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10.3  |  Reconstruction: oil, commercial interests, debt relief, asylum and stabilisation policy
777.  The Cabinet Office subsequently advised Mr Brown that between 25 and
30 companies had expressed a serious interest in exploring investment opportunities
in Iraq.466
778.  Mr Nick McInnes, Director of UKTI’s International Group, briefed UKTI colleagues
on 3 May 2008 on the growing pressure from the British Embassy Baghdad and the
MOD for a larger UKTI presence in Baghdad.467 Their arguments for that were:
the increased interest in Iraq from UK companies;
the likelihood that Mr Brown’s economic initiatives would stimulate further
interest; and
the possibility of sales of UK military equipment to Iraq.
779.  DFID advised members of the Iraq Strategy Group (ISG) on 8 May that several
companies that had attended the reception had expressed an interest in visiting Iraq.468
DFID was working with MOD to arrange this. DFID cautioned that there was still work
to be done to secure the correct conditions for inwards investment, and such investment
was unlikely to start flowing in the immediate future.
780.  UKTI and DFID officials met on 21 May, at DFID’s request, to discuss UKTI’s
interests in Iraq.469 Mr Paul Taylor, Head of the UKTI’s Middle East Department, reported
to Mr Andrew Cahn, UKTI Chief Executive, that DFID had said it would be difficult for
DFID to handle the “investment visits” which had emerged from Mr Brown’s 28 April
reception. DFID did not have the appropriate expertise and, more importantly, under the
International Development Act, it could not favour UK companies by providing them with
such support. DFID officials had asked UKTI to reinstate a UK Commercial Officer post
in Baghdad. Mr Taylor had said that UKTI was highly unlikely to be able to find funding
for such a post.
781.  Mr Taylor reported to Mr Cahn on 2 July that a DFID proposal to fund a UK
Commercial Officer post in Baghdad from the Stabilisation Aid Fund (SAF) had not
proved viable.470 The pressure remained on UKTI to increase its presence in Baghdad.
782.  In response, Mr Cahn stated his strong opposition to reinstating a UK-based
Commercial Officer post in Baghdad.471
783.  The 11 September meeting of the ISG, chaired by Mr Simon McDonald,
Mr Brown’s Foreign Policy Adviser, discussed the need for a UKTI presence in Iraq.472
466 Minute Cabinet Office [junior official] to Prime Minister, 30 April 2008, ‘Iraq: Meeting with Petraeus and
Crocker, 1 May 2008’.
467 Email McInnes to Haird, 3 May 2008, ‘Resourcing Commercial Work in Iraq’.
468 Letter DFID [junior official] to Cabinet Office [junior official], 8 May 2008, ‘Iraq Strategy Group, 28 April –
Response to DFID Action Points’.
469 Email Taylor to Cahn, 21 May 2008, ‘UKTI and Iraq: Meeting with DFID – 21 May 2008’.
470 Email Taylor to Cahn, 2 July 2008, ‘Resourcing Trade and Investment Work in Iraq’.
471 Email Cahn to Taylor, 4 July 2008, ‘Resourcing Trade and Investment in Iraq’.
472 Letter Lyon to McDonald, 15 September 2008, ‘Iraq Strategy Group, 11 September’.
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