September 12, 2007 UNCLASSIFIED D E P A R T M E N T Iraq Weekly Status Report O F September 12, 2007 S T A T E Bureau of Near Eastern Affairs US Department of State 1 UNCLASSIFIED September 12, 2007 UNCLASSIFIED Table of Contents D E P A R T M E N T This report provides weekly updates in the eight key areas identified as pillars of U.S. government policy for victory in Iraq. SECTION SLIDE Highlights 3 1. Defeat the Terrorists and Neutralize the Insurgents 5 2. Transition Iraq to Security Self-Reliance 10 3. Help Iraqis to Forge a National Compact for Democratic 13 Government 4. Help Iraq Build Government Capacity and Provide Essential 15 Services O F S T A T E 5. Help Iraq Strengthen Its Economy 20 6. Help Iraq Strengthen the Rule of Law and Promote Civil Rights 28 7. Increase International Support for Iraq 29 8. Strengthen Public Understanding of Coalition Efforts and 32 Public Isolation of the Insurgents Sources and Contact Information Notes and Source Citations 33 34 2 UNCLASSIFIED September 12, 2007 UNCLASSIFIED Highlights 1. Defeat the Terrorists and Neutralize the Insurgents The overall number of security incidents in Iraq has declined in eight of the past 12 weeks, with the number of incidents in the last two weeks at the lowest levels seen since June 2006. D E P A 2. Transition Iraq to Security Self-Reliance R Nearly 140 Iraqi Army, National Police and Special Operations Forces battalions are conducting security operations, with about 95 of those capable of taking the lead in T operations with some Coalition support. M E 3. Help Iraqis to Forge a National Compact for Democratic Government Hours before congressional hearings on the progress of the U.S. military buildup, Iraqi N Prime Minister Nuri al-Maliki addressed the Council of Representatives, saying security T O F S T A T E had improved dramatically in the capital and Iraq was moving away from civil war. Maliki gave an optimistic assessment of his country's progress since the U.S. military buildup began in February, noting security gains had been made across Iraq, insisting his forces needed more time to take over full security responsibility from Coalition forces. 4. Help Iraq Build Government Capacity and Provide Essential Services Maliki agreed to dedicate $50 million to control the spread of cholera. The chief inspector for the Ministry of Health, Dr. Adel Mohsen, denied September 6 that the disease has spread to Iraq’s central and southern provinces. According to Dr. Mohsen, cholera has not spread any further than Sulaimaniya and Kirkuk. 3 UNCLASSIFIED September 12, 2007 UNCLASSIFIED Highlights D E P A R T M E N T 5. Help Iraq Strengthen Its Economy Speaking in Baghdad, U.S. Coordinator for Economic Transition Charles Ries said that Iraq’s economy is likely to grow more than 6% in 2007, and if the oil sector is taken out, will likely be more than 7%. Ries said that the economy is underperforming, though, due to an inadequate supply of electricity, weakness in the oil sector, capacity constraints, and a lack of foreign and private investment. 6. Help Iraq Strengthen the Rule of Law President Jalal Talabani said September 7 during a press conference in Sulaymaniyah that he would not sign the execution order of a top Saddam aide whom he personally had “provoked” to rebel against the executed dictator. If the approval of his three-member presidency is sought by the Iraqi supreme court, Talabani said he would refuse to sign the order of Sultan Hashim al-Tai, (senior officer who became defense minister during Saddam’s regime). O F 7. International Support for Iraq Prime Minister Gordon Brown’s spokesman said the general approach of the U.S. and the United Kingdom was entirely consistent and that decisions on troop levels would be based on conditions on the ground and the assessment of the military. Brown had “very cordial and constructive” talks with President Bush September 10. S T A T E 8. Strengthen Public Understanding of Coalition Efforts and Public Isolation of the Insurgents An insurgent group in Iraq posted a videotape September 10 that showed a German hostage who has been held for more than six months and threatened to kill him unless Germany withdrew its troops from Afghanistan within ten days. 4 UNCLASSIFIED September 12, 2007 UNCLASSIFIED [1.] Defeat the Terrorists and Neutralize the Insurgency D E P A R T M E N T O F S T A T E General Petraeus’s Situational Report to Congress: • General David Petraeus, the commanding general of Multi-National Force-Iraq presented a situational assessment on Iraqi security to Congress September 10-11. General Petraeus informed Congress that military objectives are, in large measure, being met. • The overall number of security incidents in Iraq has declined in eight of the past 12 weeks, with the number of incidents in the last two weeks at the lowest levels seen since June 2006. • Civilian deaths of all categories have declined by over 45% Iraq-wide since the height of the sectarian violence in December 2006 and declined by 70% in Baghdad. • Iraq-wide, the number of ethno-sectarian deaths has come down by over 55% since December 2006 and by 80% in Baghdad. • Coalition forces (CF) and Iraqi Security Forces (ISF) have found and cleared over 4,400 weapons caches so far this year; nearly 1,700 more than the number discovered all of last year. • In the last eight months, CF and ISF have neutralized five media cells, detained the senior Iraqi leader of al-Qaida in Iraq, and killed or captured nearly 100 other key leaders and 2,500 rank-and-file fighters. • In the last six months, CF and ISF have targeted Shia militia extremists, capturing a number of senior leaders and fighters, as well as the deputy commander of Lebanese Hezbollah Department 2800. 5 UNCLASSIFIED September 12, 2007 UNCLASSIFIED [1.] Defeat the Terrorists and Neutralize the Insurgency D E P A R T M E N T O F S T A T E 6 UNCLASSIFIED September 12, 2007 UNCLASSIFIED [1.] Defeat the Terrorists and Neutralize the Insurgency D E P A R T M E N T O F S T A T E 7 UNCLASSIFIED September 12, 2007 UNCLASSIFIED [1.] Defeat the Terrorists and Neutralize the Insurgency D E P A R T M E N T O F S T A T E 8 UNCLASSIFIED September 12, 2007 UNCLASSIFIED [1.] Defeat the Terrorists and Neutralize the Insurgency D E P A R T M E N T O F S T A T E 9 UNCLASSIFIED September 12, 2007 UNCLASSIFIED [2.] Transition to Security Self-Reliance – Iraqi Security Forces General Petraeus’s Remarks on Iraqi Security Forces: D E P A R T M E N T O F S T A T E • General David Petraeus, the commander of Multi-National Force-Iraq, presented an assessment on Iraqi Security Forces (ISF) to Congress September 10-11. He reported that ISF continue to grow, develop their capabilities, and shoulder more of the burden of providing security for their country. Despite concerns about sectarian influence, inadequate logistics and supporting institutions, as well as an insufficient number of qualified commissioned and noncommissioned officers, Iraqi units are engaged around the country. • Nearly 140 Iraqi Army, National Police and Special Operations Forces battalions are conducting security operations, with about 95 of those capable of taking the lead in operations, albeit with some coalition support. • 445,000 individuals are currently on the payrolls of Iraq’s Interior and Defense Ministries. • Prime Minister Nuri al-Maliki has decided to increase the number of ISF further by the end of this year, possibly by as much as 40,000. 10 UNCLASSIFIED September 12, 2007 UNCLASSIFIED [2.] Transition to Security Self-Reliance – Iraqi Security Forces D E P A R T M E N T O F S T A T E 11 UNCLASSIFIED September 12, 2007 UNCLASSIFIED [2.] Transition Iraq to Security Self-Reliance – Iraqi Security Forces D E P A R T M E N T Ministry of Interior Forces COMPONENT TRAINED & EQUIPPED POLICE ~135,000 NATIONAL POLICE ~ 26,300 OTHER MOI FORCES ~32,900 TOTAL ~194,200* COMPONENT OPERATIONAL ARMY ~163,500*** AIR FORCE ~900 NAVY ~1,100 TOTAL ~165,500** Total Trained & Equipped ISF: O F S T A T E Ministry of Defense Forces ~359,700**** * Ministry of Interior Forces: Unauthorized absence personnel are included in these numbers ** Ministry of Defense Forces: Unauthorized absence personnel are not included in these numbers *** Army numbers include Special Operations Forces and Support Forces **** Does not include the approximately 144,000 Facilities Protection Service personnel working in 27 ministries Latest Data Available 12 UNCLASSIFIED September 12, 2007 UNCLASSIFIED [3.] Help Iraqis to Forge a National Compact for Democratic Government D E P A R T M E N T O F S T A T E Iraqi Prime Minister Says Civil War Prevented in Iraq: • Hours before congressional hearings on the progress of the U.S. military buildup, Iraqi Prime Minister Nuri al-Maliki addressed the Council of Representatives, saying security had improved dramatically in the capital and Iraq was moving away from civil war. Maliki gave an optimistic assessment of his country's progress since the U.S. military buildup began in February, noting security gains had been made across Iraq, insisting his forces needed more time to take over full security responsibility from Coalition forces. Sadr Movement Says May Pull Out of Iraqi Coalition: • The political movement loyal to cleric Muqtada al-Sadr said it may pull out of Iraq's ruling Shia coalition unless the government improves security and makes political progress. If Sadr's supporters withdrew they would leave Prime Minister Nuri alMaliki's alliance with just 83 seats in the 275-seat Iraqi parliament, but he could still be able form a small majority with support from Kurdish parties. 13 UNCLASSIFIED September 12, 2007 UNCLASSIFIED [3.] Help Iraqis to Forge a National Compact for Democratic Government - Iraqi National Unity Government President D E P A R T Minister of M Agriculture * E of N Minister Education T Khudayyir al-Khuza’i O F S T A T E Deputy President Jalal Talabani Deputy President (F) = Female Tariq al-Hashimi ‘Adil ‘Abd al-Mahdi * Vacant Prime Minister Deputy Prime Minister Nuri al-Maliki Deputy Prime Minister Barham Salih Salam al-Zawba’i Minister of Communications Minister of Culture Minister of Defense Minister of Displacement & Migration Minister of Electricity Muhammad Tawfiq Allawi * Abdul Qadir Muhammed Jasim Abd al-Samad Rahman Sultan Karim Wahid Minister of Environment Minister of Finance Minister of Foreign * Affairs Minister of Health Minister of Higher Education Narmin ‘Uthman (F) Bayan Jabr Hoshyar Zebari * Abd Dhiyab al-Ajili Minister of Human Rights Minister of Industry & Minerals Minister of Interior Minister of Justice Minister of Housing & Construction Minister of Labor & Social Affairs Wijdan Mikha’il (F) Fawzi al-Hariri Jawad al-Bulani Safa al Safi (acting) Bayan Daza’I (F) Mahmud Muhammad Jawad al-Radi Minister of Oil Minister of Planning Minister of Trade Minister of Science & Technology Minister of Municipalities & Public Works Minister of Transportation Husayn alShahristani Ali Baban Abd al-Falah alSudani Ra’id Fahmi Jahid Riyad Ghurayyib * Minister of Water Resources Minister of Youth & Sports ‘Abd al-Latif Rashid Jasim Muhammad Ja’far Minister of State for Foreign Affairs Minister of State for Governorates Affairs Rafi Hiyad al-Isawi * Minister of State for Civil Society Wijdan Mikha’il (acting) Minister of State for Tourism and Antiquities * 14 Minister of State for National Dialogue Affairs Minister of State for National Security Affairs Akram al-Hakim Shirwan al-Waili Minister of State for Women’s Affairs Fatin Abd al-Rahman Mahmud (F) Minister of State for CoR Affairs Safa al-Safi UNCLASSIFIED September 12, 2007 UNCLASSIFIED [4.] Help Iraq Build Government Capacity and Provide Essential Services – Financials from Iraq Relief and Reconstruction Fund (IRRF) 1 and IRRF 2 Committed Apportioned D E P A R T M E N T O F S T A T E Obligated Disbursed Sector Apportion Last Week Current Change Last Week Current Change Last Week Current Change Security and Law Enforcement $5,004.79 $4,967.72 $4,967.72 $0.00 $4,966.76 $4,966.76 $0.00 $4,811.80 $4,811.80 $0.00 Electricity Sector $4,216.87 $4,140.99 $4,137.92 ($3.07) $4,020.62 $4,017.55 ($3.07) $3,444.61 $3,444.44 ($0.17) Oil Infrastructure $1,724.70 $1,610.07 $1,610.07 $0.00 $1,559.89 $1,559.89 $0.00 $1,473.11 $1,473.11 $0.00 Justice, Public Safety and Civil Society $2,217.65 $1,265.71 $1,265.71 $0.00 $1,258.81 $1,258.81 $0.00 $1,102.55 $1,103.22 $0.68 Democracy $998.35 $997.34 $997.34 $0.00 $997.34 $997.34 $0.00 $967.19 $967.19 $0.00 Education, Refugees, Human Rights, Governance $409.84 $399.76 $408.44 $8.68 $399.76 $408.36 $8.60 $371.19 $371.20 $0.01 Roads, Bridges and Construction $333.60 $322.08 $322.08 $0.00 $320.82 $320.82 $0.00 $232.18 $232.18 $0.00 Health Care $815.55 $770.68 $770.54 ($0.14) $761.54 $761.40 ($0.14) $683.85 $685.83 $1.98 Transportation and Communications $456.72 $452.65 $452.58 ($0.07) $446.98 $446.91 ($0.07) $358.85 $358.86 $0.02 $2,115.63 $1,990.84 $1,990.55 ($0.29) $1,942.99 $1,942.70 ($0.29) $1,666.58 $1,666.80 $0.22 Private Sector Development $820.51 $807.85 $810.50 $2.65 $807.85 $810.50 $2.65 $794.22 $794.23 $0.01 Admin Expense (USAID, STATE) $210.60 $209.95 $209.95 $0.00 $209.95 $209.95 $0.00 $188.08 $188.08 $0.00 $19,324.82 $17,935.64 $17,943.40 $7.77 $17,693.32 $17,701.00 $7.68 $16,094.21 $16,096.95 $2.74 IRRF II Construction - $10,250.83 $10,247.26 ($3.57) $10,015.96 $10,012.39 ($3.57) $8,848.57 $8,848.65 $0.08 IRRF II Non-Construction - $6,687.46 $6,698.80 $11.34 $6,680.01 $6,691.26 $11.25 $6,278.45 $6,281.11 $2.66 IRRF II Democracy - $997.34 $997.34 $0.00 $997.34 $997.34 $0.00 $967.19 $967.19 $0.00 IRRF I Total $2,473.30 $2,473.30 $2,473.30 $0.00 $2,232.3 $2,232.3 $0.00 $2,139.00 $2,139.0 $0.00 Grand Total IRRF I & II $21,798.12 $20,408.94 $20,416.70 $7.77 $19,925.62 $19,933.30 $7.68 $18,233.21 $18,235.95 $2.74 Water Resources and Sanitation Total 15 UNCLASSIFIED September 12, 2007 UNCLASSIFIED [4.] Help Iraq Build Government Capacity and Provide Essential Services – Electricity Overview D E P A R T M E N T Daily Electricity Supplied and Estimated Demand in Iraq Since January 2004 Daily Supply 7-Day Average Supply Estimated Demand 250,000 200,000 150,000 100,000 50,000 0 6/14/07 3/16/07 12/16/06 9/17/06 6/19/06 3/21/06 Date 12/21/05 9/22/05 6/24/05 3/26/05 12/26/04 9/27/04 6/29/04 3/31/04 1/1/04 O F S T • Daily electricity demand September 5-11 was 21% above the same period in 2006. Daily supply A from the electricity grid was 22% above 2006; it met 55% of total electricity demand, compared with T 54% for the year-earlier period. E • Average hours of power via electricity grid after meeting demand from essential services: Baghdad 7.9 and nationwide 11.7. Year-ago levels were Baghdad 6.0 and nationwide 10.4. 16 UNCLASSIFIED September 12, 2007 UNCLASSIFIED [4.] Help Iraq Build Government Capacity and Provide Essential Services – Provision of Essential Services D E P A R T M E N T O F S T A T E Healthcare: • Maliki agreed to dedicate $50 million to control the spread of cholera. The chief inspector for the Ministry of Health, Dr. Adel Mohsen, denied September 6 that the disease has spread to Iraq’s central and southern provinces. According to Dr. Mohsen, cholera has not spread any further than Sulaimaniya and Kirkuk. Official Iraqi estimates indicate that 2,000 cases have been confirmed. Dr. Mohsen also stated that the hot weather in the southern provinces has helped contain the disease to Kirkuk and Sulaimaniya, where the temperature is optimal for cholera bacteria. Oil and Electricity: • Kamal Field al-Basri, senior economic advisor to Prime Minister Nuri al-Maliki and executive director of the Iraq Institute for Economic Reform told UPI September 6 that Iraq’s oil and electricity sector needs $79 billion in investment through 2011. He went on to say that the oil sector alone needs $56 billion, from pumping the oil to refining needed fuels. Al-Basri said that the optimal level for electricity is 21,000 megawatts and $23 billion would be needed to meet that. Iraq’s installed generation currently has a potential capacity of 11,000 megawatts. 17 UNCLASSIFIED September 12, 2007 UNCLASSIFIED [4.] Help Iraq Build Government Capacity and Provide Essential Services – Provision of Essential Services D E P A R T M E N T Petrochemical: • Dathar al-Khashab, director-general of the state run Midland Refineries Co., reported September 8 that Iraq will require up to $25 billion in investment to expand its refining capacity over the next five to seven years. Reuters reported that Khashab also said it would take approximately $1.5 billion to expand existing refineries. Additionally, plans are underway for the construction of a new 300,000 barrels per day (bpd) refinery in Nasisrya and three 150,000 bpd refineries in Amara, Kerbala, and Kirkuk. O F S T A T E 18 UNCLASSIFIED September 12, 2007 UNCLASSIFIED [4.] Help Iraq Build Government Capacity and Provide Essential Services – Government Capacity D E P A R T M E N T Basrah: • The Basrah Provincial Reconstruction Team (PRT) reports that the Resource Statement for 2007 (collating donor and Iraqi projects) is nearing completion. It is designed to focus the Council on greater transparency in their work and allow for more effective prioritization of that work. Kirkuk: • The Kirkuk PRT reported during the period of 24-30 August that the electricity situation improved slightly, as regional power plants operated normally. The national grid supplied 16 hours per day to the Province, with households seeing 6-8 hours per day, still less than the recent averages of 10-12 hours per day. O F S T A T E 19 UNCLASSIFIED September 12, 2007 UNCLASSIFIED [5.] Help Iraq Strengthen Its Economy – Oil Update and Job Creation D E P A R T M E N T O F S T A T E Oil Update: • Crude oil price averages in world markets for the week ending August 31 closed with the following prices: – Basrah Light at $70.552/ barrel – Dated Brent at $74.846/barrel – WTI Cushing at $75.945/ barrel – Oman/Dubai at $70.29/barrel Employment Update: Iraqis Last Week Iraqis This Week % Change Gulf Region District (GRD) (Includes MILCON/OMA) 23,752 25,487 7.30% US Agency for International Development (USAID) 81,202 72,092 -11.22% Commander’s Emergency Response Program (CERP) 3,519 3,519 0.00% Multi-National Security Transition Command-Iraq (MNSTC-I) 6,321 4,703 -25.60% 114,794 105,801 -7.83% Employment Program Grand Total 20 UNCLASSIFIED September 12, 2007 UNCLASSIFIED [5.] Help Iraq Strengthen Its Economy - Banking Sector Central Bank’s US Dollar (USD) Currency Auction: The following table shows volume sold of and exchange rates for USD in the Iraqi currency auction since April. Since September, the Central Bank of Iraq (CBI) has slowly appreciated the dinar, as suggested by the IMF, in an effort to rein in galloping inflation. There are signs that this effort has begun to bear fruit, as year-to-date inflation is 4.8% and the year-onyear inflation rate was 30.2% in July. This decline in the rate of inflation may be temporary, however, as the CBI has slowed its appreciation of the currency and the rate of inflation (particularly for energy prices) typically picks up in the second half of the year. Central Bank of Iraq USD Currency Auction: September 3, 2006 – September 11, 2007 1 ,5 0 0 $ 1 0 0 .0 $ 9 0 .0 1 ,4 5 0 $ 8 0 .0 $ 7 0 .0 1 ,4 0 0 $ 6 0 .0 1 ,3 5 0 $ 5 0 .0 $ 4 0 .0 NID Exchange Rate O F • USD Sold (Millions) D E P A R T M E N T 1 ,3 0 0 $ 3 0 .0 $ 2 0 .0 1 ,2 5 0 $ 1 0 .0 $ 0 .0 S e S p ep 6 S 1 -S ep 3 e - p 2 S S 1 ep 12 ep - S 1 O 26 ep 9 O ct 3 - O 25 ct c O 11 - O t 2 ct - ct 1 O 1 N 9 - ct 0 o N v O c 18 ov 4 t 8 - N 29 - N ov N No o 7 ov v v D 2 15 1 4 e 9 D c - -2 ec 6 D 8 D 1 - D ec ec 3 e 1 - c 2 D 1 Ja 0 - ec 2 Ja n De 18 n 8 c Ja 17 - J 26 n - an 23 Ja 1 Ja n 6 n F e 3 Jan 22 0 Fe b 6 - F 29 b - e Fe 14 Fe b 5 b -F b 1 Fe 21- eb 3 b Fe 20 M 28 b ar - M 27 7- a M M Ma r 6 ar a r 1 2 r M 2- 14 3 a r M -2 a 0 A 2 r A p r 8 -A 2 7 pr 3 p r A 10 - A 2 pr - p A r A 17 p 8 pr - r A 1 M 24- pr 6 M ay A p 23 a 2 r M y 9 - M 30 a M y 1 - M ay ay 6 ay 8 M 23 M a 15 a Ju y M y 2 3 a 2 J ne 0- y Ju u n 6- Ju 29 e Ju ne n Ju e 2 17 ne 4 ne 0 Ju 1 3 26 - Ju ne 1 Ju - J ne 9 J u ly u n 2 5 e 1 28 J u ly 8 ly - J u J u 1 J u ly l 1 - ly 5 J J y A J u u ly 1 7 - u l y 1 0 u g ly Ju 1 A u 2 u g s 3 1 4 - ly 6 A us t 7 - Ju 23 S e p u g t 1 - AA u ly t eA u u s 4 u g u 3 0 m g t 2 - A gu st b eu s 2 u s 6 r t 2 - A gu t 1 3 8 u s 3 - S- g t 2 e pA u u s 1 te g u t 2 ms 7 b et 3 r 0 11 S T A T E US $ Sold (Weekly Avg) 1 ,2 0 0 The New Iraqi Dinar (NID) exchange rate line is calculated as a weekly weighted average (NID/USD) 21 UNCLASSIFIED September 12, 2007 UNCLASSIFIED [5.] Help Iraq Strengthen Its Economy – Securities Markets Trading of Iraqi Bonds on the International Secondary Bond Market: Iraqi C om m ercial B ond Sales June 15, 2006 - S eptem ber 7, 2007 12.00% $80.00 $70.00 10.00% $60.00 8.00% $50.00 6.00% $40.00 $30.00 Yield Percentage O F • The following table shows the daily bond resale price and yield on Iraqi bonds issued January 20. The bonds were originally issued to approximately two-thirds of Iraq’s commercial creditors as part of a debt exchange arrangement as per Paris Club terms. Iraq’s commercial debt was approximately $22 billion before the debt-swap arrangement. The bonds, which are not yet rated, will mature in 2028. Bond Price in USD D E P A R T M E N T 4.00% $20.00 2.00% $10.00 0.00% -J 2 9 un -J u 13 n -J 27 ul 10 J ul -A 24 u g -A u 7- g Se 21 p -S ep 5O 19 ct -O c 2- t N 16 ov -N 30 ov -N 14 ov -D 28 ec -D 1 1 ec -J 2 5 an -J a 8- n Fe 22 b -F e 8- b M 2 2 ar -M a 5- r Ap 19 r -A p 3- r M 1 7 ay -M 3 1 ay -M 1 4 ay -J 2 8 un -J u 12 n -J 26 ul -J u 9- l A 23 u g -A u 6- g S ep $0.00 15 S T A T E Trading High = $73.98 (January 24) Trading Low = $64.66 (August 30) 22 UNCLASSIFIED September 12, 2007 UNCLASSIFIED [5.] Help Iraq Strengthen Its Economy – Economic Events Iraq Expected to See Rise in Economic Growth for 2007: • Speaking in Baghdad, U.S. Coordinator for Economic Transition Charles Ries said that Iraq’s economy is likely to grow more than 6% in 2007. Ries said that the economy is underperforming, though, due to an inadequate supply of electricity, weakness in the oil sector, capacity constraints, and a lack of foreign and private investment. D E P A R T M President Talabani Opens Business Fair in Sulaymaniyah: E • Iraqi President Jalal Talabani opened a business fair in Sulaymaniyah region August 6, saying that the annual event played an important role in stimulating N reconstruction projects in the northern Kurdish provinces and that the fair was a T symbol of Iraq’s national unity. O • Over 276 Iraqi and international firms, many from Turkey and Iran, took part in the F fair, offering a range of products and services from cars to telecommunications. S T A T E 23 UNCLASSIFIED September 12, 2007 UNCLASSIFIED [5.] Help Iraq Strengthen Its Economy – Crude Oil Production 2.80 2.07 2.10 2.06 2.08 2.04 2.32 2.24 2.03 2.00 1.60 1.15 1.20 0.80 0.40 -9 A Se pt em be r3 ug us t2 7Se pt em be r2 ug us t2 026 A ug us t1 319 A 30 A ug us t6 -1 2 5 -A ug us t -2 9 Ju ly Ju ly 23 -2 2 16 Ju ly Ju ly 915 0.00 28 S T A T E 2.22 Ju ly O F 2007 Iraqi Oil Ministry Goal: 2.1 MBPD 2.40 Millions of Barrels Per Day D E P A R T M E N T Production 24 Target UNCLASSIFIED September 12, 2007 UNCLASSIFIED [5.] Help Iraq Strengthen Its Economy – Crude Oil Export Revenue (US$B) O F $4.00 $3.50 1.76 1.64 1.58 1.55 1.44 1.50 1.45 1.69 1.55 1.50 $3.00 1.47 1.30 $2.50 1.20 $2.62 $3.39 $3.05 $2.75 $2.45 $2.75 $2.00 $3.49 USD (Billions) 1.80 $1.50 $2.96 $2.46 $2.19 0.60 S T A T E Exports (MBPD) 2.40 Millions of Barrels per Day D E P A R T M E N T Projected $1.89 $2.11 $1.00 $0.50 $0.76 0.00 $0.00 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 Apr-07 • 2006 Revenue Estimate: $31.3 Billion • 2007 Revenue Estimate: $23.2 Billion 25 May-07 Jun-07 Jul-07 Aug-07 Sep-07 (Year to Date) UNCLASSIFIED September 12, 2007 UNCLASSIFIED [5.] Help Iraq Strengthen Its Economy – Total Critical Refined Product Supplies Domestic Production O F 100% 14% 19% 23% 30% 80% Percentage of Share of Weekly Fuel Supplies D E P A R T M E N T Import 60% 86% 40% 81% 77% 70% 20% S T A T E 0% Diesel Kerosene Gasoline LPG Note: This is a daily average for September 3 – 9 • Diesel: 14.4 ML supply of 24.5 ML target • Kerosene: 10.1 ML supply of 11.1 ML target • Gasoline: 15.1 ML supply of 23.1 ML target • LPG: 2,420 tons supply of 5,100 tons target 26 UNCLASSIFIED September 12, 2007 UNCLASSIFIED [5.] Help Iraq Strengthen Its Economy – National Stock Levels Aug-07 Jul-07 25 20 15 Days D E P A R T M E N T Goal Sep-07 10 O F 5 S T A T E 4 4 3 3 3 2 2 2 1 2 1 1 0 Diesel Kerosene Gasoline LPG • The goal is to have on hand 15 days supply of all refined products, calculated on the basis of maximum consumption over the year and not adjusted for seasonal variation. The numbers given above are monthly averages. 27 UNCLASSIFIED September 12, 2007 UNCLASSIFIED [6.] Help Iraq Strengthen the Rule of Law and Promote Civil Rights– Rule of Law President Talabani Opposes Execution of Saddam Aide: D E P A R T M E N T O F S T A T E • President Jalal Talabani said September 7 during a press conference in Sulaymaniyah that he would not sign the execution order of a top Saddam aide whom he personally had “provoked” to rebel against the executed dictator. If the approval of his three-member presidency is sought by the Iraqi supreme court, Talabani said he would refuse to sign the order of Sultan Hashim al-Tai (senior officer who became defense minister during Saddam’s regime). New Iraqi Corruption Fighter Named: • The Iraqi government has named the deputy head of the country’s anti-corruption body to replace his boss, who is accused by a parliamentary committee of corruption himself, officials reported September 6. The new chairman of the Public Integrity Commission will be Moussa Faraj. A government official said the outgoing chairman, Radhi al-Radhi, had requested retirement and that Prime Minister Nuri alMaliki accepted. The official also said that Faraj will replace Radhi on a temporary basis until he is approved by parliament permanently to the new post. 28 UNCLASSIFIED September 12, 2007 UNCLASSIFIED [7.] Increase International Support for Iraq – Developments Britain's Stance on Iraq Consistent with that of U.S.: D E P A R T M E N T O F • Prime Minister Gordon Brown’s spokesman said the general approach of the U.S. and the United Kingdom was entirely consistent and that decisions on troop levels would be based on conditions on the ground and the assessment of the military. Brown had “very cordial and constructive” talks with President Bush September 10. UN Appoints Mistura as its Top Envoy in Iraq: • Swedish Diplomat Staffan de Mistura, who has worked at the U.N. for 30 years, was appointed September 5 as the new UN envoy to Iraq. De Mistura served as the U.N.'s deputy envoy to Iraq in 2005 and 2006, and replaces Pakistani diplomat Ashraf Qazi, who was named September 4 as the top U.N. representative to Sudan. Both of Secretary-General Ban Ki-moon's appointments have been agreed upon by the Security Council. S T A T E 29 UNCLASSIFIED September 12, 2007 UNCLASSIFIED [7.] Increase International Support for Iraq – Developments Iraqi Vice President Thanks Kuwait for its Full Support to Iraq: D E P A R T M E N T • Iraqi Vice President, Dr. Adel Abdul Mahdi, thanked Kuwait during a September 10 visit for its full support to Iraq, which he said would help bring about a successful political process in Iraq and guarantee stability and security in the neighboring Arab country. Mahdi described the visit as "excellent", noting that he had heard from his Highness, the Amir of Kuwait Shaykh Sabah al-Ahmad al-Jaber al-Sabah "wise and excellent words of interest to Kuwait, Iraq, the region and Muslims in general". O F S T A T E 30 UNCLASSIFIED September 12, 2007 UNCLASSIFIED [7.] Increase International Support for Iraq – Contributors to Iraqi Stability Operations D E P A R T M E N T O F S T A T E 25 Countries with forces in Iraq (in addition to US) Albania Denmark Korea Poland Armenia El Salvador Latvia Romania Australia Estonia Lithuania Singapore Azerbaijan Georgia Macedonia Slovakia Bosnia-Herzegovina Japan Moldova Ukraine Bulgaria Kazakhstan Mongolia UK Czech Republic TOTAL ~ 11,732 Forces *Note: Fiji participating as a part of the UN mission in Iraq. 33 Countries and NATO* (including US) Support Iraqi Stability Operations *33 includes the 25 countries listed above, the US, Fiji, and seven NATO, non-MNF-I countries: Iceland, Italy, Netherlands, Portugal, Slovenia, Turkey 31 UNCLASSIFIED September 12, 2007 UNCLASSIFIED [8.] Strengthen Public Understanding of Coalition Efforts and Public Isolation of the Insurgents – Developments D E P A R T M E N T Iraqi Insurgents Threaten to Kill German: • An insurgent group in Iraq posted a videotape September 10 that showed a German hostage who has been held for more than six months and threatened to kill him unless Germany withdrew its troops from Afghanistan within ten days. Sinan Krause and his mother Hannelore disappeared in Iraq February 6. O F S T A T E 32 UNCLASSIFIED September 12, 2007 UNCLASSIFIED Iraq Weekly Status – General Information D E P A R T M E N T • This brief draws from multiple sources. References are cited on the following pages. • Please forward all questions and/or comments to: NEA-I-IPOG-DL@state.gov O F S T A T E 33 UNCLASSIFIED September 12, 2007 UNCLASSIFIED Notes and Source Citations (1 of 3) Slide 5: D E P A R T M E N T O F S T A T E – Report to Congress - Gen Petraeus Testimony – September 10-11 Slide 6: – Report to Congress - Gen Petraeus Testimony – September 10-11 Slide 7: – Report to Congress - Gen Petraeus Testimony – September 10-11 Slide 8: – Report to Congress - Gen Petraeus Testimony – September 10-11 Slide 9: – Report to Congress - Gen Petraeus Testimony – September 10-11 Slide 10: – Report to Congress - Gen Petraeus Testimony – September 10-11 Slide 11: – Report to Congress - Gen Petraeus Testimony – September 10-11 Slide 12: – DoD Input to Iraq Weekly Status Report September 11, 2007 Slide 13: – http://www.baltimoresun.com/news/world/iraq/bal-te.iraq11sep11,0,1010756.story – http://www.reuters.com/article/topNews/idUSL1126811620070911?src=091107_1312_TOPSTORY_petraeus_under_fire 34 UNCLASSIFIED September 12, 2007 UNCLASSIFIED Notes and Source Citations (2 of 3) Slide 14: D E P A R T M E N T O F S T A T E – NEA Political Section, NEA-I-POL-DL@state.gov Slide 15: – ITAO Weekly Report, September 12, 2007 Slide 16: – POC Department of State, NEA-I ASSIST, 202 647-9815 – The chart shows average daily power production in megawatt hours (MWh). 120,000 MWh goal equates to 20 hours at 6000 MW average supplied load or 24 hours at 5000 MW average supply load. Slide 17: – September 6, 2007 – (United Press International) http://www.iraqupdates.com/scr/preview.php?article=21476 – September 6, 2007 – (Voices of Iraq) http://www.iraqupdates.com/scr/preview.php?article=21479 Slide 18: – September 10, 2007 – (Reuters) http://www.iraqupdates.com/scr/preview.php?article=21333 Slide 19: – PRT Weekly Summary August 24-30, 2007 – (Basrah, Kirkuk) Slide 20: – Oil Prices are sourced from Bloomberg Employment Update: – Information regarding the Employment Update was sourced from the ITAO Weekly Report – September 12, 2007. – CERP has not reported figures for some time. Until they report accurate data, the number will remain at 0. – PCO will be reporting on a bi-weekly basis. Slide 21: – Department of State, NEA-I-ECON, 202-647-9885 Slide 22: – Iraqi Bond Prices are sourced from Bloomberg 35 UNCLASSIFIED September 12, 2007 UNCLASSIFIED Notes and Source Citations (3 of 3) Slide 23: D E P A R T M E N T O F S T A T E – September 10, 2007, http://www.iraqupdates.com/p_articles.php/article/21587 – September 10, 2007, http://www.iraqupdates.com/p_articles.php/article/21525 – Department of State, NEA-I-ECON, 202-647-9885 – Department of State, NEA-I-ECON, 202-647-9885 – Department of State, NEA-I-ECON, 202-647-9885 – Department of State, NEA-I-ECON, 202-647-9885 Slide 24: Slide 25: Slide 26: Slide 27: Slide 28: – September 7, 2007 - AFP - http://news.yahoo.com/s/afp/20070907/wl_mideast_afp/iraqtrialexecutiontalabani – September 6, 2007 - AP - http://news.yahoo.com/s/ap/20070906/ap_on_re_mi_ea/iraq_corruption;_ylt=AvQz2wfFYhTsA492Mpta1o4LewgF Slide 29: – http://www.africasia.com/services/news/newsitem.php?area=mideast&item=070911161536.brm8vm95.php – http://africa.reuters.com/wire/news/usnN05226200.html – September 10 OI – Source: DOD Input to Weekly Status Report, updated bi-weekly. – September 11, 2007 - http://www.iraqupdates.com/p_articles.php/article/21609 – September 10, 2007 - http://news.yahoo.com/s/ap/20070911/ap_on_re_mi_ea/iraq_germany_hostage_video_1 Slide 30: Slide 31: Slide 32: 36 UNCLASSIFIED