10.3 | Reconstruction: oil, commercial interests, debt relief, asylum and stabilisation policy

were exceptionally well placed. The bidding process had been “fair but … pedantic

and complex”.

705. Mr O’Brien circulated a core script for a lobbying campaign targeting the US

Government to Mr Straw, Ms Hewitt, Mr Paul Boateng, the Chief Secretary to the

Treasury, Mr Hilary Benn, the International Development Secretary, and senior officials

on 9 February.415

706. The core script highlighted the strengths of UK industry and expressed the hope

that UK companies would be given the opportunity to display those strengths in the

reconstruction process.

707. In his covering note, Mr O’Brien stated that although UK companies had not

secured either of the oil sector contracts, they were winning other contracts, including

from the US Government. UK companies assessed that US procurement procedures

were “essentially fair” and were not critical of the UK Government’s support, but were

convinced that there was a window of opportunity to press the US. It was now vital that

UK Ministers ensured that their US interlocutors were “in no doubt about the political

importance we attach to UK firms being seen to contribute actively to the reconstruction

process”.

708. On 12 February, the AHMGIR received a final version of the UKTI paper on access

to US-funded reconstruction contracts.416 The paper stated that UK companies had

good access to most US-funded contracts, and recommended that the UK Government

should take a concerted approach to lobbying for US-funded contracts.

709. The final paper presented a significantly more positive picture of the UK’s

experience of, and potential for, accessing US-funded contracts than the draft paper

which had been prepared for the 22 January meeting of the AHMGIR.

710. Mr Straw wrote to US Secretary of State Colin Powell on 17 February, expressing

the UK’s disappointment that UK companies had not secured either of the oil

infrastructure rehabilitation contracts.417 Mr Straw hoped that UK companies would play

a significant role in Iraq’s reconstruction, and highlighting in general terms the capability

of UK companies.

711. Sir Nigel Sheinwald wrote to Dr Rice on 19 February, in similar terms.418

415 Minute O’Brien to Foreign Secretary, 9 February 2004, [untitled] attaching Paper, [undated], ‘UK Bids for

CPA Program Management Office Prime Contracts’.

416 Annotated Agenda, 12 February 2004, Ad Hoc Group on Iraq Rehabilitation meeting attaching Paper

UKTI, February 2004, ‘Access to US-Funded Reconstruction Contracts’.

417 Letter Straw to Powell, 17 February 2004, [untitled].

418 Letter Sheinwald to Rice, 19 February 2004, ‘Iraq: Contracts’.

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