US embassy cable - 03ROME2349

C O N F I D E N T I A L SECTION 01 OF 02 ROME 002349 
 
SIPDIS 
 
FODAG 
 
STATE FOR PRM A/S DEWEY, IO A/S HOLMES, EUR/NE, EUR/WE, 
                       CONFIDENTIAL 
 
PAGE 02        ROME  02349  01 OF 02  281028Z 
SA/INS, IO/EDA FOR SETH WINNICK 
USDA/FAS FOR U/S PENN, MCHAMBLISS, RTILSWORTH AND LPANASUK 
USAID FOR ADMINISTRATOR NATSIOS, AA/DCHA WINTER, 
D/DCHA/OFDA BMCCONNELL, D/DCHA/FFP LANDIS 
JOINT STAFF FOR JE/J4/J5 
NSC FOR JDOWRKEN 
 
E.O. 12958: DECL: 05/27/2013 
TAGS: AORC, EAID, EAID, IZ, EAGRTR, FAO, WFP, IZAORC, EAGRTR, FAO, WFP 
SUBJECT: TFIZ01: FAO AWAITING GUIDANCE ON ROLE IN 
AGRICULTURAL REHABILITATION OF IRAQ 
 
REF: ROME 2102 
 
CLASSIFIED BY: DEPUTY CHIEF OF MISSION LUCY TAMLYN 
 
1.  (SBU) SUMMARY.  USDA/FAS DEPUTY ADMINISTRATOR MARY 
CHAMBLISS AND BABETTE GAINOR, FAS/EXPORT CREDITS, ACCOMPANIED 
BY MISSION OFFICERS KATIE NISHIURA AND TIM LAVELLE, CALLED 
UPON LAURENT THOMAS, CHIEF, SPECIAL EMERGENCY PROGRAMMES 
SERVICE, FAO, TO DISCUSS FAO'S ACTIVITIES IN IRAQ. THOMAS 
SAID THE LIFTING OF SANCTIONS WAS VERY GOOD NEWS, BUT FAO IS 
AWAITING GUIDANCE FROM NEW YORK ON THE UN'S ROLE IN 
REHABILITATION OF THE COUNTRY.  THE FUTURE OF OIL FOR FOOD 
REMAINS A SOURCE OF UNCERTAINTY FOR CONTINUED FAO ACTIVITIES. 
 THOMAS PROMISED TO SHARE SHORTLY FAO'S DRAFT THREE-YEAR PLAN 
FOR AGRICULTURAL DEVELOPMENT IN NORTHERN IRAQ. CHAMBLISS 
RECOMMENDED THAT THOMAS FOLLOW UP WITH A VISIT TO WASHINGTON 
DURING THE WEEK OF JUNE 9.  END SUMMARY. 
 
2.  (SBU) THOMAS PROVIDED CHAMBLISS AN OVERVIEW OF FAO'S 
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PAGE 03        ROME  02349  01 OF 02  281028Z 
LONGSTANDING PROGRAM IN IRAQ, MUCH AS DESCRIBED IN REFTEL, 
AND NOTED RECENT DEVELOPMENTS AFFECTING FAO OPERATIONS. 
REGARDING UNSCR 1483.  THOMAS SAID THE LIFTING OF SANCTIONS 
WAS VERY GOOD NEWS.  IN ADDITION, HE BELIEVED THE REFERENCE 
TO "HEALTH" IN THE RESOLUTION ALLOWS FAO TO PROCEED WITH 
VITAL ANIMAL HEALTH ACTIVITIES.  HOWEVER, AS A GENERAL 
MATTER, FAO IS AWAITING GUIDANCE FROM NEW YORK ON THE UN'S 
ROLE IN THE REHABILITATION OF THE COUNTRY, AND HAS PUT ON 
HOLD FOR THE TIME BEING REVIEW AND RENEGOTIATION OF EXISTING 
CONTRACTS.  LIKEWISE, THE FUTURE OF OIL FOR FOOD (OFF), WHICH 
HAS BEEN THE MAJOR SOURCE OF FUNDS FOR FAO, REMAINS A SOURCE 
OF UNCERTAINTY, ALTHOUGH THOMAS SEEMED TO BELIEVE THAT OFF 
WOULD CONTINUE TO SUPPORT SOME FAO PRIORITIES.  THOMAS 
INDICATED THAT FAO IS PREPARING ITS SUBMISSION FOR THE 
REVISED UN APPEAL TO BE ISSUED IN LATE JUNE, TAKING INTO 
ACCOUNT NEWLY IDENTIFIED NEEDS AND WITHDRAWING REQUESTS THAT 
ARE NO LONGER APPROPRIATE (I.E., THE TIME FOR IMPLEMENTATION 
HAS PASSED). 
 
3.  (C) THOMAS ALSO REPORTED THAT FAO HAS BEEN REQUESTED TO 
FACILITATE PURCHASE OF UP TO 500,000 METRIC TONS (MT) OF 
LOCALLY PRODUCED BARLEY AT $65/MT, AN UNPRECEDENTED ACTIVITY 
FOR FAO.  WHILE, ACCORDING TO THOMAS, THE MINISTRY OF TRADE 
WILL BE THE BUYER OF THE BARLEY AND WILL IN TURN SELL IT FOR 
ANIMAL FEED, FAO WILL ORGANIZE THE TRANSACTIONS, INCLUDING 
THE DISBURSEMENT OF FUNDS.  AT THIS POINT, THOMAS EXPECTS 
THESE TRANSACTIONS TO BE CARRIED OUT THROUGH THE BANKING 
SYSTEM.  HOWEVER, FAILING THAT, MAJOR SECURITY CONCERNS 
EMERGE FOR FAO PERSONNEL, WHO WOULD BE CALLED UPON TO HAND 
CARRY THE NECESSARY FUNDS UNDER ARMED GUARD.  (NOTE:  WFP HAS 
BEEN ASKED, ACCORDING TO THOMAS, TO PURCHASE 1 MILLION MT OFF 
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WHEAT AT $105/MT.  THOMAS INDICATED THAT DISEASE PROBLEMS MAY 
MAKE SOME OF THE CROP UNFIT FOR HUMAN CONSUMPTION, WHICH 
WOULD POSE A DILEMMA FOR WFP.) 
 
4.  (SBU) THOMAS RAISED THE SUBJECT OF FAO'S DRAFT THREE-YEAR 
PLAN FOR AGRICULTURAL DEVELOPMENT IN NORTHERN IRAQ, PROMISING 
TO TRANSMIT IT TO MISSION OFFICERS LATER THIS WEEK.  HE 
EXPLAINED THAT TYPICALLY FAO DEVELOPS SUCH PLANS IN 
CONSULTATION WITH THE COUNTRY'S GOVERNMENT, BUT SINCE THAT 
WAS NOT THE CASE HERE, THE DOCUMENT IS A "FINAL DRAFT." 
THOMAS FURTHER PROMISED THAT FAO WOULD MAKE AVAILABLE TO THE 
UNITED STATES IN COMING WEEKS "DESK WORKS" OR REPORTS 
COVERING THE STATE OF AGRICULTURE IN THE CENTRAL AND SOUTHERN 
PORTIONS OF IRAQ.  CHAMBLISS WELCOMED THE PLAN AS A POINT OF 
DEPARTURE FOR AN FAO-USG DIALOGUE ON FUTURE AGRICULTURAL 
DEVELOPMENT IN IRAQ AND FAO'S EVOLVING ROLE THERE.  SHE 
RECOMMENDED THAT THOMAS TRAVEL TO WASHINGTON DURING THE WEEK 
OF JUNE 9, WHICH WOULD ALLOW AGENCIES TIME TO REVIEW THE 
PLAN.  SHE ALSO RECOMMENDED THAT THOMAS MEET WITH DAN 
AMSTUTZ, RECENTLY NAMED ADVISOR TO THE MINISTRY OF 
AGRICULTURE, PRIOR TO AMSTUTZ' DEPARTURE FOR BAGHDAD IN 
MID-JUNE. 
 
                       CONFIDENTIAL 
 
                           CONFIDENTIAL     PTQ5370 
 
PAGE 01        ROME  02349  02 OF 02  281028Z 
ACTION SS-00 
 
INFO  LOG-00   NP-00    AGRE-00  AID-00   AMAD-00  CIAE-00  INL-00 
      SRPP-00  EAP-00   EB-00    EUR-00   OIGO-00  FDRE-01  VC-00 
      TEDE-00  INR-00   IO-00    VCE-00   NEA-00   NSAE-00  NSCE-00 
      OES-00   OIC-02   IRM-00   SSO-00   SA-00    PRM-00   DRL-01 
      SAS-00     /004W 
                  ------------------6BBA59  281028Z /38 
P 281028Z MAY 03 
FM AMEMBASSY ROME 
TO SECSTATE WASHDC PRIORITY 0128 
INFO AMEMBASSY AMMAN PRIORITY 
AMEMBASSY ANKARA PRIORITY 
AMEMBASSY CANBERRA PRIORITY 
AMEMBASSY KUWAIT PRIORITY 
AMEMBASSY NICOSIA PRIORITY 
USCINCEUR VAIHINGEN GE PRIORITY 
US CUSTOMS WASHDC PRIORITY 
USEU BRUSSELS PRIORITY 3249 
USMISSION GENEVA PRIORITY 
USMISSION USUN NEW YORK PRIORITY 
JOINT STAFF WASHDC PRIORITY 
USMISSION USNATO PRIORITY 
 
C O N F I D E N T I A L SECTION 02 OF 02 ROME 002349 
 
SIPDIS 
 
FODAG 
 
STATE FOR PRM A/S DEWEY, IO A/S HOLMES, EUR/NE, EUR/WE, 
                       CONFIDENTIAL 
 
PAGE 02        ROME  02349  02 OF 02  281028Z 
SA/INS, IO/EDA FOR SETH WINNICK 
USDA/FAS FOR U/S PENN, MCHAMBLISS, RTILSWORTH AND LPANASUK 
USAID FOR ADMINISTRATOR NATSIOS, AA/DCHA WINTER, 
D/DCHA/OFDA BMCCONNELL, D/DCHA/FFP LANDIS 
JOINT STAFF FOR JE/J4/J5 
NSC FOR JDOWRKEN 
 
E.O. 12958: DECL: 05/27/2013 
TAGS: AORC, EAID, EAGRTR, FAO, WFP, IZ 
SUBJECT: TFIZ01: FAO AWAITING GUIDANCE ON ROLE IN 
AGRICULTURAL REHABILITATION OF IRAQ 
 
5.  (C) SPEAKING GENERALLY, THOMAS STATED THAT THE BIGGEST 
CHALLENGE FACING IRAQI AGRICULTURE WAS HOW TO MAKE THE 
TRANSITION AWAY FROM ITS HEAVILY SUBSIDIZED, CENTRALLY 
PLANNED PAST.  SHOULD THE TRANSITION GO BADLY, THE POLITICAL 
CONSEQUENCES COULD BE QUITE NEGATIVE.  NONETHELESS, THOMAS 
EXPRESSED CONFIDENCE THAT IN ONE TO TWO YEARS, IRAQI 
AGRICULTURE WOULD BE WELL ON ITS WAY TO GETTING BACK ON 
TRACK.  THOMAS ALSO MADE SEVERAL REFERENCES TO THE NEED FOR 
FAO TO MANAGE IN AN ORDERLY FASHION THE DOWNSIZING OF ITS 
ROLE IN IRAQ, INCLUDING DIVESTING ITSELF OF ITS MANY ASSETS, 
HANDING SOME PROJECTS AND RESPONSIBILITIES OVER TO THE NEW 
AUTHORITIES, AND SHUTTING DOWN OTHERS AS APPROPRIATE. 
 
6.  (SBU) MISSION COMMENT:  GIVEN THE DEPTH OF FAO EXPERIENCE 
AND RESOURCES IN THE FIELD IN IRAQ, WE WOULD RECOMMEND USG 
AGENCIES TAKE FULL ADVANTAGE OF THOMAS' VISIT TO WASHINGTON. 
HALL 
 
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 2003ROME02349 - Classification: CONFIDENTIAL