US embassy cable - 05BAGHDAD3976

C O N F I D E N T I A L BAGHDAD 003976 
 
SIPDIS 
 
E.O. 12958: DECL: 09/24/2015 
TAGS: PREL, PGOV, KDEM, ECON, EFIN, ETRD, IZ 
SUBJECT: VP ADEL ABD AL-MAHDI UPBEAT WITH CODEL STEARNS 
 
Classified By: Political Counselor Robert S. Ford for Reasons 
 1.4 (b) and (d) 
 
1.  (SBU) VP Adel Abd al-Mahdi told CODEL Stearns September 
24 that he expects the referendum to pass without problems. 
He added that the U.S. had facilitated the negotiations but 
it was an Iraqi product.  In the end, it was the best that 
could be produced, he said, even if he was not entirely happy 
with it.  Several Codel members promptly responded that if 
none of the Iraqi negotiators was entirely happy with it the 
draft constitution was probably a reasonable political deal. 
 
 
Election Security 
----------------- 
 
2.  (C) Asked whether Iraq would need more troops to 
safeguard the election process, Abd al-Mahdi doubted they 
would be needed.  He cautioned that ultimately this question 
would be a decision for MNF-I CG Casey.  Abd al-Mahdi noted 
that he lives in the Red Zone and many other government 
officials do so, including most members of the National 
Assembly.  Abd al-Mahdi said that he personally thought the 
situation in much of the country was far better than the 
media coverage would suggest.  Moreover, Iraqi security 
forces are improving steadily. 
 
Iraq,s Economy Improves 
----------------------- 
 
3. (SBU) Abd al-Mahdi said he perceived the economic 
situation was slowly improving, especially for small 
business.  He stressed that trade has tremendously helped the 
local economy.  Iraq's currency remains stable, he observed, 
and although he was not satisfied with Iraq,s stock market, 
he thought it would develop in time.  Abd al-Mahdi's Senior 
Advisor Zuhair Humadi reported that the GOI is contemplating 
the establishment of a think tank to address banking, 
investment and commercial legislation tailored to Iraq,s 
needs.  Both Abd al-Mahdi and Humadi underlined that the 
banking system is an enormous obstacle to private sector 
development.  Even here, the VP noted, there is progress as 
he pulled out an Iraqi-bank issued Visa card. 
Khalilzad