US embassy cable - 03THEHAGUE2548

C O N F I D E N T I A L SECTION 01 OF 02 THE HAGUE 002548 
 
SIPDIS 
 
SENSITIVE 
 
EB FOR BILL GRANT 
 
E.O. 12958: DECL: 10/03/2008 
TAGS: ECON, EAID, EFIN, PREL, OTRA, IZ, NL 
SUBJECT: IRAQI DELEGATION VISIT TO THE HAGUE OCTOBER 3 
 
REF: STATE 280992 
 
Classified By: ECONOMIC COUNSELOR RICHARD HUFF.  REASONS 1.5(B) AND (D) 
. 
 
1.  (C) SUMMARY: AN OFFICIAL IRAQI DELEGATION HEADED BY 
PLANNING MINISTER HAFEDH MADE A BRIEF VISIT TO THE HAGUE 
OCTOBER 3 IN ADVANCE OF THE IRAQ DONORS' CONFERENCE.  WHILE 
NOT SECURING ANY SPECIFIC PLEDGES OF ADDITIONAL SUPPORT FROM 
THE "VERY CONSERVATIVE" DUTCH, THE TEAM REPORTED THAT THE 
VISIT HAD BEEN USEFUL IN ESTABLISHING CONTACTS WITH SENIOR 
DUTCH OFFICIALS.  THEY PROMISED TO FOLLOW UP WITH ADDITIONAL 
DATA FROM SPECIFIC SECTORS, SUCH AS WATER AND HEALTH, IN 
WHICH THE DUTCH COULD BE INTERESTED.  THE DUTCH REPORTEDLY 
EMPHASIZED THE ROLE OF THE PRIVATE SECTOR IN RECONSTRUCTION. 
END SUMMARY. 
 
2  (U) IRAQI PLANNING MINISTER MEHDI HAFEDH AND MFA OFFICIAL 
MOWAFAK ABBOUD OUTLINED IRAQ,S NEEDS FOR RECONSTRUCTION IN 
SEPARATE MEETINGS WITH DUTCH TRADE MINISTER KAREN VAN GENNIP 
AND MFA DEPUTY DIRGEN FOR POLITICAL AFFAIRS HERMAN SCHAPER IN 
AN ABBREVIATED OCTOBER 3 VISIT TO THE HAGUE.  WHILE AT THE 
ECONOMY MINISTRY, THE IRAQIS ALSO HAD A CHANCE TO TALK WITH 
REPRESENTATIVES FROM THE IRAQ TASK FORCE, AN UMBRELLA GROUP 
OF DUTCH BUSINESSES INTERESTED IN IRAQ RECONSTRUCTION.  THE 
IRAQIS WERE ACCOMPANIED BY TOM ALLEN FROM THE CPA/CIC. 
 
3. (C) IN A SHORT PRE-MEETING BRIEFING FOR THE TEAM AT THE 
AMSTERDAM AIRPORT, THE AMBASSADOR URGED THE DELEGATES TO 
EMPHASIZE IRAQ'S NEEDS AND TO ENGAGE THE DUTCH IN DISCUSSIONS 
OVER PARTICULAR SECTORS, SUCH AS WATER AND HEALTH, IN LIGHT 
OF THEIR REPEATEDLY EXPRESSED RELUCTANCE TO PROVIDE 
ADDITIONAL GENERAL-PURPOSE FINANCIAL AID.  HE ALSO EMPHASIZED 
THE ECONOMY MINISTRY'S INTEREST IN SECURING A GREATER ROLE 
FOR DUTCH INDUSTRY IN IRAQ'S RECONSTRUCTION PROGRAM AS 
ANOTHER SELLING POINT IN ENTICING THE GONL INTO BECOMING MORE 
ACTIVE IN IRAQ. 
 
4.  (C) FOLLOWING THE TEAM'S DISCUSSIONS WITH THE DUTCH, 
MINISTER HAFEDH REPORTED TO THE DCM AND EMBOFFS THAT HE HAD 
FOLLOWED THE AMBASSADOR'S ADVICE IN STRESSING PARTICULAR 
PROJECTS AND SECTORS.  ALTHOUGH THE MEETINGS HAD BEEN USEFUL, 
THE MINISTER SAID, THE DUTCH HAD BEEN VERY CONSERVATIVE IN 
MAKING ANY PLEDGES OF ADDITIONAL SUPPORT.  THE DUTCH HAD 
STRESSED THE VARIOUS FORMS OF SUPPORT AND ASSISTANCE THEY HAD 
ALREADY PROVIDED, FROM THE 1100 TROOPS ON THE GROUND TO 
POLICE TRAINING TO THE ROUGHLY 10 MILLION EURO DUTCH SHARE OF 
THE FORTHCOMING 200 MILLION EURO EU PLEDGE TO BE MADE AT 
MADRID.  THE DUTCH ALSO NOTED THEIR CURRENT ECONOMIC 
DIFFICULTIES AND THE TIGHT 2004 BUDGET RECENTLY PROPOSED TO 
THE PARLIAMENT AS FURTHER CONSTRAINTS. PER THE MINISTER, THE 
DUTCH SUGGESTED THAT SUPPORT FOR IRAQ MIGHT BE MORE 
APPROPRIATELY PROVIDED IN THE FORM OF LOANS, SUCH AS FROM THE 
IFIS, RATHER THAN AS GRANTS. 
 
5.  (C) DESPITE THE LACK OF SPECIFIC PLEDGES OF ADDITIONAL 
DUTCH SUPPORT, THE IRAQIS BELIEVED THAT THE VISIT HAD 
GENERATED SOME USEFUL ATMOSPHERICS, PARTICULARLY REGARDING 
PRIVATE SECTOR INVOLVEMENT IN IRAQ'S RECONSTRUCTION.  MR. 
ABBOUD FROM THE IRAQI MFA REPORTED THAT THE GROUP HAD 
STRESSED THAT THE IRAQIS WILL REMEMBER WHO WAS MOST HELPFUL 
IN THEIR CURRENT TIME OF NEED IN FUTURE BUSINESS DEALINGS. 
 
6. (U) THE DCM URGED THE IRAQIS TO FOLLOW UP DIRECTLY WITH 
THE RELEVANT DUTCH OFFICIALS RESPONSIBLE FOR PROVIDING 
OFFICIAL DEVELOPMENT ASSISTANCE AND STIMULATING BUSINESS 
DEVELOPMENT, AND PROMISED THE EMBASSY'S ASSISTANCE IN 
PROVIDING THE NAMES AND CONTACT INFORMATION FOR THESE 
INDIVIDUALS.  HE ALSO URGED THE TEAM TO CONTACT THE DUTCH 
CHARGE IN BAGHDAD FOR FURTHER ADVICE ON EXPANDING CONTACT 
WITH THE GONL.  HE SUGGESTED THAT IT COULD BE USEFUL TO TAKE 
THE INITIATIVE TO INVITE THESE OFFICIALS TO IRAQ AS A MEANS 
OF STIMULATING THEIR INTEREST.  MINISTER HAFEDH AGREED WITH 
THESE SUGGESTIONS. 
 
7.  (U) EMBOFFS ALSO SUGGESTED THAT DUTCH NGOS, WHICH ARE 
HEAVILY FUNDED BY THE GONL, COULD BE ANOTHER AVENUE FOR 
INCREASING DUTCH SUPPORT FOR IRAQ'S RECONSTRUCTION AND 
DEVELOPMENT.  THE GROUP WILL MEET WITH THE DUTCH NGO IKV ON 
OCTOBER 4 BEFORE ITS DEPARTURE FOR LONDON. 
8.  (U) THE IRAQI DELEGATION'S VISIT TO THE HAGUE WAS 
ORGANIZED BY THE DUTCH MFA; THE IRAQI EMBASSY TO THE 
NETHERLANDS IS CURRENTLY UNSTAFFED. TWO IRAQI DIPLOMATS HAVE 
BEEN ASSIGNED TO REOPEN THE POST, ONE OF WHOM IS READY TO 
TRAVEL PENDING THE ISSUANCE OF THE APPROPRIATE DUTCH VISA. 
UNFORTUNATELY, THE TEAM,S PROGRAM IN THE HAGUE WAS CUT SHORT 
BY A PROBLEM IN ISSUING THE GROUP,S AIR TICKETS FROM MADRID, 
WHICH FORCED A DELAY IN THEIR ARRIVAL AND A LAST-MINUTE 
REARRANGEMENT OF THE ORIGINAL DAY-LONG PROGRAM.  NONETHELESS, 
THE TEAM SUCCEEDED IN MEETING TWO SENIOR DUTCH OFFICIALS AND 
ESTABLISHING CONTACTS THAT COULD LEAD TO GREATER DUTCH 
INVOLVEMENT IN IRAQ'S RECONSTRUCTION. 
RUSSEL