US embassy cable - 05OTTAWA1776

C O N F I D E N T I A L OTTAWA 001776 
 
SIPDIS 
 
E.O. 12958: DECL: 06/07/2013 
TAGS: IZ, PREL, PGOV, EAID, EIND, ECON, CA 
SUBJECT: DEMARCHE: DELIVERABLES FOR THE US-EU INTERNATIONAL 
CONFERENCE ON IRAQ 
 
REF: A. A BAGHDAD 2179 (MICHAEL BELL ON DONOR 
 
        COORDINATION) 
     B. B 04 OTTAWA 888 
     C. C 04 OTTAWA 545 
     D. D SECSTATE 103222 
 
Classified By: DCM John Dickson, reasons 1.4 (b) (d) 
 
1. (C) Charge delivered reftel talking points to Deputy 
Minister of Foreign Affairs Peter Harder June 7 and Poloff 
followed up with FAC Deputy Director for the Middle East Ann 
Flanagan-Whalen June 8.  We were told that it is not clear 
whether Minister Pettigrew will be attending the Brussels 
meeting due to the still volatile political situation in 
Ottawa.  (Note: the current session of Parliament ends on 
June 23 and there is still an off chance that the government 
could be subject to a no-confidence motion in which every 
vote would count.  End Note). 
 
2. (C) Charge stressed to Harder the importance of the 
Brussels Conference as a tangible show of support for the 
Interim Iraqi Government, and thanked Canada for all it has 
done to coordinate donors and support Iraqi reconstruction. 
Asked if Canada would consider additional funding pledges, 
Flanagan-Whalen said no decision has been made, but Canada 
would stress the previous pledges it has made and encourage 
other donors to do likewise.  She said she would discuss with 
her CIDA colleagues the possibility of doing more in the 
areas of rule of law, human rights, justice reform, and 
de-mining as we suggest. 
 
Frozen Iraqi Assets 
 
3. (SBU) Separately, Econoff discussed the question of the 
$80,000 in frozen Iraqi assets (refs B & C).  As of October 
19, 2004, Canadian financial institutions that froze Iraqi 
assets in compliance with the UN resolution must report to 
the GOC the amount of assets frozen.  The assets must then be 
transferred to the Development Fund for Iraq in compliance 
with UNSCR 1483.  The GOC confirmed that one financial 
institution reported frozen assets and has transferred them 
to the DFI.  The other one that was known to be holding Iraqi 
assets has not yet filed a report and GOC regulators are 
following up with that institution to confirm that compliance 
officers are aware of the regulation. 
 
4. (SBU) Should we learn of further assets that have not been 
transferred, the GOC will follow up with financial 
institutions to confirm that they comply with the 
regulations.  The link to the United Nations Iraq Regulations 
in the Canada Gazette (the equivalent of the Federal 
Register) is 
http://canadagazette.gc.ca/partII/2004/200411 03/html/sor221-e. 
 
Visit Canada's Classified Web Site at 
http://www.state.sgov.gov/p/wha/ottawa 
 
DICKSON