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152011Z /38
R 151958Z MAR 04
FM CPA BAGHDAD
TO SECDEF WASHDC 0171
SECSTATE WASHDC 0179
WHITE HOUSE NSC WASHDC 0164
CJCS WASHDC
CDR USCENTCOM MACDILL AFB FL
DEPT OF AGRICULTURE WASHDC 0006
UNCLAS SECTION 01 OF 04 BAGHDAD 000089
DEPARTMENT PASS TO IRAQ COLLECTIVE
E.O. 12958: N/A
TAGS: EAID, ETRD, EAGR, PGOV, IZ
SUBJECT: CABLE 751: FOOD SECURITY - BUILDING A THREE MONTH
BUFFER
REF: A) ROME 973, B) BAGHDAD 45 (NOTAL)
1. SUMMARY: WE ANTICIPATE NO DISRUPTIONS IN THE FOOD
PIPELINE AND ARE ON TRACK TO HAVE A THREE-MONTH BUFFER
RESERVE IN PLACE BY JULY 1. EXISTING OIL FOR FOOD
CONTRACTS WILL SUPPLY PIPELINE NEEDS INTO MAY. WFP
PROCUREMENT WILL ADDRESS IRAQI REQUIREMENTS THROUGH
SEPTEMBER. LARGE-SCALE NEW PROCUREMENT BY THE MINISTRY OF
TRADE BEGINNING NOW WILL BUILD AND MAINTAIN A THREE - MONTH
BUFFER THROUGH THE END OF THE CALENDAR YEAR. CPA IS
UNDERTAKING IMMEDIATE ENHANCEMENTS AT THE PORT IN UMM QASR
THAT SHOULD INCREASE GRAIN OFF-LOAD CAPACITY BY MORE THAN
50 PERCENT WITH A TARGET DATE OF EARLY APRIL. WHILE LOCAL
SHORTAGES OF SOME COMMODITIES HAVE OCCURRED BECAUSE OF LOW
FOOD RESERVES AND TRANSPORT ISSUES, CPA IS ADDRESSING AND
FACILITATING IMMEDIATE SOLUTIONS, INCLUDING EMERGENCY
PROCUREMENT, SHUNTING FOOD BETWEEN GOVERNORATES, AND
COORDINATING SECURITY FOR FOOD CONVOYS. WE ARE WORKING
WITH IRAQIS TO ENSURE ACCOUNTABILITY AND UPGRADE TECHNOLOGY

OVER THE NEXT SEVERAL MONTHS 1 AS WELL AS OPENING
DISCUSSIONS ON HOW TO REDUCE DEPENDENCE ON THE FOOD BASKET
IN THE MEDIUM TERM. BARRING AN UNFORESEEN CRISIS 1 WE
ANTICIPATE CONTINUED CAPACITY-BUILDING THAT WILL LEAVE
BEHIND NOT ONLY FOOD RESERVES ON JULY 1 1 BUT IRAQIS CAPABLE
OF MANAGING THE FOOD PIPELINE . END SUMMARY .
OIL FOR FOOD CONTRACTS
2. COMMODITIES PURCHASED UNDER THE OIL FOR FOOD (OFF)
PROGRAM ARE BEING DELIVERED NOW AND ADDRESS IRAQ ' S FOOD
NEEDS INTO MAY . THE OFF COORDINATION CENTER HAS CONTACTED
SUPPLIERS TO VERIFY DELIVERY DATES AND IS TRACKING
SHIPMENTS . FULL RESPONSIBILITY FOR THESE CONTRACTS WILL
REMAIN WITH THE COORDINATION CENTER AND PIPELINE AND
DELIVERY ISSUES ARE BEING MONITORED BY CPA'S FOOD SECURITY
TEAM. THE FOLLOWING COMMODITIES ARE IN THE PIPELINE :
FOREIGN WHEAT 870 1 000 MT
RICE 415 1 000 MT
GHEE/ OIL 170 1 000 MT
SUGAR 277 1 000 MT
TEA 22 I 000 MT
MILK 50 1 000 MT
SALT 17 1 000 MT
INFANT FORMULA 11 1 000 MT
WEANING CEREAL 3 I 000 MT
SOAP 42 1 00 0 MT
DETERGENT 50 , 000 MT
WORLD FOOD PROGRAM
3. THE MARCH 3 - 4 VISIT TO BAGHDAD OF WORLD FOOD PROGRAM
(WFP) COUNTRY DIRECTOR TORBEN DUE (REFTEL B) ADDRESSED KEY
ISSUES REGARDING THE IMPLEMENTATION OF THE MEMORANDUM OF
UNDERSTANDING TO PROCURE AND DELIVER COMMODITIES TO IRAQ ' S
FOOD RATION SYSTEM. TO DATE :
--ALL USD 910 MILLIO N HAS BEEN TRANSFERRED TO WFP ;
--SPECIFICATIONS FO R ALL COMMODITIES HAVE BEEN AGREED ;
--WFP HAS AGREED TO COMPLETE PROCUREMENT OF 1.6 MILLION
METRIC TONS OF FOOD BY APRIL 1 ;
--WFP WILL TAKE RESPONSIBILITY FOR DELIVERY TO ALL
GOVERNO RATES 1 AS REQUESTED BY THE MINISTRY OF TRADE ;

--CPA, THE IRAQI MINISTRY OF TRADE AND WFP (CPA- MOT-WFP)
WILL MEET AGAIN IN EARLY APRIL TO ENSURE PIPELINE ISSUES
ARE ADDRESSED ; AND
--WFP WILL SHARE ITS COMMODITY TRACKING DATABASE WITH THE
MOT TO ENSURE ACCURATE DELIVERY INFORMATION , POST-JULY 1 .
4 . BY THIS WEEK , WFP WILL HAVE RELEASED TENDERS FOR THE
COMMODITIES AND AMOUNTS LISTED BELOW:
FOREIGN WHEAT 897,500 MT
RICE 222,500 MT
GHEE/OIL 121,500 MT
SUGAR 201,700 MT
TEA 24,000 MT
MILK 58,600 MT
SALT 19,670 MT
INFANT FORMULA 4 , BOO MT
NOTE: NOT PASSED TO ABOVE ADDRESSEE(S)
BAGHDAD 00000089 001.2 OF 004
HREE-MONTH BUFFER
RESERVE IN PLACE BY JULY 1. EXISTING OIL FOR FOOD
CONTRACTS WILL SUPPLY PIPELINE NEEDS INTO MAY. WFP
PROCUREMENT WILL ADDRESS IRAQI REQUIREMENTS THROUGH
SEPTEMBER. LARGE-SCALE NEW PROCUREMENT BY THE MINISTRY OF
TRADE BEGINNING NOW WILL BUILD AND MAINTAIN A THREE-MONTH
BUFFER THROUGH THE END OF THE CALENDAR YEAR . CPA IS
UNDERTAKING IMMEDIATE ENHANCEMENTS AT THE PORT IN UMM QASR
THAT SHOULD INCREASE GRAIN OFF-LOAD CAPACITY BY MORE THAN
50 PERCENT WITH A TARGET DATE OF EARLY APRIL. WHILE LOCAL
SHORTAGES OF SOME COMMODITIES HAVE OCCURRED BECAUSE OF LOW
FOOD RESERVES AND TRANSPORT ISSUES, CPA IS ADDRESSING AND
FACILITATING IMMEDIATE SOLUTIONS, INCLUDING EMERGENCY
PROCUREMENT, SHUNTING FOOD BETWEEN GOVERNORATES, AND
COORDINATING SECURITY FOR FOOD CONVOYS. WE ARE WORKING
WITH IRAQIS TO ENSURE ACCOUNTABILITY AND UPGRADE TECHNOLOGY
OVER THE NEXT SEVERAL MONTHS , AS WELL AS OPENING
DISCUSSIONS ON HOW TO REDUCE DEPENDENCE ON THE FOOD BASKET
IN THE MEDIUM TERM. BARRING AN UNFORESEEN CRISIS , WE
ANTICIPATE CONTINUED CAPACITY-BUILDING THAT WILL LEAVE
BEHIND NOT ONLY FOOD RESERVES ON JULY 1 , BUT IRAQIS CAPABLE
OF MANAGING THE FOOD PIPELINE. END SUMMARY .
OIL FOR FOOD CONTRACTS

2 . COMMODITIES PURCHASED UNDER THE OIL FOR FOOD (OFF)
PROGRAM ARE BEING DELI VERED NOW AND ADDRESS IRAQ' S FOOD
NEEDS INTO MAY . THE OFF COORDINATION CENTER HAS CONTACTED
SUPPLIERS TO VERIFY DELIVERY DATES AND IS TRACKING
SHIPMENTS . FULL RESPONSIBILITY FOR THESE CONTRACTS WILL
REMAIN WITH THE COORDINATION CENTER AND PIPELINE AND
DELIVERY ISSUES ARE BEING M O NITORED BY CPA ' S FOOD SECURITY
TEAM. THE FOLLOWING COMMODITIES ARE IN THE PIPELINE:
FOREIGN WHEAT 870 ,000 MT
RICE 415 , 000 MT
GHEE/OIL 170,000 MT
SUGAR 277,000 MT
TEA 22,000 MT
MILK 50,000 MT
SALT 17,000 MT
INFANT FORMULA 11 ,000 MT
WEANING CEREAL 3 I 0 0 0 MT
SOAP 42 , 000 MT
DETERGENT 50 , 000 MT
WORLD FOOD PROGRAM
3 . THE MARCH 3-4 VISIT TO BAGHDAD OF WORLD FOOD PROGRAM
(WFP) COUNTRY DIRECTOR TORBEN DUE (REFTEL B) ADDRESSED KEY
ISSUES REGARDING THE IMPLEMENTATION OF THE MEMORANDUM OF
UNDERSTANDING TO PROCURE AND DELIVER COMMODITIES TO IRAQ ' S
FOOD RATION SYSTEM. TO DATE :
--ALL USD 910 MILLION HAS BEEN TRANSFERRED TO WFP ;
--SPECIFICATIONS FOR ALL COMMODITIES HAVE BEEN AGREED ;
--WFP HAS AGREED TO COMPLETE PROCUREMENT OF 1 . 6 MILLION
METRIC TONS OF FOOD BY APRIL 1 ;
--WFP WILL TAKE RESPONSIBILITY FOR DELIVERY TO ALL
GOVERNORATES, AS REQUESTED BY THE MINISTRY OF TRADE ;
--CPA , THE IRAQI MINISTRY OF TRADE AND WFP (CPA-MOT- WFP)
WILL MEET AGAIN IN EARLY APRIL TO ENSURE PIPELINE ISSUES
ARE ADDRESSED; AND
--WFP WILL SHARE ITS COMMODITY TRACKING DATABASE WITH THE
MOT TO ENSURE ACCURATE DELIVERY INFORMATION , POST-JULY 1 .
4 . BY THIS WEEK , WFP WILL HAVE RELEASED TENDERS FOR THE

COMMODITIES AND AMOUNTS LISTED BELOW:
FOREIGN WHEAT 897 , 500 MT
RICE 222 , 500 MT
GHEE/ OIL 121 , 500 MT
SUGAR 201 , 700 MT
TEA 24 , 000 MT
MILK 58 , 600 MT
SALT 19 , 670 MT
INFANT FORMULA 4 , 800 MT
NOTE : NOT PASSED TO ABOVE ADDRESSEE(S)
BAGHDAD 00000089 001.3 OF 004
HREE-MONTH BUFFER
RESERVE IN PLACE BY JULY 1 . EXISTING OIL FOR FOOD
CONTRACTS WILL SUPPLY PIPELINE NEEDS INTO MAY. WFP
PROCUREMENT WILL ADDRESS IRAQI REQUIREMENTS THROUGH
SEPTEMBER. LARGE-SCALE NEW PROCUREMENT BY THE MINISTRY OF
TRADE BEGINNING NOW WILL BUILD AND MAINTAIN A THREE-MONTH
BUFFER THROUGH THE END OF THE CALENDAR YEAR . CPA IS
UNDERTAKING IMMEDIATE ENHANCEMENTS AT THE PORT IN UMM QASR
THAT SHOULD INCREASE GRAIN OFF-LOAD CAPACITY BY MORE THAN
50 PERCENT WITH A TARGET DATE OF EARLY APRIL. WHILE LOCAL
SHORTAGES OF SOME COMMODITIES HAVE · OCCURRBD BECAUSE OF LOW
FOOD RESERVES AND TRANSPORT ISSUES , CPA IS ADDRESSING AND
FACILITATING IMMEDIATE SOLUTIONS , INCLUDING EMERGENCY
PROCUREMENT , SHUNTING FOOD BETWEEN GOVERNORATES , AND
COORDINATING SECURITY FOR FOOD CONVOYS. WE ARE WORKING
WITH IRAQIS TO ENSURE ACCOUNTABILITY AND UPGRADE TECHNOLOGY
OVER THE NEXT SEVERAL MONTHS, AS WELL AS OPENING
DISCUSSIONS ON HOW TO REDUCE DEPENDENCE ON THE FOOD BASKET
IN THE MEDIUM TERM. BARRING AN UNFORESEEN CRISIS, WE
ANTICIPATE CONTINUED CAPACITY-BUILDING THAT WILL LEAVE
BEHIND NOT ONLY FOOD RESERVES ON JULY 1, BUT IRAQIS CAPABLE
OF MANAGING THE FOOD PIPELINE. END SUMMARY .
OIL FOR FOOD CONTRACTS
2. COMMODITIES PURCHASED UNDER THE OIL FOR FOOD (OFF)
PROGRAM ARE BEING DELIVERED NOW AND ADDRESS IRAQ ' S FOO D
NEEDS INTO MAY . THE OFF COORDINATION CENTER HAS CONTACTED
SUPPLIERS TO VERIFY DELIVERY DATES AND IS TRACKING
SHIPMENTS . FULL RESPONSIBILITY FOR THESE CONTRACTS WILL
REMAIN WITH THE COORDINATION CENTER AND PIPELINE AND
DELIVERY ISSUES ARE BEING MONITORED BY CPA'S FOOD SECURITY
TEAM. THE FOLLOWING COMMODITIES ARE IN THE PIPELINE :

FOREIGN WHEAT 870 , 000 MT
RICE 415 ,000 MT
GHEE/OIL 170 ,000 MT
SUGAR 277,000 MT
TEA 22,000 MT
MILK 50 ,000 MT
SALT 17,000 MT
INFANT FORMULA 11 , 000 MT
WEANING CEREAL 3 , 0 0 0 MT
SOAP 42 ,000 MT
DETERGENT 50,000 MT
WORLD FOOD PROGRAM
3. THE MARCH 3-4 VISIT TO BAGHDAD OF WORLD FOOD PROGRAM
(WFP) COUNTRY DIRECTOR TORBEN DUE (REFTEL B) ADDRESSED KEY
ISSUES REGARDING THE IMPLEMENTATION OF THE MEMORANDUM OF
UNDERSTANDING TO PROCURE AND DELIVER COMMODITIES TO IRAQ 'S
FOOD RATION SYSTEM. TO DATE:
~-ALL USD 910 MILLION HAS BEEN TRANSFERRED TO WFP ;
--SPECIFICATIONS FOR ALL COMMODITIES HAVE BEEN AGREED;
--WFP HAS AGREED TO COMPLETE PROCUREMENT OF 1.6 MILLION
METRIC TONS OF FOOD BY APRIL 1 ;
--WFP WILL TAKE RESPONSIBILITY FOR DELIVERY TO ALL
GOVERNORATES , AS REQUESTED BY THE MINISTRY OF TRADE;
--CPA , THE IRAQI MINISTRY OF TRADE AND WFP (CPA-MOT-WFP)
WILL MEET AGAIN IN EARLY APRIL TO ENSURE PIPELINE ISSUES
ARE ADDRESSED ; AND
--WFP WILL SHARE ITS COMMODITY TRACKING DATABASE WITH THE
MOT TO ENSURE ACCURATE DELIVERY INFORMATION , POST-JULY 1 .
4. BY THIS WEEK , WFP WILL HAVE RELEASED TENDERS FOR THE
COMMODITIES AND AMOUNTS LISTED BELOW:
FOREIGN WHEAT 897 , 500 MT
RICE 222,500 MT
GHEE /OIL 121,500 MT
SUGAR 201,700 MT
TEA 24,000 MT
MILK 58,600 MT
SALT 19 ,670 MT

INFANT FORMULA 4 , 800 MT
NOTE : NOT PASSED TO ABOVE ADDRESSEE(S)
BAGHDAD 00000089 002 . 1 OF 004
INISTRY OF TRADE (MOT) IS UNDERTAKING A
LARGE-SCALE PROCUREMENT PROGRAM WHICH HAS BEEN COORDINATED
WITH WFP TO BUILD THE FOOD BUFFER RESERVE . CPA ' S FOOD
SECURITY TEAM AND CPA CONTRACTING HAVE WORKED INTENSIVELY
WITH MOT OFFICIALS OVER THE PAST MONTH TO PUT IN PLACE A
PROCUREMENT AND CONTRACTING SYSTEM THAT IS FAIR AND
TRANSPARENT WITH SUPPLIER LISTS THAT ALLOW FOR ROLLING
REGISTRATION AND OPEN COMPETITION. LETTERS OF CREDIT WILL
BE ISSUED THROUGH THE TRADE BANK OF IRAQ. MOT HAS ISSUED
ITS FIRST TENDERS FOR RICE AND MILK POWDER ; ADDITIONAL
TENDERS WILL FOLLOW . WE ARE CONFIDENT THAT MOT HAS
PROCESSES IN PLACE TO TAKE OVER FULL- SCALE PROCUREMENT FROM
WFP ON APRIL 1 .
6. MOT WILL PROCURE COMMODITIES IN TWO TRANCHES DRAWING
FROM ITS 2004 FOOD BUDGET OF APPROXIMATELY USD 3 . 5 BILLION .
THE FIRST HAS BEGUN AND IS DESIGNED TO HAVE A THREE - MONTH
RESERVE ·IN PLACE BY JULY 1 . THE SECOND WILL ADDRESS FOOD NEEDS POST- TRANSITION AND ENSURE THAT THE 3-MONTH BUFFER
WILL REMAIN IN PLACE THROUGH THE END OF THE CALENDAR YEAR.
THE FIRST TRANCHE OF MOT PROCUREMENT INCLUDES :
FOREIGN WHEAT 540 , 000 MT
RICE 232,000 MT
GHEE/OIL 146 , 000 MT
SUGAR 156 , 000 MT
TEA 16 , 000 MT
MILK 40 1 000 MT
SALT 11 1 000 MT
INFANT FORMULA 6 1 000 MT
SOAP 36 , 000 MT
DETERGENT 47 1 000 MT
LOCAL WHEAT 600 I 000 MT
TOMATO PASTE 20 1 000 MT
CHEESE 20 , 000 MT
PORT CAPACITY ISSUES
7 . IRAQ ' S MAIN PORT AT UMM QASR WILL CONTINUE TO BE IRAQ ' S
MOST IMPORTANT ENTRY POINT FOR COMMODITIES . OUR PRINCIPAL
CONCERN IS TO ENHANCE THE PORT ' S CAPACITY TO HANDLE LARGE-
SCALE GRAIN SHIPMENTS IN THE COMING MONTHS . THE GOAL IS TO
'·

INCREASE OFF-LOAD CAPACITY TO 12 , 000 MT BY EARLY APRIL
WHICH REPRESENTS MORE THAN A 50 PERCENT INCREASE FROM
CURRENT LEVELS . THE PLAN ALSO PROVIDES FOR OFF-LOADING
FROM A SECOND BERTH , REDUCING CONGESTION AND PROVIDING
INSURANCE AGAINST THE POSSIBILITY THAT THE MAIN BERTH IS
NOT AVAILABLE. IRAQ 1 S CURRENT GRAIN NEED FOR THE FOOD
BASKET IS 180 ,00 0 MT PER MONTH :
--GRAIN FACILITIES ARE UNDER REPAIR AND OPERATING AT 4 , 500
MT PER DAY. WHEN REPAIRS ARE COMPLETED BY APRIL 1,
CAPACITY WILL BE AT 7 , 000 MT PER DAY .
--TO TAKE ADVANTAGE OF A BERTH IN THE OLD PORT , CPA
RELEASED A REQUEST FOR PROPOSALS (RFPS) THE FIRST WEEK IN
MARCH TO LEASE SIX PORTABLE GRAIN EVACUATORS. BIDS ARE
CURRENTLY UNDER REVIEW WITH A REQUESTED DELIVERY TIME OF
TWO WEEKS. THESE WOULD ADD ADDITIONAL CAPACITY OF 5,000 MT
PER DAY.
--MOT HAS BEGUN REPAIR OF FOUR EXISTING GRAIN EVACUATORS AT
THE OLD PORT AND IS ARRANGING FOR LONG-TERM USE WITH THE
MINISTRY OF TRANSPORTATION . THESE HAVE A CAPACITY OF 3 , 000
MT PER DAY.
~-FOR THE LONGER- TERM, CPA IS WORKING WITH MOT ON PROPOSALS ·
TO REPAIR SIX LARGE RONCUZZI EVACUATORS THAT WERE LOOTED.
REPAIR TIME IS ESTIMATED AT MINIMUM TWO MONTHS AND USD ··,
700,000 TO ADD AN ADDITIONAL 10 , 000 MT PER DAY CAPACITY.
WE ARE ALSO PREPARING A PROPOSAL FOR POSSIBLE WORLD BANK
FUNDING FOR COMPREHENSIVE GRAIN SILO REPAIRS AT AN
ESTIMATED COST OF USD 8 MILLION .
8. MOT CURRENTLY USES PORT FACILITIES AT AQABA , JORDAN ,
AND TARTOUS , SYRIA, BUT HIGHER COSTS AND INLAND TRANSPORT
DELAYS MAKE THESE PORTS LESS DESIRABLE . THE MINISTRY IS
EXAMINING OTHER OPTIONS, INCLUDING USE OF PORTS IN IRAN AND
KUWAIT AND A NEW BORDER CROSSING POINT WITH SAUDI ARABIA.
DREDGING OF THE UMM QASR PORT IS ALSO NEEDED TO ENSURE A
12.5 METER DRAFT FOR LARGER SHIPS.
NOTE: NOT PASSED TO ABOVE ADDRESSEE(S)
BAGHDAD 00000089 002.2 OF 004
INISTRY OF TRADE (MOT) IS UNDERTAKING A
LARGE-SCALE PROCUREMENT PROGRAM WHICH HAS BEEN COORDINATED
WITH WFP TO BUILD THE FOOD BUFFER RESERVE . CPA 1 S FOOD
SECURITY TEAM AND CPA CONTRACTING HAVE WORKED I NTENSIVELY
WITH MOT OFFICIALS OVER THE PAST MONTH TO PUT IN PLACE A

PROCUREMENT AND CONTRACTING SYSTEM THAT IS FAIR AND
TRANSPARENT WITH SUPPLIER LISTS THAT ALLOW FOR ROLLING
REGISTRATION AND OPEN COMPETITION. LETTERS OF CREDIT WILL
BE ISSUED THROUGH THE TRADE BANK OF IRAQ . MOT HAS ISSUED
ITS FIRST TENDERS FOR RICE AND MILK POWDER ; ADDITIONAL
TENDERS WILL FOLLOW. WE ARE CONFIDENT THAT MOT HAS
PROCESSES IN PLACE TO TAKE OVER FULL-SCALE PROCUREMENT FROM
WFP ON APRIL 1 .
6. MOT WILL PROCURE COMMODITIES IN TWO TRANCHES DRAWING
FROM ITS 2004 FOOD BUDGET OF APPROXIMATELY USD 3.5 BILLION.
THE FIRST HAS BEGUN AND IS DESIGNED TO HAVE A THREE-MONTH
RESERVE IN PLACE BY JULY 1. THE SECOND WILL ADDRESS FOOD
NEEDS POST-TRANSITION AND ENSURE THAT THE 3-MONTH BUFFER
WILL REMAIN IN PLACE THROUGH THE END OF THE CALENDAR YEAR .
THE FIRST TRANCHE OF MOT PROCUREMENT INCLUDES:
FOREIGN WHEAT 540,000 MT
RICE 232,000 MT
GHEE/OIL 146,000 MT
SUGAR 156,000 MT
TEA 16 , 000 MT
MILK 40,000 MT
SALT 11,000 MT
INFANT FORMULA 6 I 000 MT
SOAP 36 ,000 MT
DETERGENT 47 ,000 MT
LOCAL WHEAT 600 I 000 MT
TOMATO PASTE 20,000 MT
CHEESE 20 , 000 MT
PORT CAPACITY ISSUES
.·.
~·
7. IRAQ ' S MAIN PORT AT UMM QASR WILL CONTINUE TO BE IRAQ ' S
MOST IMPORTANT ENTRY POINT FOR COMMODITIES. OUR PRINCIPAL
CONCERN IS TO ENHANCE THE PORT'S CAPACITY TO HANDLE LARGE-
SCALE GRAIN SHIPMENTS IN THE COMING MONTHS. THE GOAL IS TO
INCREASE OFF-LOAD CAPACITY TO 12,000 MT BY EARLY APRIL
WHICH REPRESENTS MORE THAN A 50 PERCENT INCREASE FROM
CURRENT LEVELS . THE PLAN ALSO PROVIDES FOR OFF- LOADING
' . FROM A SECOND BERTH , REDUCING CONGESTION AND PROVIDING
INSURANCE AGAINST THE POSSIBILITY THAT THE MAIN BERTH IS
NOT AVAILABLE . IRAQ ' S CURRENT GRAIN NEED FOR THE FOOD
BASKET IS 180 ,000 MT PER MONTH :
--GRAIN FACILITIES ARE UNDER REPAIR AND OPERATING AT 4 , 500
MT PER DAY. WHEN REPAIRS ARE COMPLETED BY APRIL 1,
CAPACITY WILL BE AT 7 , 000 MT PER DAY .

--TO TAKE ADVANTAGE OF A BERTH IN THE OLD PORT , CPA
RELEASED A REQUEST FOR PROPOSALS (RFPS) THE FIRST WEEK IN
MARCH TO LEASE SIX PORTABLE GRAIN EVACUATORS . BIDS ARE
CURRENTLY UNDER REVIEW WITH A REQUESTED DELIVERY TIME OF
TWO WEEKS. THESE WOULD ADD ADDITIONAL CAPACITY OF 5 , 000 MT
PER DAY .
--MOT HAS BEGUN REPAIR OF FOUR EXISTING GRAIN EVACUATORS AT
THE OLD PORT AND IS ARRANGING FOR LONG-TERM USE WITH THE
MINISTRY OF TRANSPORTATION. THESE HAVE A CAPACITY OF 3 , 000
MT PER DAY .
--FOR THE LONGER-TERM, CPA IS WORKING WITH MOT ON PROPOSALS
TO REPAIR SIX LARGE RONCUZZI EVACUATORS THAT WERE LOOTED .
REPAIR TIME IS ESTIMATED AT MINIMUM TWO MONTHS AND USD
700,000 TO ADD AN ADDITIONAL 10,000 MT PER DAY CAPACITY.
WE ARE ALSO PREPARING A PROPOSAL FOR POSSIBLE WORLD BANK
FUNDING FOR COMPREHENSIVE GRAIN SILO REPAIRS AT AN
ESTIMATED COST OF USD 8 MILLION.
8. MOT CURRENTLY USES PORT FACILITIES AT AQABA, JORDAN,
AND TARTOUS , SYRIA , BUT HIGHER COSTS AND INLAND TRANSPORT
DELAYS MAKE THESE PORTS LESS DESIRABLE . THE MINISTRY IS
EXAMcrNING OTHER OPTIONS , INCLUDING USE OF PORTS IN IRAN AND
KUWAIT AND A NEW BORDER CROSSING POINT WITH SAUDI ARABIA.
DREDGING OF THE UMM QASR PORT IS ALSO NEEDED TO ENSURE A
12.5 METER DRAFT FOR LARGER SHIPS.
NOTE : NOT PASSED TO ABOVE ADDRESSEE(S)
BAGHDAD 00000089 002 . 3 OF 004
INISTRY OF TRADE (MOT) IS UNDERTAKING A
LARGE-SCALE PROCUREMENT PROGRAM WHICH HAS BEEN COORDINATED
WITH WFP TO BUILD THE FOOD BUFFER RESERVE. CPA ' S FOOD
SECURITY TEAM AND CPA CONTRACTING HAVE WORKED INTENSIVELY
WITH MOT OFFICIALS OVER THE PAST MONTH TO PUT IN PLACE A
PROCUREMENT AND CONTRACTING SYSTEM THAT IS FAIR AND
TRANSPARENT WITH SUPPLIER LISTS THAT ALLOW FOR ROLLING
REGISTRATION AND OPEN COMPETITION. LETTERS OF CREDIT WILL
BE ISSUED THROUGH THE TRADE BANK OF IRAQ . MOT HAS ISSUED
ITS FIRST TENDERS FOR RICE AND MILK POWDER; ADDITIONAL
TENDERS WILL FOLLOW . WE ARE CONFIDENT THAT MOT HAS
PROCESSES IN PLACE TO TAKE OVER FULL-SCALE PROCUREMENT FROM
WFP ON APRIL 1.
6 . MOT WILL PROCURE COMMODITIES IN TWO TRANCHES DRAWING
FROM ITS 2004 FOOD BUDGET OF APPROXIMATELY USD 3.5 BILLION.
THE FIRST HAS BEGUN AND IS DESIGNED TO HAVE A THREE-MONTH

RESERVE IN PLACE BY JULY 1 . THE SECOND WILL ADDRESS FOOD
NEEDS POST-TRANSITIO N AND ENSURE THAT THE 3-MONTH BUFFER
WILL REMAIN IN PLACE THROUGH THE END OF THE CALENDAR YEAR.
THE FIRST TRANCHE OF MOT PROCUREMENT INCLUDES:
FOREIGN WHEAT 540,000 MT
RICE 232 , 0 00 MT
GHEE/ OIL 146 , 000 MT
SUGAR 156 , 000 MT
TEA 16 , 000 MT
MILK 40,000 MT
SALT 11,000 MT
INFANT FORMULA 6 I 000 MT
SO AP 36 , 000 MT
DETERGENT 47 , 000 MT
LOCAL WHEAT 600 , 000 MT
TOMATO PASTE 20 , 000 MT
CHEESE 20 , 000 MT
PO RT CAPACITY ISSUES
7. IRAQ'S MAIN PORT AT UMM QASR WILL CONTINUE TO BE IRAQ ' S
MOST IMPORTANT ENTRY POINT FOR COMMODITIES. ·
. OUR PRINCIPAL
CONCERN IS TO ENHANCE · THE PORT ' S CAPACITY TO HANDLE LARGE-
SCALE GRAIN SHIPMENTS IN THE COMING MONTHS . THE GOAL IS TO
INCREASE OFF-LOAD CAPACITY TO 12 , 000 MT BY EARLY APRIL
WHICH REPRESENTS M ORE THAN A 50 PERCENT INCREASE FRO M
CURRENT LEVELS . THE PLAN ALSO PROVIDES FOR OFF-LOADING
FROM A SECOND BERTH , REDUCING CONGESTION AND PROVIDING
INSURANCE AGAINST THE POSSIBILITY THAT THE MAIN BERTH IS
NOT AVAILABLE . IRAQ ' S CURRENT GRAIN NEED FOR THE FOOD
BASKET IS 180 , 0 00 MT PER MONTH :
--GRAIN FACILITIES ARE UNDER REPAIR AND OPERATING AT 4 , 500
MT PER DAY. WHEN REPAIRS ARE COMPLETED BY APRIL 1 ,
CAPACITY WILL BE AT 7,000 MT PER DAY.
--TO TAKE ADVANTAGE OF A BERTH IN THE OLD PORT , CPA
RELEASED A REQUEST FOR PROPOSALS (RFPS) THE FIRST WEEK IN
MARCH TO LEASE SIX PORTABLE GRAIN EVACUATORS . BI DS ARE
CURRENTLY UNDER REVIEW WITH A REQUESTED DELIVERY TIME OF
TWO WEEKS . THESE WOULD ADD ADDITIONAL CAPACITY OF 5 , 000 MT
PER DAY .
--MOT HAS BEGUN REPAIR OF FOUR EXISTING GRAIN EVACUATORS AT
THE OLD PORT AND IS ARRANGING FOR LONG-TERM USE WITH THE
MINISTRY OF TRANSPORTATION. THESE HAVE A CAPACITY OF 3 , 000
MT PER DAY .

--FOR THE LONGER-TERM , CPA IS WO~ING WITH MOT ON PROPOSALS
TO REPAIR SIX LARGE RONCUZZI EVACUATORS THAT WERE LOOTED .
REPAIR TIME IS ESTIMATED AT MINIMUM TWO MONTHS AND USD
700 , 000 TO ADD AN ADDITIONAL 10,000 MT PER DAY CAPACITY.
WE ARE ALSO PREPARING A PROPOSAL FOR POSSIBLE WORLD BANK
FUNDING FOR COMPREHENSIVE GRAIN SILO REPAIRS AT AN
ESTIMATED COST OF USD 8 MILLION.
8. MOT CURRENTLY USES PORT FACILITIES AT AQABA , JORDAN ,
AND TARTOUS , SYRIA, BUT HIGHER COSTS AND INLAND TRANSPORT
DELAYS MAKE THESE PORTS LESS DESIRABLE . THE MINISTRY IS
EXAMINING OTHER OPTIONS , INCLUDING USE OF PORTS IN IRAN AND
KUWAIT AND A NEW BORDER CROSSING POINT WITH SAUDI ARABIA .
DREDGING OF THE UMM QASR PORT IS ALSO NEEDED TO ENSURE A
12.5 METER DRAFT FOR LARGER SHIPS.
NOTE: NOT PASSED TO ABOVE ADDRESSEE(S)
BAGHDAD 00000089 003.1 OF 004
UREMENT
AND DELAYS IN THE RELEASE OF WFP TENDERS IN EARLY 2004
CONTRIBUTED TO . DIMINISHING STOCKS OF FOOD BASKET
COMMODITIES , AND EVEN SOME LOCALIZED SHORTAGES. CPA
ADDRESSED GRAIN SHORTAGES WITH EMERGENCY PROCUREMENTS IN
THE REGION. SHORTAGES IN RICE HAVE CREATED A DEFICIT IN
THE FOOD RATION SYSTEM THAT WILL BE MADE UP IN THE FUTURE.
OTHER LOCAL SHORTAGES OF RICE, SUGAR, ADULT MILK ,
DETERGENT , AND TEA HAVE ALSO OCCURRED, DUE PRIMARILY TO
PROBLEMS WITH INLAND TRANSPORT. MOT IS SHUNTING FOOD
BETWEEN GOVERNORATES TO ENSURE THAT GAPS ARE FILLED.
•'\.
. ' .
' ·
-. ..
10 . TRUCKING CAPACITY IS A CONCERN AS THE DEMANDS OF
RECONSTRUCTION INCREASE. CONTRACTS ARE GENERALLY WRITTEN
ON THE BASIS OF COST, INSURANCE, AND FREIGHT (CIF) TO ALL
GOVERNORATES , WHICH MAKES SUPPLIERS RESPONSIBLE FOR
DELIVERY. AS COMPETITION GROWS FOR TRUCKING SERVICES AND
PRICES INCREASE , IT WILL BE NECESSARY TO ENSURE THAT FOOD
DELIVERIES ARE GIVEN PRIORITY. MOT ' S OWN FLEET OF TRUCKS ,
WHICH HAD NUMBERED SOME 3,000 PRIOR TO THE WAR , HAS ERODED
SIGNIFICANTLY AS TRUCKERS HAVE CHOSEN TO USE MOT VEHICLES
FOR PRIVATE DELIVERIES .
ACCOUNTABILITY AND INFORMATION TECHNOLOGY
11. MOT NEEDS TO UPDATE ITS ABILITY TO TRACK THE DELIVERY
OF COMMODITIES AND MANAGE ITS INVENTORIES . WE ARE WORKING
WITH MOT TO IMPROVE ITS CAPACITY TO COMMUNICATE WITHIN AND
· .·
. , .. ,..

AMONG GOVERNORATES , AS WELL AS BETWEEN GOVERNORATES AND
BAGHDAD. WE ARE LOOKING AT A PHASED APPROACH THAT WILL
IMPROVE DATA COLLECTION , ANALYSIS , AND REPORTING WITH
SIMPLE TRAINING AND SOFTWARE IMPROVEMENTS OVER THE NEXT
MONTHS , AS WELL AS CONSIDERING A MORE COMPREHENSIVE
COMMODITY TRACKING AND INVENTORY MANAGEMENT SYSTEM FOR THE
MEDIUM TERM.
12 . WE ALSO NEED TO ENSURE THAT REASONABLE INTERNAL
CONTROLS ARE IN PLACE TO ENSURE ACCOUNTABILITY . CPA HAS
TAKEN THE FOLLOWING STEPS:
--AN AUDIT AND SYSTEMS REVIEW OF THE BAGHDAD OFF
COORDINATION CENTER. AN RFP FOR THE EXTERNAL AUDIT WILL BE
ISSUED SHORTLY.
--ISSUANCE OF A "CODE OF CONDUCT" FOR OFF SUPPLIERS .
--ENHANCEMENT OF THE COORDINATION CENTER ' S SECURITY CELL,
INCLUDING SECURITY ESCORTS FOR TRUCK CONVOYS, RADIO
TRACKING BEACONS FOR TRUCKS, LIAISON OFFICERS AT EACH MAJOR
SUBORDINAT~ COMMAND, SURVEILLANCE, AND SPOT INSPECTIONS .
--REFERRAL OF ANY INFORMATION ON FRAUD AND CORRUPTION TO
THE MINISTRY OF JUSTICE AND THE CENTRAL CRIMINAL COURT OF
IRAQ.
--THIRD-PARTY AUTHENTICATION. THE MOT IS EXAMINING THE
VIABILITY OF INDEPENDENT VERIFICATION AND AUTHENTICATION OF
WAREHOUSES AND SILOS USING MINISTRY FUNDS AFTER JULY 1.
--INSPECTOR GENERAL. AN MOT INSPECTOR GENERAL HAS BEEN
SELECTED AND QUALIFICATIONS REVIEWED .
FUTURE OF THE FOOD RATION SYSTEM
13. THE SADDAM-INTRODUCED PUBLIC DISTRIBUTION SYSTEM TO
PURCHASE AND DISTRIBUTE FOOD RATIONS COSTS SOME $280
MILLION PER MONTH. SUCH LARGE-SCALE IMPORTS HAVE DISTORTED
THE ECONOMY AND CREATED DEPENDENCY ON A SYSTEM THAT IS NOT
SUSTAINABLE . WHILE THERE ARE NO CURRENT PLANS TO MONETIZE
THE FOOD BASKET , CPA IS WORKING WITH MOT AND OTHERS ON
OPTIONS TO PHASE OUT COMMODITIES GRADUALLY. MOT WILL DROP
PULSES (E . G. PE. AS , BEANS) FROM THE FOOD BASKET IN JULY , AND
WILL ALLOW A THREE- MONTH (JULY , AUGUST , SEPTEMBER) ADDITION
TO THE BASKET OF TOMATO PASTE AND CANNED PROCESSED CHEESE.
WE ARE EXAMINING OTHER OPTIONS TO REDUCE DEPENDENCY ON
PUBLIC DISTRIBUTION SYSTEMS (PDS) .

COMMENT
14 . WE ENVISION NO BREAKS IN THE PIPELINE OF ESSENTIAL
COMMODITIES IN THE MONTHS AHEAD , BARRING ANY UNFO RESEEN
NOTE : NOT PASSED TO ABOVE ADDRESSEE(S)
BAGHDAD 00000089 003 . 2 OF 004
UREMENT
AND DELAYS IN THE RELEASE OF WFP TENDERS IN EARLY 2004
CONTRIBUTED TO DIMINISHING STOCKS OF FOOD BASKET
COMMODITIES , AND EVEN SOME LOCALIZED SHORTAGES . CPA
ADDRESSED GRAIN SHORTAGES WITH EMERGENCY PROCUREMENTS IN
THE REGION . SHORTAGES IN RICE HAVE CREATED A DEFICIT IN
THE FOOD RATION SYSTEM THAT WILL BE MADE UP IN THE FUTURE.
OTHER LOCAL SHORTAGES OF RICE, SUGAR, ADULT MILK ,
DETERGENT , AND TEA HAVE ALSO OCCURRED , DUE PRIMARILY TO
PROBLEMS WITH INLAND TRANSPORT . MOT IS SHUNTING FOOD
BETWEEN GOVERNORATES TO ENSURE THAT GAPS ARE FI LLED.
10 . TRUCKING CAPACITY IS A CONCERN AS THE DEMANDS OF
RECONSTRUCTION INCREASE . CO NTRACTS ARE GENERALLY WRITTEN
O N THE BASIS O F CO ST , INSURANCE , AND FREIGHT (CIF) TO ALL /.
GOVERNORATES , WHICH MAKES SUPPLIERS RESPONSIBLE FO R
DELIVERY . AS COMPETITIO N GROWS FOR TRUCKING SERVICES AND
PRICES INCREASE , IT WILL BE NECESSARY TO ENSURE THAT FOOD
DELIVERIES ARE GIVEN PRIORITY. MOT ' S OWN FLEET OF TRUCKS ,
WHICH HAD NUMBERED SOME 3 , 000 PRIOR TO THE WAR , HAS ERODED
SIGNIFICANTLY AS TRUCKERS HAVE CHOSEN TO USE M OT VEHICLES
FOR PRIVATE DELIVERIES .
.... •.
ACCOUNTABILITY AND INFORMATION TECHNOLOGY
11 . MOT NEEDS TO UPDATE ITS ABILITY TO TRACK THE DELIVERY
OF COMMODITIES AND MANAGE ITS INVENTORIES . WE ARE WORKING
WITH MOT TO IMPROVE ITS CAPACITY TO COMMUNICATE WITHIN AND
AMONG GOVERNORATES , AS WELL AS BETWEEN GO VERNO RATES AND
BAGHDAD . WE ARE LOO KING AT A PHASED APPRO ACH THAT WILL
IMPROVE DATA COLLECTIO N, ANALYSIS , AND REPORTING WITH
SIMPLE TRAINING AND SOFTWARE IMPROVEMENTS OVER THE NEXT
MONTHS , AS WELL AS CO NSI DERING A MORE COMPREHENSIVE
COMMODITY TRACKING AND INVENTORY MANAGEMENT SYSTEM FOR THE
MEDIUM TERM.
12 . WE ALSO NEED TO ENSURE THAT REASONABLE INTERNAL
CONTROLS ARE IN PLACE TO ENSURE ACCOUNTABILITY . CPA HAS

TAKEN THE FOLLOWING STEPS:
--AN AUDIT AND SYSTEMS REVIEW OF THE BAGHDAD OFF
COORDINATION CENTER. AN RFP FOR THE EXTERNAL AUDIT WILL BE
ISSUED SHORTLY .
--ISSUANCE OF A "CODE OF CONDUCT" FOR OFF SUPPLIERS.
--ENHANCEMENT OF THE COORDINATION CENTER ' S SECURITY CELL,
INCLUDING SECURITY ESCORTS FOR TRUCK CONVOYS, RADIO
TRACKING BEACONS FOR TRUCKS, LIAISON OFFICERS AT EACH MAJOR
SUBORDINATE COMMAND, SURVEILLANCE, AND SPOT INSPECTIONS .
--REFERRAL OF ANY INFORMATION ON FRAUD AND CORRUPTION TO
THE MINISTRY OF JUSTICE AND THE CENTRAL CRIMINAL COURT OF
IRAQ.
--THIRD-PARTY AUTHENTICATION . THE MOT IS EXAMINING THE
VIABILITY OF INDEPENDENT VERIFICATION AND AUTHENTICATION OF
WAREHOUSES AND SILOS USING MINISTRY FUNDS AFTER JULY 1.
--INSPECTOR GENERAL . AN MOT INSPECTOR GENERAL HAS BEEN
SELECTED AND QUALIFICATIONS REVIEWED.
FUTURE OF THE FOOD RATION SYSTEM
13 . THE SADDAM-INTRODUCED PUBLIC DISTRIBUTION SYSTEM TO
PURCHASE AND DISTRIBUTE FOOD RATIONS COSTS SOME $280
MILLION PER MONTH. SUCH LARGE-SCALE IMPORTS HAVE DISTORTED
THE ECONOMY AND CREATED DEPENDENCY ON A SYSTEM THAT IS NOT
SUSTAINABLE. WHILE THERE ARE NO CURRENT PLANS TO MONETIZE
THE FOOD BASKET , CPA IS WORKING WITH MOT AND OTHERS ON
OPTIONS TO PHASE OUT COMMODITIES GRADUALLY. MOT WILL DROP
PULSES (E.G. PEAS , BEANS) FROM THE FOOD BASKET IN JULY, AND
WILL ALLOW A THREE-MONTH (JULY, AUGUST, SEPTEMBER) ADDITION
TO THE BASKET OF TOMATO PASTE AND CANNED PROCESSED CHEESE.
WE ARE EXAMINING OTHER OPTIONS TO REDUCE DEPENDENCY ON
PUBLIC DISTRIBUTION SYSTEMS (PDS) .
COMMENT
14. WE ENVISION NO BREAKS IN THE PIPELINE OF ESSENTIAL
COMMODITIES IN THE MONTHS AHEAD , BARRING ANY UNFORESEEN
NOTE: NOT PASSED TO ABOVE ADDRESSEE(S)
BAGHDAD 00000089 003.3 OF 004

UREMENT
AND DELAYS IN THE RELEASE OF WFP TENDERS IN EARLY 2004
CONTRIBUTED TO DIMINISHING STOCKS OF FOOD BASKET
COMMODITIES , AND EVEN SOME LOCALIZED SHORTAGES . CPA
ADDRESSED GRAIN SHORTAGES WITH EMERGENCY PROCUREMENTS IN
THE REGION . SHORTAGES IN RICE HAVE CREATED A DEFICIT IN
THE FOOD RATION SYSTEM THAT WILL BE MADE UP IN THE FUTURE .
OTHER LOCAL SHORTAGES OF RICE , SUGAR, ADULT MILK,
DETERGENT , AND TEA HAVE ALSO OCCURRED, DUE PRIMARILY TO
PROBLEMS WITH INLAND TRANSPORT. MOT IS SHUNTING FOOD
BETWEEN GOVERNORATES TO ENSURE THAT GAPS ARE FILLED.
10. TRUCKING CAPACITY IS A CONCERN AS THE DEMANDS OF
RECONSTRUCTION INCREASE. CONTRACTS ARE GENERALLY WRITTEN
ON THE BASIS OF COST, INSURANCE, AND FREIGHT (CIF) TO ALL
GOVERNORATES, WHICH MAKES SUPPLIERS RESPONSIBLE FOR
DELIVERY. AS COMPETITION GROWS FOR TRUCKING SERVICES AND
PRICES INCREASE , IT WILL BE NECESSARY TO ENSURE THAT FOOD
DELIVERIES ARE GIVEN PRIORITY. MOT ' S OWN FLEET OF TRUCKS ,
WHICH HAD NUMBERED SOME 3 , 000 PRIOR TO THE WAR , HAS ERODED
SIGNIFICANTLY AS TRUCKERS HAVE CHOSEN TO USE MOT VEHICLES
FOR PRIVATE DELIVERIES .
ACCOUNTABILITY AND INFORMATION TECHNOLOGY
11. MOT NEEDS TO UPDATE ITS ABILITY TO TRACK THE DELIVERY
OF COMMODITIES AND MANAGE ITS INVENTORIES. WE ARE WORKING
WITH MOT TO IMPROVE ITS CAPACITY TO COMMUNICATE WITHIN AND
AMONG GOVERNORATES , AS WELL AS BETWEEN GOVERNORATES AND
BAGHDAD. WE ARE LOOKING AT A PHASED APPROACH THAT WILL
IMPROVE DATA COLLECTION, ANALYSIS, AND REPORTING WITH
SIMPLE TRAINING AND SOFTWARE IMPROVEMENTS OVER THE NEXT
MONTHS , AS WELL AS CONSIDERING A MORE COMPREHENSIVE
COMMODITY TRACKING AND INVENTORY MANAGEMENT SYSTEM FOR THE
MEDIUM TERM.
·12 . WE ALSO NEED TO ENSURE THAT REASONABLE INTERNAL
CONTROLS ARE IN PLACE TO ENSURE ACCOUNTABILITY. CPA HAS
TAKEN THE .FOLLOWING STEPS:
--AN AUDIT AND SYSTEMS REVIEW OF THE BAGHDAD OFF
COORDINATION CENTER . AN RFP FOR THE EXTERNAL AUDIT WILL BE
ISSUED SHORTLY.
--ISSUANCE OF A "CODE OF CONDUCT" FOR OFF SUPPLIERS.
--ENHANCEMENT OF THE COORDINATION CENTER ' S SECURITY CELL,
INCLUDING SECURITY ESCORTS FOR TRUCK CONVOYS , RADIO

TRACKING BEACONS FOR TRUCKS , LIAISON OFFICERS AT EACH MAJOR
SUBORDINATE COMMAND , SURVEILLANCE , AND SPOT INSPECTIONS .
--REFERRAL OF ANY INFORMATION ON FRAUD AND CORRUPTION TO
THE MINISTRY OF JUSTICE AND THE CENTRAL CRIMINAL COURT OF
IRAQ .
- - THIRD-PARTY AUTHENTICATION . THE MOT IS EXAMINING THE
VIABILITY OF INDEPENDENT VERIFICATION AND AUTHENTICATION OF
WAREHOUSES AND SILOS USING MINISTRY FUNDS AFTER JULY 1.
--INSPECTOR GENERAL . AN MOT INSPECTOR GENERAL HAS BEEN
SELECTED AND QUALIFICATIONS REVIEWED.
FUTURE OF THE FOOD RATION SYSTEM
13. THE SADDAM-INTRODUCED PUBLIC DISTRIBUTION SYSTEM TO
PURCHASE AND DISTRIBUTE FOOD RATIONS COSTS SOME $280
MILLION PER MONTH . SUCH LARGE-SCALE IMPORTS HAVE DISTORTED
THE ECONOMY AND CREATED DEPENDENCY ON A SYSTEM THAT IS NOT
SUSTAINABLE. WHILE THERE ARE NO CURRENT PLANS TO MONETIZE
THE FOOD BASKET , CPA IS WORKING WITH MOT AND OTHERS ON
OPTIONS TO PHASE OUT COMMODITIES GRADUALLY . MOT WILL DROP
PULSES (E . G. PEAS , BEANS) FROM THE FOOD BASKET IN JULY , AND · ."1'
WILL ALLOW A THREE-MONTH (JULY , AUGUST, SEPTEMBER) ADDITION
TO THE BASKET OF TOMATO PASTE AND CANNED PROCESSED CHEESE.
WE ARE EXAMINING OTHER OPTIONS TO REDUCE DEPENDENCY ON
PUBLIC DISTRIBUTION SYSTEMS (PDS) ;
COMMENT
14. WE ENVISION NO BREAKS IN THE PIPELINE OF ESSENTIAL
COMMODITIES IN THE MONTHS AHEAD, BARRING ANY UNFORESEEN
NOTE : NOT PASSED TO ABOVE ADDRESSEE(S)
BAGHDAD 00000089 004.1 OF 004
QASR, LABOR ISSUES , OR
BREAKDOWNS IN DOMESTIC INFRASTRUCTURE. CPA , MOT, AND THE
MINISTRY OF TRANSPORTATION CONTINUE TO COLLABORATE CLOSELY
WITHIN THE COUNTRY , AND WITH WFP , TO PROTECT THE FOOD
SECURITY INTERESTS OF THE IRAQI PEOPLE. WE ANTICIPATE
CONTINUED CAPACITY-BUILDING THAT WILL LEAVE BEHIND NOT ONLY
FOOD RESERVES ON JULY 1 , BUT IRAQIS CAPABLE OF MANAGING THE
FOOD PIPELINE.

BREMER
NOTE : NOT PASSED TO ABOVE ADDRESSEE(S)
BAGHDAD 00000089 0 04 . 2 OF 004
QASR, LABOR ISSUES , OR
BREAKDOWNS IN DOMESTIC INFRASTRUCTURE . CPA , MOT, AND THE
MINISTRY OF TRANSPORTATION CONTINUE TO COLLABORATE CLOSELY
WITHIN THE COUNTRY , AND WITH WFP , TO PROTECT THE FOOD
SECURITY INTERESTS OF THE IRAQI PEOPLE . WE ANTICIPATE
CONTINUED CAPACITY-BUILDING THAT WILL LEAVE BEHIND NOT ONLY
FOOD RESERVES ON JULY 1 , BUT IRAQIS CAPABLE OF MANAGING THE
FOOD PIPELINE .
BREMER
NOTE: NOT PASSED TO ABOVE ADDRESSEE (S)
BAGHDAD 00000089 004 . 3 OF 004
QASR, LABOR ISSUES , OR
BREAKDOWNS IN DOMESTIC INFRASTRUCTURE . CPA, MOT , AND THE
MINISTRY OF TRANSPORTATION CONTINUE TO COLLABORATE CLOSELY
WITHIN THE COUNTRY , AND WITH WFP , TO PROTECT THE FOOD
SECURITY INTERESTS OF THE IRAQI PEOPLE. WE ANTICIPATE
CONTINUED CAPACITY- BUILDING THAT WILL LEAVE BEHIND NOT ONLY
FOOD RESERVES ON JULY 1, BUT IRAQIS CAPABLE OF MANAGING THE
FOOD PIPELINE .
BREMER
NOTE: NOT PASSED TO ABOVE ADDRESSEE(S)
NNNN