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The Report of the Iraq Inquiry
49.  Managing a joint occupation of such size and complexity effectively and coherently
required regular formal and informal discussion and clear decision-making at all levels,
both between capitals and in-country. Once attempts to agree an MOU had failed, the
chances of constructing such mechanisms were slim.
50.  In the absence of an MOU with the US, the UK’s influence in Baghdad depended
heavily on the personal impact of successive Special Representatives and British
Ambassadors to Iraq and the relationships they were able to build with senior
US figures.
51.  Some instances of important CPA decisions in which the UK played little or no
formal part were:
The decision to issue CPA Order No.2, which “dissolved” (or disbanded)
a number of military and other security entities that had operated as part of
Saddam Hussein’s regime, including the armed forces (see Section 12). This was
raised informally by Ambassador Bremer in his first meeting with Mr John
Sawers, Mr Blair’s Special Representative on Iraq, who – unbriefed – did not at
that point take a contrary position. The concept of creating a new army had also
been raised by Mr Walt Slocombe, CPA Senior Adviser on National Security and
Defense, in discussion with Mr Hoon. Dissolution was a key decision which was
to have a significant effect on the alienation of the Sunni community and the
development of an insurgency in Iraq, and the terms and timing of this important
Order should have been approved by both Washington and London.
Decisions on how to spend the Development Fund for Iraq, which resolution
1483 gave the CPA the power to make. CPA Regulation No.2 subsequently
vested Ambassador Bremer with control of the Fund, effectively placing it
under US control. This exacerbated concerns about the under-resourcing
of CPA(South) as expressed in Mr Straw’s letter to Mr Blair of 5 June 2003
(see Section 10.1).
The creation of the Iraqi Central Bank as an independent body in July 2003
(see Sections 9.2 and 10.1). This came as a surprise to the UK despite the
close involvement of officials from the Treasury in arrangements for Iraq’s new
currency and budget.
The creation of a new Iraqi Central Criminal Court (see Section 9.2), the
announcement of which UK officials could not delay for long enough to
enable the Attorney General to give his view on its legality under the terms
of resolution 1483.
Production of the CPA’s ‘Vision for Iraq’ and ‘Achieving the Vision’ (see
Sections 9.2 and 10.1). Mr Sawers alerted the FCO to the first document on
6 July when it was already at an advanced stage of drafting, and by 18 July it
had been signed off by the Pentagon. No formal UK approval was sought for
a document which was intended to provide strategic direction to the Coalition’s
non-military effort in Iraq.
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