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Identifier
Created
Classification
Origin
03KUWAIT4798
2003-10-20 15:30:00
CONFIDENTIAL
Embassy Kuwait
Cable title:  

(C) KUWAIT FM SAYS GOK'S IRAQ PLEDGE WILL BE

Tags:   EAID  EINV  EFIN  PREL  KU  IZ 
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						C O N F I D E N T I A L SECTION 01 OF 02 KUWAIT 004798 

SIPDIS

E.O. 12958: DECL: 10/20/2013
TAGS: EAID EINV EFIN PREL KU IZ
SUBJECT: (C) KUWAIT FM SAYS GOK'S IRAQ PLEDGE WILL BE
SUBJECT TO PARLIAMENTARY APPROVAL

REF: SECSTATE 294287

Classified By: Ambassador Richard H. Jones, reasons 1.5 b and d.



1. (C) The Ambassador met with Kuwaiti Foreign Minister
Shaykh Dr. Mohammed al-Sabah at the airport on October 20,
immediately prior to the FM's departure for visits to Poland,
Hungary and Spain, where he will represent Kuwait at the
October 23-24 Madrid conference. This was the first
opportunity to meet with Dr. Mohammed since receipt of reftel
due to his participation in the OIC Summit and events
surrounding the opening of the fall session of the National
Assembly.



2. (C) The Ambassador began the meeting by reviewing the
Secretary's oral message on Madrid with Dr. Mohammed. (See

SIPDIS
paragraph 5 for the text, as amended at post to take into
account the situation in Kuwait.) Dr. Mohammed listened
carefully and then briefed the Ambassador on the state of
play for Kuwait's Madrid pledge. He said that Kuwait intends
to provide significant assistance to Iraq. This assistance
will be both short-term and medium-term in nature. It will
be a mixture of grants and traditional development assistance
provided through the Kuwait Fund for Arab Economic
Development. In addition, there will be an important private
sector component. He indicated that this would largely take
the form of the Kuwait Investment Authority's (KIA)
participation in Iraq focused investment funds that have
recently been created by two local companies (Global
Investments and the National Bank of Kuwait). Unfortunately,
he said, all of Kuwait's plans must be contingent upon
approval by the National Assembly, which only resumed work
today after its summer recess. Although the GOK has already
consulted with the Speaker of the Assembly, his deputy and
members of key committees, out of deference to the
legislative branch it would not yet be able to quote a
specific figure in Madrid. He noted that there was a
precedent for this in 1994 when Kuwait took part in a
conference on aid to the Palestinians but was unable to make
a specific pledge for the same reason.



3. (C) During the ensuing discussion, Dr. Mohammed expressed
considerable concern about Saudi Arabia's attitude toward the
conference. In discussions on the margins of the OIC Summit,
he had picked up that the SAG would not provide assistance to
Iraq until there was an internationally recognized Iraqi
government in place. He found this extremely disappointing
and doubted that Saudi FM Prince Saud al-Faisal would take
part in the Madrid conference. The Ambassador agreed that,
unfortunately, these impressions squared with his own.



4. (C) The Ambassador also engaged Dr. Mohammed in a
discussion of Kuwait's plans to foster greater Kuwaiti
private sector participation, at Madrid and in the
reconstruction process itself. Dr. Mohammed confirmed that
he had already talked to the "usual suspects" in the Kuwaiti
private sector about the issue and would encourage them to
take part in the October 23 private sector meeting. He also
noted that the GOK was considering having KIA undertake an
OPIC-style investment insurance program for private sector
investments in Iraq. Finally, he indicated that the GOK
would look favorably on proposals for offset projects
involving American, Kuwaiti and Iraqi firms, noting that
discretionary authority already exists under Kuwait's offset
program for investments outside of Kuwait to qualify for
offset credit.



5. (C) Begin Text of Secretary's Oral Message as Delivered to
FM Shaykh Dr. Mohammed al-Sabah:

The adoption of UN Security Council Resolution 1511 on
October 16, 2003, is a victory for the future of Iraq.

The resolution reflects the strong consensus of the
international community: Iraq's reconstruction and
stabilization merit our sustained support.

This council action should serve as a catalyst for each of us
to consider carefully what additional steps we can take to
contribute to Iraqis' efforts to reconstruct their
country.

Treasury Secretary Snow and I will be in Madrid for the
Donors Conference on Iraq, October 23-24. So too will
members of the Iraqi Governing Council and several key Iraqi
interim ministers.

I appreciate your personal commitment as reflected by your
decision to join us in Madrid. Your presence will send a
tangible symbol to the Iraqi people of the international
community's long-term commitment to Iraq's economic
development.

To accelerate Iraq's recovery, I hope that you would be able
to announce in Madrid a substantial bilateral contribution to
this effort for both the short-term and medium-term needs
identified in the World Bank/UN reports.

I also urge you to ensure that Kuwait's private sector is
well represented at the private-sector meeting which will
take place on October 23. Kuwait's invitation to this
meeting was extended through H.E. Minister of Finance
Al-Nouri by the Spanish government some time ago. I
understand the invitation has been forwarded to the Kuwait
Chamber of Commerce and Industry to nominate a representative
delegation.

No matter what Kuwait's contribution, your presence will
matter. Secretary Snow and I look forward to seeing you in
Madrid on October 24th to coordinate our collective
contributions to Iraqi efforts to forge a better future.

End text of oral message.



6. (U) Baghdad minimize considered.


JONES