March 7, 2007 UNCLASSIFIED D E P A R T M E N T O F S T A T E Iraq Weekly Status Report March 7, 2007 Bureau of Near Eastern Affairs US Department of State 1 UNCLASSIFIED March 7, 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 US 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 7 3. Help Iraqis to Forge a National Compact for Democratic 9 Government 4. Help Iraq Build Government Capacity and Provide Essential 11 Services O F S T A T E 5. Help Iraq Strengthen Its Economy 14 6. Help Iraq Strengthen the Rule of Law and Promote Civil Rights 23 7. Increase International Support for Iraq 24 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 March 7, 2007 UNCLASSIFIED Highlights D E P A R T M E N T O F S T A T E 1. Defeat the Terrorists and Neutralize the Insurgents More than 550 Iraqi Security Forces (ISF) personnel with 600 Multi-National Division-Baghdad soldiers began a clearing operation in Sadr City March 4. Local residents were receptive and cooperative with both ISF and Coalition forces as they worked to set secure conditions for the district. 2. Transition Iraq to Security Self-Reliance ISF took control of Operation Fardh al-Qanun March 1 as Iraqi Army Lieutenant General Abbud Gambar and his staff began executing their security plan from their new command post established in Adnan Palace in the International Zone. 3. Help Iraqis to Forge a National Compact for Democratic Government Iraqi Prime Minister Maliki offered an olive branch to Iraqi insurgents waging war against his government, saying “We do not need to implement security measures except against those who reject the language of reconciliation and dialogue, those who insist on restoring the past.” He added that the new US-backed security plan launched in Baghdad would be extended to “every inch” of Iraq. 4. Help Iraq Build Government Capacity and Provide Essential Services The recently completed US Army-funded 400kV substation in Mosul, Ninewa province will incorporate power from Turkey, Syria, Mosul Dam and Mosul gas turbine generation plants and distribute it to the Iraqi National Grid. 3 UNCLASSIFIED March 7, 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 On February 27, Minister of Finance Bayan Jabr issued an instruction that: [1] establishes the Financial Management Information System (FMIS) as the official accounting record for all spending units beginning in June 2007; [2] funds the installation of FMIS at all remaining spending units; [3] requires all spending units to enter FMIS data in a timely manner; and [4] established an FMIS steering committee. 6. Help Iraq Strengthen the Rule of Law The Central Criminal Court of Iraq convicted ten security detainees February 18 - 22 for various crimes, including possession of illegal weapons, possessing fake identification, use of explosives, passport violations and illegal border crossing. 7. International Support for Iraq On March 10, Iraq will host a sub-ministerial preparatory conference meeting in Baghdad of Iraq’s neighbors plus Egypt, Bahrain, and the P-5, as well as one representative each from the Arab League, the Organization of the Islamic Conference, and the UN. The content of the Neighbors agenda includes general support for Iraq, the Iraqi people and the Iraqi government. 8. Strengthen Public Understanding of Coalition Efforts and Public Isolation of the Insurgents The al-Qaida-led Islamic State in Iraq posted a video to the Internet March 3 showing the execution of 18 interior ministry employees. The group claimed responsibility on an Internet statement March 2 that it had kidnapped the 18 employees and threatened to kill them to avenge the alleged rape of a Sunni woman. 4 UNCLASSIFIED March 7, 2007 UNCLASSIFIED [1.] Defeat the Terrorists and Neutralize the Insurgency ISF and CF Move into Sadr City: D E P A R T M E N T O F • More than 550 Iraqi Security Forces (ISF) personnel with 600 Multi-National Division-Baghdad soldiers began a clearing operation in the eastern Baghdad district of Sadr City March 4. Local residents were receptive and cooperative with both ISF and Coalition Forces (CF) as they worked to set secure conditions for the district. • Soldiers from the 82nd Airborne Division, with two Stryker companies from the 2nd Infantry Division, began their combined clearing operation in the early morning of February 4, along with the 8th Brigade, 2nd Iraqi National Police Division and the 3rd Battalion, 2nd Brigade, 10th Iraqi Army Division. • CF also began establishing a Joint Security Station at an Iraqi police station, creating the first permanent Coalition presence in the district in two years. S T A T E 5 UNCLASSIFIED March 7, 2007 UNCLASSIFIED [1.] Defeat the Terrorists and Neutralize the Insurgency Despite Progress, the New Iraq Security Plan Will Take Months to Accomplish: D E P A R T M E N T O F • Although there has been recent progress with the new Iraq security plan, Lieutenant General Odierno, the commander of Multi-National Corps-Iraq, cautioned against unrealistic expectations and urged patience, saying the new Iraqi security plan will take months, not weeks, to accomplish. • LTG Odierno said the key is to be able to maintain security in Baghdad over a long period of time - from six to seven months - enabling the Iraqi government to mature. Attacks Kill 112 Shi’ite Pilgrims in Iraq: • According to media reports, insurgents killed 112 Shi'ite pilgrims traveling to the holy city of Karbala in attacks across Iraq March 6. In the worst attack, two suicide bombers strapped with explosives detonated themselves in a street lined with tents in the city of Hillah, killing 77 people. S T A T E 6 UNCLASSIFIED March 7, 2007 UNCLASSIFIED [2.] Transition to Security Self-Reliance – Iraqi Security Forces ISF Take Control of Baghdad Security: D E P A R T M E N T O F S T A T E • Iraqi Security Forces (ISF) took control of Operation Fardh al-Qanun March 1, as Iraqi Army Lieutenant General Abbud Gambar and his staff began executing their security plan from their new command post established in Adnan Palace in the International Zone. ISF Conducting Joint Operations in Baghdad in Support of Fardh al-Qanun: • The ISF has moved 18 battalions into the Baghdad area in support of Operation Fardh al-Qanun. Although unit end-strength improved over time as more units deployed, the Iraqi battalions did not report at full strength. Seven battalions deployed to the area at 55 to 65% of their end-strength and another seven deployed at 65 to 85%. The final four deployed at over 95% of their end strength, demonstrating an improvement as Iraqi military leaders gained experience in the process. Specialized and Advanced Training Graduates: • The Iraqi Police Service graduated 75 Iraqi police from specialized and advanced courses, including Executive Leadership, Mid-Level Management, Basic Criminal Investigations, Advanced Firearms, Forensics, and Dignitary Protective Service. 7 UNCLASSIFIED March 7, 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 ~ 24,400 OTHER MOI FORCES ~28,860 TOTAL ~188,260** Ministry of Defense Forces COMPONENT OPERATIONAL ARMY ~132,856*** AIR FORCE ~929 NAVY ~1,135 TOTAL ~134,920** Total Trained & Equipped ISF: ~323,180**** * 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 Data as of March 5, 2007 (updated bi-weekly by DOD) 8 UNCLASSIFIED March 7, 2007 UNCLASSIFIED [3.] Help Iraqis to Forge a National Compact for Democratic Government– Developments Ministry of Interior Cleans House: D • The Ministry of Interior has fired or reassigned more than 10,000 employees, E including high-ranking officers, who were found to have tortured prisoners, accepted P bribes or had ties to militias. A ministry spokesman said that reports that an internal A inquiry included details of numerous human rights abuse at the ministry. R T Iraqi Prime Minister Maliki Condemns “Illegal” UK Raid: M E • Prime Minister Maliki has criticized a raid by British forces on the Iraqi interior ministry's intelligence office in Basrah. A British military spokesman said that the raid N on the National Iraqi Intelligence Agency office, where 37 people were held prisoner, T had uncovered evidence of torture. However, Maliki has ordered an investigation into the raid, demanding that “those behind this illegal and irresponsible act be punished.” O F Iraqi Prime Minister Bids for Peace with Sunnis: S • T A T E Prime Minister Maliki offered an olive branch to Iraqi insurgents waging war against his government, saying “We do not need to implement security measures except against those who reject the language of reconciliation and dialogue, those who insist on restoring the past.” He added that the new US-backed security plan launched in Baghdad would be extended to “every inch” of Iraq. 9 UNCLASSIFIED March 7, 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 Ya'rub Nathim of N Minister Education T Khudayyir al-Khuza’i O F S T A T E Deputy President Jalal Talabani Deputy President Tariq al-Hashimi ‘Adil ‘Abd al-Mahdi Prime Minister Deputy Prime Minister Nuri al-Maliki Deputy Prime Minister Barham Salih (F) = Female Salam al-Zawba’i Minister of Communications Minister of Culture Minister of Defense Minister of Displacement & Migration Minister of Electricity Muhammad Tawfiq Allawi As’ad Kamal Muhammad Abdallah alHashimi 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 Ali al-Shammari 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 Hashim al-Shibli 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 Karim Mahdi Salih Minister of Water Resources Minister of Youth & Sports Minister of State for Civil Society Minister of State for National Dialogue Affairs Minister of State for National Security Affairs ‘Abd al-Latif Rashid Jasim Muhammad Ja’far Adil al-Asadi Akram al-Hakim Shirwan al-Waili Minister of State for Foreign Affairs Minister of State for Governorates Affairs Minister of State for Tourism and Antiquities Minister of State for Women’s Affairs Rafi Hiyad al-Isawi Sa’d Tahir Abd Khalaf al-Hashimi Liwa Sumaysim Fatin Abd al-Rahman Mahmud (F) 10 Minister of State for CoR Affairs Safa al-Safi UNCLASSIFIED March 7, 2007 UNCLASSIFIED [4.] Help Iraq Build Government Capacity and Provide Essential Services – Financials from Iraq Relief and Reconstruction Fund (IRRF) 1 and IRRF 2 (Millions of USD) D E P A R T M E N T O F S T A T E Committed Apportioned Obligated Disbursed Sector Apportion Last Week Current Change Last Week Current Change Last Week Current Change Security and Law Enforcement $5,002.59 $4,988.67 $4,988.67 $0.00 $4,986.20 $4,986.20 $0.00 $4,723.95 $4,722.69 ($1.26) Electricity Sector $4,239.51 $4,224.15 $4,181.39 ($42.77) $4,081.96 $4,041.37 ($40.59) $3,090.09 $3,110.29 $20.20 Oil Infrastructure $1,724.70 $1,677.11 $1,672.78 ($4.33) $1,583.54 $1,581.41 ($2.13) $1,344.47 $1,356.38 $11.90 Justice, Public Safety and Civil Society $1,304.15 $1,303.93 $1,303.93 $0.00 $1,297.72 $1,297.69 ($0.03) $1,016.49 $1,024.27 $7.78 Democracy $1,001.85 $1,001.80 $1,001.80 $0.00 $1,001.73 $1,001.09 ($0.63) $894.93 $896.17 $1.24 Education, Refugees, Human Rights, Governance $401.50 $401.26 $401.26 $0.00 $401.26 $401.15 ($0.11) $355.34 $356.86 $1.52 Roads, Bridges and Construction $333.60 $331.94 $331.94 $0.00 $324.58 $324.54 ($0.04) $214.23 $214.23 $0.00 Health Care $818.90 $817.58 $817.58 $0.00 $803.07 $803.13 $0.06 $632.32 $635.41 $3.08 Transportation and Communications $464.12 $464.09 $464.07 ($0.02) $458.29 $458.27 ($0.025) $342.59 $344.00 $1.41 $2,131.08 $2,119.79 $2,119.79 $0.00 $2,049.94 $2,049.88 ($0.06) $1,481.97 $1,485.47 $3.51 Private Sector Development $813.95 $813.95 $813.95 $0.00 $813.95 $813.13 ($0.83) $766.99 $773.71 $6.72 Admin Expense (USAID, STATE) $213.00 $212.45 $212.45 $0.00 $212.45 $212.45 $0.00 $164.24 $181.71 $17.46 $18,448.95 $18,356.73 $18,309.60 ($47.12) $18,014.69 $17,970.32 ($44.38) $15,027.63 $15,101.19 $73.56 IRRF II Construction $10,572.53 $10,529.77 ($42.77) $10,252.36 $10,213.99 ($38.37) $8,191.54 $8,222.10 $30.56 IRRF II Non-Construction $6,782.39 $6,778.03 ($4.36) $6,760.60 $6,755.23 ($5.38) $5,941.16 $5,982.92 $41.77 IRRF II Democracy $1,001.80 $1,001.80 $0.00 $1,001.73 $1,001.09 ($0.63) $894.93 $896.17 $1.24 Water Resources and Sanitation Total 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 $20,922.25 $20,830.03 $20,782.90 ($47.12) $20,246.99 $20,202.62 ($44.38) $17,166.63 $17,240.19 $73.56 As of March 6, 2007 11 UNCLASSIFIED March 7, 2007 UNCLASSIFIED [4.] Help Iraq Build Government Capacity and Provide Essential Services – Electricity Overview O F Daily Electricity Supplied and Estimated Demand in Iraq Since January 2004 Actual 7-day Average Estimated Demand 200,000 180,000 Daily Load Served (MWh) D E P A R T M E N T 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 12/16/06 11/16/06 10/17/06 9/17/06 8/18/06 7/19/06 6/19/06 5/20/06 4/20/06 3/21/06 2/19/06 1/20/06 12/21/05 11/21/05 10/22/05 9/22/05 12 8/23/05 7/24/05 6/24/05 5/25/05 4/25/05 3/26/05 2/24/05 1/25/05 12/26/04 11/26/04 10/27/04 9/27/04 8/28/04 7/29/04 6/29/04 5/30/04 4/30/04 3/31/04 3/1/04 1/31/04 1/1/04 0 S T Date A T • During the week of March 1-7 electricity availability averaged 5.7 hours per day in Baghdad and 9.6 E hours nationwide. Electricity output for the week was 14% below the same period in 2006. UNCLASSIFIED UNCLASSIFIED March 7, 2007 [4.] Help Iraq Build Government Capacity and Provide Essential Services –Electricity, Transportation and Water Electricity: D E P A R T M E N T O F S T A T E • The recently completed US Army-funded 400kV substation in Mosul, Ninewa province will incorporate power from Turkey, Syria, Mosul Dam and Mosul gas turbine generation plants and distribute it to the Iraqi National Grid. Transportation: • The railway continues to experience difficulty with the Ministry of Transportation (MoT) in obtaining authorization for fuel and payment. Iraqi law provides that fuel expenses must be derived from freight revenue. The IRR and MoT were working on an agreement with Syria to exchange revenue requirements for locomotive fuel. This will be sufficient to protect the movement of interchange traffic between Turkey, Syria and Iraq. Water: • The Gulf Region Division recently completed the installation of the Water Compact Unit and Distribution Network in Jurf As Sukhar, Babil province. This unit is a source of clean, potable, and reliable water distribution to one school and approximately 1,100 homes in five local villages. • The recently completed US Army-funded Sen al-Thabban Water Project in Kirkuk province now provides potable water to more than ten villages in Sen al-Thabban. The previous source of drinking water for these villages was untreated water from the 13 UNCLASSIFIED Zab River. March 7, 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 February 16 closed with the following prices: – Basrah Light at $ $54.64/ barrel – Dated Brent at $60.6888/barrel – WTI Cushing at $61.656/barrel – Oman/Dubai at $58.006/barrel Employment Update: Iraqis Last Iraqis This Week Week Iraqi Employment Per Organization ` % change Gulf Region District (GRD) (Includes MILCON/OMA) 22,540 22,540 0.00% US Agency for International Development (USAID) 17,467 20,014 14.58% Commander's Emergency Response Program (CERP)2 4,305 4,305 0.00% Multi-National Security Transition Command-Iraq (MNSTC-I) Iraq Reconstruction Relief Fund (IRRF) Non-Construction 11,271 6,481 12,348 6,481 9.56% GRAND TOTAL 62,064 65,688 5.84% 0.00% CERP employment numbers are representative of Baghdad only. Data as of March 6 14 UNCLASSIFIED March 7, 2007 UNCLASSIFIED [5.] Help Iraq Strengthen Its Economy - Banking Sector Central Bank’s US Dollar (USD) Currency Auction: S T A T E $90.0 1,500 $80.0 $60.0 1,400 $50.0 $40.0 1,350 $30.0 $20.0 NIDExchange Rate 1,450 $70.0 1,300 $10.0 $0.0 1,250 A A pr p il r A il 1 2 p 2 6 r A il 1 - 1 p 6 2 r A il 1 - 1 p 9 7 ri l2 -2 6 3 M 3 M ay 0 M ay 2 ay 9 8 M M 21 - 1 ay ay - 6 31 24 22 - -3 Ju Jun0 Ju n 5 n 6 Ju 13- 12 n 25 20 Ju - 2 Ju l 2 9 Ju l 9 - 6 l Ju 16 13 l2 -2 Ju J 3 0 l 3ul 1 26 25 - A Au 30 u A g g7 u 8 g A A 1 -1 u u 1 0 g g S 30 23 22 e S p - ep 6 S 2 e 9 S 13 - S p ep ep 5 2 S 1 S 1 - ep 2 ep S 1 e 9 O 26 p 2 O ct 3 - O 5 ct - c t O 11 O 2 ct - ct 1 O 1 N 9 - ct 0 o N v Oc 18 o 4 v - t2 8 N 9 - o N No No v 7 o v v v D 2 15 14 e 9 D c - -2 ec 6 D 8 e D 13- D c ec ec 1 2 D 1 Ja 0 ec 2 Ja n 8 De 18 n - c Ja 17 Ja 26 n - n 2 J 1 Ja 3 an 6 n -J 2 F 3 an 2 e 0 F b 6 - F 29 eb - e F 14 Fe b 5 eb - b F 1 F 21 eb 3 eb F 2 28 eb 0 M 27 ar 6 O F • The following table shows volume sold of and exchange rates for USD in the Iraqi currency auction since April. Since September, the Central Bank has slowly appreciated the dinar, as suggested by the IMF, to tackle the past year’s rampant inflation. This welcome increase in the dinar's value against the dollar is reflected in the figure below. Central Bank of Iraq USD Currency Auction: April 2, 2006 – March 6, 2007 USDSold (Millions) D E P A R T M E N T US $ Sold (Weekly Avg) The New Iraqi Dinar (NID) exchange rate line is calculated as a weekly weighted average (NID/USD) 15 UNCLASSIFIED March 7, 2007 UNCLASSIFIED [5.] Help Iraq Strengthen Its Economy – Securities Markets Trading of Iraqi Bonds on the International Secondary Bond Market: Iraqi Commercial Bond Sales June 1, 2006 - March 2, 2007 10.00% $70.00 $69.00 9.80% $68.00 9.60% $67.00 9.40% $66.00 9.20% $65.00 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. The bonds’ current yield of 9.6 percent remains one of the highest in the world for sovereign debt instruments. Bond Price in USD D E P A R T M E N T 9.00% 8.80% $63.00 8.60% Ju 8- n Ju 15 n -J 22 u n -J 29 u n -J un 6Ju 13 l -J 20 u l -J 27 u l -J 3- u l Au 10 g -A 17 ug -A 24 ug -A 31 ug -A u 7- g Se 14 p -S 21 ep -S 28 ep -S e 5- p Oc 12 t -O 19 ct -O 26 ct -O c 2- t No 9- v N 16 o v -N 23 o v -N 30 o v -N o 7- v De 14 c -D 21 e c -D 28 e c -D e 4- c Ja 11 n -J 18 a n -J 25 a n -J a 1- n Fe 8- b F 15 eb -F 22 eb -F e 1- b M ar $62.00 1- S T A T E $64.00 Trading High = $73.98 (January 24) Trading Low = $64.66 (August 30) 16 UNCLASSIFIED March 7, 2007 UNCLASSIFIED [5.] Help Iraq Strengthen Its Economy –Economic Events Conference Participants Show Enthusiasm for New Investment Law: D E P A R T M E N T O F S T A T E • On March 5, Provincial Reconstruction Team (PRT) Hillah hosted a business development conference for over 40 public and private sector representatives, including the Deputy Governor of Babil and the Mayor of Hillah. Participants generally gave positive feedback on the new National Investment Law, and were specifically interested in how they might be involved in the implementation process. USG participants also learned that Babil province had already formed its Provincial Investment Commission, composed of private sector and government representatives. Progress of the Financial Management Information Systems (FMIS): • On February 27, Minister of Finance Bayan Jabr issued an instruction that: [1] establishes FMIS as the official accounting record for all spending units beginning in June 2007; [2] funds the installation of FMIS at all remaining spending units; [3] requires all spending units to enter FMIS data in a timely manner; and [4] establishes an FMIS steering committee. 17 UNCLASSIFIED March 7, 2007 UNCLASSIFIED [5.] Help Iraq Strengthen Its Economy –Economic Events IMF Board Review Scheduled for March 12: D E P A R T M E N T • According to International Monetary Fund (IMF) staff, Iraq has met all prior actions needed to schedule an Executive Board meeting to complete the 3rd and 4th reviews of the Stand-By Arrangement (SBA); quarterly board reviews are required to maintain the SBA. Prior actions for completing the reviews included re-appointing Ernst & Young to conduct audits of 2006 fiscal accounts, the implementation of official fuel price increases by March 5, and monetary tightening through exchange rate appreciation and interest rate increases. O F S T A T E 18 UNCLASSIFIED March 7, 2007 UNCLASSIFIED [5.] Help Iraq Strengthen Its Economy – Crude Oil Production 2.80 2007 Iraqi Oil Ministry Goal: 2.1 MBPD 2.40 2.23 1.99 2.05 1.99 2.00 Millions of Barrels Per Day D E P A R T M E N T 1.72 2.09 2.14 2.13 February 19-25 February 26 - March 4 1.70 1.60 1.21 1.20 0.80 O F S T A T E 0.40 0.00 December 25-31 January 1- January 87 14 January 15-21 January 22-28 January 29 February 5- February 11 4 Production February 12-18 Target • Weekly Average (February 26 – March 4) of 2.13 Million Barrels Per Day (MBPD) 19 UNCLASSIFIED March 7, 2007 UNCLASSIFIED [5.] Help Iraq Strengthen Its Economy – Crude Oil Export Revenue (US$B) O F Exports (MBPD) 2.40 $4.00 $3.50 1.67 1.68 1.68 1.60 1.70 1.55 1.51 1.44 1.50 1.45 $2.50 1.30 1.20 $2.00 $3.41 $3.02 $2.92 $3.44 $2.67 $3.03 $1.50 $2.73 $2.46 $2.45 $2.19 $2.11 0.60 S T A T E $3.00 1.62 USD (Billions) 1.80 Millions of Barrels per Day D E P A R T M E N T Projected $1.00 $1.89 $0.50 $0.18 0.00 $0.00 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 • 2006 Revenue Estimate: $31.3 Billion • 2007 Revenue Estimate: $4.2 Billion 20 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 (Year to Date) UNCLASSIFIED March 7, 2007 UNCLASSIFIED [5.] Help Iraq Strengthen Its Economy – Total Critical Refined Product Supplies Domestic Production O F 100% 15% 22% 33% 80% 46% Percentage of Share of Weekly Fuel Supplies D E P A R T M E N T Import 60% 85% 40% 78% 67% 54% 20% S T A T E 0% Diesel Kerosene Gasoline LPG Note: This is a daily average for the week of February 26 – March 4 • Diesel: 10.9 ML supply of 21.0 ML target • Kerosene: 4.4 ML supply of 15.5 ML target • Gasoline: 12.1 ML supply of 22.1 ML target • LPG: 2,976 tons supply of 5,500 tons target 21 UNCLASSIFIED March 7, 2007 UNCLASSIFIED [5.] Help Iraq Strengthen Its Economy – National Stock Levels Jan-07 Mar-07 Goal 25 20 15 Days D E P A R T M E N T Feb-07 10 O F 5 S T A T E 5 5 5 4 3 3 2 2 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. 22 UNCLASSIFIED March 7, 2007 UNCLASSIFIED [6.] Help Iraq Strengthen the Rule of Law and Promote Civil Rights– Iraqi Judicial System CCCI Convicts 10 Insurgents: D E P A R T M E N T O F S T A T E • The Central Criminal Court of Iraq (CCCI) convicted ten security detainees February 18 - 22 for various crimes, including possession of illegal weapons, possessing fake identification, use of explosives, passport violations and illegal border crossing. • The trial court found an Iraqi man guilty of illegal possession of special category weapons in violation of Order 3/2003 Section 6, Paragraph 2B. On January 19, 2005, Multi-National Forces (MNF) conducted a raid on several houses in Taji in search of the defendant and several other individuals. Once inside, MNF found one RPK machine gun, one AK-47, a pistol, one G3 assault rifle, Iraqi and CIA intelligence manuals and documents, as well as fake identification documents and photographs. MNF then searched outside the house using metal detectors and found more buried weapons and ammunition. Some of the ammunition was found in American ammunition boxes with serial numbers that matched the serial numbers of ammunition boxes taken from Humvees which had recently been destroyed by improvised explosive devices in which two American soldiers died. On February 18, the trial panel found the defendant guilty and sentenced him to 30 years imprisonment. 23 UNCLASSIFIED March 7, 2007 UNCLASSIFIED [7.] Increase International Support for Iraq – Developments Iraq Neighbor Conference: D E P A R T M E N T O F S T A T E • On March 10, Iraq will host a sub-ministerial preparatory conference meeting in Baghdad of Iraq’s neighbors plus Egypt, Bahrain, and the P-5, as well as one representative each from the Arab League, the Organization of the Islamic Conference, and the UN. The content of the Neighbors agenda includes general support for Iraq, the Iraqi people and the Iraqi government. Latvia Plans to Decrease Troop Commitment in Iraq: • The Latvian government announced it will withdraw the majority of their 115-man contingent, leaving 15 troops to assist in training operations for the Iraqi Army. Republic of Georgia to Increase Iraq Presence: • Georgian President Mikhail Saakashvili announced his country will enlarge its participation in the Coalition forces in Iraq during a speech at the construction site of a new NATO-standard military base near the Georgian town of Gori March 4, stating that Georgia “is ready to help American and Iraqi colleagues at the critical phase of the peacekeeping operation.” UN Warns of Impending Refugee Crisis: • The UN warned that if sectarian violence in Iraq does not decrease, up to one million new people could become displaced in 2007. Of Iraq's population of about 27 million, 1.8 million have already been displaced within the country and another one million have gone to Syria, 750,000 to Jordan and 150,000 to Egypt. 24 UNCLASSIFIED March 7, 2007 UNCLASSIFIED [7.] Increase International Support for Iraq – Developments Iraq’s UN Ambassador Says Syria Can Help Prevent Terrorists from Crossing Border: D E P A R T M E N T O F • Iraq's UN Ambassador, Hamid al-Bayati, said that Syria could do more to prevent terrorists from crossing their border into Iraq and that the Syrian government could play an important role in improving the security of Iraq by taking control of monitoring its border. Government of Singapore to Train Iraqi Diplomats: • At the request of the Iraqi government, and as part of Singapore’s effort to assist in the reconstruction of Iraq, the Singapore Ministry of Foreign Affairs will be organizing a three-week training program for a group of Iraqi diplomats March 6-23. The program comprises English language training and the work of foreign service officers. S T A T E 25 UNCLASSIFIED March 7, 2007 UNCLASSIFIED [7.] Increase International Support for Iraq – Contributors to Iraqi Stability Operations Data as of March 5, 2007 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 ~ 14,035 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 March 7, 2007 UNCLASSIFIED [8.] Strengthen Public Understanding of Coalition Efforts and Public Isolation of the Insurgents – Developments Al-Qaida Group Shows Video of the Execution of MoI Employees: D E P A R T M E N T O F S T A T E • The al-Qaida-led Islamic State in Iraq posted a video to the Internet March 3 showing the execution of 18 Ministry of Interior (MoI) employees. The group claimed responsibility on an Internet statement March 2 that it had kidnapped the 18 employees and threatened to kill them to avenge the alleged rape of a Sunni woman. The statement gave the government 24 hours to accede to its demands, which included turning over the officers that allegedly participated in the rape and that all Sunnis held in interior ministry prisons be released. Iraqi Newspaper Editor Killed: • The secretary-general of the Iraqi Journalists Union announced that gunmen had shot dead Mohan al-Dhahr, editor of the al-Mashriq newspaper, in front of his Baghdad home March 4. • The death of Dhahr brings the total number of journalists killed in Iraq since the beginning of the US-led invasion in 2003 to 190. 27 UNCLASSIFIED March 7, 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 March 7, 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 Release – 6 March 2007 – (http://www.mnf-iraq.com/index.php?option=com_content&task=view&id=10409&Itemid=128) Slide 6: – – MNF-I Press Release – 6 March 2007 – (http://www.mnf-iraq.com/index.php?option=com_content&task=view&id=10408&Itemid=128). Yahoo News – Habib al-Zubaidi -- 6 March 2007 – (http://news.yahoo.com/s/nm/20070306/us_nm/iraq_soldiers_dc). Slide 7: – – – MNSTC-I – The Advisor – 3 March 2007 MNF-I Press Release – 6 March 2007 – (http://www.mnf-iraq.com/index.php?option=com_content&task=view&id=10408&Itemid=128). ICITAP Weekly Report – Police Training Update – 24 February 2007 Slide 8: – DoD Input to Iraq Weekly Status Report March 7, 2007 Slide 9: – USA Today, http://www.usatoday.com/news/world/iraq/2007-03-04-security-ministry_N.htm – http://www.stratfor.com/products/premium/read_article.php?id=284871&selected=Analyses – http://www.businessday.co.za/articles/world.aspx?ID=BD4A402738 Slide 10: – NEA Political Section, NEA-I-POL-DL@state.gov Slide 11: S T A T E – IRMO Weekly Report, March 6, 2007 Slide 12: – POC Bob Means (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. Currently supplies are not much improved over last year when judged by hours of power, but this is due in part to an influx of new appliances. This has dramatically altered demand and diluted the effect of increased generation capacity on actual results. 29 UNCLASSIFIED March 7, 2007 UNCLASSIFIED Notes and Source Citations (2 of 3) D E P A R T M E N T O F S T A T E Slide 13: Electricity: – USACE Daily Report – 6 March 07 Transportation: – IRMO Weekly Status Report – 27 February 07 Water – USACE Daily Report – 6 March 07 – USACE Daily Report – 5 March 07 Slide 14: – Oil Prices are sourced from Bloomberg Employment Update: – Information regarding the Employment Update was sourced from the IRMO Weekly Report – March 6, 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 15: – Information regarding the NID auction was gathered from the Central Bank of Iraq’s website: http://www.cbiraq.org Slide 16: – Iraqi Bond Prices are sourced from Bloomberg Slide 17: – Baghdad OI March 5 – Unclassified IIC February 28 Slide 18: – NEA-I-Econ IIC March 6 Slide 19: – Department of State, NEA-I-ECON, 202-647-9885 Slide 20: – Department of State, NEA-I-ECON, 202-647-9885 30 UNCLASSIFIED March 7, 2007 UNCLASSIFIED Notes and Source Citations (3 of 3) Slide 21: D E P A R T M E N T O F S T A T E – Department of State, NEA-I-ECON, 202-647-9885 – Department of State, NEA-I-ECON, 202-647-9885 – http://www.mnf-iraq.com/index.php?option=com_content&task=view&id=10273&Itemid=21 – http://www.washingtonpost.com/wp-dyn/content/article/2007/03/08/AR2007030800838.html – http://www.upi.com/SecurityTerrorism/view.php?StoryID=20061102-083250-7837 – http://www.civil.ge/eng/detail.php?id=14720 – MFA Press Statement: Training Programme for Iraqi Foreign Service Officers, Singapore, 6-23 March 2007 – Associated Press March 2, 2007, Iraq's U.N. ambassador criticizes Syria available at: http://news.yahoo.com/s/ap/20070302/ap_on_re_mi_ea/us_iraq_syria;_ylt=Aqtg2wcIai1q3QTjX2MfbMxvaA8F – DOD Input to Weekly Status Report, updated bi-weekly – Associated Press, Islamist State of Iraq Posts Video of Execution of 18 Iraqi Security Troops,” March 3/AFP, “Iraq Rebels Claim Kidnap of 18 Ministry Employees,” March 2 – AFP, “Iraqi Newspaper Editor Killed in Baghdad,” March 4 Slide 22: Slide 23: Slide 24: Slide 25: Slide 26: Slide 27: 31 UNCLASSIFIED