US embassy cable - 03KUWAIT2640

UNCLAS SECTION 01 OF 05 KUWAIT 002640 
 
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 
AMMAN FOR USAID 
 
E.O. 12958:  N/A 
TAGS: EAID, PREF, IZ, WFP 
SUBJECT:  THE PUBLIC FOOD DISTRIBUTION SYSTEM BEGINS IN THE 
NORTH 
 
 
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SUMMARY 
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1.  June distributions begin in the three northern 
governorates of Dahuk, Arbil, and As Sulaymaniyah, while at 
the same time, WFP continues to provide catch-up rations of 
wheat flour.  Differences that exist between the 
distributions in the three northern governorates and the 
central/south are being addressed.  Mosul is set to begin 
the June distributions on or about 3 June, with Kirkuk 
starting a couple days later.  As the security situation in 
Tikrit was only recently deemed permissive by the Coalition, 
the Governorate of Salah ad Din is behind in preparation, 
but food deliveries to Tikrit began last week.  UNSECOORD 
will visit Tikrit on 4 June to evaluate the security 
situation for the U.N.  Significant truck delays at the 
Turkish border have recently been addressed by changing the 
Peshmerga "parking fee" from Swiss dinars to U.S. dollars. 
Government fuel pumps in the north are now charging 
customers in old Iraqi dinars, i.e., Saddam dinars, under an 
agreement with the Coalition, marking the first time this 
currency has been used in the north since 1991.  End 
Summary. 
 
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THREE NORTHERN GOVERNORATES 
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2.  As previously reported, since last fall the three 
northern Governorates of Dahuk, Arbil, and As Sulaymaniyah 
received single rations of wheat flour whereas central/south 
received double rations each month.  Further compounding the 
differences between the north and central/south, even the 
single rations of wheat flour in February and March were not 
complete in the north, meaning that people either received 
less than the full one month's ration of wheat flour or that 
some areas received no wheat flour at all.  In contrast, all 
central/south governorates have received wheat flour rations 
through July, and most in central/south have now received 
the August ration of wheat flour.  (Note:  Some governorates 
in central/south have even received wheat flour and other 
commodities through October.  End Note.) 
 
3.  Since April, the U.N. World Food Program (WFP) has been 
working to address the northern shortfalls in wheat flour, 
and it is currently being distributed in the three northern 
governorates for May.  The distributions are approximately 
30 percent complete.  Beans and vegetable oil are being 
distributed for June/July; rice, tea, and sugar have been 
distributed through July.  There is currently no weaning 
cereal, infant formula, soap, or detergent available. 
Although this distribution is being billed as the official 
June countrywide ration, northern beneficiaries know they 
are still behind central/south, as evidenced by their ration 
cards.  The DART reports, however, that distributions are 
proceeding smoothly. 
 
4.  To address the discontentment among the population of 
the three northern governorates caused by their knowledge 
that they have received less than the rest of the country, 
WFP is beginning to put the word out that because 
central/south experienced a higher amount of turmoil and 
looting during and after the war, it is fair that they have 
recently received additional commodities. 
 
5.  The DART reports that the population in the three 
northern governorates is extremely happy to be receiving 
better quality commodities, as there had been a number of 
complaints over the years about the quality of rice and 
sometimes also flour.  They are especially pleased to 
receive vegetable oil rather than ghee for the first time. 
 
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NINAWA GOVERNORATE 
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6.  The public distribution system (PDS) should begin in 
Ninawa Governorate on or about 3 June with wheat flour and 
sugar.  Distributions of other commodities will follow as 
they are received.  WFP is especially pleased with strong 
Coalition and Ministry of Trade (MOT) support, and believes 
the distributions should go fairly smoothly, pending 
availability of all commodities.  The fraudulent 40- 
commodity public distribution system (PDS) list, which 
apparently originated in Mosul, does not appear to be 
affecting distribution preparations at this time.  Mosul 
residents have reported that they have seen television 
notices regarding the USD 105 per metric ton (MT) as the 
sale price for the wheat harvest, but no details were given 
about procedures. 
 
7.  In the contested areas, such as Ninawa-Dahuk (e.g., 
Shekhan) and Ninawa-Arbil (e.g., Makhmur), the food agents 
will continue to pick up their rations from the same points 
as before, which in general is Mosul.  WFP believes that 
approximately 400,000 people would be affected in making 
changes to the current boundaries.  Such a major shift would 
involve a massive operation to alter ration cards, something 
WFP wants to avoid at this time.  Once the border issues are 
officially resolved, ration cards can be changed 
accordingly, if in fact, the PDS is still providing a ration 
to every Iraqi at that point. 
 
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AT'TAMIM GOVERNORATE 
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8.  In At'Tamim Governorate, the PDS was scheduled to begin 
on 5 June in Kirkuk with wheat flour and sugar.  As in 
Mosul, distributions of other commodities will follow as 
they are received.  Unfortunately, Kirkuk is less prepared 
than Mosul to re-start the PDS.  The Kurdish authorities 
installed new MOT managers who had with little experience 
and no institutional knowledge of the PDS.  Even so, WFP was 
trying to work with the former managers, and reported that 
Coalition forces had not taken a strong stand to support the 
positions of the old managers leading up to the June 
distribution.  The DART reports that on 2 June, Coalition 
forces reinstated the previous head of the MOT, and assigned 
the Kurdish man from As Sulaymaniyah to be the deputy.  WFP 
and the DART feel this appointment will be helpful in 
getting the PDS on track in At'Tamim. 
 
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SALAH AD DIN GOVERNORATE 
------------------------ 
 
9.  WFP is storing some commodities for Tikrit in Dahuk, and 
last week, WFP began delivering food directly to Tikrit, 
using commercial trucks.  On 30 May, the DART traveled to 
Tikrit, where Civil Military Operations Center (CMOC) 
personnel noted that they had deemed the city's security 
status permissive.  However, with Tikrit being the last 
governorate capital to become permissive, it is behind the 
rest of the country in PDS preparations.  (Note:  Not all 
parts of Salah ad Din Governorate have been declared 
permissive.)  For the U.N., however, Tikrit remains off 
limits.  The DART urged the U.N. Security Coordinator 
(UNSECOORD) to conduct a security assessment of Tikrit, 
which took place on 4 June.  WFP international logistics and 
program staff hope to access the area on or about 7 June. 
 
10.  On 3 June, the DART returned to Tikrit and met with 
Coalition forces (including the U.S. military governor and 
Civil Affairs [CA] personnel), WFP national staff, and the 
MOT head of the food department.  WFP currently has 
approximately 10,000 MT of stocks in Tikrit: 5,500 MT wheat 
flour (almost enough for June), 4,035 MT rice, and 
approximately 600 MT of lentils.  In addition, the MOT has 
enough tea and soap for the June distribution and very large 
stocks of sugar.  The MOT also expects to receive 950 MT 
ghee or vegetable oil, 450 MT detergent, and 40 MT infant 
formula in the coming days from southern Iraq.  Beans will 
still be somewhat short, and beneficiaries in Tikrit prefer 
beans to lentils.  The DART will be discussing beans options 
with WFP for the July distribution.  This will be dependent, 
however, on availability of other types of beans. 
 
11.  The WFP Tikrit national staff team leader (a Ph.D.- 
holding former diplomat) and his team were found to be doing 
an excellent job managing both the commodities and relations 
with Coalition forces and the MOT -- despite lacking any 
supervision, communication, or transport.  The public 
distribution is scheduled to begin in Salah Ad Din 
Governorate on or about 5 June, and is expected to proceed 
rather smoothly, according to Coalition forces and WFP 
sources, given the continuity and competence of most MOT 
staff in the Governorate.  The arrival of WFP international 
staff will build on the strong MOT and WFP team already in 
place. 
 
12.  Coalition forces are guarding MOT stocks with soldiers 
and three armored personnel carriers.  However, WFP's 
warehouses at the grain silo are not yet protected.  DART 
and CA personnel impressed upon the governor the importance 
of having Coalition forces guard the WFP stores, and he 
agreed to follow up. 
 
13.  Among other issues raised, the governor noted the 
importance of salary payments for ex-soldiers, many of whom 
had abandoned their posts as directed by Coalition forces. 
The governor felt this to be particularly important in an 
area such as Tikrit, where a large percentage of the 
population served in the former military.  Regarding this 
and a number of other issues that were raised, Coalition 
forces in Tikrit believe that opening an Office of the 
Coalition Provisional Authority (OCPA) in Tikrit would be 
especially beneficial to them and to the area.  The DART is 
following up with OCPA/North to arrange a Tikrit visit in 
order to meet with military and other personnel there. 
 
14.  The Tikrit MOT Grain Board is functional, and is aware 
of the USD 105 per MT wheat purchase price, but still awaits 
detailed guidance from Baghdad regarding the procedures. 
 
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PROBLEMS AT THE TURKISH BORDER 
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15.  Recently, Turkish drivers protested the rising fees 
they had been forced to pay the Peshmergas as they enter 
Iraq.  The protests caused huge delays at the border.  Due 
to the devaluation of the U.S. dollar against the Swiss 
dinars, the "parking fee" collected in Swiss dinars went 
from USD 20 to USD 80 in recent days.  During the height of 
the delays last weekend, there were 2,800 trucks blocked at 
the border crossing.  On 1 June, the issue was resolved 
between WFP and the local authorities with an agreement to 
pay USD 20 for the parking fee at the border.  This saves 
the truckers from having to change U.S. dollars to Swiss 
dinars to pay the fee. 
 
16.  Government fuel pumps in the north are now charging 
customers in old Iraqi dinars, i.e., Saddam dinars, under an 
agreement with the Coalition.  This marks the first time 
this currency has been used in the north since 1991.  (Note: 
While government stations are using the Saddam notes, most 
fuel is still sold or resold on city sidewalks in Swiss 
dinars.  End Note.) 
 
JONES