Sale Come car Opportunes and Os Coh. pame
Summary
We need to ensure UK companies are able to make the most of the
opportunities presented by reconstruction in Iraq. BTI have engaged closely
with UK industry and multipliers (BCCB, CBI) since the outset of the crisis to
help them do so. BTI have also formed an Industry Working Group (made up
of representatives of all the key sectors) which will form the basis of a UK
business delegation to Iraq as soon as conditions there allow.
Detail
2.
Liz Symons has minuted us on her visit to Washington last week with
representatives of the Iraq Industry Group. It is clear that the US is ready to
welcome international contributions to the rebuilding of Iraq (though there
were the usual differences between the key US Government agencies on many
of the details) and regard UK companies as leading contenders for sub-
contract work. Crucially, Bechtel - who have been awarded the $680 million
contract for initial humanitarian relief - are bound to subcontract 50 per cent
of the work, and may do so with up to 90 per cent of the value of the contract.
They are holding an event in London on 23 May to highlight the opportunities
available to UK firms. The response from UK firms to this event has been
good.
DECLASSIFIED

attractive market in the medium term. We have plans to put in place a
substantial commercial section in Baghdad in the next phase of the missions
staffing.
4. Although all the funding for projects so far comes from the US, UK
companies are positioning themselves to capitalise on these opportunities. Our
main objective has been to create a favourable political atmosphere in which
UK companies can position themselves to bid for sub-contract work from
these initial US funded projects. Over 800 UK companies have registered an
interest with Trade Partners UK, and are receiving regular e-mail updates on
developments, including details of contracts awarded. We have also fed in
details to the key US players of UK capabilities in the priority sectors (for
example power and water). Although the immediate focus is on these priority
sectors, the Industry Working Group includes a wider range of sectors, such as
Education and Health, which will assume greater importance once the
emergency infrastructure work has been completed.
5.
However, we understand that as yet only 180 of the 3500 companies
which have registered with Bechtel as potential subcontractors - less than
5 per cent - are British. A share in the commercial effort proportionate to our
contributions to the military campaign will require a higher level of
commitment on the part of UK firms if they are not to be squeezed out by
international competition. We could also try to secure firmer political
re coordinated HMG approach (e.g
guarantees from the was and au
JECLASSFED

through. This is encouraging. But it is for the companies themselves to take
advantage of these favourable conditions by highlighting their experiences and
capabilities to the US authorities and to the leading US contractors.
We are copying this minute to other members of the Ad Hoc Ministerial
Group, and to Mike O'Brien, Jonathan Powell, John Sawers and Chris Segar
(Baghdad).
Jah to Pascat
(PATRICIA HEWITT)
(JACK STRAW)
Foreign and Commonwealth Office
Department for Trade and Industry
22 May 2003
DFC ISSIFIED