Identifier
Created
Classification
Origin
02KUWAIT5416
2002-12-17 08:28:00
SECRET
Embassy Kuwait
Cable title:  

(S) KUWAIT 2003 ANNUAL REPORT TO CONGRESS ON

Tags:  PREL MCAP MARR MASS KU 
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S E C R E T SECTION 01 OF 06 KUWAIT 005416 

SIPDIS

STATE FOR PM/B, NEA/ARP

E.O. 12958: DECL: 12/16/2012
TAGS: PREL MCAP MARR MASS KU
SUBJECT: (S) KUWAIT 2003 ANNUAL REPORT TO CONGRESS ON
ALLIED CONTRIBUTIONS TO THE COMMON DEFENSE

REF: STATE 219916

Classified By: (U) AMBASSADOR RICHARD H. JONES; REASON 1.5 (A, D)

S E C R E T SECTION 01 OF 06 KUWAIT 005416

SIPDIS

STATE FOR PM/B, NEA/ARP

E.O. 12958: DECL: 12/16/2012
TAGS: PREL MCAP MARR MASS KU
SUBJECT: (S) KUWAIT 2003 ANNUAL REPORT TO CONGRESS ON
ALLIED CONTRIBUTIONS TO THE COMMON DEFENSE

REF: STATE 219916

Classified By: (U) AMBASSADOR RICHARD H. JONES; REASON 1.5 (A, D)


1. (S) Note on classification: Kuwait's extensive support for
U.S. and allied security forces in the country is extremely
sensitive domestically and within the region.
While all of the figures in the unclassified and the
sensitive but unclassified sections of this report are from
unclassified sources, the assembled data -- necessary to

SIPDIS
portray to Congress the breadth of Kuwaiti support -- could
be misused. Addressees should conform
strictly to classification guidelines in the distribution of
this information. End note.


2. (U) POC for questions regarding this report is PolOff Gene
Del Bianco , 965-539-5307 ext. 2533 (office),538-0282 (fax),
DelBiancoGJ2@state.gov. Information in this report is
current as of December 15, 2002.

--------------
TEXT OF REPORT
--------------


3. GENERAL ASSESSMENT:


A. IMPORTANT POLITICAL AND ECONOMIC DEVELOPMENTS

A1. (S) Kuwait's strong commitment to shared U.S. security
objectives remained firm in 2002. There was no diminution in
the Iraqi threat, which remains the GOK's number one concern.
Kuwait provided critical support throughout 2002 for
Operation Southern Watch (OSW) and other AOR operations
including Operation Enduring Freedom (OEF). Reliance on U.S.
security forces remained key to Kuwaiti national security.
Kuwaitis continue to believe that their security and freedom
as a nation depend on continued U.S. presence in the Gulf and
in Kuwait.

A2. (C) The continued violence between the ISRAELis and
Palestinians remains a significant concern of the GOK.
Although support for U.S. military cooperation remained as
strong as ever, the GOK did take steps to downplay media
spotlighting of the security relationship. Behind the
scenes, however, Kuwait offered unstinting support for the
U.S. military, particularly in the areas of force protection
and military assets allocation.

A3. (SBU) Kuwait is participating in the GCC Mutual Defense

Agreement.

A4. (U) Strong oil prices in 2002 generated a significant GOK
budget surplus. The official FY02 budget figure listed for
defense spending by the GOK Ministry of Defense is
569,193,000 Kuwaiti Dinar (KD) (USD 1.88 billion at
1KD=$3.3). The overall GOK official national budget for FY02
is 3,521,650,000 KD. (USD 11,621,445 billion at 1KD=$3.3).
GOK defense spending is approximately 16.16 percent of the
GOK FY02 national budget.



B. MAJOR DEVELOPMENTS IN DEFENSE POLICY:
B1. (U) The GOK's support of the United States since the
September 11 attacks has been immediate and robust. This
includes increased security for U.S. DOD and DOS
installations and personnel, approval for substantial
additional force deployments, and basing.

B2. (SBU) The GOK has moved forward on four major Foreign
Military Sales (FMS) programs.

B2.1 (SBU) A Letter of Acceptance (LOA) for 16 AH-64D Apache
helicopters and 8 Longbow Fire
Control Radars was signed by the GOK on 31 August, 2002. The
request also embraces the Total Package Approach (TPA) for
program support. Total package is estimated at nearly USD
1.2 billion.

B2.2 (SBU) The GOK is expected to sign an LOA by April 2003
for the 71 meter AEROSTAT system with TPS-63 radar. The
total package is estimated at approximately $110 million.

B2.3 (SBU) The GOK is expected to sign a Letter of Acceptance
(LOA) in early 2003 for F/A-18 AMRAAM purchase. The LOA
estimated value is $50m. The LOA is for 80 AMRAAM
AIM-120C-5. In addition to missiles, the purchase will
provide related test equipment to the Kuwait Air Force in
support of the F/A-18 program.

B2.4 (SBU) Kuwait is also considering the purchase of surface
launched AMRAAM, the estimated program value is $333 million.

B3. (S) Kuwait has allowed U.S. forces to utilize the
following areas and facilities.

B3.1 (S) Camp Doha. The Coalition Forces Land Component
Command (CFLCC) Headquarters is based at Camp Doha as well as
approximately 6,200 Military and civilian personnel and
associated equipment.

B3.2 (S) Camp Arifjan. Newly constructed for and occupied by
U.S. Military forces, Camp Arifjan supports theater logistics
requirements and currently houses 1,646 Military and civilian
personnel.

B3.3 (S) Commando Camp. A portion of the Kuwaiti Commando
Camp has been recently occupied by the Headquarters of the
1st Marine Expeditionary Force (I MEF). The camp currently
houses approximately 1,000 Marines.

B3.4 (S) Kuwait Navy Base (KNB). KNB is currently being
enhanced to provide a Joint Logistics Over the Shore (JLOTS)
capability for U.S. forces. There are approximately 50
personnel at KNB.

B3.5 (S) Ahmed Al-Jaber Air Base is home to the USAF 332nd
Air Expeditionary Wing (AEW) and approximately 2,400 U.S.
Military personnel.

B3.6 (S) Ali Al-Salem Air Base is home to the USAF 386th AEW
and 1,600 U.S. Military and civilian personnel, and 491
British Royal Air Force Personnel.

B3.7 (S) Desert Camps. There are currently five desert camps
that are used by CFLCC forces for basing and support. Kuwait
has approved plans to establish more camps as necessary in
support of the defense of Kuwait.

B3.8 (SBU) Desert Training Areas. U.S. forces have access to
approximately 25% of Kuwait,s total land area for training,
including areas for maneuver and live-fire training. In
addition, Kuwait has recently made these areas off-limits to
its own citizens (unless on official business) in order to
increase security for U.S. Military forces.

B4. (S) Kuwait was one of the few regional countries to allow
U.S. Air Force strike aircraft to launch offensive operations
into Afghanistan. The GOK approved all OEF-related requests.

B5. (S) The GOK agreed to the designation of the Kuwait Armed
Forces Hospital (KAFH) as a casualty reception facility in
support of OEF. The CFLCC has deployed a 120-person Combat
Support Hospital with equipment to staff specific wards and
specialty clinics
at KAFH to provide Level III medical capabilities in
combination with the Kuwaiti staff.

B6. (S) The extent of U.S. military deployments to Kuwait is
unparalleled in the region. The normally robust Kuwait-U.S.
military bilateral exercise program was substantially reduced
earlier in 2002 due to U.S. operational commitments.
However, coalition training continued with the Intrinsic
Action Task Force, Patriot units, Exercise Lucky Sentinel,
and various small-unit training collaborations. Currently,
Exercise INTERNAL LOOK (IL) is being held in Kuwait and
elsewhere in the region. The exercise brings the tactical
headquarters of 5th Corps (V Corps),3rd Infantry Division,
and I MEF to conduct a computer simulation of war in the
region. The GOK Ministry of Defense is taking part as
appropriate in some aspects of the exercise.

B7. (S) As of December 15, U.S. troops in-country number
approximately 16,630. The personnel are distributed as
follows:

(1) U.S. Army: 11,000.

--(S) CFLCC: The OEF Coalition Forces Land Component Command
(CFLCC) comprises the U.S. Army Central Command (ARCENT)
headquarters in Kuwait. It was activated on November 20,
2001 at Camp Doha, Kuwait. Currently numbering over 850
personnel, the CFLCC controls all land operations in the
CENTCOM Area of Responsibility with the exception of
coalition joint operations area Afghanistan (CJOA AFG). It
also has responsibility for Operation Desert Spring (ODS) in
Kuwait.

--(S) Operation Desert Spring (ODS)is the permanent presence
of a mechanized/armored task force of over 1200 soldiers and
a U.S. Army Special Forces Company. For OEF, U.S. Central
Command (CENTCOM) also deployed an additional Brigade Combat
Team of approximately 2,200 soldiers. Deployment numbers
continue to increase as additional forces are added to the
CJFLCC staff and BCT.

--(S) Other Army Forces in Kuwait include: The 377th Theater
Support Command (TSC)currently numbering 432 personnel at
Camp Arifjan. The TSC provides logistical support and
reception, staging and onward movement and integration of
component forces arriving in theater; an Aviation Brigade
Headquarters, an Attack Aviation Battalion, and an Aviation
Maintenance Battalion are also currently stationed in Kuwait.
Current Army aviation assets in country include, 32 AH-64
Apache attack helicopters, and 13 UH-60 Blackhawks. The
513th Military Intelligence Brigade, consisting of 450
personnel; three Patriot air defense batteries with a 50
soldier infantry detachment that provides security; two
logistics support vessels; and a Multiple Launcher Rocket
System (MLRS) field artillery battalion. Other Army forces
include: engineer, chemical, military police, transportation,
signal, and public affairs units.

(2) U.S. Air Force: 4,000.

-- (S) Operation Southern Watch (OSW) continues to enforce
the southern no-fly zone in Iraq, flying from Ahmed Al-Jaber
AB (332nd Air Expeditionary Wing) and Ali Al-Salem AB (386th
AEW). The 332nd AEW currently includes 24 strike aircraft
(F-16 and A-10) and various Combat Search and Rescue
packages. The 386th AEG includes various lift aircraft, 6
Predator unmanned aerial vehicles and the Command and
Reporting Center (CRC) for command and control and early
warning. It is tied to the Kuwait Air Operations Center for
integrated air defense capability involving three American
and five Kuwaiti Patriot Batteries.

-- (S) Operation Enduring Freedom (OEF) continues to employ
strike aircraft from the 332nd AEW at Al-Jaber AB in order to
conduct strike operations in Afghanistan, including currently
F-16CG aircraft. Intra-theater lift (C-130's and
occasionally C-17's) are based at Al-Salem
AB, and some Predator UAV flights into Afghanistan are
controlled by the 386th AEW via satellite link-up.

(3) U.S. Navy Special Warfare: 130.

-- (S) There are approximately 130 SEAL personnel at Camp
Doha, with 8 boats, stationed at the Kuwait Naval Base in
support of Multi-national Maritime Interdiction Operations
(MIO). The SEAL units conduct non-compliant boardings of
vessels smuggling Iraqi oil, in support of
United Nations Security Council Resolutions on Iraq.

(4) U.S. Marine Corps: Currently 1,500.

-- (S) I MEF FWD Tactical Command Post - currently occupying
Commando Camp and participating in Exercise INTERNAL LOOK.

-- (S) CENTCOM's Coalition Joint Task Force - Consequence
Management (CJTF-CM) is headquartered at Camp Doha with an
interagency staff and an initial reaction force
comprising a Marine Amphibious Group Task Force headquarters
as well as specialist units from the USMC and the Czech and
German Armed Forces. CJTF-CM conducts combined and joint
consequence management operations in support of the
Department of State in its response to a host nation request
for help in reducing the effects of a known or suspected
deliberate or inadvertent release of chemical, biological,
radiological or nuclear contamination, or the use of high
explosives (CBRN-E) within CENTCOM's area of responsibility.


C. GRANT AID, PEACEKEEPING, HUMANITARIAN OPERATIONS, AND
COUNTERPROLIFERATION AND NUCLEAR THREAT REDUCTION:

(U) Using its C-130 airlift capabilities, the GOK delivered
multiple batches of humanitarian aid items for Afghan
refugees. The GOK also contributed USD 800,000 to U.S.
relief agencies after the terrorist attacks of September 11,
and the GOK and Kuwaiti citizens raised approximately USD
eight million for Afghan
refugees.


D. HOST NATION'S CONTRIBUTIONS TO THE WAR ON TERRORISM:

(SBU) Given the nature of the threat posed by Iraq, the USG
did not ask the Kuwait Armed Forces to offer or contribute
forces to the OEF coalition. However, Kuwait's in-kind
support has been significant. The GOK has fully supported
all OEF requests. This includes block over-flight and basing
clearances for aircraft, hospital support, and bed-down of
significant force deployments, doubling the U.S. military
footprint in-country. Kuwait security forces have responded
to all requests for additional security measures to protect
U.S. government personnel and installations, working closely
with U.S. security officers on a number of force protection
initiatives, particularly following the October 8 terrorist
attack on Faylaka Island.



4. DIRECT COST SHARING:


A. (U) BURDENSHARING: USD 208,199,819 for U.S. FY2002. This
figure includes costs for base operations, supplies,
personnel support and military exercises, and is
distributed as follows:

A1. (U) BASE OPERATING COSTS: USD 128,512,051. Includes the
Combat Support Associates Contract for Camp Doha operations,
OCONUS base support, and CONUS base support.

A2. (U) SUPPLIES (NON-EXERCISE): USD 28,827,454. Includes
rations, package petroleum products, barrier material,
medical, and repair parts.

A3. PERSONNEL SUPPORT: USD 5,085,702. Includes civilian
employee pay, and travel.

A4. (U) ARIFJAN: USD 1,540,000. Arifjan is the Kuwait-
funded construction project that will serve as the Army
preposition site and logistics support base.

A5. (U) Exercises: USD44,234,612. This includes bilateral
exercises sponsored by CENTCOM and components conducted
annually in Kuwait: Intrinsic Action, Iris Gold, Lucky
Sentinel, and Eager Mace.


B. (U) ASSISTANCE IN KIND (AIK)/OTHER DIRECT OR INDIRECT COST
SHARING CONTRIBUTIONS: USD 44,775,528 (1 Kuwaiti Dinar (KD)=
$3.3). This includes the following:

B1. (U) Rents: Not Available
B2. (U) Labor: Not Available
B3. (U) Food Service: 32,185,440.
B4. (U) Utilities: 3,715,440.
B5. (U) Telecom: 264,000.
B6. (U) Laundry: 4,922,616.
B7. (U) Fuel: 3,078,852.
B8. (U) Medical: 609,180.


C. (U) FOREIGN MILITARY SALES: Payments Received At
DFAS-Denver For U.S. FY2002: USD 261,360,000.


5. INDIRECT COST SHARING:


A. (U) RENTS: All rent figures are included in direct cost
sharing figures.


B. (U) TAX CONCESSIONS/CUSTOMS/TOLLS/DUTIES:

B1. (U) OFFICIAL PURCHASES OF SERVICES, MATERIALS, AND
SUPPLIES: Tax free.
B2. (U) OFFICIAL IMPORT EXEMPTIONS: Customs fees waived for
all military imports for U.S. forces.

B3. (U) PETROLEUM/OIL LUBRICANT PURCHASES: Under direct cost
sharing.

B4. (U) TOLLS: U.S. forces are exempted from port fees and
tolls.

B5. (U) VALUE ADDED TAXES ON PERSONAL PURCHASES: VAT does
not exist in Kuwait.

B6. (U) POSTAL: All DOD and DOS personnel are serviced by an
American Air Post Office (APO),based at the American Embassy.

B7. (U) UTILITIES: Included under Direct Cost Sharing
figures. Water and electrical power provided free for all
U.S. military facilities.

B8. (U) TELECOMMUNICATIONS: Included under Direct Cost
Sharing figures.

B9. (U) MISCELLANEOUS: N/A


6. GRANT AID, PEACEKEEPING AND HUMANITARIAN ASSISTANCE,
COUNTERPROLIFERATION, AND NUCLEAR THREAT REDUCTION:


A. (U) GRANT AID: Kuwait is a major bilateral aid donor to
lesser-developed countries, particularly in the Arab world,
Africa and the Balkans. According to the latest
figures available, since March 2002, Kuwait provided 189
million KD(USD 623,700,000 dollars at 1KD=$3.3) in assistance
to the developing world through soft loans and grants. This
amount is approximately 0.5 percent of Kuwait's GDP and 1.8
percent of the GOK,s total budget.


B. (U) UN PEACEKEEPING AND OTHER HUMANITARIAN ASSISTANCE:
The Embassy has been unable to obtain the figure for Kuwait's
2001 direct foreign assistance in the form of grant aid and
humanitarian contributions in assistance to the United
Nations Iraq-Kuwait Observer Mission (UNIKOM).


C. (U) FORCE CONTRIBUTION FOR UN OPERATIONS: N/A


D. (U) CURRENT CONTINGENCY OPERATIONS: Kuwait currently
supports three Contingency Operations. Operation Desert
Spring, composed of an armored battalion task force
(currently augmented by a Brigade Combat Team) and Special
Forces company, deters Iraqi aggression against its
neighbors. Operation Southern Watch patrols the southern no
fly zone. The Multinational Maritime Interception Operation
(MIO) enforces United Nations Security Council Resolutions on
Iraq to deter Iraqi oil smuggling.

D1. (S) Operation Desert Spring: ODS includes a month of
bilateral training called Exercise Intrinsic Action three
times per year. This enables an armored/mechanized Kuwait
Land Force battalion task force to train with U.S.
counterparts and enhance their war-fighting skills.
Throughout the year, Kuwait Air Force F/A-18 aircraft
participate in Close Air Support (CAS) exercises with U.S.
Army and U.S. Air Force task forces.

D2. (S) Operation Southern Watch: OSW includes participation
by two Kuwait Air Force F/A-18 aircraft, which remain on
strip alert and scramble during a no-fly zone violation by
Iraq. The Kuwait Air Defense network and Patriot units are
integrated with the U.S. Control and
Reporting Center (CRC) at Ali Al Salem air base, sharing
portions of the air picture and early warning capabilities
with the U.S. Air Force in order to defend against tactical
ballistic missile and air breathing threats.

D3. (SBU) Maritime Interception Operations (MIO): Kuwait's
support to NAVCENT's MIO is the most active among the GCC
states. The Kuwait Navy and Coast Guard contribute 2-4
vessels to the Maritime Interception Force (MIF) during each
monthly surge, taking up a flank position while exchanging
liaison officers with the on-scene commander's vessel. Kuwait
also provides Assistance in Kind (fuel) in support of MIF
operations.

E. (U) MILITARY ASSISTANCE: N/A


F. (U) COUNTERPROLIFERATION CONTRIBUTIONS: N/A.


7. (U) GROSS DOMESTIC PRODUCT FOR 2000 AND ESTIMATED GROSS
DOMESTIC PRODUCT FOR 2001: Nominal GDP for 2001 was USD
32.666 billion and estimated GDP for 2002 is USD 33.260
billion.


8. A. (U) DEFENSE EXPENDITURES: USD 1.71 billion (Note: the
Kuwait fiscal year is April - March. This figure represents
the Kuwait FY2001 budget). The GOK budget for the Ministry
of Defense for FY 2002/3 totals 569, 193,000 KD (USD 1.88
billion at 1KD=$3.3)


B. (U) DEFENSE PERSONNEL:

B.1. (U) CIVILIANS EMPLOYED BY THE GOVERNMENT IN DEFENSE
RELATED ACTIVITIES: DIALO estimates about 3,000 civilians
are employed in various capacities in GOK defense related
activities.

B.2. (U) NUMBER OF ACTIVE DUTY MILITARY PERSONNEL:
DIALO estimates the GOK force structure to be about 26,700
personnel.

Emiri Guard (Personnel who guard the royal family and
property.)..1,100
Army..9,500
Navy..2,000
Air Force..6,500
National Guard..6,500
Coast Guard (Under Ministry of Interior Command and
Control)..1,100

B.3. (U) NUMBER OF COMMITTED RESERVES:
1100(Actual number is currently unknown.)
JONES