July 18, 2007 UNCLASSIFIED D E P A R T M E N T O F S T A T E Iraq Weekly Status Report July 18, 2007 Bureau of Near Eastern Affairs US Department of State 1 UNCLASSIFIED July 18, 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 8 3. Help Iraqis to Forge a National Compact for Democratic 10 Government 4. Help Iraq Build Government Capacity and Provide Essential 12 Services O F S T A T E 5. Help Iraq Strengthen Its Economy 15 6. Help Iraq Strengthen the Rule of Law and Promote Civil Rights 24 7. Increase International Support for Iraq 25 8. Strengthen Public Understanding of Coalition Efforts and 27 Public Isolation of the Insurgents Sources and Contact Information Notes and Source Citations 28 29 2 UNCLASSIFIED July 18, 2007 UNCLASSIFIED Highlights D E P A R T M E N T 1. Defeat the Terrorists and Neutralize the Insurgents MNF-I spokesman Brigadier General Kevin Bergner announced that U.S. forces have arrested Khaled al-Mashhadani, a top Iraqi militant, who acted as a link between al-Qaida's Iraqi offshoot and Osama bin Laden. Under interrogation, Mashhadani revealed that propaganda tapes released by alQaida in Iraq's supposed Iraqi kingpin, Omar al-Baghdadi, were in fact voiced by an actor under the command of an Egyptian militant. Mashhadani is believed to be the most senior Iraqi in the al-Qaida in Iraq network and is a close associate of Abu Ayyub al-Masri, the Egyptian-born head of al-Qaida in Iraq. 2. Transition Iraq to Security Self-Reliance Iraqi Security Forces (ISF) have shown continued improvements since the beginning of Operation Fardh al-Qanun (FAQ) in mid-February. The establishment of the Baghdad Operations Command in March and the subordinate Karkh and Rusafa area commands was especially significant, giving the Iraqis increased command and control of their own forces, enabling them to establish a planning process, and helping them take the lead in the command and control of division-level operations. 3. Help Iraqis to Forge a National Compact for Democratic Government The parliamentary bloc loyal to Muqtada al-Sadr ended its boycott of the Iraqi legislature July 17, after walking out of parliament more than a month ago following the bombing Askira Shrine, which Sadr blamed in part on the failure of Iraqi security forces protecting it. The lawmakers claim they are ending the boycott of parliament sessions after officials accepted their demands for rebuilding the shrine. Iraq's main Sunni parliamentary bloc, the National Concord Front, has ended its boycott of the assembly in a move that could help the passage of key laws aimed at promoting national unity. 4. Help Iraq Build Government Capacity and Provide Essential Services Completion of the U.S.-funded Tamoz Primary Health Center will enhance the quality of life for residents of Mosul City. The center will be able to administer health and dental care to over 35,000 patients annually. O F S T A T E 3 UNCLASSIFIED July 18, 2007 UNCLASSIFIED Highlights D E P A R T M E N T O F S T A T E 5. Help Iraq Strengthen Its Economy Iraqi statistics show that the inflation rate for June was 6.1% overall, bringing year-to-date inflation to 8.5% and year-on-year inflation to 46.1%. The increase was largely driven by a 22.1% rise in fuel prices. Core inflation (which excludes fuel and transport prices), however, appears to be edging gradually downward. 6. Help Iraq Strengthen the Rule of Law Iraqi police forces conducted an intelligence driven operation in Samarra July 9 and detained an individual allegedly responsible for running a mortar and sniper network in Samarra. 7. International Support for Iraq U.N. Secretary General Ban Ki-moon warned on Monday against an "abrupt withdrawal" by U.S. forces from Iraq and said the international community must not abandon the Iraqi people. However, UNSG Ban, who met President Bush on a visit to Washington July 17, said it was not his place to inject himself into the debate raging in Congress in recent weeks over withdrawing U.S. troops from Iraq. 8. Strengthen Public Understanding of Coalition Efforts and Public Isolation of the Insurgents An Iraqi journalist for The New York Times was killed July 13 while on his way to work, less than an hour after he called the bureau to say a checkpoint had blocked his normal route, the newspaper said. 4 UNCLASSIFIED July 18, 2007 UNCLASSIFIED [1.] Defeat the Terrorists and Neutralize the Insurgency Coalition Efforts Against AQI: D E P A R T M E N T O F S T A T E • Multi-National Forces-Iraq (MNF-I) spokesman Brigadier General Kevin Bergner reported June 11 that al-Qaida in Iraq (AQI) and its affiliates are the main near-term threat in Iraq and are the greatest source of spectacular attacks, fueling sectarian violence in the country. • Over the past two months, Coalition efforts against AQI leadership have begun to disrupt AQI’s networks and safe havens and are targeting AQI sanctuaries in Baghdad’s neighborhoods and areas around the city. From a geographical perspective, Coalition Forces (CF) are conducting operations throughout Iraq, but have been particularly effective against al-Qaida leadership in Mosul and Baghdad. • CF have killed or captured 26 high-level AQI leaders and hundreds of other AQI members during May and June. Of these 26, 11 were emirs who were city or local alQaida leaders; seven were facilitators who smuggled foreigners, weapons and money into Iraq; five were cell leaders who commanded terrorist units that worked for the emirs; and three were vehicle-borne improvised explosive device network leaders. • Coalition operations are also impacting AQI’s infrastructure. Last month, MNF-I uncovered a major al-Qaida media production center near Samarra called the al-Furqan Media Productions by AQI. It produced CDs, DVDs, posters, pamphlets, and web-related propaganda products and contained documents clearly identifying AQI’s intent to use media as a weapon. The building contained 65 hard drives, 18 thumb drives, over 500 CDs, and 12 stand-alone computers . 5 UNCLASSIFIED July 18, 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 July 18, 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 Most Senior Iraqi Member of the AQI Network Captured: • MNF-I spokesman Brigadier General Kevin Bergner announced that U.S. forces have arrested Khaled al-Mashhadani, a top Iraqi militant, who acted as a link between al-Qaida's Iraqi offshoot and Osama bin Laden. Under interrogation, Mashhadani revealed that propaganda tapes released by al-Qaida in Iraq's supposed Iraqi kingpin, Omar al-Baghdadi, were in fact voiced by an actor under the command of an Egyptian militant. Mashhadani is believed to be the most senior Iraqi in the al-Qaida in Iraq network and is a close associate of Abu Ayyub al-Masri, the Egyptian-born head of al-Qaida in Iraq. Operation Fardh al-Qanun Update: • Brigadier General John Campbell, the deputy commanding general for MultiNational Division-Baghdad (MND-B) and the 1st Cavalry Division reported that since the beginning of 2007, the numbers of kidnappings and murders in Baghdad have declined nearly 50% and attacks against the civilian population have declined by nearly 30%. Campbell said the decline in the violence against civilians is due to the surge of forces, allowing MND-B to leave behind troops to secure neighborhoods after clearing out insurgents. 7 UNCLASSIFIED July 18, 2007 UNCLASSIFIED [2.] Transition to Security Self-Reliance – Iraqi Security Forces ISF Participation in FAQ: D E P A R T M E N T O F • Five months into Operation Fardh al-Qanun (FAQ), Brigadier General John Campbell, the deputy commanding general for Multi-National Division-Baghdad (MND-B) and the 1st Cavalry Division, said Iraqi Security Forces (ISF) have shown continued improvements since the operation began in mid-February. • The establishment of the Baghdad Operations Command in March and the subordinate Karkh and Rusafa area commands was especially significant, giving the Iraqis increased command and control of their own forces, enabling them to establish a planning process, and helping them take the lead in the command and control of division-level operations. • The ISF have conducted nearly 400 separate company-level or higher operations with MND-B since FAQ began in mid-February, uncovering more than 740 weapons caches in those operations. Iraqi Soldiers Participate in Advanced Infantry Course: S T A T E • Soldiers from 4th Brigade, 6th Iraqi Army (IA) Division participated in the advanced infantry course, dubbed the “Commando Course,” at the IA compound in Mahmudiyah. The course, planned and designed by non-commissioned officers of 2nd Battalion, 15th Field Artillery Regiment, 10th Mountain Division was developed to give the IA soldiers advanced infantry training skills. The class began July 8 and the soldiers are scheduled to graduate August 7. 8 UNCLASSIFIED July 18, 2007 UNCLASSIFIED [2.] Transition Iraq to Security Self-Reliance – Iraqi Security Forces D E P A R T M E N T O F S T A T E Ministry of Interior Forces COMPONENT TRAINED & EQUIPPED POLICE ~135,000 NATIONAL POLICE ~ 26,300 OTHER MOI FORCES ~32,900 TOTAL ~194,200* Ministry of Defense Forces COMPONENT OPERATIONAL ARMY ~156,900*** AIR FORCE ~900 NAVY ~1,100 TOTAL ~158,900** Total Trained & Equipped ISF: ~353,100**** * 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 9 UNCLASSIFIED July 18, 2007 UNCLASSIFIED [3.] Help Iraqis to Forge a National Compact for Democratic Government Sadr and Sunni Parliamentary Blocs End Boycotts: D E P A R T M E N T O F S T A T E • The parliamentary bloc loyal to Muqtada al-Sadr ended its boycott of the Iraqi legislature on July 17, after walking out of parliament more than a month ago following the bombing Askira Shrine, which Sadr blamed in part on the failure of Iraqi security forces protecting it. The lawmakers claim they are ending the boycott of parliament sessions after officials accepted their demands for rebuilding the shrine. Iraq's main Sunni parliamentary bloc, the National Concord Front, has ended its boycott of the assembly in a move that could help the passage of key laws aimed at promoting national unity. Oil Industry Workers Protest Draft Hydrocarbon Law: • About 300 oil industry workers gathered in Iraq’s main oil port of Basrah to protest a draft hydrocarbon law that they said would allow foreigners to pillage the country’s wealth. U.S. officials see the passing of the draft hydrocarbon law, aimed at equitably distributing Iraq’s oil proceeds, as a crucial benchmark of the country’s political process and a key component of national reconciliation. CoR Extends its Present Term: • Iraq’s Council of Representatives (CoR) voted to extend its present term through July 31, and for working sessions to last six days a week from July 16 through July 31. The CoR still plans to recess for the month of August. 10 UNCLASSIFIED July 18, 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 * 11 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 July 18, 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 $4,978.21 $4,972.88 ($5.33) $4,975.17 $4,971.12 ($4.05) $4,801.30 $4,805.58 $4.28 Electricity Sector $4,216.87 $4,171.34 $4,170.60 ($0.73) $4,046.08 $4,047.99 $1.92 $3,322.53 $3,397.90 $75.37 Oil Infrastructure $1,724.70 $1,623.09 $1,610.26 ($12.83) $1,572.42 $1,560.08 ($12.34) $1,456.14 $1,462.54 $6.39 Justice, Public Safety and Civil Society $1,304.15 $1,302.73 $1,304.29 $1.55 $1,296.71 $1,297.34 $0.64 $1,091.94 $1,099.49 $7.55 Democracy $998.35 $998.31 $998.31 $0.00 $997.26 $997.26 $0.00 $961.62 $961.72 $0.10 Education, Refugees, Human Rights, Governance $409.84 $399.94 $399.94 $0.00 $399.76 $399.76 $0.00 $369.57 $370.60 $1.03 Roads, Bridges and Construction $333.60 $327.81 $321.58 ($6.24) $320.75 $320.33 ($0.42) $227.06 $229.33 $2.26 Health Care $815.55 $770.76 $770.67 ($0.09) $758.77 $761.11 $2.34 $670.64 $681.42 $10.78 Transportation and Communications $456.72 $455.45 $452.70 ($2.75) $447.17 $447.03 ($0.15) $354.40 $357.65 $3.25 $2,115.79 $2,006.40 $1,989.44 ($16.96) $1,962.86 $1,943.42 ($19.44) $1,615.15 $1,645.71 $30.56 Private Sector Development $809.26 $809.12 $809.12 $0.00 $807.85 $807.85 $0.00 $765.43 $765.50 $0.06 Admin Expense (USAID, STATE) $211.05 $209.95 $209.95 $0.00 $209.95 $209.95 $0.00 $187.92 $188.65 $0.73 $18,400.66 $18,053.11 $18,009.73 ($43.38) $17,794.74 $17,763.24 ($31.50) $15,823.71 $15,966.08 $142.37 IRRF II Construction - $10,341.38 $10,308.64 ($32.75) $10,089.75 $10,073.11 ($16.64) $8,657.33 $8,773.13 $115.80 IRRF II Non-Construction - $6,713.42 $6,702.79 ($10.63) $6,707.72 $6,692.86 ($14.86) $6,204.76 $6,231.24 $26.47 IRRF II Democracy - $998.31 $998.31 $0.00 $997.26 $997.26 $0.00 $961.62 $961.72 $0.10 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 $20,873.96 $20,526.41 $20,483.03 ($43.38) $20,027.04 $19,995.54 ($31.50) $17,962.71 $18,105.08 $142.37 Water Resources and Sanitation Total As of July 17, 2007 12 UNCLASSIFIED July 18, 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 O F 50,000 6/14/07 3/16/07 12/16/06 9/17/06 6/19/06 3/21/06 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 0 S T Date A T E • For the week of July 11-17, national electricity supply was 4 percent below the same period in 2006. 13 UNCLASSIFIED July 18, 2007 UNCLASSIFIED [4.] Help Iraq Build Government Capacity and Provide Essential Services – Electricity and Health Electricity: D E P A R T M E N T • Electrical service has been made available to over 12,000 Salah al-Din province residents with the completion of the U.S.-funded Bayji feeder project. • Completion of the U.S.-funded Shawrek electric project in Dahuk will provide reliable electrical service for a school, a mosque and 26 households. Health: • Completion of the U.S.-funded Tamoz Primary Health Center will enhance the quality of life for residents of Mosul City. The center will be able to administer health and dental care to over 35,000 patients annually. O F S T A T E 14 UNCLASSIFIED July 18, 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 July 13 closed with the following prices: – Basrah Light at $72.794/ barrel – Dated Brent at $77.754/barrel – WTI Cushing at $72.798/ barrel – Oman/Dubai at $69.528/barrel Employment Update: Iraqis Last Week Iraqis This Week % change Gulf Region District (GRD) (Includes MILCON/OMA) 19,909 14,480 -27% US Agency for International Development (USAID) Commander's Emergency Response Program (CERP) 66,940 4,320 63,166 4,320 -6% 0% Multi-National Security Transition Command-Iraq (MNSTC-I) Iraq Reconstruction Relief Fund (IRRF) Non-Construction 10,731 8,855 11,153 8,855 4% 0% GRAND TOTAL 110,755 101,974 -8% Iraqi Employment Per Organization Employment Program As of July 17, 2007 15 UNCLASSIFIED July 18, 2007 UNCLASSIFIED [5.] Help Iraq Strengthen Its Economy - Banking Sector 1,500 $100.0 $90.0 1,450 $80.0 $70.0 1,400 $60.0 $50.0 1,350 $40.0 1,300 NID Exchange Rate O F Central Bank of Iraq USD Currency Auction: July 16, 2006 – July 16, 2007 USD Sold (Millions) D E P A R T M E N T 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. Iraqi statistics show that the inflation rate for June was 6.1% overall, bringing year-to-date inflation to 8.5%, which projects a pace below the IMF annual target of 30%. The increase was largely driven by a 22.1% rise in fuel prices. Core inflation (which excludes fuel and transport prices), however, appears to be edging gradually downward, which is somewhat encouraging. $30.0 $20.0 1,250 $10.0 $0.0 1,200 Ju Jul 1 6 Ju J l 2 - 2 l 3ul 3 - 0 1 26 25 A - A- 3 A ug ug 0 u A A g 8- 7 u u 1 1 Seg 3g 1 - 0 Se p 0 23 22 6 - Sep 1 - Se 29 p 3 - Se p 5 Se21 Sep 1 p - p 2 O 2 Se 19 O ct 6 - p 2 c 3 O 5 O t 1 - O ct ct 1 c 2 N 19 O t 1 N ov - Oct 10 ov 4 c 8 8 -Nt2 N N - N ov 9 ov o o 7 v v D D ec 29 15 14 ec 6 - D 1 - De28 ec 3 D c - e 1 Ja 20 Dec 1 Ja n - D c 2 1 n 8 Ja 1 - ec 8 n 7 - Ja 26 n 2 Ja 3 Ja 1 F n 3 - J n 26 e Fe b 0 - an 2 6 F 2 Feb 1 - F eb 9 b 4- eb 5 Fe 21 Fe 1 b - b 3 M 2 Fe 20 ar 8- b 7- Ma 27 M M ar M a r 6 a r M 22 r 1 13 ar -M 4 aA Ap 28 r 220 pr r -A 7 A 103- pr A 2 p A r 1 - A pr pr 7 p 8 - r M 24 Ap 16 M ay -A r 2 ay 2 p 3 M r a 9- 3 M y - MMa 0 ay 16 a y M 2 -M y 8 Juay 3- ay 15 Ju ne 30 Ma 22 Ju n 6 -J y e - u 2 June 1 Ju ne 9 n 20 7-J ne 4 e - u 1 26 J n 3 e Ju - un 19 Ju ly Ju e 2 n Ju ly 1 - e 5 ly 8 - Ju 28 11 J ly - July 5 u 1 ly 0 16 S T A T E US $ Sold (Weekly Avg) The New Iraqi Dinar (NID) exchange rate line is calculated as a weekly weighted average (NID/USD) 16 UNCLASSIFIED July 18, 2007 UNCLASSIFIED [5.] Help Iraq Strengthen Its Economy – Securities Markets Trading of Iraqi Bonds on the International Secondary Bond Market: June 5, 2006 - July 13, 2007 $70.00 11.00% $68.00 10.50% $66.00 $62.00 9.50% $60.00 Yield Percen tag e 10.00% $64.00 9.00% $58.00 8.50% $56.00 11-J ul 2-J ul 21-J un 1-J un 12-J un 23-M ay 3-M ay 14-M ay 24-Apr 13-Apr 4-Apr 26-M ar 6-M ar 15-M ar 23-F eb 5-F eb 14-F eb 25-J an 5-J an 16-J an 27-D ec 7-D ec 18-D ec 28-N ov 8-N ov 17-N ov 30-O c t 19-O c t 10-O c t 29-Sep 20-Sep 11-Sep 31-Aug 22-Aug 2-Aug 11-Aug 24-J ul 4-J ul 13-J ul 8.00% 23-J un $54.00 5-J un S T A T E Iraqi Commercial Bond Sales 14-J un 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. B o n d Price in U SD D E P A R T M E N T Trading High = $73.98 (January 24) Trading Low = $64.66 (August 30) 17 UNCLASSIFIED July 18, 2007 UNCLASSIFIED [5.] Help Iraq Strengthen Its Economy – Economic Events Overall Inflation Up, Core Inflation Down in June: D E P A R T M E N T O F S T A T E • Iraqi statistics show that the inflation rate for June was 6.1% overall, bringing year-todate inflation to 8.5%, which projects a pace below the IMF annual target of 30%. The increase was largely driven by a 22.1% rise in fuel prices. Core inflation (which excludes fuel and transport prices), however, appears to be edging gradually downward (from 21.1% through May to 19% through June), which is somewhat encouraging. Iraqi Kurds Reject Latest Draft of Oil Law: • Iraqi Kurdish leaders spoke out July 11 against the country’s oil law, saying that they oppose the latest drafting of the bill. The top official in Iraqi Kurdistan rejected changes that were made to an earlier version the Kurds originally supported. Kurdistan’s Natural Resource Minister, Ashti Hawrami, said that the amendments to the draft “reduce the powers of the (Kurdish) region and should not be approved.” USAID Approves New Izdihar Grant: • USAID approved a new Izdihar grant of $250,000 to provide capital to the al-Aman Microfinance Institute; al-Aman also received $17,100 in CERP micro-grants program, which supported twelve loans. Al-Aman continues to fill a gap in the local financial scene, supplying credit to small businessmen who cannot obtain loans from local banks, who offer only collateral loans at high rates. Kirkuk province has obligated 32 billion Iraqi Dinars (ID), or 28%, of its 2007 budget on 128 projects. The Governor’s Technical Review Committee has approved another 290 projects, which are on the Governor’s desk awaiting signature. • During his visit to Kirkuk province, Deputy Prime Minister Barham Salih also stressed the importance of proper project execution and obligating Kirkuk’s budget in a timely fashion. 18 UNCLASSIFIED July 18, 2007 UNCLASSIFIED [5.] Help Iraq Strengthen Its Economy – Economic Events Diyala Province Receives Additional Cash: D E P A R T M E N T O F • Fifty billion ID has been injected into the Diyala provincial economy this week through banks in Baquba, which re-opened this week. Salaries and pensions were paid to government workers and pensioners, for some this was their first payment in months. Numerous contractors received payment for services rendered, some of whom had been waiting for over a year. The funds were distributed through four banks in Baquba, which had previously been restricted in operations due to the poor security situation. • The governor requested an additional $100 billion ID from the Ministry of Finance (MoF). The reappearance of cash in the provincial banks increases the purchasing power of the citizens of Diyala, and is tangible evidence of the effectiveness of the provincial government in the eyes of the people. Strides Toward Good Governance in Salah al-Din Small but Significant: • S T A T E PRT Salah al-Din reports that officials in Salah al-Din province are making a conscious effort to keep the 2007 budget balanced and projects moving forward. Automation is now being used, making it easier for the Provincial Council to oversee the progress of projects. Also, the PRT’s economic section has helped create an economic task force that connects local businessmen and government officials in an effort to push financial growth within the communities. 19 UNCLASSIFIED July 18, 2007 UNCLASSIFIED [5.] Help Iraq Strengthen Its Economy – Crude Oil Production 2.40 2007 Iraqi Oil Ministry Goal: 2.1 MBPD 2.17 2.03 2.06 2.04 2.09 2.07 2.06 June 25 July 1 July 2-8 July 9-15 2.02 2.00 1.85 1.74 1.60 Millions of Barrels Per Day D E P A R T M E N T 1.20 0.80 O F 0.40 S T A T E 0.00 May 7-13 May 14-20 May 21-27 May 28 June 3 June 4-10 June 11-17 June 18-24 Production Target • Weekly Average (July 9-15) of 2.06 Million Barrels Per Day (MBPD) 20 UNCLASSIFIED July 18, 2007 UNCLASSIFIED [5.] Help Iraq Strengthen Its Economy – Crude Oil Export Revenue (US$B) O F $4.00 $3.50 1.68 1.62 1.55 1.44 1.50 1.45 $3.00 1.64 1.58 1.50 1.59 1.47 $1.91 1.30 1.20 $2.50 $2.00 $3.44 $3.05 $2.75 $2.73 $2.75 USD (Billions) 1.80 $1.50 $2.87 $2.46 $2.45 $2.19 $2.11 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 $1.00 $1.89 $1.46 $0.50 0.00 $0.00 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 • 2006 Revenue Estimate: $31.3 Billion • 2007 Revenue Estimate: $16.9 Billion 21 Mar-07 Apr-07 May-07 Jun-07 Jul-07 (Year to Date) UNCLASSIFIED July 18, 2007 UNCLASSIFIED [5.] Help Iraq Strengthen Its Economy – Total Critical Refined Product Supplies Domestic Production O F 100% 3% 0% 39% 80% Percentage of Share of Weekly Fuel Supplies D E P A R T M E N T Import 53% 60% 97% 100% 40% 61% 47% 20% S T A T E 0% Diesel Kerosene Gasoline LPG Note: This is a daily average for the week of July 9-15 • Diesel: 11.5 ML supply of 22.4 ML target • Kerosene: 2.6 ML supply of 7.5 ML target • Gasoline: 9.6 ML supply of 21.0 ML target • LPG: 2,467 tons supply of 5,130 tons target 22 UNCLASSIFIED July 18, 2007 UNCLASSIFIED [5.] Help Iraq Strengthen Its Economy – National Stock Levels May-07 Jul-07 Goal 25 20 15 Days D E P A R T M E N T Jun-07 10 O F 5 5 S T A T E 4 3 4 4 3 3 3 2 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. 23 UNCLASSIFIED July 18, 2007 UNCLASSIFIED [6.] Help Iraq Strengthen the Rule of Law and Promote Civil Rights– Iraqi Judicial System D E P A R T M E N T O F S T A T E IP Detain Alleged Mortar, Sniper Cell Leader in Samarra: • Iraqi Police (IP) forces conducted an intelligence driven operation in Samarra July 9 and detained an individual allegedly responsible for running a mortar and sniper network in Samarra. With Coalition Forces (CF) along as advisors, Iraqi forces seized a large amount of ammunition, four sniper rifles, parts for sniper rifles, various mortar rounds, material for making improvised explosive devices, two black masks, and documents. • The capture and detainment of this individual will reduce the amount of sniper systems in Samarra and the number of sniper and mortar attacks on Iraqi and CF. U.S. Soldiers Battle Sectarian Biased Policemen: • U.S. soldiers killed six Iraqi policemen and seven gunmen July 13 during a battle that began when the troops captured a police lieutenant accused of directing a Shiite militia group. The pre-dawn raid in eastern Baghdad came a day after another clash in the same area that left at least 11 Iraqis dead. In both cases, U.S. forces were targeting Shiite militias in an attempt to curb their influence. Militiamen have infiltrated police units, and many members of the country’s Sunni minority do not trust the police. 24 UNCLASSIFIED July 18, 2007 UNCLASSIFIED [7.] Increase International Support for Iraq – Developments D E P A R T M E N T O F S T A T E British Prime Minister Acknowledges Failures in Iraq: • Britain’s new Prime Minister, Gordon Brown, acknowledged that there were failures in planning for post-invasion Iraq. He stated July 16 that Britain would shift its forces in Iraq away from combat while investing more in Iraq’s economy. Brown has yet to set a timetable for the withdrawal of the 5,500 British troops stationed mainly in the city of Basrah. UN Secretary General Warns Against “Abrupt Withdrawal” of U.S. Forces: • U.N. Secretary General Ban Ki-moon warned on Monday against an "abrupt withdrawal" by U.S. forces from Iraq and said the international community must not abandon the Iraqi people., UNSG Ban, who met President Bush on a visit to Washington July 17, said it was not his place to inject himself into the debate raging in Congress in recent weeks over withdrawing U.S. troops from Iraq. Iraqi National Security Adviser Discusses Foreign Militants in Iraq: • Iraqi national security adviser Mowaffak al-Ruba'i says that nearly half of the foreign militants targeting U.S. and Iraqi security forces and civilians are from Saudi Arabia. Ruba'i recently visited Saudi Arabia to hold talks with officials there about curbing the flow of militants into Iraq. 25 UNCLASSIFIED July 18, 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 Lithuania Slovakia Armenia El Salvador Macedonia South Korea Australia Estonia Moldova Ukraine Azerbaijan Georgia Mongolia UK Bosnia-Herzegovina Japan Poland Bulgaria Kazakhstan Romania Czech Republic Latvia Singapore TOTAL ~ 11,451 Forces *Note: Fiji participating as a part of the UN mission in Iraq. 34 Countries and NATO* (including US) Support Iraqi Stability Operations *34 includes the 25 countries listed above, the US, Fiji, and seven NATO, non-MNF-I countries: Hungary, Iceland, Italy, Netherlands, Portugal, Slovenia, Turkey 26 UNCLASSIFIED July 18, 2007 UNCLASSIFIED [8.] Strengthen Public Understanding of Coalition Efforts and Public Isolation of the Insurgents – Developments Journalist Killed: D E P A R T M E N T O F • An Iraqi journalist for The New York Times was killed July 13 while on his way to work, less than an hour after he called the bureau to say a checkpoint had blocked his normal route, the newspaper said. According to the newspaper, Khalid W. Hassan was the second Times employee to be killed in Iraq. Gunmen killed Hassan in the southwest Baghdad district of Sadiyah . Prime Minister Maliki Confident in Iraq Security Forces: • Iraq’s prime minister was misunderstood when he said the Americans could leave “any time they want” an aide said July 15. Prime Minister Maliki told reporters July 14 that the Iraqi army and police were capable of maintaining security when American troops leave. Maliki’s adviser, Yassin Majid, told The Associated Press that the prime minister meant that efforts to bolster Iraq’s security forces would continue side-by-side. Majid urged the U.S. to continue building up Iraqi forces. S T A T E 27 UNCLASSIFIED July 18, 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 28 UNCLASSIFIED July 18, 2007 UNCLASSIFIED Notes and Source Citations (1 of 3) Slide 5: D E P A R T M E N T O F – MNF-I Press Briefing – BG Bergner – 11 July 2007 – (http://www.mnfiraq.com/index.php?option=com_content&task=view&id=12786&Itemid=131). Slide 6: – MNF-I Press Briefing – BG Bergner – 11 July 2007 – (http://www.mnfiraq.com/index.php?option=com_content&task=view&id=12786&Itemid=131). Slide 7: – MNF-I Press Release – 16 July 2007 – Release 20070716-19 - (http://www.mnfiraq.com/index.php?option=com_content&task=view&id=12878&Itemid=128). Slide 8: – MNF-I Press Release – 16 July 2007 – Release 20070716-19 - (http://www.mnfiraq.com/index.php?option=com_content&task=view&id=12878&Itemid=128). – MNF-I Press Release – 17 July 2007 – (http://www.mnfiraq.com/index.php?option=com_content&task=view&id=12885&Itemid=1). Slide 9: – DoD Input to Iraq Weekly Status Report July 17, 2007 Slide 10: – www.cnn.com – www.yahoonews.com S T A T E – www.washingtonpost.com Slide 11: – NEA Political Section, NEA-I-POL-DL@state.gov Slide 12: – ITAO Weekly Report, July 17, 2007 29 UNCLASSIFIED July 18, 2007 UNCLASSIFIED Notes and Source Citations (2 of 3) Slide 13: D E P A R T M E N T O F S T A T E – POC Bob Means, Department of State (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 14: Electricity: – USACE Daily Report – July 16 – USACE Daily Report – July 13 Health: – USACE Daily Report – July 13 Slide 15: – Oil Prices are sourced from Bloomberg Employment Update: – Information regarding the Employment Update was sourced from the ITAO Weekly Report – June 19, 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 16: – Information regarding the NID auction was gathered from the Central Bank of Iraq’s website: http://www.cbiraq.org. – July 17 IIC Slide 17: – Iraqi Bond Prices are sourced from Bloomberg Slide 18: – Associated Press, http://news.yahoo.com/s/ap/20070711/ap_on_re_mi_ea/iraq_oil_law;_ylt=AubYtqp3Wcmp77anl0Hgbw4LewgF, July 11 – PRT Weekly Summary, July 6 – July 12 30 UNCLASSIFIED July 18, 2007 UNCLASSIFIED Notes and Source Citations (3 of 3) D E P A R T M E N T Slide 19: – Slide 20: – Slide 21: – Slide 22: – Slide 23: – PRT Weekly Summary, July 6 – July 12 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: – MNF-I Press Release, 22 July 2007; http://www.mnf-iraq.com RELEASE No. 20070711-12 – Washington Post, July 14 by Megan Greenwell Slide 25: O F S T A T E – www.yahoonews.com – http://in.today.reuters.com/news/news – www.un.org Slide 26: – DOD Input to Weekly Status Report, updated bi-weekly. Slide 27: – Associated Press - http://news.yahoo.com/s/ap/20070716 – Associated Press - http://news.yahoo.com/s/ap/20070713 31 UNCLASSIFIED