10.3 |
Reconstruction: oil, commercial interests, debt relief, asylum and
stabilisation policy
528.
Mr Gordon
Brown became Prime Minister on 26 June 2007.
529.
Before
Mr Brown’s final visit to Iraq as Chancellor of the Exchequer
in June
2007, he
commissioned advice on how the UK could increase support for
economic
development
and reconstruction in Iraq and, in particular, in
Basra.302
530.
The Treasury
advised that greater security and political solutions were key
to
stability,
but needed to be complemented by a focus on priority economic
problems.303
There were
three priorities to boost economic growth:
•
maintaining
macroeconomic stability;
•
improving
the efficiency and effectiveness of the public sector;
and
•
expanding
and improving the efficiency of the oil industry. That
required:
{{a
political agreement on a Hydrocarbons Law;
{{better
security, to facilitate a significant increase in investment
(including
foreign
investment); and
{{an
integrated energy strategy for investment and reform, to ensure
that
the
development of the sector delivered visible improvements in
electricity
supply to
drive private sector recovery.
531.
The
negotiating process for a Hydrocarbons Law should be allowed to
“run its
course”, to
minimise technical ambiguities and force all parties to address
difficult
political
issues. The UK was “working to bring in” the World Bank to assist
Iraq in
developing
and implementing an integrated energy strategy.
532.
Mr Brown
wrote to Prime Minister Maliki on 29 July, setting out some
suggestions
for how the
UK could help on initiatives to develop the Iraqi
economy.304
Those
included:
“Working
with the World Bank, we are ready to help you develop an
integrated
energy
strategy, outlining investments and reforms in oil, gas and
electricity sectors.”
533.
Prime Minister
Maliki replied on 7 October, welcoming the UK’s interest
in
supporting
private sector development in Iraq.305
In relation
to oil, Iraq would welcome
UK help on
infrastructure repairs, installation development and the
development of an
integrated
energy strategy.
534.
Mr Brown
met Prime Minister Maliki in the UK on 3 January
2008.306
Mr Brown
said
that he
wanted to see rapid progress on the Hydrocarbons Law and local
elections.
302
Email
Bowler to Pillay and FCO [junior official], 12 May 2007, ‘Iraq –
Latest Situation/Economic
Development’.
303
Paper
Pillay, 24 May 2007, ‘Economic Aspects of Stability in
Iraq’.
304
Letter
Brown to Maliki, 29 July 2007, [untitled].
305
Letter
Maliki to Brown, 7 October 2007, [untitled].
306
Letter
Fletcher to Carver, 3 January 2008, ‘Prime Minister’s Bilateral
with Prime Minister of Iraq,
3
January’.
453