Thread: Iraq/Dinar News up until March 28th 8PM CT.

Iraqi insurgents splitting from al-Qaida

BAGHDAD, March 27 U.S. officials in Iraq hope to capitalize on a rift between insurgent groups and al-Qaida.


"Iraqis are uniting against al-Qaida," U.S. Ambassador Zalmay Khalilzad said on his last day in Baghdad Monday. "Coalition commanders have been able to engage some insurgents to explore ways to collaborate in fighting the terrorists." Leaders of two insurgent groups that oppose the U.S. military occupation told the Los Angeles Times that serious problems have developed between them and al-Qaida.
Iraqi insurgents splitting from al-Qaida

Economy


Published: 27/03/2007 12:00 AM (UAE)

UAE 'closer to revaluation'
By Gaurav Ghose, Staff Reporter



Dubai: The chances of the UAE revaluing the dirham this year may have risen.

Standard Chartered Bank has raised its estimation of the probability of such an event to 40 per cent. It had previously suggested that the chances were low, perhaps in the region of 20 per cent.

Any revaluation would be relatively small in size, between three to five per cent, according to a research note issued by the bank yesterday.

With the GCC central bank governors scheduled to meet next week in Medina, Saudi Arabia, there is speculation of changes to currency regimes.

Standard Chartered Bank says that although the central scenario is that the UAE will leave the peg in place at its current level, "it is clear that the central bank is re-examining its foreign exchange policy and ... the risks of a move are rising with time."

The revised estimation follows comments emerging from credible sources, said Steve Brice, regional head of research. "This was not being discussed 12 months ago, and now it is being discussed in various ways. The Central Bank Governor has indicated that it is going to be looked at."

The note suggests three reasons why it is unlikely for the region to opt for a managed currency float, which would enable control over interest rates.

First, it would be a complex system to manage. "There's a lot of work to be done on ascertaining the fair value of currencies of the region," Brice says.

Second, "the central bank does not have at its disposal tools to manage liquidity in the financial system, an absolute necessity if they are going to manage interest rates effectively."

Third, it may be that the authorities are concerned about imported inflation rather than the low interest rates which Standard Chartered believes are the main culprit behind inflationary pressures. Any revaluation would probably be small because of the need not to impede diversification efforts, the bank explains. It would take account of the export competitiveness of non-oil activity.

They would have to manage that balancing act very carefully, Brice suggests. "Assuming that this solution is pursued, what you don't want to see is 10 to 15 per cent appreciation of the currency. Three to five per cent is it going to have massive impact on reducing inflation? No. Is it going to have a massive impact on the economy? No. You could argue that this is a step in the right direction to balance the two things. And of course if they find that it's not enough, they can do it again."

US diplomat held talks with Iraqi insurgents
March 26, 2007


FLYING THROUGH: US Ambassador to Iraq Zalmay Khalilzad (L) is welcomed by Iraq's foreign minister Hoshyar Zebari (R) upon his arrival at a conference in Baghdad March 10. Khalilzad is to leave Iraq within days to take up the post of US ambassador to the UN.
(REUTERS)
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WASHINGTON -- US Ambassador to Iraq Zalmay Khalilzad held talks last year with presumed representatives of leading Iraqi insurgent groups in a bid to lure militant Iraqi Sunnis into the country's political process, The New York Times reported on its website Sunday.

"There were discussions with the representatives of various groups in the aftermath of the elections, and during the formation of the government before the Samarra incident, and some discussions afterwards as well," Khalilzad told The Times in an interview Friday.

The newspaper said he is the first US official to publicly acknowledge holding such talks.

The meetings began in early 2006 and were possibly the first attempts at sustained contact between senior US officials in Baghdad and the Sunni Arab insurgency, the report said.

Khalilzad flew to Jordan for some of the talks, which included self-identified representatives of the Islamic Army of Iraq and the 1920 Revolution Brigades, two leading nationalist factions, the paper said.

Khalilzad declined to give details on the meetings, but other officials said the efforts had foundered by the summer, after the bombing of a revered Shiite shrine in Samarra, according to the report.

Khalilzad's willingness even to approach rebel groups defied the public position of some Bush administration officials that the United States does not negotiate with insurgents, The Times said.

In another sign of pragmatism, the ambassador reiterated his position that the American and Iraqi governments had to consider granting amnesty to insurgents, the report said.

"This is something that we and Iraqis, the government, will do together, and there are various types of amnesties," he said. "But the fundamental point, the goal of bringing the war to an end, the most important tribute we could pay to our soldiers who have lost their lives here would be that the cause they fought for would be embraced and accepted by their former enemies, by those who fought them."

Khalilzad, who has been nominated by President George W. Bush to be the next US ambassador to the United Nations, leaves Iraq this week.

Iraq


Published: 27/03/2007 12:00 AM (UAE)

Ministers agree to call for Iraq statute change
Agencies



Arab foreign ministers agreed yesterday to call for an amendment to Iraq's constitution to give Sunni Arabs a greater share of power in the war-ravaged country.

"The ministers approved a call to Iraq to amend its constitution in order to boost the political process in that country," one of the ministers told AFP, requesting anonymity.

Arab states preparing for a summit in Riyadh tomorrow want to see the consitution changed to give Sunnis a greater share of political power and avoid a federal split of Iraq, the minister said.

Iraq's once-ruling Sunni Arabs want an amendment of the constitution adopted in October 2005, fearing that the arrangement leaves their central regions without natural resources and Iraq's oil wealth in the hands of the governing Shiites and the autonomous Kurds.

Their demand is backed by Sunni-dominated Arab countries, including Saudi Arabia which is hosting the summit.

The Arab top diplomats also called for "reviewing the de-Baathification law in order to enhance the national reconciliation process in Iraq," the minister said.

Tens of thousands of former members of Iraq's former ruling Baath party were stripped of their positions in government, universities and companies in the aftermath of the 2003 US-led invasion.

In Iraq, top Iraqi officials approved amendments yesterday to ease rules under which former Baath party members were banned from jobs in government and security, a senior government source said. The official said Prime Minister Nouri Al Maliki and President Jalal Talabani had reviewed the amendments, which include a rule that would remove a ban on taking part in public life from all but the most senior former Baathists.

Fuel shortages cripple Mosul



Azzaman, March 26, 2007



Fuel shortages have almost brought life to a standstill in the northern city of Mosul.



The severe crisis started with the suspension of fuel imports from Syria since March 22.



“We now receive less than 10% of the province’s fuel needs,” said the commission in charge of fuel distribution in northern Iraq in a statement.



Mosul, the capital of the Province of Nineveh, is the third largest city in Iraq and is a major anti-U.S. rebel stronghold in the country.



The statement said the whole province had access to about 4% of its gasoline needs and only 2% of liquefied gas used for cooking.



The statement said the refineries in Baiji were working below capacity and their inventories were almost empty.



It said the shortages have brought essential services to a grinding halt.



State-run silos were idle and they have stopped delivering or receiving grain and the provincial authorities could not hand out food rations because trucks in the province were without fuel.



“Even hospitals are suffering. Water and sewage systems are bearing the brunt,” the statement said.



It said transport fees have skyrocketed and pupils and students cannot make it to their schools and colleges.



Power shortages were even worse as supplies from the national grid were off for nearly 20 hours a day.

Ruling parties OK 2-yr extension of Iraq reconstruction support law
TOKYO, March 27 KYODO
The ruling Liberal Democratic Party and its coalition ally the New Komeito party approved a bill Tuesday that will extend the deployment of Japan's Air Self-Defense Force for reconstruction aid in Iraq for two years beyond the current July 31 deadline, LDP lawmakers said.
The bill, which will revise the special law authorizing the deployment of the Self-Defense Forces in Iraq, is expected to be approved by Prime Minister Shinzo Abe's Cabinet on Friday for possible enactment during the current session of parliament

IRAQI VICE PRESIDENT CALLS FOR MORE ARAB SUPPORT...
At a meeting with King Abdullah II of Jordan in Amman on March 25, Iraqi Vice President Tariq al-Hashimi called on Arabs to offer more support to his country, Petra news service reported the same day. "The Arabs should have a strong role in support of Iraq to avert the country from falling prey to terrorism and foreign ambitions," al-Hashimi said. He thanked Abdullah and praised Jordan's continued assistance to Iraq. For his part, Abdullah reaffirmed the Hashemite Kingdom's efforts to help restore peace and security in Iraq and expressed hope that the Arab summit in Riyadh, Saudi Arabia, scheduled to begin on March 28, will introduce initiatives that will help Iraq end the crippling cycle of violence and foster national reconciliation. SS

IRAQI DEFENSE MINISTER SAYS IRAQI FORCES ON TRACK
At a March 24 press conference in London, Iraqi Defense Minister Abd al-Qadir Muhammad Jasim al-Ubaydi said that Iraqi forces are making strides to take over security responsibilities, "Al-Sharq al-Awsat" reported the same day. "The Iraqi Army's state of readiness is very good," Jasim said. "We have a plan for integrated operations among all our forces. The army's capabilities are developing and soon we will have sufficient ability to rely on ourselves and our own estimates." He was in London to discuss armament issues with British officials and suggested that Iraqi forces are ready to take over security operations in Al-Basrah in the event British forces withdraw. "We have been working for a while to take over the British forces' posts gradually in accordance with well-studied plans," he said. "We are fully prepared to fill any security vacuum in the event of a sudden British withdrawal," he added. SS

CENTCOM COMMANDER VISITS IRAQ
U.S. Central Command (CENTCOM) commander Admiral William Fallon arrived in Baghdad on March 25, his first trip to Iraq since taking over CENTCOM, international media reported the same day. The Iraqi Defense Ministry issued a statement saying that Fallon held meetings with Defense Minister Jasim, and the two men discussed the ongoing Baghdad security plan as well as the security situation in the governorates of Al-Anbar, Al-Basrah, Diyala and Ninawah. Fallon officially took over command of CENTCOM on March 18 from General John Abizaid. Previously, he was the commander of U.S. Pacific Command (PACOM) from February 2005 to March 2007. SS

Iraq's Vice President Warns Against Turkish Incursion Into Iraq
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Posted GMT 3-27-2007 14:9:16
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ANKARA, Turkey (AP) -- Iraqi Vice President Tariq al-Hashimi on Tuesday warned against a possible Turkish incursion into Iraq to fight separatist Kurdish guerrillas and promised to prevent cross-border attacks by the rebels.

"We want both countries to respect the borders of each other and expect the sides to be against such a thing," al-Hashimi said upon his arrival in Ankara for a one-day visit. He was responding to a question about a possible Turkish incursion into his country to hunt down guerrillas of the Kurdistan Workers Party, or PKK.

Al-Hashimi reiterated promises by Iraq to prevent attacks by the rebels. "Iraq will never allow its soil be used as a base for attacks against other countries, especially against its brother and friend, Turkey."

Turkey's political and military leaders have expressed frustration with the level of Iraqi cooperation and U.S. help in eradicating PKK rebels holed up in the Kurdish region of northern Iraq. The United States has warned Turkey against entering Iraq, fearing such a move could lead to tension with local Iraqi Kurdish groups, a key U.S. ally.

A Turkish general earlier this month said up to 3,800 Kurdish rebels were positioned in northern Iraq near the Turkish border and he reasserted his country's right to cross the border to hunt separatist Kurds who launch attacks from bases there.

"Turkey can always take the appropriate measures against the separatist terrorist organization in northern Iraq," Land Forces Commander Gen. Ilker Basbug said during a visit to Diyarbakir.

Basbug said, however, that the issue of possible Turkish military operations should "not feature more than is necessary in the public agenda" -- a sign that the military did not want the issue to stir tension with Iraq.

Defense Minister Vecdi Gonul ruled out any cross-border attack last week amid unconfirmed reports that Turkey was massing troops on the Iraqi border.

Al-Hashimi was scheduled to meet with President Ahmet Necdet Sezer, Prime Minister Recep Tayyip Erdogan and Foreign Minister Abdullah Gul on Tuesday to discuss the security situation in Iraq -- which he described as "bad" -- and opportunities for more investment there.

On Sunday, al-Hashimi asked for more support from fellow Arabs, saying that could help keep his country from being abandoned to terrorists and foreign powers.

Regional leaders are to convene for an Arab Summit on Wednesday in Riyadh, the Saudi Arabian capital. Turkey's prime minister was also scheduled to attend the Riyadh meeting.

© 2007, Assyrian International News Agency