Foreign and Commonwealth Affairs written question – answered on 21st February 2005.

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Photo of Mike Hancock Mike Hancock Liberal Democrat, Portsmouth South

To ask the Secretary of State for Foreign and Commonwealth Affairs what discussions he had with (a) the US Administration, (b) the Iraq Coalition Provisional Authority and (c) others on the management of reconstruction funds in Iraq (i) prior to the establishment of those funds and (ii) since the report of the US Government auditors; and if he will make a statement.

Photo of Bill Rammell Bill Rammell Parliamentary Under-Secretary, Foreign & Commonwealth Office

The UK had discussions with the US Administration and other coalition partners over the text of United Nations Security Council Resolution (UNSCR) 1483 of 22 May 2003, which noted the establishment of the Development Fund for Iraq (DFI) as the account into which Iraq's oil revenues would be paid. Following establishment of the DFI the UK Government had discussions with the US Administration and officials in the Coalition Provisional Authority (CPA) over the terms of reference for the International Advisory and Monitoring Board (IAMB), mandated under UNSCR 1483 to oversee the auditing of Iraq's oil revenues and their management by the coalition.

The UK has not had discussions with the US or Iraqi Administrations following the report into CPA operations and programmes by the Special Inspector General for Iraq Reconstruction (SIGIR). Under UNSCR 1546 of 8 June 2004, as of the end of the occupation and the dissolution of the CPA on 28 June 2004, control over management of the DFI passed to the Iraqi Administration. UNSCR 1546 also provided for continuation of the IAMB'S oversight function until the Iraqi Government decides otherwise.

In addition to discussions on the DFI, the UK Government have worked closely with other Governments, the UN and the World Bank over the establishment and management of the UN and World Bank managed International Reconstruction Fund Facility for Iraq, which provides a channel for donor country support to the reconstruction of Iraq. The UK Government also have regular discussions with other bilateral donors to promote the co-ordination of international assistance to Iraq.

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