TFIZ01: KUWAIT-CONCERNED ABOUT LEGAL ASPECTS OF

C O N F I D E N T I A L KUWAIT 001082

SIPDIS

TASK FORCE 1 FOR EB ACTION OFFICER
STATE FOR EB/ESC AND NEA

E.O. 12958: DECL: 03/25/2013
TAGS: ECON EFIN ETTC PREL
SUBJECT: TFIZ01: KUWAIT-CONCERNED ABOUT LEGAL ASPECTS OF
UNFREEZING IRAQI ASSETS

REF: STATE 74249

Classified By: AMBASSADOR RICHARD JONES FOR REASONS 1.5 (B) and (D)


1. (U) This is an action message -- see paragraph 4.


2. (C) In a March 24 meeting with Kuwaiti Minister of State
for Foreign Affairs (and Acting Finance Minister) Shaykh Dr.
Mohammed Sabah Al-Salem Al-Sabah, Ambassador raised issue of
unblocking frozen Iraqi government assets in Kuwait for use
in humanitarian efforts, noting that the U.S. had already
decided to do this. The Minister asked what the lgal basis
was for the U.S. move, since the funds had been frozen
pursuant to a UN Secutity Council Resolution. He also
suggested that actions to unblock frozen assets could lead to
lawsuits against governments by third parties seeking to
collect on unpaid Iraqi debts. What provisions had been made
for this eventuality? Ambassador presented the MinState a
non-paper drawn from reftel talking points and promised to
convey the Minister's questions to Washington for review.

3.(C) On March 23, Ambassador met with Kuwaiti Central Bank
Governor Shaykh Salem Al-Sabah and presented him with points
in reftel. Shaykh Salem said he knew Kuwait still held
frozen Iraqi assets, and agreed to see if he could confirm
the current value of those accounts.


4. (C) Action Request: Post would welcome guidance on legal
aspects of the unfreezing actions raised by MinState Al-Sabah.
JONES