US embassy cable - 03THEHAGUE1893

UNCLAS SECTION 01 OF 02 THE HAGUE 001893 
 
SIPDIS 
 
SENSITIVE 
 
EB FOR JOHN FINN 
 
E.O. 12958: N/A 
TAGS: EAID, PREL, EFIN, IZ, NL 
SUBJECT: NETHERLANDS ASSISTANCE FOR IRAQ 
 
REF: A. STATE 214593 
 
     B. THE HAGUE 793 
 
1.     (SBU) Summary.  The Netherlands has pledged 
approximately EUR 21 million 
to Iraq humanitarian relief.  They have also offered 
technical experts, 
particularly in the areas of water management.  A consortium 
of Dutch 
government and industry has submitted to the World Bank and 
CPA a comprehensive 
plan to rebuild Iraq's water sector.  (They are hoping for a 
response to their 
proposal from the CPA.)  The Dutch emphasize private sector 
solutions to Iraq's 
reconstruction.  Toward this end, the Ministry of Economic 
Affairs set aside 
EUR 3 million to identify and fund reconstruction projects 
for which Dutch companies 
will be invited to bid.  Post will provide information on 
Netherlands military 
contributions including Dutch troop deployment septel.End 
Summary. 
 
Humanitarian Assistance 
----------------------- 
2.     (U) The Netherlands pledged 19.3 million EUR to the UN 
and International 
Organizations of which 18 million EUR has already been 
delivered: 
 
--  EUR 14.3 million to UN Consolidated Appeal; 
--  EUR 1 million to International Federation of Red 
Cross/Red Crescent; 
--  EUR 4 million to ICRC (all three reported in ref A); 
 
3.     (U) In addition, the GONL gave EUR 1.675 million to 
Dutch NGOs for programs on the 
ground in Iraq: 
 
--  EUR 1 million to CARE Netherlands for its project in 
central and southern 
Iraq that provides emergency power generators for hospitals 
and water 
purification plants; 
 
--  EUR 675,000 to Stichting Vluchtlingen (Refugees 
Foundation) for its 
Emergency Mine Action Project in Northern Iraq. 
 
Technical Experts 
----------------- 
4.    (SBU) Water Sector Reconstruction Plan -- The Dutch 
water industry (aka 
Netherlands Water Partnership) drafted a plan for the 
reconstruction of Iraq's 
water sector.  It is a comprehensive strategy that covers 
drinking water, 
sanitation, irrigation, marshlands, and water transport.  It 
also features a 
list of technical experts.  The Dutch submitted this to the 
World Bank, and 
post forwarded the plan to ORHA/CPA via EUR.  Post would be 
happy to resend an 
electronic copy of this plan to any interested parties.  Post 
would welcome 
feedback from CPA on the Dutch Water Sector Reconstruction 
Plan. 
 
5.  (U) The Dutch banking industry (with the support of the 
Dutch government) has developed 
proposals for facilitating development of the Iraqi 
commercial banking sector.  The Dutch have 
ben in close contact with Treasury regarding these proposals. 
 
6. (SBU) Call for Experts -- The Dutch have not answered our 
request for 
experts to staff Iraq ministries, but they have responded to 
the World Bank's 
call for experts.  Post has the CVs of these experts. 
 
Private Sector Fund 
------------------- 
7.(U) The Dutch Ministry of Economic Affairs set up a EUR 3 
million fund, 
known as the "Iraq Facility", to help Dutch companies 
participate in 
reconstruction.  It will fund a scouting mission for seven 
consultants to visit 
Southern Iraq in late August.  The consultants will perform a 
needs assessment 
and will identify potential projects in the areas of water 
management, ports, 
telecom, and the medical sector.  Dutch companies will then 
bid on the 
contracts offered by the Ministry. 
 
Frozen Iraqi Assets Transferred to Development Fund for Iraq 
--------------------------------------------- --------------- 
 
8. (U) The Dutch claim they have no domestic legal basis to 
confiscate 
frozen Iraqi assets.  Accordingly, they have transferred no 
blocked Iraqi 
assets to the DFI but will continue to keep them frozen.  The 
Ministry of Finance 
has told us that the total amount of Iraqi funds frozen in 
the Netherlands is relatively 
insignificant. 
 
RUSSEL 
RUSSEL