US embassy cable - 05BAGHDAD3426

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Identifier:	05BAGHDAD3426
Wikileaks:	View 05BAGHDAD3426 at Wikileaks.org
Origin:	Embassy Baghdad
Created:	2005-08-20 14:48:00
Classification:	CONFIDENTIAL
Tags:	PGOV KDEM PREL IZ National Assembly
Redacted:	This cable was not redacted by Wikileaks.

C O N F I D E N T I A L BAGHDAD 003426 
 
SIPDIS 
 
E.O. 12958: DECL: 08/20/2015 
TAGS: PGOV, KDEM, PREL, IZ, National Assembly 
SUBJECT: AUGUST 20 MORNING UPDATE ON CONSTITUTIONAL DRAFTING 
 
REF: BAGHDAD 3424 
 
Classified By: DCM David M. Satterfield for reasons 1.4 (b) and (d) 
 
1.  (C) As noted in reftel, the key issue remaining for 
Shia-Kurd resolution is management of oil/gas resources and 
handling of associated revenues.  Morning of August 20, 
Ambassador Khalilzad presented revised language to SCIRI 
leader Hakim, who then reviewed the text with UIA leadership. 
 VP Abdel Mehdi subsequently informed Ambassador of UIA 
agreement on the following text: 
 
"Natural resources are the property of all the people of Iraq 
in all regions and governorates. 
 
The federal government with the producing governorates and 
regional governments shall undertake the management of oil 
and gas extracted from current fields and distribute the 
income in a fair manner in proportion to the population 
distribution in all parts of the country with a set allotment 
in a set time for damaged regions that were deprived in a 
biased manner by the former regime - and in a way that 
assures balanced development in different areas of the 
country, and this will be stipulated by law. 
 
The federal government with the regional and governorates 
governments shall draft the necessary strategic policy to 
develop oil and gas in a way that achieves the highest 
interests of the Iraqi people based upon the best market 
principles and to encourage investment." 
 
Ambassador is now with KDP leader Barzani to review the above 
language and seek concurrence. 
 
2.  (C)  Next steps:  Obtaining Shia-Kurd closure on the 
resources issue is essential to moving forward on closing the 
entire constitution text.  If Barzani balks, we believe the 
moment will have arrived for maximum and immediate Washington 
pressure to be brought to bear upon him.  If he concurs on 
the closing issue, then we will move ahead today on editing 
the full constitution text - a procedure agreed to by Hakim. 
Khalilzad