US embassy cable - 03KUWAIT2489

UNCLAS SECTION 01 OF 05 KUWAIT 002489 
 
SIPDIS 
 
STATE ALSO PASS USAID/W 
STATE PLEASE REPEAT TO IO COLLECTIVE 
STATE FOR PRM/ANE, EUR/SE, NEA/NGA, IO AND SA/PAB 
NSC FOR EABRAMS, SMCCORMICK, STAHIR-KHELI, JDWORKEN 
USAID FOR USAID/A, DCHA/AA, DCHA/RMT, DCHA/FFP 
USAID FOR DCHA/OTI, DCHA/DG, ANE/AA 
USAID FOR DCHA/OFDA:WGARVELINK, BMCCONNELL, KFARNSWORTH 
USAID FOR ANE/AA:WCHAMBERLIN 
ROME FOR FODAG 
GENEVA FOR RMA AND NKYLOH 
DOHA FOR MSHIRLEY 
ANKARA FOR AMB WRPEARSON, ECON AJSIROTIC AND DART 
AMMAN FOR USAID AND DART 
 
E.O. 12958:  N/A 
TAGS: EAID, PREF, IZ, WFP 
SUBJECT:  BASRAH PREPARATIONS FOR THE REVIVAL OF THE PUBLIC 
DISTRIBUTION SYSTEM 
 
 
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SUMMARY 
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1.  The Central MOT in Baghdad announced the first 
nationwide public food distribution since the military 
action against the regime of Saddam Hussein, would begin in 
June.  The commodities and size of the June ration are 
publicized.  There is concern that the ration is missing 
three commodities and that the quantity of beans is quite 
low.  Expectations regarding the items in the ration are 
rumored to be high with the fall of the former regime. 
There is still no word about the Coalition Provisional 
Authority payments to each governorate MOT office of USD 
50,000.  WFP is in need of additional warehouse space in 
Basrah, but has decided to train the stevedores in better 
stacking methods as finding additional warehouse space is 
difficult.  Problems with security in the central warehouse 
complex in Basrah continue.  Coalition forces are training 
the MOT guard force, but are not convinced this is the 
answer to the problem.  Food agents for Az Zubayr pick up 
their food rations from the Basrah central warehouse complex 
on 1 June.  MOT offices receive safes and furniture from the 
DART.  Commencement of repair of the grain silo in Basrah is 
still a week away.  End Summary. 
 
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PDS JUNE RATION ANNOUNCED 
------------------------- 
 
2.  At the Coalition Provisional Authority (CPA)/British 
Coalition public distribution system (PDS) working group 
meeting on 29 May, the U.N. World Food Program (WFP) 
presented the Central Ministry of Trade's (MOT) proposed 
ration for the month of June.  The adult ration, for the 
entire country, is as follows:  9 kilograms (kg) of flour, 3 
kg of rice, 0.25 kg of beans, 1 kg of vegetable oil, 2 kg of 
sugar, 0.20 kg of tea, 0.25 kg of soap, and 0.50 kg of 
detergent.  The infant ration consists of 8 tins (3.6 kg) of 
infant formula, 0.50 kg of detergent, and a soap bar.  The 
cost for a single adult or infant ration is 250 Iraqi Dinars 
for June, the same price as pre-war. 
 
3.  The proposed beans ration of 0.25 kg per person is one- 
sixth of what WFP had outlined in its Emergency Operation 
(EMOP), which calls for a monthly ration of 1.5 kg beans. 
Supplies of beans are on the way, but unfortunately the 
shipping schedules are behind.  In addition, the announced 
June ration is missing weaning cereal, dried whole milk, and 
salt because of insufficient quantities in the country. 
These items are normally part of the ration. 
 
4.  CPA and British Coalition forces in the lower south have 
expressed their concern about being bound by decisions made 
by the MOT in Baghdad, claiming that the former regime 
continually overlooked the south, and thus the needs are 
greater in the south.  They are also concerned that the 
perpetuation of centralized MOT control in Baghdad risks 
undermining current efforts of CPA and British Coalition 
forces to meet needs effectively in their area of 
responsibility.  WFP agreed that the presumed disconnect 
between Baghdad and the southern governorates was one that 
needed to be addressed.  WFP proposed that CPA, WFP, and the 
DART request a Baghdad meeting with WFP/Baghdad, CPA/Main, 
and MOT/Baghdad to raise the issues of representation, 
participation, and delegation of authority. 
 
5.  To announce the nationwide 1 June revival of the PDS, 
the following is being repeated in Arabic on "Bayna Al- 
Nahrain" radio station, run by the Coalition Forces:  "Dear 
Citizens of Iraq:  The World Food Program will start its 
food distributions to all Iraqis on June 01, 2003.  The food 
will be delivered to all Ministry of Trade authorized food 
agents in your areas.  In order to ensure a smooth food 
distribution, you will need to contact your food 
distribution agent and present your food ration cards just 
like before. Your cooperation is highly appreciated."  The 
Civil Military Operations Center (CMOC) wrote the copy for 
this announcement. 
 
6.  Rumors are circulating that the June ration is going to 
be composed of items never intended to be part of the 
distribution.  There are counterfeit lists circulating in 
different regions through sales in the local markets.  These 
fraudulent lists include additional food items, as well as 
small appliances and tableware.  The DART has seen the lists 
in the markets of Basrah, Al Hillah, Samawah, and Arbil.  It 
seems that entrepreneurs are creating false lists, sometimes 
in the form of ration cards, and selling them as the genuine 
article.  Iraqis may be prone to believe the validity of the 
lists because expectations about the ration are rumored to 
be high in a post-Saddam era.  This points to the need for 
the Central MOT to publicize widely the actual ration.  As 
of 1 June, the MOT in Basrah had not received the Central 
MOT's official notice about the June ration through official 
MOT channels from Baghdad, although WFP had shared it with 
the MOT.  The DART reports that other governorate MOT 
offices have also not received the official word. 
 
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WHERE ARE THE USD 50,000 PAYMENTS? 
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7.  CPA Lower South reported that after two official 
requests for information, there is still no word from 
CPA/Main about the USD 50,000 payments to the governorate- 
level MOT offices.  (Note:  The DART reports that no 
notification has been made as to start date of the payments 
in other governorates either.  End Note.) 
 
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NEED FOR ADDITIONAL WAREHOUSE SPACE 
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8.  WFP reported several days ago that the central warehouse 
facilities in Basrah were full, with 13 trucks waiting to 
offload.  British Coalition forces indicated that they were 
in the process of drawing down their presence in the 
warehouse, but would not be able to vacate the space in time 
to meet the immediate need for additional space.  In 
response, the MOT manager offered alternative warehousing at 
the Basrah port. 
 
9.  However, after examining the port storage facilities, 
WFP decided to instead send the Basrah overflow of 
commodities to a warehouse in Az Zubayr (20 minutes away). 
At the same time, WFP logistics is going to train the 
stevedores in off-loading practices, teaching them to stack 
the bags more tightly and higher.  WFP feels this action 
will ultimately increase the tonnage amounts stored in the 
central warehouse. 
 
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MOT SECURITY FORCE 
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10.  British Coalition forces reported that half of a 96-man 
MOT guard force has been trained to protect the MOT complex. 
The other half is to be trained this week.  Guards are 
working, but the  British forces report there is a shortage 
of weapons.  British forces are awaiting a shipment of 
confiscated arms, modified to prevent automatic firing that 
will be distributed as they arrive.  (Note: The British are 
concerned that the MOT guards who are being trained are "not 
young enough" for the job.  End Note.) 
 
11.  A number of holding cells have been repaired at the 
central warehouse gate and are manned by newly trained 
Basrah police.  More than 80 looters were captured at the 
warehouse facility last week.  Three looters who escaped 
capture are reported to have drowned in nearby canals as 
they fled the warehouse during a Coalition raid on 26 May. 
 
12.  In addition, the MOT reported on 31 May that 80 looters 
(WFP thinks the number was closer to 20) entered the 
warehouse compound on the night of 30 May.  The British 
forces indicate that it is losing confidence in the MOT 
guard force, suspecting that the majority of the guards come 
from the same area (near the warehouse complex) as the 
looters themselves.  As Basrah MOT guards remain unarmed and 
hesitant to interfere with looters, the need for a dedicated 
Coalition security force has become critical until the 
issues with the MOT guard force are sorted out.  The British 
forces reported on 31 May that it had been tasked to provide 
additional security at the central warehouse complex during 
the June PDS distribution period. 
 
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FOOD AGENTS COLLECT RATIONS ON 1 JUNE 
------------------------------------- 
 
13.  The DART visited the central warehouse complex in 
Basrah on 31 May to observe preparations for the arrival of 
Az Zubayr food agents on 1 June, as Az Zubayr is the first 
district in Basrah governorate to receive the June rations. 
The visit coincided with elections for the selection of a 
Chief of Security by the MOT guard force.  DART staff will 
be posted at the central warehouse on 1 June to observe the 
food agents receiving their rations.  The DART will also 
monitor the activity in the MOT office and the Ration 
Registration Center (RRC), as those who may have been 
excluded from the PDS prior to the war or new townspeople 
arrive to re-register for the PDS. 
 
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MOT WAREHOUSE/OFFICE EQUIPMENT AND REPAIRS 
------------------------------------------ 
 
14.  The MOT requested British Coalition assistance in 
locating eight functioning forklifts, which MOT employees 
insist were removed by British forces during the past two 
weeks.  WFP reported that the MOT now "repairs" forklifts 
for their period of use only, removing necessary parts when 
they are not in use to prevent the forklifts from being 
"requisitioned" by military personnel.  The British forces 
have promised to try and locate the missing equipment.  They 
subsequently located two of the eight missing forklifts and 
were to return them on 31 May. 
 
15.  On 30 May, the MOT expressed concern that there were no 
safes at the warehouse facility, which is currently also 
doubling as the RRC.  Due to bank closures, food agents will 
be turning over significant amounts of money to the MOT 
prior to receiving their rations.  Given the high level of 
insecurity at the central warehouse complex, distributions 
could not begin before a way to secure funds was 
established.  The DART contacted the International 
Organization for Migration (IOM), its implementing partner 
for the rehabilitation of the MOT, RRC, and warehouse 
administrative center, and obtained assurances that five 
safes would be procured and delivered by 31 May. 
 
16.  To follow up, the DART visited the central warehouse 
complex on 31 May to check progress.  The DART found that 
British "Quip" and U.S. Department of Defense ODACHA-funded 
rehabilitation of the warehouse administrative offices was 
progressing well, and computers that were taken home by MOT 
employees and stored in their homes were in the process of 
being re-installed at the warehouse facility.  Per above, 
safes were being installed by IOM, and DART requested that 
IOM make an additional procurement of chairs and printer 
cartridges for the MOT offices. 
 
17.  On 31 May, the DART located the Coalition Civil Affairs 
contracting officer for the DOD ODACHA-funded silo complex 
rehabilitation project.  He reported that work on the silo 
is to begin within a week, but cautioned that parts 
necessary for the repair of the grain elevator would have to 
be ordered from the U.S. and would arrive in five to seven 
days.  The DART will visit the silo complex with the Civil 
Affairs contracting officer later this week.  (Note:  With 
the arrival of ships carrying bulk grain cargo into the Port 
of Umm Qasr, the need for the silos to be cleaned and 
repaired in Umm Qasr and Basrah is becoming more crucial by 
the day.  End Note.) 
 
JONES