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1 (April 11, 2005)

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                                                                  Order Code  RS21867
                                                                  Updated April 11, 2005



 CRS Report for Congress

               Received through the CRS Web



                     U.S. Embassy in Iraq

                             Susan  B. Epstein
                  Specialist in Foreign Policy and Trade
               Foreign Affairs, Defense, and  Trade  Division

Summary


     The Bush Administration is in the process of establishing new embassy facilities
 in Baghdad and regional offices throughout Iraq. The President has requested more than
 $1.3 billion in the FY2005 supplemental request for the logistical, security and
 construction costs associated with the embassy. On March 16, 2005, the House passed
 an emergency supplemental appropriation (H.R. 1268) which includes $592 million for
 Embassy Security, Construction, and Maintenance only if deemed an emergency, and
 reporting requirements of the Secretary of State on project-by-project uses of the funds
 in the bill. In 2005, even before it is built and fully staffed, this embassy is among the
 largest of State Department's overseas missions. As of June 28, 2004, sovereignty
 officially was transferred to the Iraqi interim government. At the same time, the lines
 of U.S. government authority in Iraq were transferred from the Department of Defense
 (DOD), the Coalition Provisional Authority (CPA), and Ambassador Bremer to the
 Department of State (DOS), the American Embassy in Baghdad, and newly confirmed
 Ambassador Negroponte. This report discusses reestablishing normal diplomatic ties
 with Iraq and setting up the new embassy facilities and regional teams. It will be
 updated as changes occur.


 Background

    From  July 17, 1979, when Saddam Hussein first came to power in Iraq, until just
prior to the beginning of Operation Desert Storm in January 1991, the United States had
full diplomatic relations with Saddam Hussein's government. On January 12, 1991, four
days before Operation Desert Storm, the United States closed its embassy doors in
Baghdad. At the time of its closing, the U.S. Embassy in Baghdad maintained a staff of
approximately 50 and an annual budget of $3.5 million. From 1991 until 2004, the
United States did not have diplomatic relations with Iraq.

    With Saddam  Hussein removed from power and the United States and its partners
militarily occupying the country, the Bush Administration handed over government self-
rule to the Iraqis on June 28, 2004. Part of the transition toward self-rule for Iraq is also
a transition for the United States from being a military occupier to reestablishing normal
diplomatic ties with an independent Iraq.

       Congressional   Research  Service +  The Library of Congress

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