10.3 |
Reconstruction: oil, commercial interests, debt relief, asylum and
stabilisation policy
850.
The Treasury
told the Inquiry that it has no record of Mr Brown responding
to that
851.
Paris Club
creditors agreed on 21 November to reduce Iraq’s official debt
by
80
percent.522
The deal
would be delivered in three stages: 30 percent
immediately;
30 percent
on approval of a standard IMF programme; and 20 percent on
completion
of the
standard IMF programme. The deal would write off US$31.1bn of the
US$38.9bn
owed to
Paris Club creditors. The Iraqi Government committed to seek
comparable
treatment
from its non-Paris Club creditors.
852.
The UK’s share
of that write-off was approximately US$1.39bn,523
or
£954m
(£337m in
UK financial year 2004/05, £337m in UK financial year 2005/06 and
£280m
in UK
financial year 2008/09).524
The entire
amount was charged to the ECGD.
853.
A Treasury
briefing for Mr Brown stated that the deal represented an
important
success for
the international community, demonstrating an ability to act
together on an
issue as
divisive as Iraq.525
854.
The Treasury
told the Inquiry that the agreement followed intense
negotiations
between G7
officials and Ministers, including between Mr Brown, Secretary
Snow and
Mr Nicolas
Sarkozy, the French Minister of Finance.526
The deal
had been finalised in a
meeting
between Secretary Snow and Mr Hans Eichel, the German Minister
of Finance.
855.
The Treasury
told the Inquiry that it has no records of the discussions
between
Mr Brown
and Mr Snow and Mr Sarkozy.527
856.
The US wrote
off 100 percent of Iraq’s debt, totalling US$4.1bn, on
857.
In November
2006, Mr Brown was asked by Dr Barham Salih, Iraqi
Deputy
Prime
Minister, to provide 100 percent debt relief for
Iraq.529
Mr Brown
responded
by
highlighting the aid that the UK was already providing and his
discussions with
counterparts
in the Gulf states and the EU on supporting Iraq.
521
Email
Treasury [junior official] to Iraq Inquiry [junior official], 17
April 2014, ‘Further Queries Relating
to Resources’.
522
Paris Club,
Press Communiqué, 21 November 2004, Restructuring
the Iraqi debt – Agreement between
the Paris
Club and Iraq.
523
Briefing
Treasury, [undated], ‘Brief: Meeting with Barham Saleh, Deputy
Prime Minister of Iraq’.
524
Letter
Cabinet Office [junior official] to Aldred, 13 September 2011,
‘Iraq Inquiry: Request for Further
Information
on Funding’.
525
Briefing
Treasury, [undated], ‘Brief: Meeting with Barham Saleh, Deputy
Prime Minister of Iraq’.
526
Paper
Treasury, 2010, ‘Iraq Briefing – Debt’.
527
Email
Treasury [junior official] to Iraq Inquiry [junior official], 22
April 2014, ‘Further Queries Relating
to Resources’.
528
Congressional
Research Service, Report for Congress, 11 March 2005,
Iraq: Debt
Relief.
529
Record,
[undated], ‘Chancellor’s Visit to Basra: 18/11/06’.
501