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10.3  |  Reconstruction: oil, commercial interests, debt relief, asylum and stabilisation policy
“So our view of how this should be managed, accounted for, was different to the US
view and there was a lot of discussion around the drafting of the resolution, and just
how the resources would feed into the CPA and who would have control over them.”
Oil policy under the Coalition Provisional Authority
289.  Ambassador Paul Bremer III arrived in Baghdad on 12 May, to lead the CPA.
290.  The names ORHA and CPA continued to be used interchangeably in documents
seen by the Inquiry for some time after the creation of the CPA.
291.  From late May, Ministers received reports that the CPA was not consulting the UK
on policy issues in the oil sector.
292.  The Annotated Agenda for the 22 May meeting of the AHMGIR stated that the US
was driving decisions on the management of the oil sector.152 The Iraqi Ministry of Oil
was “run by” a US-appointed Interim Management Team, headed by an Iraqi official.
That official was “effectively steered by” an Oil Advisory Board (OAB) chaired by an
American (though the majority of Board members were Iraqis). The OAB planned a
strategic review of the oil sector; the UK hoped that the recent arrival in the CPA of a
DTI oil expert would increase its knowledge of CPA plans for the sector.
293.  Ms Hewitt’s briefing for the AHMGIR set out the problem more explicitly.153
The UK had had considerable difficulty in getting hold of the OAB’s terms of reference,
and was not therefore able to establish whether it was legally constituted. A UK national
was being sounded out to sit on the OAB. That could bring a different perspective and
help encourage a transparent oil sector policy, but those advantages needed to be
weighed against the legal uncertainties surrounding the OAB and the presentational
issues of a more visible UK role in managing Iraq’s oil.
294.  The Annotated Agenda also stated that TPUK’s ability to promote Iraq to UK oil
companies was constrained by “political sensitivities and lack of ground knowledge”.154
UK oil companies would only deal with a “legally acceptable authority” and remained to
be convinced that one was in place:
“But most of this will change if there is a new UN resolution,155 and we are reaching
the stage where we and UK companies must engage or lose out. We are therefore
beginning to encourage UK companies to become more closely involved in the oil
sector in the same way as they are in other areas of rehabilitation.”
152 Annotated Agenda, 22 May 2003, Ad Hoc Group on Iraq Rehabilitation meeting.
153 Minute Briggs to PS/Mrs Hewitt, 21 May 2003, ‘Sixth Meeting of Ad Hoc Ministerial Group on Iraq
Rehabilitation: 22 May 2003’.
154 Annotated Agenda, 22 May 2003, Ad Hoc Group on Iraq Rehabilitation meeting.
155 A reference to resolution 1483 (2003), which was adopted that day.
417
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