The Report of the Iraq Inquiry

651.  That list was produced by the IPU on 5 June and sent to Mr Blair the same day

under a covering minute from Mr Straw.384 The IPU list identified as a priority:

“Baghdad needs an extra 400 MW of power capacity now. Siemens UK can put

in 170 MW in a few weeks – all they need is a letter of intent. This seems to be

stuck in Washington.”

652.  Mr Straw highlighted that issue in his covering minute to Mr Blair, stating that

Ms Hewitt was keen for Mr Blair to lobby President Bush on behalf of Siemens

UK, whose bid had been stalled in Washington “by counter-lobbying from

GE [General Electric]”.385

653.  On the same day, Mr Straw sent a separate and personal letter to Mr Blair, asking

him to raise a number of points “very forcefully” with President Bush.386 Those included:

“Contracts: As you know, the US are completely ruthless on favouring US

companies, and will not help UK companies unless you play hardball with Bush.”

Mr Straw offered as an example of this behaviour a Bechtel subcontract for electricity

systems. Siemens UK had almost secured that contract, when it had “gone cold”.

654.  Mr Blair held a further meeting on Iraq on 6 June, to agree the points to put

to President Bush.387 The meeting agreed a number of key messages and actions,

including that Ms Hewitt should try to visit Iraq to promote the involvement of UK

business.

655.  Mr Blair spoke to President Bush later that day.388 Mr Blair raised delays

in Bechtel’s operations, including unnecessary delays in agreeing a contract for

Siemens UK. The US was chasing Bechtel.

656.  Ms Hewitt visited Iraq on 9 July, to ensure that British business expertise was

not overlooked in the reconstruction effort and to ensure that Iraqi women were being

properly involved in the political process.389

657.  Ms Hewitt reported to Mr Blair on 11 July that she had raised with Ambassador

Paul Bremer, the Head of the CPA, the UK’s concern about the way proposals for

subcontract work from Siemens UK and Balfour Beatty were being handled by Bechtel.

Ambassador Bremer had undertaken to look into the issue.

658.  During the visit, Ms Hewitt was joined by an IIWG “scoping mission” for discussions

with senior Iraqi officials and US members of the CPA’s economics team. Ms Hewitt

384 Letter Owen to Rycroft, 5 June 2003, ‘Iraq: Reconstruction Priorities’ attaching Paper IPU, 5 June 2003,

‘Iraq Reconstruction: 30 Day Priorities, 5 July 2003’.

385 Minute Straw to Blair, 5 June 2003, ‘Iraq: Winning the Peace’.

386 Minute Straw to Blair, 5 June 2003, ‘Iraq’.

387 Letter Cannon to McDonald, 6 June 2003, ‘Iraq: Prime Minister’s Meeting 6th June’.

388 Letter Cannon to McDonald, 6 June 2003, ‘Iraq: Prime Minister’s Conversation with Bush, 6 June’.

389 Minute Hewitt to Prime Minister, 11 July 2003, ‘Report of my Visit to Baghdad’.

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