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

763. The paper stated that staffing in London had been reduced as the number of

enquiries from companies had declined, and staffing overseas would be kept under

constant review; UKTI needed to retain the flexibility to move quickly to support UK

companies as security improved.

764. The slowdown in reconstruction in Iraq had severely hampered UKTI’s ability

“to play a useful role in the Whitehall process, and reduced our need to be involved”.

765. The paper concluded:

“UK business is now a strong player in post-conflict Iraq. We have met high

Ministerial and business expectations and avoided a US dominance …”

766. Sir Stephen agreed the paper.455

767. The UK Commercial Officer post in Basra was cut in 2006 because of the security

situation and UKTI’s desire to free up resources for emerging markets.456

768. The remaining UK Commercial Officer post in Baghdad was cut in July 2007.457

A UKTI official commented:

“UKTI has retained a UK-based presence in Baghdad (and previously Basra) until

now because of the political imperatives of doing so rather than on the basis of the

normal criteria relating to business demand … The on-going security situation raises

serious questions about whether retaining the UK-based … slot can be justified.

The resource is also very expensive – some £560,000 in cash terms … which could

be deployed more productively in other markets.”

769. From July 2007, the UK Commercial Section in the British Embassy Baghdad

comprised one junior Iraqi Commercial Officer supported by a UKTI officer based in

Amman, Jordan.458

770. Mr Gordon Brown succeeded Mr Tony Blair as Prime Minister in June 2007.

Section 10.2 describes the development and implementation from July 2007 of

Mr Brown’s economic initiatives for Iraq, which included measures to facilitate private

sector investment in Basra and across Iraq.

771. The British Embassy Baghdad reported to UKTI in September 2007 that the new

arrangement (of one junior Iraqi Commercial Officer supported by UK staff based in

Amman, Jordan) was not working.459 The lack of a senior Commercial Officer meant that

455 Minute Lusty to Fletcher, 5 November 2004, ‘Iraq Unit’ attaching Paper UKTI Iraq Unit, October 2004,

‘Iraq: Next Steps’.

456 Minute McInnes to PS/McCarthney, 20 June 2007, ‘UKTI Resources in Baghdad’.

457 Minute McInnes to PS/McCarthney, 20 June 2007, ‘UKTI Resources in Baghdad’.

458 Email Lodge to McInnes, 2 September 2007, ‘Baghdad – Resourcing Commercial Work in Iraq’.

459 Email Lodge to McInnes, 2 September 2007, ‘Baghdad – Resourcing Commercial Work in Iraq’.

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