US embassy cable - 05BAGHDAD2348

S E C R E T SECTION 01 OF 03 BAGHDAD 002348 
 
SIPDIS 
 
NOFORN 
 
E.O. 12958: DECL: 06/01/05 
TAGS: PGOV, PHUM, PINR, ECON, IZ, National Assembly 
SUBJECT: DEPUTY SECRETARY COVERS POLITICAL PROCESS, 
ECONOMICS AND SECTARIAN VIOLENCE IN MAY 19 MEETING WITH 
DEPUTY PRIME MINISTER ROWSCH SHAWAYS 
 
Classified By: Classfied by David M. Satterfield, Charge d'Affaires, fo 
 
r reasons 1.4 (b) and (d). 
 
1. (S/NF) SUMMARY: Deputy Prime Minister (DPM) Rowsch Shaways 
told Deputy Secretary May 19 that the schedule for 
development of a new constitution outlined in the 
Transitional Administrative Law (TAL) must be kept.  He also 
said the Committee should include members from outside the 
Transitional National Assembly (TNA) to ensure adequate Sunni 
representation and prevent a potential boycott of the 
constitution.  Shaways said Iraq needs a free market economy, 
more investment, and a free pricing system.  Shaways said the 
Council of Judges should develop a security system for 
judges.  Shaways said the Government must take a unified 
stand, along with Shia and Sunni religious leaders, against 
sectarian violence, which is often attributed - without 
evidence - to the Badr Corps.  The Deputy Secretary 
reiterated USG support to Iraqi Security Forces, but 
emphasized the responsibility of the Iraqi people for the 
future of their country.  END SUMMARY. 
 
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CONSTITUTIONAL DEVELOPMENT 
-------------------------- 
 
2. (S/NF) Deputy Secretary met with Deputy Prime Minister 
(DPM) Rowsch Shaways on May 19 to discuss political and 
economic issues, as well as the recent increase in sectarian 
violence.  The Deputy Secretary asked Shaways about the 
progress of constitutional development and how the public is 
being engaged in the process.  He noted the disquieting 
uncertainty about when the Constitutional Committee will 
begin its work.  Shaways said the need to meet the TAL 
deadlines must be balanced against the need for Sunni 
participation in the process.  Shaways accepted the need to 
include &real Sunnis8 and said the key was to include 
Sunnis who are believers in democracy and federalism - not 
the rejectionists.  Shaways also said the constitutional 
development process should be "consensus-driven" and not 
based on voting by Committee members. 
 
3. (S/NF) Shaways added he does not agree with the 
Transitional National Assembly's (TNA) insistence on having 
only Assembly members as participants on the Constitutional 
Committee because it precludes adequate Sunni participation 
given their insignificant representation in the TNA. 
Individuals from outside the TNA should be part of the 
process, said Shaways, insisting that such expanded 
participation would not result in a substantially different 
constitution.  Instead, he said, it would provide the 
mechanism for "buy-in" by Sunnis and other minorities.  He 
added that a lack of such expanded participation could well 
result in a boycott of the new constitution. 
 
4. (S/NF) The DPM also mentioned the idea of developing a 
committee comprising governmental representatives that would 
participate in the constitution drafting process.  He said it 
was a good step, but not sufficient.  Shaways went on to 
complain that the Government's work was slowed by a tendency 
to work only through certain ministerial committees that have 
been set up to address broad subject areas, such as security 
or civil society issues.  He insisted that this model would 
not work because the committees are too large and there are 
too many of them to be effective.  It is important, said 
Shaways, for the Government to focus on its priorities. 
 
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ECONOMIC DEVELOPMENT 
-------------------- 
 
5. (C) Deputy Secretary noted the many upcoming events in 
June, including the International Monetary Fund Article IV 
consultations and the Brussels conference at the end of the 
month.  He said the ITG must have a clear set of its 
priorities - particularly for the Brussels conference - with 
respect to economic development such as agriculture and 
private sector development.  Specific suggestions as to how 
the international community can be more helpful would help to 
better focus assistance. 
 
6. (C) Shaways said Iraq needs a free market economy, adding 
that investment must be encouraged.  Currently, the security 
situation precludes investment in many areas, he noted, and 
this must be addressed to support investment - either through 
the Government or private sector.  Another priority, Shaways 
indicated, is the implementation of a free pricing system - 
and he specifically pointed to the need for market fuel 
pricing.  He said these issues must be worked through the 
Council of Ministers. 
 
7. (C) The Deputy Secretary concurred with DPM Shaways' views 
on pricing, especially with respect to fuel.  The current 
pricing policy, he said, brings with it all the wrong 
incentives, resulting in the misuse of electricity and fuel. 
He pointed out that a great deal of natural gas, which could 
be used for fuel for power plants, is currently burned 
because there is no way to capture it.  The Deputy Secretary 
re-emphasized the need for the ITG to develop its priorities 
for better policy making.  The elections, he said, gave a 
whole new face to Iraq and the international community 
definitely wants to assist.  However, it needs a single focal 
point in the ITG to facilitate better support. 
 
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THE JUDICIARY 
------------- 
 
8. (C) Shaways briefly discussed the judiciary, noting that 
most judges in Iraq are former Ba'athists and alleging that 
Saddam,s regime forced all judges to be involved in the 
execution of opposition figures (thereby tainting the 
judges).  He said that, until there is a new generation of 
judges, it would be difficult to find "clean" judges or those 
who are unafraid of bringing judgments.  Shaways did note 
that there are some good judges at the Federal level and said 
the most important duty of the Council of Judges is to 
reconstruct the security system for judges.  Conceding that a 
100-percent solution is not likely, the DPM said even a 
50-percent solution would be acceptable. 
 
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SECTARIAN VIOLENCE 
------------------ 
 
9. (C) In response to Deputy Secretary's question about the 
recent increase in sectarian violence, Shaways suggested 
several possibilities for who is perpetrating it and why.  He 
noted the routine accusations - although without credible 
evidence - against the Badr Corps.  He said the Government 
must use the "Maghawir" (Ministry of Interior commandos) to 
counter the violence and clearly state its position.  A clear 
statement of ITG policy, he said, would go "a long way" to 
stopping the violence.  He also said that contact must be 
made with the Shia religious leaders, specifically Grand 
Ayatollah Ali al-Sistani, to secure their assistance.  The 
DPM also said there would always be a tendency for Sunni 
Ba'athists and radicals to try to incite sectarian violence. 
 
10. (C) The Deputy Secretary agreed that a comprehensive 
government approach to insurgency and violence is key to 
Iraq's continued progress.  He told DPM Shaways that part of 
the Government's job is to set the core values and morality 
of the country.  It now has the opportunity to make unified 
statements to the public - combined with statements by both 
Shia and Sunni religious leaders - to emphasize that the 
violence is not part of its vision for Iraq and terrorists 
such as Zarqawi are nothing but murderers.  He also suggested 
that the ITG encourage others in the Islamic world to make 
similar statements to reinforce this sense of unity against 
sectarian violence.  The Deputy Secretary told Shaways that 
the Kurds could help to bring the Shia and Sunni together on 
this issue. 
 
11. (S/NF) Shaways said both the Sunni and the Shia are 
pulling Iraq in a direction that is inconsistent with 
democracy and indicated that support by Coalition Forces 
remains necessary.  Noting that the Coalition's mandate 
pursuant to UNSCR 1546 would end after the elections 
scheduled for the end of the year, the Deputy Secretary 
reassured the DPM that the USG would continue to work with 
Iraqi Security Forces to prepare them for fully taking over 
Iraq's security.  He emphasized the need to continue to 
assess the situation but emphasized "we are in this for 
success."  Ultimately, he said, it is up to Iraqis to guide 
their country to its ultimate goal, hence the importance of 
addressing the problem of sectarian violence. 
 
12. (U) REO HILLAH, REO BASRAH, REO MOSUL, and REO KIRKUK, 
Minimize considered. 
Jeffrey