GOK CONCERNED ABOUT IRAQI DEBT REDUCTION PROPOSAL

C O N F I D E N T I A L KUWAIT 001909

SIPDIS

STATE FOR NEA/NGA, NEA/ARP

E.O. 12958: DECL: 05/06/2013
TAGS: EFIN PREL KU IZ
SUBJECT: GOK CONCERNED ABOUT IRAQI DEBT REDUCTION PROPOSAL

REF: STATE 108252

Classified By: Ambassador Richard H. Jones for reason 1.5 (d)


1. (C) The Ambassador discussed Iraqi debt (reftel),and the
issue of Oil For Food (OFF) revenues for the UNCC with
Kuwaiti MinState for Foreign Affairs Shaykh Dr. Mohammed
Al-Sabah during their April 29 meeting. Dr. Mohammed
expressed great concern over possible plans for Iraqi debt
reduction, as Iraq maintains a considerable debt to Kuwait.


2. (C) The Ambassador suggested to Dr. Mohammed that although
there is no inherent link between the issue of debt
forgiveness and UNCC payments, it would be expedient for
Kuwait to consider making a significant, early contribution
to reconstruction efforts if it hoped to combat efforts to
reduce OFF payments to the UNCC.


3. (C) Comment: Although it is unclear if Kuwait will take
action on this suggestion, it is clear that the possibility
of a reduction in UNCC revenues and/or debt relief is taken
very seriously by the GOK; the outcome of these issues will
surely be judged by the Kuwaitis in light of their
indispensable contributions to OIF.
JONES