqi Operations in Basra’.
549  Minute Cabinet Office [junior official] to McDonald, 28 April 2008, ‘Iraq Strategy Group, 28 April’.
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