Thread: Iraq/Dinar News. 09/05 to 01/14/07

Associated Press
Rumsfeld OKs Increase in Iraqi Forces
By ROBERT BURNS 10.31.06, 6:17 PM ETDefense Secretary Donald H. Rumsfeld on Tuesday endorsed a proposal to spend at least $1 billion to expand the size and accelerate the training and equipping of Iraqi security forces.

"I'm very comfortable with the increases they've proposed and the accelerations in achievement of some of their targets," Rumsfeld told reporters at the Pentagon, noting that the Iraqi government and Gen. George Casey, the top U.S. commander in Iraq, both recommended expanding Iraqi forces.

"Now it's simply a matter of our pressing forward and getting our portion of the funding from the Congress and working to see that it's executed," Rumsfeld said. He did not say how much extra U.S. money would be required.

So far, the U.S. government has spent roughly $10 billion on developing the Iraqi security forces, according to the latest report released by the Pentagon special inspector general who audits U.S. work in Iraq. One official described the proposed extra money as more than $1 billion, but would not offer specifics.


Copyright 2006 Associated Press. All rights reserved. This material may not be published broadcast, rewritten, or redistributed

Okay, how is it that China and Japan already have contracts to develop oilfields and supposedly the hydrocarbon law is still out there.. or is it??? hmmmmmmmmmmmmm

http://today.reuters.com/news/articl...1_%5BFeed%5D-4

China, Japan keen to develop Iraq oilfields: minister
Wed Nov 1, 2006 10:27 AM ET
By Mariam Karouny
BAGHDAD (Reuters) - China and Japan have staked their claim to develop Iraq's vast oil reserves with Tokyo offering billions of dollars in loans and Beijing agreeing to renegotiate a deal signed with Saddam, Iraq's oil minister said Wednesday.Hussain al-Shahristani was briefing reporters after a tour of Asia that took in the world's second biggest oil consumer China and its third biggest Japan -- both heavily dependent on imports and keen to secure future energy supplies.
Iraq, which has the world's third largest oil reserves, is in urgent need of billions of dollars in foreign investment after years of sanctions and war crushed the industry.
The Baghdad government is working toward its first foreign oilfield development contract and is readying a legal framework.
All the big oil companies are eyeing deals.
Energy-hungry Asian firms, whose home governments are less concerned about transparency and good governance than the West, are already snapping up oil blocks in Nigeria and Angola and prospecting in Mauritania and Chad.
"The Japanese said they were willing to provide soft loans with maturity of up to 40 years for any amount of money we need to develop the oil industry -- to develop the refineries, exports and production," Shahristani said.
"Right now there is a Japanese loan of $3.5 billion. More than one billion will be spent to develop the Basra refinery. Also on building a floating port and an export pipeline."
Japan recently lost out in developing neighboring Iran's giant Azadegan oilfield after Tehran grew weary with the project's slow progress. The United States had opposed the deal.
Shahristani said Japanese firms were interested in oilfields in southern Nassiriya.
CHINA TALKS SUCCESSFUL
The minister described talks with Chinese officials as successful.
He said Iraq and China had formed a committee to look again at China's contract, signed with Saddam Hussein, to develop the 90,000 barrels per day Ahdab oilfield in south central Iraq.
The committee, made up of three or four people from each side, will review the articles of the contract to "serve Iraq's interests", Shahristani said. It will meet in November.
"We have agreed to form a joint committee... to review the contract. We will begin discussions."
"The Chinese said they are ready to discuss it. They asked us to tell them which articles are not in Iraq's interest so that we review it," he added.
Ahdab, with an estimated development cost of $700 million, was awarded to China National Petroleum Corp and Chinese state arms manufacturer Norinco by Saddam. The deal was frozen by international sanctions and then Saddam's overthrow.
Shahristani said all oil contracts signed under Saddam would be reviewed by a national committee because the ministry wanted to make sure contracts were to Iraq's benefit.
"If it is not then we will amend it so that Iraq's interest will be served," he added.
Iraq's crude oil exports in October were between 1.6 and 1.7 million barrels per day, Shahristani said. Iraq exported 1.64 million bpd in September, according to shipping sources. The same sources put October exports a shade above 1.5 million bpd.
Shahristani said October production was 2.3 million bpd and his ministry aimed to boost output to 2.9 million bpd by the end of 2006.
"We are aiming to reach 2.9 million bpd by the end of this year by producing 2.25 million bpd from the south and around 700,000 from the north," he said.

Things don't really look all that good for gw,if things do not happen before the 7th.I can't see him loosing to the democrats.I think things will really start picking up this week!Who knows maybe the iraqi's will suprise us!Jmo though!!
Alot more pushing will be going on the closer it gets to the elections!So cross your fingers and toes or whatever else you can cross and get ready for some more excitment!!!!
SARAH!!!GO DINAR GO!!!!!

Originally Posted by MOM2TWO

I am just curious how this will all go down? One morning will I wake up, check MSN's money foreign exhchange rate chart and see the Iraqi Dinar?? It just seems somewhat anti-climatic. Or will it be all over the news "millions of US citizens become overnight millionaires"?? Any thoughts??

I think the anti-climatic scenario is what we will see. As avid participants, we are watching with close scrutiny every tidbit of info coming out of Iraq. The average Joe doesn't. He sees what his particular news channel shows him.

The day the Dinar "revals" or takes a significant leap in value, it will go mostly unnoticed if only for a day or so. We will already be nursing our hangovers when the rest of the world reads the headlines the next day!

And I hope the headline reads "Thousands of US citizens become overnight millionaires".... not millions of US citizens... I wonder how many of us there are actually? Anyone know the estimated number of "speculators" in the private sector, that is??

We'll probably find out in the next couple weeks!

Iraq seeks $100b aid | Iraq Updates

Iraq seeks $100b aid

--------------------------------------------------------------------------------

01 November 2006 (Bahrain Tribune)
Iraq is looking for a total of $100 billion in assistance for the country's reconstruction, in the from of debt cancellation and donor aid, an Iraqi government spokesman said yesterday.

"We are talking about loans which could be cancelled - ($100 billion) is the total investment needed in Iraq," Ali Al Dabbagh, told reporters at the International Compact for Iraq Preparatory Meeting in Kuwait.
Investment flows into Iraq are affected by security conditions in the country, which have to be addressed first, the country's administrators said at the meeting.

The country also faces unemployment, inflation, low productivity, chronic environmental problems on top of its political and sectarian problem.
Al Dabbagh said the structure for security will have to be in place before Iraq could implement the oil law, which is expected to be passed by the end of the year.
"Iraq needs to rebuild its forces to provide security which has become the first demand for all Iraqis," said Ali Baban, minister of planning and development cooperation.

He said Iraq won't rush into privatising its industries, despite the government's leaning towards an open economy.

"We shouldn't rush as some negative results may accompany any unplanned privatization process," he said during a speech at the International Compact With Iraq preparatory group meeting in Kuwait.

And yet another one. It makes mention to the HCL...

Originally Posted by Hardwood

I think the anti-climatic scenario is what we will see. As avid participants, we are watching with close scrutiny every tidbit of info coming out of Iraq. The average Joe doesn't. He sees what his particular news channel shows him.

The day the Dinar "revals" or takes a significant leap in value, it will go mostly unnoticed if only for a day or so. We will already be nursing our hangovers when the rest of the world reads the headlines the next day!

And I hope the headline reads "Thousands of US citizens become overnight millionaires".... not millions of US citizens... I wonder how many of us there are actually? Anyone know the estimated number of "speculators" in the private sector, that is??

We'll probably find out in the next couple weeks!

I had read approx 70,000 people held Dinar. I cant remeber where I read it, but it was within the last month or so. NO LINK

Seventy thousand really is not that big...gotta wonder what the real number is.

Originally Posted by Hardwood

I think the anti-climatic scenario is what we will see. As avid participants, we are watching with close scrutiny every tidbit of info coming out of Iraq. The average Joe doesn't. He sees what his particular news channel shows him.

The day the Dinar "revals" or takes a significant leap in value, it will go mostly unnoticed if only for a day or so. We will already be nursing our hangovers when the rest of the world reads the headlines the next day!

And I hope the headline reads "Thousands of US citizens become overnight millionaires".... not millions of US citizens... I wonder how many of us there are actually? Anyone know the estimated number of "speculators" in the private sector, that is??

We'll probably find out in the next couple weeks!

nursing our hangovers???? I plan on staying drunk for quite a while

Originally Posted by PlatanoKing

Yes, with the FIL Due to Kick-in on or about the 10th of this month will Iraq hold back all the investor who are lined-up waiting to jump on a once in a life time investment opportunity? IMHO, NO.

Iraq needs the revenue which will be generate by the FIL/HCL and other natural resources to develop human resources based on market demands and provide work opportunities for the Iraqis people as stated below on article 2 of the FIL.

From the FIL

Goals and Means

Article 2
This law aims at the following:

First: To promote investment and transfer modern technologies in order to
contribute to the process of developing and enhancing Iraq, and expanding anddiversifying its production and service base.

Second: To encourage the Iraqi and foreign private sector to invest in Iraq by
providing the required facilities for establishing investment projects and
enhancing its competitive capacities in the local and foreign markets for projects included in this law.

Third: To develop human resources based on market demands and provide work opportunities for the Iraqis.

Fourth: To protect the rights and properties of investors.

Fifth: To expand exports and improve the balance of payments and the balance of trade of Iraq.

Article 3
The following means shall be adopted to realize the objectives of this law:

First: To grant projects covered by the provisions of this law the necessary
privileges and guarantees for its continuation and development by providing
support in a way that enhances the competitive capacities of these projects in the local and foreign markets.

Second: To grant projects that obtained an investment license from the
Commission, additional facilities and exemptions from taxes and fees in
accordance with the stipulations of this law.

so say it goes into effect on the 11th of November, are we certain then at this time people/companies can start immedialtely investing how they wish in Iraq?

Originally Posted by CharmedPiper

For all my Rolclub gang here I have taken the time to transcribe the press statement by Mr. Kimmet that was done yesterday in Kuwait. He is the economic head for the compact. It is certainly worth the read. Enjoy....

I am James Finelle, I am the information officer at the American Embasy. I am very pleased tonight to introduce Deputy Secretary for the American Treasury, Mr. Robert Kimmet, who is heading the U.S. delegation here to the ICI conference. Of course, the ICI conference is about Iraq and at the focus today but, I know that it is an important issue for Kuwait and so we wanted to bring you all here together, the Kuwaiti Press, and as a courtesy the U.S. Press to ask some questions of Mr. Kimmet. We have some bios for the Deputy Secretary. I can tell you briefly, he has a lot of experience in both the government and the private sector. He is an attorney and has worked for Lehman Brothers; he has worked for the White House National Security Counsel as well as the U.S. Department of State in Political Affairs and he also is a former U.S. Ambassador to Germany. So, our time is limited so what I will do is have Mr. Kimmet come up, he will make some remarks, and then I will open it up for questions. Please wait on me to call on you for a question and since our guest, Mr. Kimmet, is a guest in Kuwait, he does not know you. Please state your name and the organization you are from, okay. Thank you.

Mr. Kimmet: Thank you very much, it is very nice to be back in Kuwait. My first visit to Kuwait was in March of 1991 with Secretary Jim Baker. We were the first American visitors back into Kuwait after it’s liberation. I have had a chance to visit Kuwait a number of times since then and have always enjoyed and appreciated the hospitality of both the Kuwaiti government and the Kuwaiti people.

This past summer, Prime Minister Maliki of Iraq layed out a 3-part program political, security, and economic; the economic component of which was embodied in the International Compact with Iraq essentially as Deputy Prime Minister Barnhem Saleh and the U.N. Special Representative indicated, these are commitments by the government of Iraq to an economic reform plan designed to produce economic self-sufficiency and financial independence in a 4 to 5 year time period that is, over the medium term. In return, from the international community, commitment to support that reform effort. President Bush asked me this summer to lead the U.S. Delegation and I attended the organizational meeting held in Baghdad on July 20th ; the prepatory group meeting in U.A.E. in early September, I believe it was September 10th ; and then the expanded meeting both at the U.N. General Assembly session in New York on September 18th ; and also the World Bank IMF fund meetings in Singapore on the same day, and then now this prepatory group meeting in Kuwait .

I would like, once again, to thank the government of Kuwait for extending an invitation to not just the United States but, 20 international organizations and countries to come to Kuwait to participate in this important prepatory conference. I would like to particularly thank my friend, Deputy Prime Minister and Minister of Foreign Affairs whom I have known for quite some time and I have always known to be a wonderful representative for the State of Kuwait and was an excellent host for today’s meeting . I would note, again, that there were 20 countries and international organizations represented today from the Americas, from Europe, from the Gulf Region, and from Asia as well as international organizations both global and regional and I signaled in today’s meeting, the United States Government’s strong support both for the concept of the International Compact and also for our strong support for the draft as it has emerged and based on today’s successful meeting, I think we are in a position now to move to a ministerial level meeting as the Deputy Prime Minister of Iraq and the U.N. Special Representatitives have indicated which the compact can be concluded.

I would be glad to take your questions.

Q: Yes sir, (arabic being translated) : The Deputy Prime Minister of Iraq spoke of new commitments from the United States to Iraq. (mumbled sorry ****)
A: I think the size of pledged will be announced by ministers at the ministerial meeting. What I noted was, that the U.S., in the past, had provided debt-relief , technical assistance, investment support, and donor assistance in terms of not only reconstruction, economic development aid, but also aid to the Iraqi Security Forces and I anticipate that the United States Government at the Ministerial will make new pledges in each of those areas.

Q: What is your assessment of the promises of the Iraqi government so far.
A: The work that I do is with the Iraqi government in the economics sphere. I think in spite of the very difficult political and especially security situations that the government faces, that the economic team has made significant progress. They have a stable currency, they have sizeable foreign currency reserves, they are almost back up to pre-war levels of oil production and therefore are able to finance a considerable part of their own government operations. However, there still is a gap between their requirements and the resources available to them and again, that is one of the things that the International Community is talking to Iraq about now, helping to close that gap.

Q: Your greatest fear of responsibility and amount of Iraqi debts and how do you see the future plans for progress in Iraq.
A: I think with regard, if I understood your question correctly, I think that what I heard today, most importantly was a commitment by the government of Iraq to rebuilding it’s country for the benefit of all of it’s people. What I also heard, was the international community saying that it wants to support Iraq in that rebuilding effort . It was in the Madrid Conference, in 2003, already sizeable pledges by the international community some of which have been disbursed and some of which remain to be disbursed. There are, I think, about 50 countries who have a creditor relationship with Iraq, that is, to whom Iraq owes debt. A number of countries including the United States have made the decision to forgive 100% of Iraq’s debt. Other countries have made the decision to forgive 80% of the debt according to Paris Club terms and I think as we go forward, those other countries who are creditors both in the gulf but more broadly Russia, China and others for example are looking very closely as the Deputy Prime Minister said, at joining the group of people who have entered into debt relief but, also as the Deputy Prime Minister has said, that is really for bilateral discussion between the government of Iraq and the creditor countries.

Q: In the previous meetings, how much has Iraq bounced forth as part of this compact agreement and have the other countries members agreed to Iraq’s demands.
A: In the previous meetings and leading up to today, especially working with the World Bank and IMF, there has been a projection over the mid-term of what would be Iraq’s governmental spending requirements and Iraqi governmental resources. There is a gap, however, between the requirements and their resources. That amount, as the Deputy Prime Minister said, is still under discussion as to exactly what their needs are but, the Iraqi’s know that they need to be quite specific in laying out not just the amount of money that is the gap but what the money would be used for . The impression I have is that the international community, once those numbers are established, is prepared to work with the government of Iraq to help meet that gap but my guess is that it will take several weeks as we lead to the final ministerial conference before additional detail is provided and going back to the earlier question, before firm commitments are made at a public position. At this time, I would not have the rough figures to give but of course that would be a question to give to the Iraqi government but, I would say that we are working very diligently with the IMF and the World Bank . And remember, Iraq is under a standby agreement with the IMF right now. So, it has been through the process of this already of meeting tough economic conditions in return for international assistance and we are trying on the basis of the changing economic circumstances to refine estimates that have been made before . I think we will know more on that at the ministerial meeting but even there, I probably would not give you the Iraqi figures , we will be quite specific about the U.S. figures at that time.

Q: Do you have a message for the Iraqi people today.
A: Well my message is, the United States of America and the American people stand strongly behind your desire to live in peace and security. The Iraqi people have voted for peace and security in the first democratic elections in decades. We, and I think coming from this meeting, the international community more broadly supports the aspirations of the Iraqi people to live in peace and security.

Q: Are you confident in the current role the Iraqi government is playing .
A: The way that the compact is set up as I stated earlier is that the Iraqi government is layed out in the compact is specific commitments that they are willing to undertake on their path toward economic reform. Based on what we have seen, in terms of them living up to their commitments under the IMF standby agreement, I believe the Iraqi’s understand the importance of the seriousness of the commitments that they are entering into and I think in response not by just the United States but the world community represented not just by the prepatory group but eventually a broader group of donors will look in return for Iraq meeting those commitments themselves to come forward with new commitments again, whether it be debt relief, technical assistance, investment support, or additional donor support either on the economic or the military side and again, I would expect that the U.S. would look at contributing in each of those areas and other countries will make their own choices on how to put commitments on the table in return for Iraq’s commitments.

Q: In arabic inaudible.
A: The benefit is that if we have as the Deputy Prime Minister said, an Iraq at peace with itself and at peace with it’s neighbors and what is good for the Iraqi people first and foremost it is good for the region and for the world more broadly and I think that is why each of the members of the international community participated today and the broader group that will attend the final meeting . We see this first and foremost in the interest of the Iraqi people but there are also very important regional and global benefits in return.

Q: In arabic inaudible.
A: I think as the Deputy Prime Minister indicated, the intention is to hold the ministerial level conference by the middle of December. So, that would be sometime over the next 6 weeks. The participants would include the countries who are represented on the prepatory group that met today, her in Kuwait. But, we would expect also a broader group of countries. There was a much larger group that took place in both Singapore and New York including Russia, China, Egypt, Jordan, Syria, Iran, and others and I would expect that broader group of countries to participate in the final meeting and with regards to the debt issue, certainly we would hope that there would be considerable progress towards resolving the issue but as the Deputy Prime Minister said, it ultimately will be a decision for each individual creditor what decision they will take. My guess though is that every country who is a creditor who comes to the conference will look to address that issue in some way.

Q: This month has been a bloody month in Iraq for U.S. forces and also to secure Baghdad , what steps have U.S. officials taken. For success of this package will you send more troops into Iraq.
A: Well, as I said, my role in this process is supporting the economic component of the 3-part plan layed out by Prime Minister Maliki. The other 2, political and security in addition to being Iraqi leads are supported by my colleagues at the Defense Department and the State Department so, I would defer to them on the overall question . Also I would not accept your premise that the security component has failed but again, I think that would be better directed first to the Iraqi’s and second to my colleagues also in the government. What I will say; however, is that I think that the compact is successful. It has elements in there although couched in economic terms, will also have important political effects. For example as the Deputy Prime Minister said, movement on the hydrocarbon law that lays out exactly how revenue is going to be shared. Yes, it is important in economic terms but I think that it is important for all the communities inside Iraq so, that is why I think that although my part of this is the economic side, it does weave closely with political and security it is just that I am not the expert in the areas that you have raised.

Q: I am going to ask you a question outside the Iraq issues. U.S. pressures on Arab governments to achieve certain policies, what is your comment on this.
A: I don’t know if I will answer it but you may certainly ask it. Across the board, the U.S. assistance program is something that is developed mutually with governments involved. Certainly, when we give assistance we are trying to advance U.S. interests and when governments receive U.S. assistance, they are putting it to further there own goals. But, I have worked in the assistance business for quite sometime and it is always a mutual decision and certainly any government that provides assistance, they are doing it for what they think is the betterment of both of the countries involved but of the donor country too. Again, I find that those decisions are mutual decisions, not enforced upon any particular country rather it is an effort to achieve mutual objectives through sharing of resources.

Q: Pressures on Iraqi’s.
A: We are not putting any pressure on our friends and allies. We explain why we made the decision we did to go beyond Paris Club terms and forgive 100% of Iraq’s debt to the United States and primarily it is an economic issue. If ultimately we want Iraq to be dependent on it’s own resources and foreign investment rather than foreign assistance, one very important message both to investors and to the capital markets is that the country is either free of debt or managing it’s debt successfully. So, I think all countries want to encourage an Iraq that can take care of itself with it’s own resources and external investments and one of the ways to do that is encourage foreign investment , encourage access to the capital markets and that is one of the reasons why debt reduction is so very important for a new economy moving from the command economy it was under Saddam to a free market economy. [INDENT]Now, that is a very Treasury-oriented macroeconomic analysis it also of course has a very important political effect because what it is saying is that countries want to have a relationship with a new government , a democratically elected government, that should not operate under this heavy burden of past debt from a dictatorial regime, debt that stiffels precisely the foreign investment and access to capital markets that we all know that Iraq needs so badly.Thank you all very much.

Okay, I spent alot of time on this and anyway you dice it up....they have to have a revalued currency to support what is expected of them. You can't negotiate debt and move forward with worthless currency. Am I missing something...come on Iraq here it is in Black, red, and white just read it.

Very good read. Thank you so much for posting. Looks like we are moving in the right direction....let's rv this thing already