US embassy cable - 05BAGHDAD2374

UNCLAS BAGHDAD 002374 
 
SIPDIS 
 
SENSITIVE 
 
USDA FOR FAS/OA/ESTERPSTRA, 
FAS/FAA/CALEXANDER/JDEVER 
FAS/EX/MMCAMBLISS, 
FAS/ITP, 
CMP/G&F/PLETARTE, LBACHELDER, DWILLIAMS 
FAS/IRAQ TASK FORCE/LASCHATZ 
 
E.O 12958: NONE 
TAGS: EAGR, ETRD, PREL, IZ, ECON Development 
SUBJECT: LATEST FROM IRAQ'S MINISTER OF TRADE ON THE PDS. 
 
 
THIS CABLE CONTAINS SENSITIVE BUT UNCLASSIFIED INFORMATION - 
FOR GOVERNMENT USE ONLY - NOT FOR DISTRIBUTION ON THE 
INTERNET. 
 
1. (SBU) In a June 1 meeting with IRMO reps Minister of 
Trade Abd' al-Bassit Kareem informed us that he does not 
expect new wheat, sugar or rice imports into Iraq for the 
Public Distribution (food ration) System (PDS) until mid- 
July.  According to the Minister, US wheat, including a 
shipment from Cargill continues to offload in Tartous, Syria 
and is being distributed throughout Iraq.  He also informed 
us that on May 31 he was interviewed by Al Arabiya 
television and informed the audience that new procedures are 
being developed by the Ministry that should allow PDS food 
supplies to flow more regularly in July. 
 
2. (SBU) The Minister also developed and proposed new 
contracting procedures for the Ministry and submitted them 
to the Cabinet.  He believes these will be approved in the 
coming week.  Minister Kareem agreed to share the new 
procedures with us once they are approved.  Wheat, sugar and 
rice tenders are currently being finalized for the PDS. 
Minister Kareem will limit these tenders to well-established 
international suppliers and consortia, sticking to a vow he 
made during our initial meetings with him. (septel) 
 
3. (SBU) In addition to expecting a two-week timeline for 
bids to come in for the Ministry's tender, Minister Kareem 
is meeting twice weekly with the Ministry of Finance (MOF) 
to ensure funding for the anticipated tenders.  In addition 
to the current tenders, he continues to work closely with 
the MOF to line up funding for an additional 2 to 5 months 
worth of PDS requirements.  His intention is to build 
reserves, funding permitting. 
 
4. (SBU) In addition to PDS issues, the Minister continues 
to worry about security:  both his own and that of the new 
Ministry compound.  IRMO is working to address his concerns. 
A new MOT satellite office within the International Zone 
should be ready for occupancy in the next weeks, providing a 
more secure location for the Minister to meet with USG 
representatives. 
 
Satterfield