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Identifier
Created
Classification
Origin
03KUWAIT2291
2003-05-28 13:32:00
CONFIDENTIAL
Embassy Kuwait
Cable title:  

WORKING TO DEVELOP THE ECONOMIES OF IRAQ AND THE

Tags:   ECON  ETRD  EINV  PREL  IZ  KU  ZP 
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						C O N F I D E N T I A L KUWAIT 002291 

SIPDIS

STATE FOR EB AND NEA/ARP

E.O. 12958: DECL: 04/30/2013
TAGS: ECON ETRD EINV PREL IZ KU ZP
SUBJECT: WORKING TO DEVELOP THE ECONOMIES OF IRAQ AND THE
GULF STATES

REF: A. STATE 131981


B. KUWAIT 1213

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

1.(C) Current GCC trade and investment practices, with a few
important exceptions, are generally dismal and should not be
considered as a model for Iraq. Our goal, in fact, should be
the opposite: to use our successful efforts in Iraq to become
a model for GCC economies. There are, however, a few
'success stories' in the GCC that might be useful to emulate
in Iraq. We'll leave it to our colleagues to elaborate, but
from Kuwait, Dubai's efforts to become a favorite destination
of foreign investors and to protect intellectual property
rights appear to be in the vein of what Iraq needs (but watch
out for the onerous 'offset' requirements attached to
government procurement contracts there). And Bahrain has
become a leader in financial services, particularly in the
areas of bank oversight and supervision.



2. (C) Finally, the concept of the GCC Customs Union (and the
eventual monetary union), as dysfunctional as its start-up
has been, represents an ideal that we should encourage (while
at the same time trying to lower the external barriers the
Union presents).



3. (C) Reftel requests thoughts on how regional investments
in Iraq can be encouraged. We have seen press reports citing
CPA Ambassador Bremer's announcement of a trade finance
facility fund that will provide support to exporters and
investors moving their products and funds into Iraq. We
reiterate our recommendations (Reftel b) that organizations
such as OPIC and EXIM take up this role for American firms
and joint ventures, while at the same time we encourage MIGA
to do the same on a more global basis. Finally, Gulf states
themselves could be encouraged to provide trade and
investment finance assistance to their nationals with
training and technical assistance programs that allow
countries like Kuwait to create its own investment insurance
agency.
JONES