US embassy cable - 05WARSAW2846

C O N F I D E N T I A L WARSAW 002846 
 
SIPDIS 
 
STATE FOR EUR/NCE TARA ERATH AND MICHAEL SESSUMS 
STATE FOR NEA/I SHANE STRYZINSKI 
STATE FOR EB/OMA RUSSEL FRISBIE AND TIM FORSYTH 
PARIS FOR OTTO VAN MAERSSEN 
TREASURY FOR OASIA MATTHEW GAERTNER 
USDOC FOR 4232/ITA/MAC/EUR/JBURGESS 
 
E.O. 12958: DECL: 07/14/2015 
TAGS: EAID, ECON, EFIN, PREL, IZ, JO, PL, Iraq Debt Forgiveness, Iraq Contracts 
SUBJECT: POLAND: IRAQI DEBT FORGIVENESS AND PARTICIPATION 
IN THE DEAD SEA DONORS MEETING 
 
REF: A. SECSTATE 127710 
 
     B. WARSAW 2593 
     C. WARSAW 0339 
     D. BAGHDAD 2938 
 
Classified By: CDA Mary Curtin, reasons 1.4 (b) and (d) 
 
1. (C)  Summary.  The head of the Polish MFA's Iraq Task Team 
relayed that Poland's Embassy in Amman will most likely 
represent Poland at the upcoming Donors' Meeting at the Dead 
Sea, and that Poland is not planning on committing any funds 
to Iraq reconstruction in the immediate future, but is 
concentrating on assisting Iraq through its deployed forces 
and trainers.  Poland has not yet decided on a specific 
course of action with regards to Iraqi debt but expects to 
discuss the issue in Baghdad during PM Belka's upcoming trip. 
 The GOP will also use Belka's trip to push Iraq for 
commercial contracts in the oil sector.  End summary. 
 
2. (C) The head of the Polish MFA's Iraq Task Team, 
Mieczyslaw Stepinski, said that Poland is not currently 
planning on sending a delegation from Warsaw to the Dead Sea 
Donors' Meeting from July 18-19.  Instead, the Polish 
Ambassador to Jordan or another Embassy official will likely 
represent Poland at the conference.  Stepinski said that as 
Poland is not a donor country and is not in a position to 
consider donating reconstruction funds to Iraq, it would not 
make sense to send a Warsaw delegation for only one day of 
meetings.  Stepinski expressed a general willingness to 
support Iraq in any appropriate way in establishing an 
Iraqi-led donor coordination mechanism in Baghdad and looked 
forward to hearing more on that subject. 
 
3. (C) Stepinski said that the primary issue the Polish 
government is currently discussing with regards to Iraq 
assistance is Iraqi debt relief.  Poland currently holds 
$735.6 million in Iraqi debt, and is exploring at what level 
it might forgive that debt.  Stepinski said that the Polish 
Minister of Finance, Miroslaw Gronicki, is currently 
developing Poland's talking points on Iraq debt for PM 
Belka's trip to Baghdad later this month. (NOTE: The Iraqi 
Ambassador told econoff on July 1 that the ITG is likely to 
raise Iraqi debt during its meetings with Belka in Baghdad.) 
 
4. (C) Stepinski was not bullish on the likelihood of Poland 
forgiving Iraqi debt in the near future.  With the current 
election season rapidly approaching, Stepinski did not think 
the GOP would publicly broach what could be a politically 
sensitive issue in the coming months. 
 
5. (C) Stepinski also related that the Polish government is 
still keenly interested in seeing Polish companies win 
Iraq-related contracts.  Stepinski described the Polish 
business community involved in Iraq as a formidable lobbying 
block that continues to engage the Polish government on 
various levels to press for contracts in Iraq. 
 
6. (C) Stepinski said that the government views the oil 
sector as the best source of significant commercial deals for 
Polish companies.  Specifically, Stepinski said that Belka's 
delegation will raise the tender for the rehabilitation of 
the Subba oil field.  According to Stepinski, the GOP 
believes it is "due" a significant oil contract and will seek 
to make good on a perceived promise from former Iraqi PM 
Allawi for a contract to rehabilitate the Subba oil field. 
Several Polish businessmen will accompany Belka to Baghdad, 
including a representative of the Polish Chamber of Commerce. 
 
CURTIN