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