(C/REL USA, AUS, CAN, GBR, NZL) KUDOS FOR REPORTING ON IRAQ PROVINCIAL ECONOMIC DYNAMICS (C-IA9-01805)

CONFIDENTIAL C O N F I D E N T I A L STATE 111446 SIPDIS E.O. 12958: DECL: 10/28/2034 TAGS: PINR, ECON, EFIN, EIND, ELAB, PGOV, IZ SUBJECT: (C/REL USA, AUS, CAN, GBR, NZL) KUDOS FOR REPORTING ON IRAQ PROVINCIAL ECONOMIC DYNAMICS (C-IA9-01805) REF: A. REO HILLAH 212076353 B. REO HILLAH 210857703 C. REO HILLAH 211774789 D. REO HILLAH 212442915 E. REO HILLAH 212553232 F. REO HILLAH 212333000 G. REO HILLAH 211731241 H. REO HILLAH 213049664 Classified By: ELISSA G. PITTERLE, DIRECTOR, INR/OPS. REASON: 1.4(C). 1. (C/REL USA, AUS, CAN, GBR, NZL) WASHINGTON ANALYSTS CONTINUE TO MONITOR AND ASSESS THE STATE OF THE IRAQI ECONOMY AT THE LOCAL, PROVINCIAL, AND NATIONAL LEVEL. WE READ WITH INTEREST REF PRT CABLES AND APPRECIATED THE LEVEL OF GRANULARITY ON THE STRATEGIC THREATS FACING BABIL'S ECONOMY, INCLUDING HOW STATE (GOI) PARTICIPATION AND INTERVENTION HINDER BROAD-BASED ECONOMIC GROWTH, THE CONDITION OF SPECIFIC STATE-OWNED ENTERPRISES, THE GENERAL MALAISE OF THE AGRICULTURE AND MANUFACTURING SECTORS, THE EXTENT TO WHICH PRIVATE INVESTORS AND LOCAL BUSINESS PERSONS HAVE DIFFICULTY NAVIGATING BUSINESS REGULATIONS, AND THE ABILITIES OF BUSINESS PERSONS TO OVERCOME SUCH IMPEDIMENTS. AS DEMANDS FROM POLICYMAKERS FOR ANALYSIS ON ECONOMIC DEVELOPMENT AT ALL LEVELS CONTINUE TO INCREASE, THIS TYPE OF REPORTING--ESPECIALLY INFORMATION ON THE STRATEGIC ECONOMIC DECISIONS BY BOTH PROVINCIAL AND NATIONAL LEADERS AND SPECIFIC "ON THE GROUND" FACTS OF LOCAL BUSINESSES AND INVESTOR INTEREST--ARE EXTREMELY VALUABLE. FURTHER ECONOMIC REPORTING FROM POST OR PRTS, TIME AND RESOURCES PERMITTING, WOULD BE MUCH APPRECIATED; SEVERAL QUESTIONS OF PARTICULAR INTEREST ARE LISTED BELOW. MANY THANKS, AND REGARDS FROM WASHINGTON. A. (U) WHAT ARE THE BUYING PATTERNS OF BABIL RESIDENTS? DO THEY HAVE A PREFERENCE FOR PURCHASING LOCAL GOODS? WHAT ARE THE PROSPECTS FOR MANUFACTURING TO INCREASE JOBS IN THE PROVINCE? B. (U) WHAT ARE THE PROSPECTS BABIL CAN ESTABLISH A HOSPITALITY INDUSTRY TO ACCOMMODATE SHIA-MUSLIM PILGRIMS? C. (U) WHAT PORTION OF BABIL RESIDENTS RELY ON PRIVATE ELECTRICITY GENERATION? HOW WELL EQUIPPED ARE LOCAL TELECOMMUNICATION COMPANIES AT PROVIDING SERVICES TO THE BABIL POPULACE? D. (U) HOW MUCH OF BABIL'S ECONOMY IS DRIVEN BY NATIONAL-LEVEL POLICIES? HOW MUCH DOES GOVERNMENT SPENDING CONTRIBUTE TO THE GROWTH OF THE ECONOMY? E. (U) HOW MUCH OF BABIL'S ECONOMY IS DRIVEN BY THE LOCAL GOVERNMENT? 2. (U) PLEASE CITE C-IA9-01805 IN THE SUBJECT LINE OF REPORTING IN RESPONSE TO THE ABOVE QUESTIONS. CLINTON