Iraqi debt relief depends on progress  19.5.2007

"I think it's conditional, and it's conditional on the future of relations between Iraq and Saudi Arabia," Khalilzad said. "I believe the more there is progress in terms of reconciliation inside Iraq ... the more I think the Saudis would be forthcoming in terms of support."

He did not say how or when he had last been briefed on the Saudi position.

Asked what would help resolve the problem, Khalilzad singled out progress on a new oil law that would divide revenues among all Iraqi factions; on changing the law that purged the government of members of the Sunni-dominated former ruling Baath party; and on amending the constitution "to make that document truly a national compact in which all communities have confidence."

"The assistance, including debt relief, is conditional on progress," Khalilzad said. "Iraqis cannot assume that they will get that assistance if they don't make progress on their commitments."

An international compact officially launched at a conference this month in Sharm el-Sheik, Egypt, sets ambitious benchmarks to achieve a stable, united, democratic Iraq by 2012. The International Compact with Iraq defines international help for Iraq — including debt relief — but also sets tough commitments on the Baghdad government, particularly carrying out reforms aimed at giving Iraq's minority Sunni Arabs a greater role in the political process.

At the launch, Saudi Arabia said it was still negotiating with Iraq over writing off Iraqi debt, and major creditors Kuwait and Russia failed to offer immediate debt relief — a disappointment to some Iraqis hoping for immediate financial help.

Saudi King Abdullah refused to see al-Maliki when the Iraqi prime minister made his own tour of Arab countries in April. And in Sharm el-Sheik, Saudi Arabia's foreign minister was one of the few Arab diplomats al-Maliki did not meet in face-to-face talks.

Khalilzad said al-Maliki and Abdullah had met previously, "but there are in recent times indications that the Saudis have concerns that the government in Iraq has not made the kind of progress on reconciliation that they had hoped."

Kuwait's parliament opposes writing off Iraq's debt, he said, but, "what happens to Iraq will be important for the future of Kuwait, the future of the whole region, so a formula has to be found, in my view, where the burden on Iraq can be reduced and the resources can be freed to help stabilize Iraq."

Iran can also be more helpful, he said, and the importance of an upcoming U.S.-Iran meeting will be seen not in words but in results on the ground.

The "measures of merit," he said, will be whether Iran reduces the supply of weapons, training, money, and tactical guidance to groups that are attacking other Iraqis, Iraqi security forces and U.S.-led coalition troops.

Khalilzad said he hoped the international community can move past disputes over the invasion of Iraq to carve out a role for the United Nations in facilitating reconciliation among Iraqis and encouraging nearby states to play a positive role.

"I think we ought to put aside the disagreements of the past, and see what realistically the U.N. can do," he said. "My own judgment is that there is more that the U.N. can do to be helpful to the Iraqis."

AP   

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