DEPARTMENT

OF

STATE

July 11, 2007

1 UNCLASSIFIED

UNCLASSIFIED

DEPARTMENT

OF

STATE

Iraq Weekly Status Report

July 11, 2007

Bureau of Near Eastern AffairsUS Department of State

DEPARTMENT

OF

STATE

July 11, 2007

2 UNCLASSIFIED

UNCLASSIFIED

Table of Contents

SLIDESECTIONHighlights1. Defeat the Terrorists and Neutralize the Insurgents2. Transition Iraq to Security Self-Reliance3. Help Iraqis to Forge a National Compact for Democratic

Government4. Help Iraq Build Government Capacity and Provide Essential

Services5. Help Iraq Strengthen Its Economy6. Help Iraq Strengthen the Rule of Law and Promote Civil Rights7. Increase International Support for Iraq8. Strengthen Public Understanding of Coalition Efforts and

Public Isolation of the Insurgents Sources and Contact InformationNotes and Source Citations

This report provides weekly updates in the eight key areas identified as pillars of U.S. government policy for victory in Iraq.

3568

10

13212225

2627

DEPARTMENT

OF

STATE

July 11, 2007

3 UNCLASSIFIED

UNCLASSIFIED

Highlights

1. Defeat the Terrorists and Neutralize the InsurgentsAs part of Operation Arrowhead Ripper, Iraqi Army and Coalition soldiers from Task Force Lightning are continuing offensive operations in and around the capital of Iraq’s Diyala province to deny resources to al-Qaida terrorists in the area.

2. Transition Iraq to Security Self-RelianceThe Iraqi Army screened more than 1,300 potential recruits during a recruiting drive held on K-1, a small Iraqi military base outside of Kirkuk July 1-5. These numbers included 220 former soldiers, NCOs, and officers from the old Iraqi Army.

3. Help Iraqis to Forge a National Compact for Democratic GovernmentThe Iraqi Cabinet is a step closer toward completing work on the law by approving one part of the legislative package that was sent forward to Parliament. The proposed measure lays out the role of a new powerful federal oil and gas council, which will review all contracts and determine oil and gas sector policy.

4. Help Iraq Build Government Capacity and Provide Essential ServicesResidents will receive electrical service from the completed U.S.-funded Rehabilitate Fedaliyah project. The completed facility will serve up to 30,000 people.

DEPARTMENT

OF

STATE

July 11, 2007

4 UNCLASSIFIED

UNCLASSIFIED

5. Help Iraq Strengthen Its EconomySalah al-Din Province has obligated 34% of its 2007 capital budget on 118 projects, of which 89 are already under way. Basrah Province has obligated approximately 45% of its budget on 115 projects. Kirkuk Province has obligated 28% of its budget on 128 projects. All three provinces are well ahead of the August 1 deadline to obligate 25% of the capital budget. While these are encouraging developments, potential roadblocks, such as the difficulty of transferring funds to the provinces, remain.

6. Help Iraq Strengthen the Rule of LawThe Central Criminal Court of Iraq (CCCI) convicted 46 individuals June 10-21 for violations of the Iraqi Terrorist Law, Penal Code and Coalition Provisional Authority Orders enforced by the Iraqi judiciary.

7. International Support for Iraq Iraqi Foreign Minister Hoshyar Zebari invited Iranian and U.S. officials to a second round of talks concerning Iraq security. The invitation was extended after a press conference of the consular meeting with five Iranians being kept in Baghdad and Iran's President Mahmoud Ahmadinejad stating Iran was ready to hold more talks with the U.S. over stabilizing Iraq.

8. Strengthen Public Understanding of Coalition Efforts and Public Isolation of the InsurgentsThe self-proclaimed Islamic State of Iraq has given Iran a two-month ultimatum to stop meddling in Iraqi affairs or face all-out war, according to an audiotape posted on the Internet June 9. “We give... the leaders of Iran a period of two months to stop all forms of support to the rejectionists of Iraq, and stop direct and indirect interference in the affairs of the Islamic state,” said a voice attributed to the group’s leader, Abu Umar al-Baghdadi.

Highlights

DEPARTMENT

OF

STATE

July 11, 2007

5 UNCLASSIFIED

UNCLASSIFIED

[1.] Defeat the Terrorists and Neutralize the Insurgency

Operation Arrowhead Ripper Continues Clearing Out Insurgents:• As part of Operation Arrowhead Ripper, Iraqi Army and Coalition Soldiers from Task

Force Lightning are continuing offensive operations in and around Baqubah, the capital of Iraq’s Diyala province, to deny resources to al-Qaida terrorists in the area.

• The deputy commander of operations for Task Force Lightning and Multi-National Division-North, Brigadier General Bednarek, reports Arrowhead Ripper has surpassed the initial tactical objectives in western Baqubah, clearing the active al-Qaida operatives from the western part of the city. Additionally, a sense of normalcy is returning to the area, allowing the flow of fundamental goods and services.

• Since the beginning of Operation Arrowhead Ripper, at least 60 al-Qaida operatives have been killed, 215 have been detained, 55 weapons caches have been discovered and 124 improvised explosive devices and 24 booby-trapped structures have been destroyed.

DEPARTMENT

OF

STATE

July 11, 2007

6 UNCLASSIFIED

UNCLASSIFIED

[2.] Transition to Security Self-Reliance – Iraqi Security Forces

Iraqi Army Drive Breaks Recruiting Records:

• The Iraqi Army screened more than 1,300 potential recruits during a recruiting drive held on K-1, a small Iraqi military base outside of Kirkuk July 1-5. These numbers included 220 former soldiers, NCOs, and officers from the old Iraqi Army.

Iraqi Police Graduation:

• Eight hundred Iraqi policemen graduated from basic training in Babil June 29. They will now attend a six-week advanced training course which will cover a variety of skills, including weapons training and emergency medical care.

New Female Training Police Station:

• The U.S. Army Corps of Engineers is building a new Female Training Police Station in al-Najaf province. It is a three-story facility with offices, jail cells, an armory, a communications room, guard towers, sleeping quarters, and a courtyard for training new female police officers. The objective for building the $134,000 station is to help advise, organize, and train Iraqi female officers on basic infantry tactics from squad to battalion level to further enhance the Iraqi police stations.

DEPARTMENT

OF

STATE

July 11, 2007

7 UNCLASSIFIED

UNCLASSIFIED

[2.] Transition Iraq to Security Self-Reliance – Iraqi Security Forces

Ministry of Interior Forces Ministry of Defense Forces

* Ministry of Interior Forces: Unauthorized absence personnel are included in these numbers** Ministry of Defense Forces: Unauthorized absence personnel are not included in these numbers*** Army numbers include Special Operations Forces and Support Forces**** Does not include the approximately 144,000 Facilities Protection Service personnel working in 27

ministries

Total Trained & Equipped ISF:

~349,100****

COMPONENT OPERATIONAL

TOTAL ~158,900**

ARMY ~156,900***

AIR FORCE ~900

NAVY ~1,100

COMPONENT TRAINED & EQUIPPED

NATIONAL POLICE ~ 26,300

TOTAL ~194,200*

POLICE ~135,000

OTHER MOI FORCES ~32,900

DEPARTMENT

OF

STATE

July 11, 2007

8 UNCLASSIFIED

UNCLASSIFIED

[3.] Help Iraqis to Forge a National Compact for Democratic Government

Iraqi Cabinet Approves a Key Part of Oil Law:• The Iraqi Cabinet is a step closer toward completing work on the law by approving one part of the

legislative package that was sent forward to Parliament. The proposed measure lays out the role of a new Federal Oil and Gas council, which will review all contracts and determine oil and gas sector policy. The cabinet has not yet approved a revenue sharing draft dealing with how the oil revenue would be shared among the governorates and Kurdish Region.

Iraq Prime Minister Warns Sadr Movement Over Violence:• Iraqi Prime Minister Maliki demanded the movement loyal to cleric Muqtada al-Sadr take a clear

stance on “terrorism” being committed by elements linked to the group. Maliki used unusually tough language following recent unrest in southern Shiite cities where Sadr's Mahdi Army has clashed with Iraqi and U.S. security forces.

Shia and Kurdish Officials Attempt to End Sunni Boycott of Parliament :• Iraq’s Shia and Kurdish leaders met with officials from the largest Sunni party to attempt to end a

Sunni boycott of the Cabinet and Parliament. The Iraqi Accordance Front’s four ministers began a boycott of Cabinet meetings to protest the way Prime Minister Maliki handled legal proceedings against one of their Sunni colleagues after the Shia-dominated legislature voted to remove Sunni speaker Mahmoud al-Mashhadani.

Red Crescent Report on Internally Displaced Persons:• According to an Iraqi Red Crescent Society (IRCS) report, over 1million individuals have become

internally displaced persons (IDPs) since the bombing of the Samarra shrine in February 2006. The IRCS said the nearly 67% increase in the number of displaced families since last January "is intensifying an already unstable situation." Topping the list of areas with most IDPs was Baghdad followed by Mosul and Salah ad Din province.

DEPARTMENT

OF

STATE

July 11, 2007

9 UNCLASSIFIED

UNCLASSIFIED

Abd al-Samad Rahman Sultan

Minister of Displacement & Migration

Karim Wahid

Minister of Electricity

Khudayyir al-Khuza’i

Minister of Education

Bayan Jabr

Minister of Finance

Narmin ‘Uthman (F)

Minister of Environment

Abd Dhiyab al-Ajili

Minister of Higher Education

Bayan Daza’I (F)

Minister of Housing & Construction

Wijdan Mikha’il (F)

Minister of Human Rights

Hoshyar Zebari

Minister of Foreign Affairs

Minister of Health

Fawzi al-Hariri

Minister of Industry & Minerals

Jawad al-Bulani

Minister of Interior

Safa al Safi (acting)

Minister of Justice

Riyad Ghurayyib

Minister of Municipalities & Public Works

Mahmud Muhammad Jawad al-Radi

Minister of Labor & Social Affairs

Husayn al-Shahristani

Minister of Oil

Ali Baban

Minister of Planning

Ra’id Fahmi Jahid

Minister of Science & Technology

Abd al-Falah al-Sudani

Minister of Trade

Akram al-Hakim

Minister of State for National Dialogue Affairs

Jasim Muhammad Ja’far

Minister of Youth & Sports

‘Abd al-Latif Rashid

Minister of Water Resources

Minister of State for Civil Society

Shirwan al-Waili

Minister of State for National Security Affairs

Minister of Transportation

Minister of State for Governorates Affairs

Minister of State for Tourism and Antiquities

Fatin Abd al-Rahman Mahmud (F)

Minister of State for Women’s Affairs

Nuri al-Maliki

Prime Minister

Jalal Talabani

President

Tariq al-Hashimi

Deputy President

Salam al-Zawba’i

Deputy Prime Minister

‘Adil ‘Abd al-Mahdi

Deputy President

Barham Salih

Deputy Prime Minister

Abdul Qadir Muhammed Jasim

Minister of Defense

*

Minister of Culture

Muhammad Tawfiq Allawi

Minister of Communications

*

Minister of Agriculture

[3.] Help Iraqis to Forge a National Compact for Democratic Government - Iraqi National Unity Government

(F) = Female

* Vacant

Rafi Hiyad al-Isawi

Minister of State for Foreign Affairs

Safa al-Safi

Minister of State for CoR Affairs

*

*

Wijdan Mikha’il (acting)

*

*

*

DEPARTMENT

OF

STATE

July 11, 2007

10 UNCLASSIFIED

UNCLASSIFIED

Apportion Last Week Current Change Last Week Current Change Last Week Current Change

Security and Law Enforcement $5,004.79 $4,978.21 $4,972.88 ($5.33) $4,975.17 $4,971.12 ($4.05) $4,801.30 $4,805.58 $4.28

Electricity Sector $4,216.87 $4,171.34 $4,170.60 ($0.73) $4,046.08 $4,047.99 $1.92 $3,322.53 $3,397.90 $75.37

Oil Infrastructure $1,724.70 $1,623.09 $1,610.26 ($12.83) $1,572.42 $1,560.08 ($12.34) $1,456.14 $1,462.54 $6.39

Justice, Public Safety and Civil Society $1,304.15 $1,302.73 $1,304.29 $1.55 $1,296.71 $1,297.34 $0.64 $1,091.94 $1,099.49 $7.55

Democracy $998.35 $998.31 $998.31 $0.00 $997.26 $997.26 $0.00 $961.62 $961.72 $0.10

Education, Refugees, Human Rights, Governance $409.84 $399.94 $399.94 $0.00 $399.76 $399.76 $0.00 $369.57 $370.60 $1.02

Roads, Bridges and Construction $333.60 $327.81 $321.58 ($6.24) $320.75 $320.33 ($0.42) $227.06 $229.33 $2.26

Health Care $815.55 $770.76 $770.67 ($0.09) $758.77 $761.11 $2.34 $670.64 $681.42 $10.78

Transportation and Communications $456.72 $455.45 $452.70 ($2.75) $447.17 $447.03 ($0.15) $354.40 $357.65 $3.25

Water Resources and Sanitation $2,115.79 $2,006.40 $1,989.44 ($16.96) $1,962.86 $1,943.42 ($19.44) $1,615.15 $1,645.71 $30.56

Private Sector Development $809.26 $809.12 $809.12 $0.00 $807.85 $807.85 $0.00 $765.43 $765.50 $0.06

Admin Expense (USAID, STATE) $211.05 $209.95 $209.95 $0.00 $209.95 $209.95 $0.00 $187.92 $188.65 $0.73

Total $18,400.66 $18,053.11 $18,009.73 ($43.38) $17,794.74 $17,763.24 ($31.50) $15,823.71 $15,966.08 $142.36

IRRF II Construction - $10,341.38 $10,308.64 ($32.75) $10,089.75 $10,073.11 ($16.64) $8,657.33 $8,773.13 $115.80

IRRF II Non-Construction - $6,713.42 $6,702.79 ($10.63) $6,707.72 $6,692.86 ($14.86) $6,204.76 $6,231.23 $26.47

IRRF II Democracy - $998.31 $998.31 $0.00 $997.26 $997.26 $0.00 $961.62 $961.72 $0.10

IRRF I Total $2,473.30 $2,473.30 $2,473.30 $0.00 $2,232.3 $2,232.3 $0.00 $2,139.00 $2,139.0 $0.00

Grand Total IRRF I & II $20,873.96 $20,526.41 $20,483.03 ($43.38) $20,027.04 $19,995.54 ($31.50) $17,962.71 $18,105.08 $142.36

Sector

DisbursedObligatedCommitted

As of July 11, 2007As of July 11, 2007

[4.] Help Iraq Build Government Capacity and Provide Essential Services –Financials from Iraq Relief and Reconstruction Fund (IRRF) 1 and IRRF 2

DEPARTMENT

OF

STATE

July 11, 2007

11 UNCLASSIFIED

UNCLASSIFIED

• For the week of July 4-10, national electricity supply was 4 percent below the same period in 2006.

[4.] Help Iraq Build Government Capacity and Provide Essential Services – Electricity Overview

Daily Electricity Supplied and Estimated Demand in Iraq Since January 2004

0

50,000

100,000

150,000

200,000

250,000

1/1/04

3/31/04

6/29/04

9/27/04

12/26/04

3/26/05

6/24/05

9/22/05

12/21/05

3/21/06

6/19/06

9/17/06

12/16/06

3/16/07

6/14/07

Date

Daily Supply 7-Day Average Supply Estimated Demand

DEPARTMENT

OF

STATE

July 11, 2007

12 UNCLASSIFIED

UNCLASSIFIED

[4.] Help Iraq Build Government Capacity and Provide Essential Services – Electricity, Transportation, and Water & SanitationElectricity:

• Residents will receive electrical service from the completed U.S.-funded Rehabilitate Fedaliyah project. The completed facility will serve up to 30,000 people.

Transportation:

• The completed U.S.-funded construction of the Bayji Power Plant Access Road in Bayji provides a paved road to the Bayji Power Plant Administrative building complex and a new guard building for site security.

• The completed U.S.-funded construction on the Mosul-Baghdad Road Paving project will contribute to economic activity, emergency response, law enforcement and safer travel between Mosul and Baghdad.

Water & Sanitation:

• Over 21,000 area residents will receive potable water and fire hydrant service from the completed U.S.-funded Sadr City project.

• The completed U.S.-funded Rusafa Prison Sewer Line Rehabilitation project improves sanitary sewer system service for the al-Rusafa Correctional Facility and its 3,500 inmates.

DEPARTMENT

OF

STATE

July 11, 2007

13 UNCLASSIFIED

UNCLASSIFIED

[5.] Help Iraq Strengthen Its Economy – Oil Update and Job CreationOil Update:• Crude oil price averages in world markets for the week ending July 6 closed with the

following prices:– Basrah Light at $69.656/ barrel – Dated Brent at $74.962/barrel– WTI Cushing at $71.780/ barrel – Oman/Dubai at $68.060/barrel

Employment Update:

Employment updates not received for this week’s report.

DEPARTMENT

OF

STATE

July 11, 2007

14 UNCLASSIFIED

UNCLASSIFIED

[5.] Help Iraq Strengthen Its Economy - Banking SectorCentral Bank’s US Dollar (USD) Currency Auction:• The following table shows volume sold of and exchange rates for USD in the Iraqi currency auction since April. Since

September, the Central Bank of Iraq (CBI) has slowly appreciated the dinar, as suggested by the IMF, in an effort to rein in galloping inflation. There are early signs that this effort may have begun to bear fruit, as year-to-date inflation is 2.8%, which projects a pace well below the IMF annual target of 30%. However, this decline in the rate of inflation may be temporary, as the CBI has slowed its appreciation of the currency and the rate of inflation (particularly for energy prices) typically picks up in the second half of the year.

US $ Sold (Weekly Avg) The New Iraqi Dinar (NID) exchange rate line is calculated as a weekly weighted average (NID/USD)

Central Bank of IraqUSD Currency Auction: July 9, 2006 – July 10, 2007

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

$80.0

$90.0

$100.0

Jul 9

- 13

Jul 1

6 - 20

Jul 2

3 - 25

Jul 2

6 - 30

Jul 3

1 - A

ug 7

Aug

8 - 1

0

Aug

11 -

22

Aug

23 -

29

Aug

30 -

Sep

5

Sep

6 - S

ep 1

2

Sep

13 - S

ep 19

Sep

21 - S

ep 25

Sep

26 - O

ct 2

Oct 3

- Oct

10

Oct 11

- Oc

t 18

Oct 19

- Oc

t 29

Nov 4

- No

v 7

Nov 8

- No

v 14

Nov 1

5 - 28

Nov 2

9 - D

ec 1

Dec 6

- De

c 12

Dec 1

3 - D

ec 18

Dec 2

0 - D

ec 26

Jan

8 - Ja

n 16

Jan

17 -

Jan

22

Jan

23 -

Jan

29

Jan

30 -

Feb

5

Feb

6 - Fe

b 13

Feb

14- F

eb 2

0

Feb

21- F

eb 2

7

Feb

28- M

ar 6

Mar 7-

Mar

13Mar

14-2

0

Mar 22

-Mar

27

Mar 28

-Apr

2

Apr 3

- Apr

8

Apr 1

0- A

pr 16

Apr 1

7-Ap

r 23

Apr 2

4-Ap

r 30

May 2

- May

8

May 9

- May

15

May 1

6-May

22

May 2

3- May

29

May 3

0-Jun

e 4

June

6-Ju

ne 1

3

June

17-J

une1

9

June

20 -

June

25

June

26 -

June

28

July

1 - Ju

ly 5

July

8 - Ju

ly 10

USD

Sold

(Mill

ions

)

1,250

1,300

1,350

1,400

1,450

1,500

NID

Exch

ange

Rat

e

DEPARTMENT

OF

STATE

July 11, 2007

15 UNCLASSIFIED

UNCLASSIFIED

[5.] Help Iraq Strengthen Its Economy – Securities MarketsTrading of Iraqi Bonds on the International Secondary Bond Market:• The following table shows the daily bond resale price and yield on Iraqi bonds issued January 20. The bonds were originally issued to

approximately two-thirds of Iraq’s commercial creditors as part of a debt exchange arrangement as per Paris Club terms. Iraq’s commercial debt was approximately $22 billion before the debt-swap arrangement. The bonds, which are not yet rated, will mature in 2028.

Trading High = $73.98 (January 24) Trading Low = $64.66 (August 30)

Iraqi Commercial Bond SalesJune 2, 2006 - July 6, 2007

$56.00

$58.00

$60.00

$62.00

$64.00

$66.00

$68.00

$70.00

2-Ju

n

13-J

un

22-J

un3-

Jul

12-J

ul21

-Jul

1-Au

g10

-Aug

21-A

ug30

-Aug

8-Se

p19

-Sep

28-S

ep9-

Oct

18-O

ct27

-Oct

7-N

ov

16-N

ov27

-Nov

6-D

ec15

-Dec

26-D

ec4-

Jan

15-J

an24

-Jan

2-Fe

b13

-Feb

22-F

eb5-

Mar

14-M

ar

23-M

ar3-

Apr

12-A

pr23

-Apr

2-M

ay11

-May

22-M

ay31

-May

11-J

un20

-Jun

29-J

un

Bon

d Pr

ice

in U

SD

8.00%

8.50%

9.00%

9.50%

10.00%

10.50%

11.00%

Yiel

d Pe

rcen

tage

DEPARTMENT

OF

STATE

July 11, 2007

16 UNCLASSIFIED

UNCLASSIFIED

[5.] Help Iraq Strengthen Its Economy – Economic Events

Progress on Provincial Budget Execution :

• Salah al-Din Province has obligated 34% of its 2007 capital budget on 118 projects, of which 89 are already under way. Basrah Province has obligated approximately 45% of its budget on 115 projects. Kirkuk Province has obligated 28% of its budget on 128 projects. All three provinces are well ahead of the August 1 deadline to obligate 25% of the capital budget. While these are encouraging developments, potential roadblocks, such as the difficulty of transferring funds to the provinces, remain.

Cash Liquidity Problems in Diyala Province:

• The cash liquidity shortage currently facing Diyala province is a top priority. Four banks reopened in Baqubah, and the outlying banks in Muqdadiya, Jallula, and Balad Ruz will make an attempt to collect the 50 billion ID allocated to them in the next week. The governor of Diyala will be requesting an additional 100 billion ID each month from the Ministry of Finance when he travels to Baghdad next week.

GOI Implements Most IMF Required Fuel Price Increases:

• The Ministry of Oil implemented July 1 fuel price increases for regular gasoline, blended gasoline, and diesel. Kerosene prices (used as heating fuel) were not raised. These price increases follow (or exceed) subsidy reductions agreed to with the IMF in the Stand-By Arrangement (SBA), due to be reviewed at the end of July 2007.

DEPARTMENT

OF

STATE

July 11, 2007

17 UNCLASSIFIED

UNCLASSIFIED

2.16 2.17

1.74

2.03 2.06 2.04

1.85

2.022.09 2.07

0.00

0.40

0.80

1.20

1.60

2.00

2.40

April 30-May 6

May 7-13 May 14-20 May 21-27 May 28 -June 3

June 4-10 June 11-17 June 18-24 June 25 -July 1

July 2-8

Mill

ions

of B

arre

ls P

er D

ay

Production Target

• Weekly Average (July 2-8) of 2.07 Million Barrels Per Day (MBPD)

[5.] Help Iraq Strengthen Its Economy – Crude Oil Production

2007 Iraqi Oil Ministry Goal: 2.1 MBPD

DEPARTMENT

OF

STATE

July 11, 2007

18 UNCLASSIFIED

UNCLASSIFIED

$3.44

$2.73$2.45

$2.19$2.46

$1.89$2.11

$2.75 $2.75$3.05

$2.87

$0.68

$2.73

1.681.62

1.551.44 1.45

1.30

1.501.58

1.50

1.64

1.47

1.64

0.00

0.60

1.20

1.80

2.40

Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07

Mill

ions

of B

arre

ls p

er D

ay

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

USD

(Bill

ions

)

Revenue (US$B) Projected Exports (MBPD)

• 2006 Revenue Estimate: $31.3 Billion• 2007 Revenue Estimate: $16.1 Billion (Year to Date)

[5.] Help Iraq Strengthen Its Economy – Crude Oil Export

DEPARTMENT

OF

STATE

July 11, 2007

19 UNCLASSIFIED

UNCLASSIFIED

82%

100%

60% 57%

18%

0%

40% 43%

0%

20%

40%

60%

80%

100%

Diesel Kerosene Gasoline LPG

Perc

enta

ge o

f Sha

re o

f Wee

kly

Fuel

Sup

plie

s

Domestic Production Import

• Diesel: 8.9 ML supply of 22.4 ML target• Kerosene: 2.6 ML supply of 7.5 ML target

• Gasoline: 12.8 ML supply of 21.0 ML target• LPG: 3,588 tons supply of 5,130 tons target

Note: This is a daily average for the week of July 2-8

[5.] Help Iraq Strengthen Its Economy – Total Critical Refined Product Supplies

DEPARTMENT

OF

STATE

July 11, 2007

20 UNCLASSIFIED

UNCLASSIFIED

• The goal is to have on hand 15 days supply of all refined products, calculated on the basis of maximum consumption over the year and not adjusted for seasonal variation. The numbers given above are monthly averages.

[5.] Help Iraq Strengthen Its Economy – National Stock Levels

54

32

34

3

1

3 32

1

0

5

10

15

20

25

Diesel Kerosene Gasoline LPG

Day

s

May-07 Jun-07 Jul-07 Goal

DEPARTMENT

OF

STATE

July 11, 2007

21 UNCLASSIFIED

UNCLASSIFIED

[6.] Help Iraq Strengthen the Rule of Law and Promote Civil Rights–Iraqi Judicial System

CCCI Convicts 46: Sentences Four to death, Three to life imprisonment:

• The Central Criminal Court of Iraq (CCCI) convicted 46 individuals from June 10 to June 21 for violations of the Iraqi Terrorist Law, Penal Code and Coalition Provisional Authority (CPA) Orders enforced by the Iraqi judiciary.

• Since its establishment under an amendment to CPA Order 13, in April 2004, the Central Criminal Court has held 2,255 trials for suspected criminals apprehended by Coalition Forces. The Iraqi Court proceedings have resulted in the conviction of 2,003 individuals with sentences ranging from imprisonment to death.

Khadra Opens New National Police Station:

• The 2nd Battalion, 5th Regiment, 2nd Iraqi National Police Division opened a new police station in the Khadra neighborhood of western Baghdad June 30. Lt. Col. Hassan, the 2nd Battalion commander, said the new police station would only strengthen security in the neighborhood.

• The new National Police Tactical Operations Center is equipped with air conditioning, power generation capabilities, computers, and digital imagery in both Arabic and English.

DEPARTMENT

OF

STATE

July 11, 2007

22 UNCLASSIFIED

UNCLASSIFIED

[7.] Increase International Support for Iraq – Developments

Ahmadinejad Says Iran is Ready for More Talks with U.S. on Iraq :• Iraqi Foreign Minister Hoshyar Zebari invited Iranian and U.S. officials to a second round

of talks concerning Iraq security. The invitation was extended after a press conference of the consular meeting with five Iranians being kept in Baghdad and Iran’s President Mahmoud Ahmadinejad stating Iran was ready to hold more talks with the U.S. over stabilizing Iraq.

UNSGR Pledges Technical Support for Constitutional Review Process:• Secretary-General Ban Ki-moon’s Special Representative, Ashraf Qazi, pledged the UN’s

full support for Iraq’s constitutional review process. Specifically, the UN will assist the Committee in reviewing outstanding technical issues (drawing on its international experience and knowledge of best practices in comparable situations) and assisting in the implementation of the constitution and any approved amendments, noting that its technical and advisory role is always carried out at the request of the Government.

Turkish Prime Minister Denies Plans of Invasion of Northern Iraq:• Turkish Prime Minister Recep Tayyip Erdogan denied any immediate plans to authorize a

military invasion in northern Iraq, but indicated that once elections have taken place July 22, that he would reassess Turkey’s options. Erdogan’s comments came amid growing speculation that massed Turkish troops will make good a threat to move across the border to clamp down on separatist Kurdish rebels who use bases there for attacks into Turkey.

DEPARTMENT

OF

STATE

July 11, 2007

23 UNCLASSIFIED

UNCLASSIFIED

[7.] Increase International Support for Iraq – Developments

Iraq to Open More Embassies this Year:• Iraqi Foreign Minister Hoshyar Zebari announced July 9 that Iraq will open nine

embassies and six consulates in various parts of the world this year.

Iraq and its Neighbors:• Iraqi Foreign Minister Hoshyar Zebari announced July 9 that an official high-level Iraqi

security delegation will visit the Kingdom of Saudi Arabia to discuss bilateral and security relations. The goal is for both governments to exert efforts to face terrorism, which concerns both Iraq and Saudi Arabia. Concerning Iraq's relations with Syria, Zebari says, "We have contacts with our brothers in Syria to hold a meeting for the working security committee. Initially, the meeting will be held at the beginning of August."

DEPARTMENT

OF

STATE

July 11, 2007

24 UNCLASSIFIED

UNCLASSIFIED

34 Countries and NATO*(including US)

Support Iraqi Stability Operations

25 Countries with forces in Iraq (in addition to US)

TOTAL ~ 11,451 Forces

Data as of June 22, 2007

[7.] Increase International Support for Iraq – Contributors to Iraqi Stability Operations

Albania

Armenia

Australia

Azerbaijan

Bosnia-Herzegovina

Bulgaria

Czech Republic

Slovakia

South Korea

Ukraine

UK

Denmark

El Salvador

Estonia

Georgia

Japan

Kazakhstan

Latvia

Lithuania

Macedonia

Moldova

Mongolia

Poland

Romania

Singapore

*Note: Fiji participating as a part of the UN mission in Iraq.

*34 includes the 25 countries listed above, the US, Fiji, and seven NATO, non-MNF-I countries: Hungary, Iceland, Italy, Netherlands, Portugal, Slovenia, Turkey

DEPARTMENT

OF

STATE

July 11, 2007

25 UNCLASSIFIED

UNCLASSIFIED

[8.] Strengthen Public Understanding of Coalition Efforts and Public Isolation of the Insurgents – Developments

Islamic State of Iraq Gives Warning to Iran:• The self-proclaimed Islamic State of Iraq has given Iran a two-month ultimatum to

stop meddling in Iraqi affairs or face all-out war, according to an audiotape posted on the Internet June 9. “We give... the leaders of Iran a period of two months to stop all forms of support to the rejectionists of Iraq, and stop direct and indirect interference in the affairs of the Islamic state,” said a voice attributed to the group’s leader, Abu Omar al-Baghdadi.

• In the recording, Baghdadi also gave Sunnis and Arab countries doing business in Iran or with Iranians a two-month deadline to cease their ties, saying that “We advise and warn every Sunni businessman inside Iran or in Arab countries especially in the Gulf not to take partnership with any Shiite Iranian businessman -this is part of the two-month period.”

DEPARTMENT

OF

STATE

July 11, 2007

26 UNCLASSIFIED

UNCLASSIFIED

Iraq Weekly Status – General Information

• This brief draws from multiple sources. References are cited on the following pages.

• Please forward all questions and/or comments to:NEA-I-IPOG-DL@state.gov

DEPARTMENT

OF

STATE

July 11, 2007

27 UNCLASSIFIED

UNCLASSIFIED

Notes and Source Citations (1 of 3)Slide 5:

– MNF-I Press Release – 10 July 2007 – (http://www.mnf-iraq.com/index.php?option=com_content&task=view&id=12774&Itemid=128). Slide 6:

– The Advisor – MNSTC-I – 7 July 2007Slide 7:

– DoD Input to Iraq Weekly Status Report July 11, 2007Slide 8:

– www.washingtonpost.com– www.alertnet.org/thenews/newsdesk/KHA743070.htm– www.washingtonpost.com– http://www.middle-east-online.com/english/iraq/?id=21375

Slide 9:– NEA Political Section, NEA-I-POL-DL@state.gov

Slide 10:

– ITAO Weekly Report – July 11, 2007. Slide 11:

– POC Bob Means, Department of State (202) 647-9815

– The chart shows average daily power production in megawatt hours (MWh). 120,000 MWh goal equates to 20 hours at 6000 MW averagesupplied load or 24 hours at 5000 MW average supply load.

Slide 12:Electricity:– USACE Daily Report – July 5Transportation:– USACE Daily Report – July 9– USACE Daily Report – July 6Water & Sanitation:– USACE Daily Report – July 6– USACE Daily Report – July 5

DEPARTMENT

OF

STATE

July 11, 2007

28 UNCLASSIFIED

UNCLASSIFIED

Notes and Source Citations (2 of 3)Slide 13:

– Oil Prices are sourced from BloombergEmployment Update:– Information regarding the Employment Update was sourced from the ITAO Weekly Report – July 3, 2007. – CERP has not reported figures for some time. Until they report accurate data, the number will remain at 0.– PCO will be reporting on a bi-weekly basis.

Slide 14:– Information regarding the NID auction was gathered from the Central Bank of Iraq’s website: http://www.cbiraq.org.

Slide 15:– Iraqi Bond Prices are sourced from Bloomberg

Slide 16:– PRT Weekly Summary June 29 – July 5– PRT Weekly Summary June 29 – July 5– July 3 IIC

Slide 17:– Department of State, NEA-I-ECON, 202-647-9885

Slide 18:– Department of State, NEA-I-ECON, 202-647-9885

Slide 19:– Department of State, NEA-I-ECON, 202-647-9885

Slide 20:– Department of State, NEA-I-ECON, 202-647-9885

DEPARTMENT

OF

STATE

July 11, 2007

29 UNCLASSIFIED

UNCLASSIFIED

Notes and Source Citations (3 of 3)Slide 21:

– MNF-I Press Release, 9 July 2007; http://www.mnf-iraq.com – MNF-I Press Release, 2 July 2007; http://www.mnf-iraq.com – MNF-I Press Release, 10 July 2007; http://www.mnf-iraq.com

Slide 22:– today.reuters.com/news/newsarticle.aspx?type=worldNews&storyid=2007-07-– www.un.org – www.washingtonpost.com

Slide 23:– Baghdad Al-Iraqiyah Television in Arabic 0914 GMT 09 Jul 07

Slide 24:– Source: DOD Input to Weekly Status Report, updated bi-weekly.

Slide 25:– Middle East Online - http://www.middle-east-online.com/english/iraq/?id=21354, June 9– Associated Press, “Leader of al-Qaida Umbrella Group in Iraq Warns Iran Not to Support Shiites in Iraq,” June 8