The Report
of the Iraq Inquiry
he did
not see how, politically, the Coalition could retain control over
Iraq’s oil revenues
402.
Section 9.2
describes the further deterioration in the security situation in
Iraq from
late March.
Attacks on oil infrastructure increased.
403.
Mr Rycroft
sent 19 “unvarnished accounts” of the situation in Iraq,
including
one from
Mr Dominic Asquith, Deputy Chief Commissioner in the CPA, on
oil sector
development,
to Mr Blair on 23 April.217
404.
Mr Asquith
reported that oil production was rising ahead of schedule, but
future
capacity
was threatened by an early, mistaken focus on repair rather than
modernisation
and
development.218
Oil
production had reached an average of 2.3m bpd by the end
of
2003,
against a target of 2.0m bpd.
405.
Mr Asquith
also reported that discussions between the Ministry of Oil and the
CPA
on raising
gasoline prices continued, with the Ministry avoiding any
commitment on
a politically
contentious issue. Discussions on restructuring the oil industry
“remained
mired in
politics”. There were persistent but unconfirmed allegations of
corruption in
both the
State Oil and Marketing Organisation and the Ministry. Ambassador
Bremer
had
recently appointed a new Inspector General to the Ministry, but
after transition his
capacity to
monitor financial flows would be tested. International oil
companies were
watching
carefully, but wanted to see greater security and a stable
regulatory and
investment
environment before investing.
406.
On 24 May,
Mr Bob Morgan, an adviser to the Iraqi Ministry of Oil
employed by the
FCO, and
his bodyguard Mr Mark Carman were killed in
Baghdad.219
407.
The Security
Council adopted resolution 1546 (2004) on 8 June.220
Section
9.2
describes
the negotiation and content of the resolution. The
resolution:
•
endorsed
the formation of a sovereign Interim Government of Iraq which
would
assume full
responsibility and authority by 30 June 2004 for governing
Iraq,
“while
refraining from taking any actions affecting Iraq’s destiny beyond
the
limited
interim period until an elected Transitional Government of Iraq
assumes
office
…”
•
reaffirmed
the right of the Iraqi people freely to determine their own
political
future and
to exercise full authority and control over their financial and
natural
resources;
and
216
Minute
Drummond to DFID [junior official], 24 March 2004, ‘Iraq
Visit’.
217
Minute
Rycroft to Blair, 23 April 2004, ‘15 Reports on Iraq’.
218
Telegram
183 IraqRep to FCO London, 21 April 2004, ‘Iraq: Oil Sector
Development’.
219
Minutes, 25
May 2004, Iraq Senior Officials Group meeting; BBC
News, 26 May
2004, Oil Expert
Killed
in Iraq ‘felt
safe’.
220
UN Security
Council resolution 1546
(2004).
432