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9.1  |  March to 22 May 2003
117.  Mr Rycroft had opened the talks by describing common ground between the UK
and the US, including the principle that the UN should have a role and that a further
resolution would be sought. It was too early to discuss negotiating tactics.
118.  Mr Cannon reported that the US delegation had said that a resolution was
politically and diplomatically useful and legally beneficial, but not absolutely necessary.
The US delegation was clear that it did not want the UN’s role to include being in charge
of establishing the IIA.
119.  UK officials explained that, without a resolution, they had legal difficulties with
making changes to Iraqi institutions; the US legal interpretation was different.
120.  The US delegation proposed that Iraqi oil revenues should be under the
supervision of ORHA (if necessary with a “double-signature” arrangement with the IIA).
Treasury officials in the US delegation said that the UN should not manage
Iraq’s budget.
121.  Mr Cannon reported that on balance UK officials found the US approach
reassuring; although there were policy differences in a number of important areas, there
were also signs of flexibility.
122.  On 4 April, Mr Rycroft wrote an account of the talks for Mr Blair in which he judged:
“There remain differences between us and much still to do, but it was moderately
encouraging.”56 The main differences between the US and UK were:
the legal interpretation of how much the Coalition could do, through ORHA,
as an Occupying Power;
how to set up the IIA;
the UN’s relationship with the IIA; and
negotiating tactics – the US preferred to “aim high at this stage and water
down our text only later”.
123.  Mr Straw told the Ad Hoc Meeting on Iraq on 4 April that he felt renewed optimism
about achieving a UN framework for Phase IV activity in Iraq, following a meeting of
NATO and EU Foreign Ministers:
“He had registered with these colleagues that domestic politics and expectations
had been changed by the fact of having British troops in Iraq. The reality was that
the Coalition would have to retain some control in the wake of conflict, but the United
Nations should also be involved.”57
56  Minute Rycroft to Prime Minister, 4 April 2003, ‘Future of Iraq’.
57  Minutes, 4 April 2003, Ad Hoc Meeting on Iraq.
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