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9.7  |  May 2008 to October 2009
and Kurdish communities. Pressure on the Iraqi budget by the low price of oil will
increase factional competition over allocation of resources …
“III. Government mishandling of Sons of Iraq Sunni auxiliaries would present a
serious risk of a return to a large-scale Sunni insurgency. This is unlikely during
2009.
“IV. The threat from Al Qaida in Iraq has reduced significantly. It will continue to
exploit ethnic and sectarian tensions and will remain capable of sporadic high
profile attacks for the foreseeable future, but lacks sufficient support from the Sunni
community or a sufficiently volatile sectarian environment to pose a strategic threat
in 2009.
“V. The Sadrist threat has declined. But Sadrists are likely to cause some instability
through their criminal activities and intimidation of Shia communities, particularly if
they fail to achieve political representation. Some Iranian-backed Shia militants see
attacks on withdrawing US forces as an opportunity to claim a victory but coalition
and Iraqi forces will be able to prevent them from derailing the withdrawal plans.”
339.  On 31 January, provincial elections were held across Iraq.133 The BBC reported
that there was “virtually no violence at all” on polling day.
February 2009
340.  On 9 February, Mr Brown’s Assistant Private Secretary told the Private Secretaries
of Mr Miliband and Lord Mandelson that Mr Brown had endorsed the strategy, which was
consistent with the approach described to Parliament on 18 December.134 Mr Brown had
“welcomed the recent provisional [sic] elections and discussed with Gen Petraeus the
good progress with military drawdown planning”. Mr Brown was reported to be “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.”
341.  The Assistant Private Secretary wrote that a planned visit by Prime Minister
Maliki to an Investor Conference in London at the end of April would be “an important
133 BBC News, 6 February 2009, UN hails Iraq election result.
134 Letter Catsaras to Hickey, 9 February 2009, ‘Iraq Strategy’.
437
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