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The Report of the Iraq Inquiry
funding that will … cover the costs of being an Occupying Power until other sources
are freed up”.14
49.  The Inquiry has seen no indications that any work was done to identify an alternative
source of funding. The UK’s assumption remained that the US/CPA should provide
funding for the South.
50.  Section 9.8 concludes that, from early July, security was seen in Whitehall as the
key concern. A circular analysis began to develop, in which progress on reconstruction
required security to be improved, and improved security required the consent generated
by reconstruction.
51.  Cabinet agreed on 3 July that the UK should make CPA(South) “a model”.15 What
that meant, and what resources might be required to realise it, was not specified or
recognised as an issue. It was ill‑advised to set ambitious objectives without any plan or
commitment of resources for meeting them.
52.  By 9 July, Sir Michael Jay had agreed with FCO officials that a British official should
replace Ambassador Olsen as Head of CPA(South), if he decided to resign.
53.  Ministers agreed the following day that the UK should offer to replace Ambassador
Olsen with a British official.
54.  Although the significant strategic, resource and reputational implications of such a
decision had been identified in March and April 2003, there are no indications that those
assessments were reviewed, or that any arrangements were to put in place to support a
British Head of CPA(South) and, more broadly, the UK’s leadership of CPA(South).
55.  Sir Hilary Synnott arrived in Basra on 30 July to take up post as Head of
CPA(South). Sir Hilary wrote in his memoir that his arrival, along with the British military
command of MND(SE), established “some sort of British Fiefdom” in the South, but one
which he saw as “still entirely dependent on American resources for its lifeblood”.16
56.  Sir Jeremy Greenstock, the Prime Minister’s Special Representative on Iraq from
September 2003 to March 2004, told the Inquiry that there was a “separation in the
American mind between the British area and the rest of Iraq, which was their area”.17
Sir Jeremy added that that separation was reflected in the US resources available for
the South: “The Americans said let the Brits look after Basra.”18
14 Annotated Agenda, 12 June 2003 Ad Hoc Group on Iraq Rehabilitation meeting attaching Paper
DFID/MOD, 11 June 2003, ‘UK Support to the CPA South Area – Next Steps’.
15  Cabinet Conclusions, 3 July 2003.
16  Synnott H. Bad Days in Basra: My Turbulent Time as Britain’s Man in Southern Iraq. I B Tauris & Co Ltd.,
2008.
17  Public hearing, 15 December 2009, page 94.
18  Private hearing, 26 May 2010, page 54.
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