Understanding The Strategic Framework Agreement Part 4

[TrinityeXchange]

...hope you all brought a large drink and some slippers to this one. it's going to get lengthy and quite indepth...the lengthiest one yet.

for the sake of time, we will skip over section IV of the contractual agreement between iraq and the united states. recall i mentioned in the initial study that we will concern ourselves with the power of contract and base our investment risk on this alone. any other "intel" that we take in concerning this investment should be used to strengthen our hope in the SFA however "intel" should not be our investment pillar.

now just a warning that this portion of our study is going to get quite lengthy. here we will see that the SFA is an umbrella agreement in the true sense of the word. there are other agreements, compacts, programs and efforts at work which directly support the SFA. we will undergo a wide awakening as we see that there are no wasted words in this agreement/contract. everything has meaning and the more we fine comb our way through this, the more confident and educated we become at how vast an investment this truly is as well as the amount of energy the united states has dedicated toward iraq's economic emergence.

Section V: Economic and Energy Cooperation

Building a prosperous, diversified, growing economy in Iraq, integrated in the global

economic system, capable of meeting the essential service needs of the Iraqi people, as

well as welcoming home Iraqi citizens currently dwelling outside ofthe country, will

require unprecedented capital investment in reconstruction, the development of Iraq’s

extraordinary natural and human resources, and the integration of Iraq into the

international economy and its institutions. To that end the Parties agree to cooperate to:

[in the previous study we solidified the fact that a democratic government supported by democratic instutions is the pillar of this framework agreement; it is the only model government the united states has agreed to work through while it exerts maximum effort promoting iraq's emergence to premier position in the middle east.

with that understood, we must grasp an even graver concept. a democratic iraq will be short lived without a strong economic base to support it. the united states has pulled all stops at promoting and creating avenues of investment opportunities into iraq. when stated that this investment initiative will require unprecedented capital investment, the united states means unprecedented in every sense of the word:

unprecedented - Never done or known before.

my friends, NEVER allow ANYONE to convince you that this investment is comparable to anything we have seen in the past! when they run their mouths trying to compare what is taking place in iraq to what has taken place in other countries, you pull out section V of the CONTRACT and you challenge them to "call and raise" what you just put on the table. if they don't have a contract to present, they don't have a presentation....period.]

1. support Iraq’s eŕforts to invest its resources towards economic development,

sustainable development and investment in projects that improve the basic

services for the Iraqi people.

2. Maintain active bilateral dialogue on measures to increase lraq’s development,

incìuding through the Dialogue on Economic Cooperation (DEC) and, upon

entry into force, the Trade and Investment Framework Agïeement.

[this here is major. i will present to you the DEC as well as the TIFA. every component of our investment is embodied in the DEC. this is a document that we must pay close attention to. the DEC is where the "actual game plan" is derived - an approach toward implementation - , a labor force sectioned into functional groups is created and action items listed to bring to fruition the vision of a new iraq.

these are the special divisions of the DEC:

Trade and Investment Framework Agreement

Banking and Finance

Energy

Agriculture

Anti-Corruption Programs

Iraqi Living Conditions

the work put forth in each of these divisions is immense. i encourage you to research some of this yourself and read through some of the action item udates to see what progress is being made so far under these divisions. TIFA is a major accomplishment between the two nations. here is the 2005 notification of its execution:]

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United States and Iraq Sign Trade and Investment Framework Agreement

07/11/2005

Amman, Jordan - Assistant U.S. Trade Representative Ashley Wills and Iraq’s Minister of Finance, Dr. Ali Abdulameer Allawi, signed a Trade and Investment Framework Agreement (TIFA) today during a meeting of the U.S. - Iraq Joint Commission on Reconstruction and Economic Development. Deputy Secretary of State Robert B. Zoellick, who chaired the U.S. delegation to the Commission meeting, attended the signing ceremony.

"I am delighted that we have reached agreement with Iraq on the TIFA. Iraq is making a major effort to reintegrate into the international economy, and the meetings of the Joint Council should assist Iraq in this important endeavor. We believe that the U.S. - Iraq TIFA will enhance trade between our two countries and assist Iraq as it seeks to grow and diversify its economy," Assistant USTR Wills noted at the signing.

The TIFA provides a forum for Iraq and the United States to examine ways to expand bilateral trade and investment. It creates a Joint Council that will consider a wide range of commercial issues and sets out basic principles underlying the two nation’s trade and investment relationship. The Council will establish a permanent dialogue with the expectation of expanding trade and investment between Iraq and the United States.

The United States has TIFAs with a number of countries to develop bilateral trade and coordinate regionally and multilaterally through regular senior level discussions on trade and economic issues.

In 2004 the U.S. exported to Iraq goods valued at $856.5 million. In the first four months of 2005 imports increased at a rate of 150 percent. Imports from Iraq were valued at $8.5 billion in 2004, mainly petroleum.

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3. Promote expansion of bilateral trade through thc U.S.-Iraq Business Dialogue,

as well as bilateral exchanges, such as trade promotion activities and access to

Export-Import Bank programs.

iraq business dialogue is a huge happening as well as the export-import bank programs. lets tackle the former and then the latter. i pulled pertinent information from one of the meetings.]

=======================================================

Remarks at the Dialogue on Business and Investment Climate in Iraq

http://iraq.usembass...m_11012008.html

U.S. Ambassador to Iraq, Ryan Crocker; U.S. Deputy Secretary of the Treasury, Robert M. Kimmitt; U.S. Deputy Secretary of Commerce, John J. Sullivan

Even as we seek to stabilize the major economy's financial markets, we continue to focus attention on supporting emerging markets, including Iraq, at this time of global stress.

Without economic progress and sound financial practices, political and security gains will remain temporary. This is why the U.S. government is committed to working alongside the

Iraqi leadership to help create a stable macro-economic environment, strengthen the financial system, and build a solid foundation for private sector growth.

[please do not let it escape you what the first line implies. attention is focused on iraq in this time of global stress. why? because iraq must become a major player in helping stabilize the global financial market. this is not the first we have heard this. remember the speech by christine legard calling upon emerging markets to help support a failing global economic system?]

First, Iraq itself has made significant progress implementing a sound macro-economic framework. Their accomplishments include: establishing a strong and respected currency, lowering inflation, improving fiscal policies, attaining consistent growth, and reducing subsidies. Iraq has also passed an important investment law that will help lay the legal basis for foreign investment in the country. And it has maintained a trade regime built on a simple, low-tariff schedule.

Second, agencies from across the U.S. government, many of whom are represented here today, are implementing initiatives to support Iraq's private sector development. For instance, the Treasury Department is providing technical assistance and guidance to help Iraq modernize its public banking sector. The Department of Defense's task force to improve business and stability operations in Iraq focuses on encouraging industrial revitalization, attracting foreign investment and market access, and modernizing the private banking sector....

The Overseas Private Investment Corporation, through programs like the Iraq Middle Market Development Foundation, has created loan programs to support small and middle market business initiatives. Because in Iraq, like in the United States, it will be small and medium-sized businesses that create the majority of good-paying jobs.

[so we see that this is not all just talk. there are special programs currently functioning to stimulate small and middle market business initiatives in iraq. we are seeing the united support through loans iraq's emergence both on a macro level as well as a micro level and everything inbetween. this is taking place today....not talks about what might take place in the future. in order to sustain a working economy, the small, medium sized and agri-business must thrive. this is where the bulk of the jobs are created.]

Iraq Middle Market Development Foundation

http://www.immdf.org...=267&tabindex=0

Welcome to the Iraq Middle Market Development Foundation (IMMDF)!

IMMDF is a not-for-profit commercial lending organization that operates exclusively in Iraq. We provide commercial loans between $35,000 and $2,500,000 to privately owned

Iraq companies in Iraq.

Our organization’s goal is to provide loans to businesses in Iraq that would not otherwise be able to secure financing on reasonable terms as a means of stimulating employment

growth and the reconstruction of Iraq.

Products

IMMDF offers multiple types of lending products to Iraq commercial enterprises:

Middle Market Enterprise (MME) Loan

IMMDF’s MME loan product ranges from $500,000 to $5,000,000. The loan can be used for the purchase of equipment and/or working capital with a maximum maturity of 5

years.

Small and Medium Enterprise (SME) Loan

IMMDF’s SME loan product ranges from $35,000 to $500,000. Loan proceeds can be used for the purchase of equipment and/or working capital with a maximum maturity of 5

years.

Agribusiness Loan

IMMDF’s Agribusiness loan product ranges from $35,000 to $2,000,000. The loan must be used to purchase equipment and/or working capital specifically related to agricultural

production.

Third, and finally, the international community as a whole has also helped Iraq rebuild its economy. At the Madrid Donor's Conference in 2003, 45 countries and international

institutions pledged $34 billion for reconstruction and development. In the international compact with Iraq, agreed in Sharm El-Sheikh in 2007, an even larger group of donors provided additional support in return for Iraq's commitment to multiple benchmarks to create an enabling environment for private investment and job creation. In the United Nations and World Bank, both manage the international reconstruction fund facility for Iraq, into which donors have contributed almost $80 million focused on private sector development.

DEPUTY SECRETARY SULLIVAN: .......As Ambassador Crocker said, this is a dialogue. There is much to learn on the American side, as there is on the Iraqi side. One thing I have learned is that American companies want to do business here in Iraq. In fact, they have been doing business here in Iraq, through U.S. or Iraqi government contracts, or Iraqi representatives. But U.S. investment in business here in Iraq is not nearly as robust as it should be, because more needs to be done to improve the environment, the climate, for business and investment.

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[and now if programs like IMMDF were not enough to encourage economic growth, we must consider the export-import banks. exclusive loans are granted through the EIB to the private & public sectors of iraq. and get this, the loans are 100% guaranteed of commercial and political risks! i hope everyone is grasping the level of promotion going on here.

the united states is saying, "take whatever you need to get your economy booming! we will back you." when they say the words "cooperation" "maximum effort" "mutual relationship", they mean it in ever sense of the words. this means that the united states are extremely confident of a tremendous return on investment. if the united states is this confident, shouldn't we be?]

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Export-Import Bank support for U.S. Exports to Iraq

http://www.exim.gov/...s/iraq/iraq.cfm

“Our recent policy changes in Iraq will allow us to support more U.S. export opportunities and mirrors our commitment to assist wherever our support is needed in promoting quality American goods and services around the world” – Fred Hochberg, Chairman, Export-Import Bank of the U.S.

The increasing signs of stability and security in Iraq have opened new opportunities for financing into the market. Ex-Im Bank is open to transactions in both the public and private sectors for tenors typically up to 5 years (7 years on an exceptional basis). Financing options available include:

Insurance

Reduces nonpayment risk on transactions involving U.S. goods & service exports.

Loan Guarantees

Guarantees 100% of commercial and political risks on commercial bank loans to Iraqi public or private sector borrowers or financial institutions.

Direct Loans

Provides direct funding to Iraqi public or private sector borrowers or financial institutions.

Third Party support

Where the buyer and end-user are Iraq entities, Ex-Im Bank can consider transactions where the borrower or guarantor is a creditworthy entity in a country where Ex-Im Bank is fully open (e.g. Bahrain, Jordan, Kuwait, etc.)

Requirements

In keeping with Ex-Im Bank’s credit standards, information criteria and requirement to find that a “reasonable assurance of repayment” is present in each transaction it supports, Ex-Im Bank will likely consider transactions that conform to the following (please see the Bank's Country Limitation Schedule)

Public sector transactions that convey the full faith and credit of the Government of Iraq, are identified as being of the highest priority to the Government and conform with any limits on non-concessional borrowing

Private sector transactions Ex-Im Bank with financial institutions or other entities which are able to provide detailed financial information sufficient to enable Ex-Im to reach a credit conclusion. Financial statements provided in support of the transaction should be audited by an affiliate of an international accounting firm and prepared in accordance with

International Financial Reporting Standards (IFRS).

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[its too funny because at this point (doubting that anyone would even have read down this far in my dry post but) i know people are shaking their heads at the levels of support extended to rebuilding iraq's economy. and we haven't even covered OPIC yet! that is when it will become simply hilarious.]

4. support lraq’s further integration into regional and international financial and

economic Communities and institutions, including membership in the World

Trade Organization and through continued Normal Trade Relations with the

United States.

5. Reinforce international efforts to develop the Iraqi economy and Iraqi efforts

to reconstruct, rehabilitate, and maintain its economic infrastructure, including

continuing cooperation with the Overseas Private Investment Corporation.

[here i took the liberty of filtering out only iraqi data from the years 2005-2011.]

=======================================================

The U.S. Government's Development Finance Institution

OPIC mobilizes private capital to help solve critical development challenges and in doing so, advances U.S. foreign policy. Because OPIC works with the U.S. private sector, it helps U.S. businesses gain footholds in emerging markets, catalyzing revenues, jobs and growth opportunities both at home and abroad. OPIC achieves its mission by providing investors with financing, guarantees, political risk insurance, and support for private equity investment funds.

2005 Middle East IRAQ Finance IRAQ MIDDLE MARKET DEVELOPMENT FOUNDATION

Cooperative Housing Foundation

Loans to Middle Market Enterprises

$46,000,000

2006 Middle East IRAQ Insurance Khudairi Trading Company Ltd.

KHUDAIRI, AZIZ

construction equipment, generators, transformer substations

$6,003,000

2008 Middle East IRAQ Finance IRAQ MIDDLE MARKET DEVELOPMENT FOUNDATION

Iraq Middle Market Development Foundation

Support SME and Agricultural Loans

$10,000,000

2009 Middle East IRAQ Finance IRAQ MIDDLE MARKET DEVELOPMENT FOUNDATION

Iraq Middle Market Development Foundation

Expansion of SME Loan Portfolio

$19,000,000

2009 Middle East IRAQ Finance SUMMIT HOTELS LIMITED/SUMMIT GLOBAL GROUP

Diana Dane Dajani/Robert K. Kelley

International Business Class Hotel

$50,000,000

2010 Middle East IRAQ Finance AL TAMWEEL AL SAREE LIMITED

Cooperative Housing Foundation

Fund Microfinance or SME Downstream Loans

$90,000,000

2010 Middle East IRAQ Insurance International Rescue Committee

INTERNATIONAL RESCUE COMMITTEE

humanitarian activities and services

$212,065

2011 Middle East IRAQ Finance NORTHERN GULF RENTALS LIMITED

Northern Gulf Partners, LLC

Heavy equipment leasing

$20,500,000

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[so we have established in our minds the exorbitant sums of monies flowing into iraq to reconstruct the country. this is where things take an interesting twist. the united states within the body of its bilateral agreement with iraq now makes room within the same contract for the international community. i believe it was genius for the united states to do this. pulling iraq into a compact with the international community did nothing less than sure up its investment with another level of contractual security.

next to the SFA, i don't believe there is another agreement as critical to our investment than 'The International Compact With Iraq' for this is where the united states integrates iraq into the international economy. there is no way i could expound entirely on this agreement. i will however highlight a few points.]

6. Urge all parties to abide by commitments made under the International

Compact with Iraq with the goal of rehabilitating lraq’s economic institutions

and increasing economic growth through the implementation of reforms that

lay the foundation for private sector development and job creation.

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FACT SHEET ON THE INTERNATIONAL COMPACT WITH IRAQ

http://www.un.org/Ne...ote6078.doc.htm

United Nations Secretary-General Ban Ki-moon will co-launch with Iraqi Prime Minister Nouri al-Maliki the International Compact with Iraq in Sharm el-Sheik, Egypt, on 3 May:

What is the International Compact with Iraq?

The International Compact with Iraq is an initiative of the Government of Iraq for a new partnership with the international community. The Compact is a five-year national plan that includes benchmarks and mutual commitments from both Iraq and the international community, all with the aim of helping Iraq on the path towards peace, sound governance and economic reconstruction.

...

has also had the support of the World Bank.

...

The Compact affirms the Iraqi Government’s vision that, in five years, Iraq shall be a united, federal and democratic country, at peace with its neighbours and itself, well on its way to sustainable economic self-sufficiency and prosperity, and well integrated in its region and the world

....

The International Compact is premised on a reciprocal relationship between peacebuilding and economic prosperity... Iraq’s international partners will provide financial, technical and political support to help meet these challenges on the basis of mutual commitments.... Representing a negotiated agreement among United Nations Member States and the Government of Iraq, the Compact tries to provide a way forward. This has been developed with the support of the United Nations and World Bank, through genuine, multilateral consultation and due diligence in all respects.

Role of Government of Iraq

-- To achieve this vision, the Government of Iraq undertakes to make progress on political inclusion and consensus-building, on the rule of law and on the establishment of professional security forces. The Government of Iraq is committed to tackling corruption, creating a transparent and efficient oil sector, developing a solid budgetary framework, improving governance and building and consolidating effective national institutions. The United Nations is committed to support and facilitate the Compact, through its Mission and agencies in Iraq and the good offices of the Secretary-General and his representatives.

-- The Government of Iraq ... will, therefore, make every effort in the coming period to realize these conditions, with the assistance of regional and international partners, in order to achieve the Compact’s primary focus: building a framework for Iraq’s economic transformation and integration into the regional and global economy.

Role of United Nations

-- The Compact initiative is co-chaired by the Government of Iraq and the United Nations. Other partners include the World Bank, the International Monetary Fund (IMF) and other regional financial institutions.

-- The United Nations will support establishing a formal Secretariat for the Compact, working closely with the Office of the Deputy Prime Minister, as the focal point of the Government.

=======================================================

7. Facilitate the Ílow of direct investment into Iraq to contribute to the

reconstruction and development of its economy.

8. Promote development of the Iraqi electricity, oil, and gas sector,

including the rehabilitation of vital facilities and institutions and strengthening

and rehabilitating Iraqi capabilities.

9. Work with the international community to help locate and reclaim illegally

exported funds and properties of Saddam Hussein’s family and key members

of his regime, as well as its smuggled archeological artifacts and cultural

heritage before and after April 9, 2003.

10. Encourage the creation of a positive investment enviroment to modernize

Iraq’s private industrial sector to enhance growth and expand industrial

production including through encouraging networking with U.S. industrial

institutions.

I1. Encourage development in the fields of air, land, and sea transportation as well

as rehabilitation of Iraqi ports and enhancement of maritime trade between the

Parties, including by facilitating cooperation with the U.S. Federal Highway

Administration.

12. Maintain an active dialogue on agricultural issues to help Iraq develop its

domestic agricultural production and trade policies.

13. Promote access to programs that increase farm, iirrrl, and marketing

productivity to generate higher incomes and expanded employment, building

on successful programs by the USDA and the USAID programs in

agribusiness, agriculture extension, and policy engagement.

[unfortunately for the sake of time and pure weariness my friends, i really don't have the fuel to touch hit on point 13. it is just too overwhelming.]

I4. Encourage increased Iraqi agricultural exports, including through policy

engagement and encouraging education of Iraqi exporters on U.S. health and

safety regulations.

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[summary - well i believe i have exhausted myself and my audience with this section but i think it was well worth it. the point i am attempting to get across is the amount of work going on behind the scenes that we do not hear or read about in any of the press. also, because we don't know what to look for many times, headlines may pop up and disappear highlighting these events but some of us are none the wiser (including myself). now however we are better informed. when we see names like OPIC, IMMDF, Ex-Im Bank and the like popping up on the radar screen, we will greet it with increased excitement.

the non-iraqi investors should be extremely encouraged to see this level of unprecedented support being extended to iraq, and, if i've done my job right, they are. i have one more post to go before i wrap up this study. thank you for hanging on with me through this my friends.

blessings to you all.]

[fastarnie]

Wow! I just want to thank you for your efforts in these reports you have been putting out.

[bamjack75]

Trinity,

It is your work and effort that helps me remain confident in this investment. As I have read through all of your information, the recurring theme to me is; Iraq is like no other country in history that has had so much invested, by so many. My belief is that this will translate into their currency and we will see a favorable result. Thank you again for all of your hard work and incredible insight.

[TrinityeXchange]

thanks for those encouraging words my friends.

btw i forgot to add a link on the DEC (Dialogue on Economic Cooperation). i always want to keep it clear that our investment is based in sound policy and contractual agreement, not otherwise.

link to unclassified information

hereis a 2nd link as well. released to the public august 30th 2011, created october 20th 2008.

[Maggie123]

Once Again... Thank You Trinity

[Shelley]

Thank you so much Trinity, it's great how you can make it so understandable and much more acceptable to have patience

[Carrello]

Trinity, thank you for your time and efforts to share your research. It is this kind of information that gives us additional confidence not only in our IQD investment, but a better understanding of what our government is doing in our name with our dollars, although we should pay attention as a taxpayer, but nonetheless, and it would be a daunting task.

I believe we as a government handed the keys to Iraq when we left in the hope that they would do the right thing to get their country on track because they had been given the tools to do so. But no. With a committment such as you have shown for the success of Iraq, I can see why the US entourages are in Iraq at this moment, and many more than I am certain we have know nothing about. Shape up boyz is probably the message, or else.

Between the SFA and the SIGIR, our committment is shown, and right at the moment, I feel like 'yes, I will take a little payback' as a taxpayer. I just hope that our military folks will reap benefits from this first investment.

If you follow either of these documents, you get a road map for your own Iraqi investments in the ISX. BTW Trinity, did you catch this one on Zain yesterday?

With much regard, Trinity, and thank you again.

[Laid Back]

Trinity, thank you for bringing all this information....This is Awesome.!!!

Go RV sooner than later.

[tjnies]

Thank you Trinity!

These four posts of yours have been the most interesting and motivating I have read on this site to date. It provides us ( in my humble opinion ) with irrefutable proof that we have made a solid investment.

I appreciate all the time you have taken on this project and look forward to reading more if you so choose to write!

[jerryskinz]

trinity your work on the agreement has been nothing short of outstanding!! Thank you for not only pouring over this lengthy document but taking the time to come on here and post about it and break it all down is tremendous. People like you are the ones who ( when this finally comes to fruition) will benefit for many generations from the RV of this currency. It is people like you who got me interested in this investment and who continue to keep me interested when I could have dumped it along time ago. BRAVO Trinity and thank you.

[Carrello]

Trinity, don't miss this additional news article on the SFA:

[TrinityeXchange]

Trinity, don't miss this additional news article on the SFA:

http://dinarvets.com...and-washington/

thanks Carrello. i finally had time to comment. see the latest news out about the united states presenting evidence of recorded phone messages and satellite pictures of maliki's involvement with iraq and syria. this is amazing stuff. after maliki was found out, he quickly "activated" the SFA since he had breached it. either this idiot will play ball now or he will be ousted in order to save the democracy. iraq is receiving too many funds to allow one numbskull to muck it all up.

ps. thank you my friends for all of the kind words about the post. i am happy to add some slight value to a great community of people. much love!

[Madmax67]

thanks for those encouraging words my friends.

btw i forgot to add a link on the DEC (Dialogue on Economic Cooperation). i always want to keep it clear that our investment is based in sound policy and contractual agreement, not otherwise.

link to unclassified information

hereis a 2nd link as well. released to the public august 30th 2011, created october 20th 2008.

The big problem is the links that you supply are not real reputable web sites. We need to see a government say this is going to happen, not some guy that spent $9.99 on a domain name.

[TrinityeXchange]

The big problem is the links that you supply are not real reputable web sites. We need to see a government say this is going to happen, not some guy that spent $9.99 on a domain name.

sorry madmax67, but i am not following you though i would really like to help you. the links you quoted are wikileaks cables true however, other than that link, i believe every link i've provided throughout this study in the SFA is authentic. are you sure that you've been reading my material?

additionally the Dialogue on Economic Cooperation is part of the federal agenda. have you googled it? i'm sorry, but i really don't know how to help you any more than i have already tried.

[fastarnie]

You doing this work is more than a slight help. These breakdowns/reports take time. I know my time is valuable, and I'm sure it took a lot of time to do four reports with more on the horizon. Again, Thank You. Every little bit helps, but this was not just a little bit.

[pattyangel]

TrinityeXchange, I mostly sit behind the scenes on the Iraqi articles. But I had to let you know you are one amazing individual that do fabulous research and presenting it to us.

You have my appreciation in all you do.

[SWFloridaGuy]

Thanks Trinity, you rock.

[hame55]

sorry madmax67, but i am not following you though i would really like to help you. the links you quoted are wikileaks cables true however, other than that link, i believe every link i've provided throughout this study in the SFA is authentic. are you sure that you've been reading my material?

additionally the Dialogue on Economic Cooperation is part of the federal agenda. have you googled it? i'm sorry, but i really don't know how to help you any more than i have already tried.

DUDES AND DUDETTES....

Wikileaks is profoundly viable as a reputable website source - they are probably the best real sources of info, unfiltered by the MSM (mainstream media) ANYWHERE.

I teach university research classes and have deep undergrad political background with later experience as self-taught and as NGO coordinator.

Believe it.