10.2 |
Reconstruction: July 2004 to July 2009
1035.
The draft
strategy stated that much of DFID’s work in Basra would come to
a
“natural
conclusion” by mid-2009. DFID would respond to changing conditions
on the
ground, but
anticipated “drawing down from Basra” by that date. It would
continue to
provide
some support to programmes through the Basra Support Office in
Baghdad.
DFID
resources for Iraq would reduce from £25m in the current financial
year (2008/09)
to £20m in
2009/10 and £10m in 2010/11.
1036.
The
Stabilisation Aid Fund (SAF) and the FCO’s Peace-Keeping Budget
(PKB)
were
essential sources of funding for UK programmes in Iraq. There was
unlikely to be
any PKB
funding for Iraq in 2009/10. MOD, DFID and FCO officials were
reprioritising
the £15m
SAF allocation for Iraq for 2009/10, to support “initiatives which
support key
Prime
Ministerial deliverables” and the Rule of Law.
1037.
Mr Alistair
Darling, Chancellor of the Exchequer, Mr John Hutton, the
Defence
Secretary,
and Mr Alexander confirmed their agreement to the
strategy.609
1038.
Mr Donal
Brown informed the 4 February meeting of the ISG that the US
would
take over
the Basra PRT on 31 March.610
The US had
agreed to retain programmes that
were
important to UK objectives.
1039.
On 9 February,
Mr Brown’s Assistant Private Secretary told the
Private
Secretaries
to Mr Miliband and Lord Mandelson that Mr Brown had
endorsed
the
strategy, which was consistent with the approach described to
Parliament on
1040.
Mr Brown
remained “keen to ensure maximum savings as we move to a
normal
bilateral
relationship”, but agreed that:
“… the UK
will retain an important strategic interest in the emergence of a
stable and
prosperous
Iraq, able to contribute to regional stability and global energy
security;
and that we
will have important bilateral interests in Iraq which need to be
secured
and
promoted …
“In
particular, the Prime Minister continues to believe that improving
trade and
investment
in Iraq is key both to consolidating the security gains that have
been
made, and
ensuring UK investors are able to benefit from the opportunities
in
Iraq … We
also need to ensure that investors in Basra continue to be
supported
as our
military hands over to US.”
1041.
A planned
visit by Prime Minister Maliki to the Invest Iraq Conference in
London
at the end
of April would be “an important milestone for showcasing progress
in the
transition
to a new relationship with Iraq”.
609
Letter
Jordan to Hickey, 26 January 2009, ‘Iraq Strategy’; Letter Ferguson
to Catsaras,
29 January
2009, ‘Iraq: Strategy’; Letter Wright to Catsaras, 5 February 2009,
‘Iraq Strategy’.
610
Record, 4
February 2009, Iraq Strategy Group meeting.
611
Letter
Catsaras to Hickey and Abel, 9 February 2009, ‘Iraq
Strategy’.
365