Britain to close consulate in Iraq's Basra

Britain is to announce the closure of its full consulate in Iraq's second city, according to reports. The Foreign Office will keep an office in Basra in southern Iraq, but there will be no permanent staffing, the BBC said. The decision has reportedly been condemned by British business leaders with investments in the area, who have claimed that Britain risks losing major infrastructure projects as a result of the move. Former Foreign Office minister David Mellor also attacked the closure, saying it was "short-sighted" and "deeply damaging" to British interests. Ministers are expected to argue that British interests in the oil-rich south of the country will be protected by increased staffing at the embassy in Baghdad. Diplomats and trade officials will fly down from Baghdad when needed, and the embassy in the capital will be built up. Foreign Secretary William Hague is expected to say that the new arrangements will be more effective and save a large part of the £6.5 million a year costs of the current consulate. But the BBC said that some British business representatives have claimed that Chinese and Korean entrepreneurs will now secure more of the major infrastructure projects in southern Iraq. They have said that Britain risks losing vital relationships with Iraqis who often favour those who fought against Saddam Hussein, rather than the Chinese, who opposed invasion. British troops spent six years in Iraq after the fall of Saddam Hussein in 2003, handing over control of their base in Basra to US forces in April 2009 and ending combat operations with a sombre remembrance service for the 179 UK servicemen and women killed in the conflict. A Foreign Office spokeswoman said: "The Foreign Secretary will be laying a written ministerial statement today on the FCO's (Foreign and Commonwealth Office's) work in Iraq." Baroness Nicholson, executive chairman of the Iraq Britain Business Council, told BBC Radio 4's Today programme: "I regret the announcement that is coming out today. I hope it is a step sideways and not a step backwards. The British business presence down in Basra is absolutely critical."