U.S. Department of the Treasury

Mr. William J. McDonough

President

Federal Reserve Bank of New York

New York , NY 10045

Dear Mr. McDonough:

In Executive Order _____ of [INSERT DATE OF PRESIDENTS ORDER],

the President vested in the United States Department of the Treasury

all right, title, and interest in certain blocked property of the

Government of Iraq and certain identified agencies, instrumentalities,

or controlled entities. A copy of this Executive Order is enclosed.

The President authorized me to take additional steps to carry out

the purposes of that Executive Order. Accordingly, you are hereby

notified that, subject to the exceptions indicated in the Executive

Order, all blocked funds held in the United States in accounts at your

bank and at other financial institutions in the name of the Government

of Iraq , the Central Bank of Iraq, Rafidain Bank, Rasheed Bank, or the

State Organization for Marketing Oil (the Vested Assets) have been

vested in the United States Department of the Treasury.

The Department of the Treasury desires to consolidate the Vested

Assets into a new account at the Federal Reserve Bank of New York (the

FRBNY). Pursuant to Section 15 of the Federal Reserve Act, the FRBNY

is hereby authorized and directed, as fiscal agent of the United

States, to take the following actions in connection with the proposed

consolidation :

1. Establish a new account on its books in the name of the U.S.

Treasury Special Purpose Account (the Account) as a sub-account of

the existing Treasury General Account on your books;

2. Transfer Vested Assets, if any, currently held in fiscal agency

or other accounts on FRBNYs books into the Account, and close such

fiscal agency accounts.

3. Receive Vested Assets into the Account from other financial

institutions in accordance with directive licenses issued by the

Department of the Treasurys Office of Foreign Assets Control to those

financial institutions; and

4. Hold and manage the Vested Assets in the Account in the same

manner as the Treasury General Account until the FRBNY receives further

instructions from the Department of the Treasury. Until advised

otherwise , instructions relating the Account shall come from Donald V.

Hammond, Fiscal Assistant Secretary of the Department of the Treasury.

Questions relating to the Account may be directed to Mr. Hammond.

The FRBNY will incur no liability in connection with any acts,

arrangements , or agreements entered into or performed in accordance

with this authorization, except for its own negligence, bad faith, or

willful misconduct. The Treasury will reimburse the FRBNY for any

losses , damages, judgments or costs, and other necessary expenses,

including any out-of-pocket expenses and customary charges, incurred by

the FRBNY with prior approval of the Treasury, in connection with any

acts , arrangements, or agreements entered into or performed in

accordance with this letter.

Sincerely,

John W. Snow

Secretary of the Treasury

Enclosures