US embassy cable - 05MUSCAT400

C O N F I D E N T I A L MUSCAT 000400 
 
SIPDIS 
 
STATE FOR EB/ODF (RDEMARCELLUS), NEA, NEA/I/A, NEA/ARPI 
 
E.O. 12958: DECL: 03/08/2015 
TAGS: EAID, ECON, EFIN, IZ, MU, International Relations 
SUBJECT: RECONSTRUCTION DISBURSEMENTS TO IRAQ 
 
REF: A. SECSTATE 36580 
     B. 04 MUSCAT 1645 
 
Classified By: Ambassador Richard L. Baltimore III. 
Reason: 1.4 (b, d). 
 
1. (SBU) On March 6, the Ambassador called on Foreign 
Ministry Under Secretary Sayyid Badr bin Hamed al-Busaidi to 
deliver reftel demarche seeking a status report on Oman's 
pledge to Iraq's reconstruction.  Sayyid Badr recalled that 
Oman had initially pledged USD 3 million at the 2003 Madrid 
Conference, but subsequently upped its offer to USD 5 
million.  He understood that Oman was to make its 
contribution to "the UN fund," but promised to report back to 
us the status of the disbursement.  He asked if we could 
provide specific instructions on how to deposit the Omani 
contribution if it had not already been done.  Sayyid Badr 
questioned what difference Oman's modest contribution could 
make when stacked against the enormous USG commitment, to 
which the Ambassador replied that every bit of help was 
appreciated. 
 
2. (C) On March 7, the Under Secretary's political advisor 
contacted Pol/E Chief to report that Oman indeed has not yet 
deposited its pledged assistance.  He said that, in line with 
recent comments by the Foreign Minister to the Ambassador, 
Oman is awaiting the post-election formation of a new Iraqi 
government before disbursing its assistance.  P/E Chief 
pushed back, recalling that similar benchmarks in Iraq's 
transition had been identified by the Omani government 
without follow-through on its pledge.  Further stages, such 
as a referendum to approve a new constitution followed by 
another round of elections, are always on Iraq's horizon but 
critical assistance requirements cannot be postponed.  The 
MFA official agreed that the January 30 elections were an 
exceptional achievement for Iraqi democracy, and that Oman 
would carry out its assistance pledge as soon as there was a 
government formed in Baghdad, which he expects in the very 
near future. 
BALTIMORE