Identifier
Created
Classification
Origin
03KUWAIT5103
2003-11-06 08:31:00
CONFIDENTIAL
Embassy Kuwait
Cable title:  

(SBU) NEIGHBORS FOREVER: AMBASSADOR DISCUSSES

Tags:  ETRD EINV PREL KU IZ 
pdf how-to read a cable
This record is a partial extract of the original cable. The full text of the original cable is not available.
C O N F I D E N T I A L SECTION 01 OF 02 KUWAIT 005103 

SIPDIS

STATE FOR NEA/ARP, NEA/NGA
USDOC FOR 3131/USFCS/OIO/ANESA

E.O. 12958: DECL: 11/04/2013
TAGS: ETRD EINV PREL KU IZ
SUBJECT: (SBU) NEIGHBORS FOREVER: AMBASSADOR DISCUSSES
MADRID, IRAQI ECONOMIC DEVELOPMENT WITH KUWAIT CHAMBER OF
COMMERCE

REF: KUWAIT 5057

C O N F I D E N T I A L SECTION 01 OF 02 KUWAIT 005103

SIPDIS

STATE FOR NEA/ARP, NEA/NGA
USDOC FOR 3131/USFCS/OIO/ANESA

E.O. 12958: DECL: 11/04/2013
TAGS: ETRD EINV PREL KU IZ
SUBJECT: (SBU) NEIGHBORS FOREVER: AMBASSADOR DISCUSSES
MADRID, IRAQI ECONOMIC DEVELOPMENT WITH KUWAIT CHAMBER OF
COMMERCE

REF: KUWAIT 5057


1. (SBU) Summary: The Ambassador met with the Chairman of the
Kuwait Chamber of Commerce and Industry's (KCCI) Finance and
Investment Committee, Mr. Faisal Al-Mutawa, on November 3.
Conversation centered on the immediate GOK reaction to the
recent Madrid Donors' Conference and KCCI and GOK efforts to
engage Iraqi businessmen, including plans for an upcoming
conference in Kuwait. End Summary.

Madrid and the next steps


2. (SBU) The Ambassador met with businessman and KCCI Finance
and Investment Committee Chairman, Faisal Al-Mutawa, on Nov.

3. Mr. Mutawa was a member of the Kuwaiti delegation to the
private sector meeting on the margins of the Madrid Donors
Conference, and is actively involved in advising Prime
Minister Shaykh Sabah Al-Ahmed Al-Sabah on how to best apply
the remaining $500 million of Kuwait's $1.5 billion Madrid
pledge. Mutawa characterized the Madrid Conference as a
success and said the highlight for him had been the warm
reception extended to the Kuwaiti delegation by the Iraqis,
who had repeatedly expressed their gratitude to the
delegation for Kuwait's public support of Iraq. Mutawa noted
that there were strong political and economic advantages for
both Kuwait and Iraq in extending and cementing commercial
ties between the two neighbors, adding that the delegation
had returned from Madrid optimistic about Kuwait's ability to
play a positive role in Iraq.


3. (C) As for how to apply the remaining $500 million of
Kuwait's pledge, Mutawa said a close group of advisors, he
amongst them, had met with the PM previously that day and had
urged the GOK to invest the funds in high visibility projects
in Iraq, such as universities, hospitals and schools. He
said this would be the best first step in attempting to
repair the distorted image of Kuwait fed to Iraqis during
Saddam's rule. "These are our neighbors forever," he added.
Mutawa said that while none of the specific projects had yet
to be determined, the PM had decided that Kuwait would donate
rather than loan funds, in order to maintain control over
their use in Iraq.


4. (C) In response, the Ambassador said FM Shaykh Dr.
Mohammed Al-Sabah had told him the GOK would seek to fund
projects that link Iraq to the GCC. One such suggested
project was the establishment of a railway linking Basra
(which is already linked to Europe through Baghdad) to Kuwait
and the UAE (see reftel).

Encouraging Private Sector Investment in Iraq


5. (SBU) Calling the situation in Iraq a "golden
opportunity" for Kuwait, Mr. Mutawa said the Kuwaiti
delegation to Madrid had spoken with their Iraqi counterparts
and developed a plan to hold a conference in Kuwait to bring
together Iraqi entrepreneurs and Kuwaiti financiers. In
addition, the delegation agreed in principle to the
establishment of GOK-sponsored political risk insurance (much
like OPIC) for Kuwaitis willing to invest their money in
Iraq.


6. (C) Mutawa said a committee consisting of representatives
of many sectors of Kuwaiti society would be meeting on
November 8 to discuss these proposals and develop written
recommendations for further GOK action (Note: Mutawa
mentioned the committee would consist of himself, the
Minister of Finance, Foreign Minister, MP Dr. Nasser Al-Sane,
businessman Hussein Kharafi, Dr. Yousef Ibrahim and Fawzi
Sultan. End Note.). Mutawa stressed that decisions on both
private and public sector investment in Iraq would be much
more successful if Iraqis were involved in the
decision-making process, a belief he added was also shared by
PM Sabah. Accordingly, Mutawa said, PM Sabah had made clear
that GOK would seek advance Iraqi Governing Council (IGC)
approval for any GOK-sponsored projects it undertook in Iraq.
When asked by the Ambassador about the political feasibility
of these proposals, Mutawa replied that the National
Assembly, "with the exception of a few" members, could be
expected to support them.


7. (C) Comment: The proposed conference is a step in the
right direction and proffers hope that Iraq may utilize the
readily available expertise and capital of its neighbors to
help kickstart its economy. Kuwaitis, for their part, are
excited at the prospect of increased economic cooperation,
not only because they see financial opportunities in Iraq,
but because they understand that the economic stability of
Iraq is intertwined with their own national interests.
JONES