IRAQI PRIME MINISTER'S HISTORIC VISIT TO KUWAIT

1. (U) SUMMARY: All local news dailies covered the historic
three-day visit to Kuwait by Iraqi Prime Minister Iyad
Allawi, July 31-Aug 2. Pro-forma high-level meetings were
conducted during the visit, which focused on the resumption
of the bilateral relationship. Allawi reassured Kuwait that
Iraq respects its independence and issues such as
reparations, bilateral cooperation, and plans for future
high-level meetings were also touched on. END SUMMARY.



2. (U) Iraqi Prime Minister Iyad Allawi finished his
three-day visit to Kuwait on the 14th anniversary of the
Iraqi invasion here. The focus throughout was on restoring
the relationship between Iraq and Kuwait and on enhancing
cooperation in all spheres. A joint communiqu emphasizing
the importance of upgrading bilateral cooperation was
released after talks concluded. Amir Shaykh Jabir Al-Ahmad
Al-Sabah, and Prime Minister Shaykh Sabah Al-Ahmad Al-Sabah
received the Iraqi Prime Minister on August 1.

Thanks and Regrets


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3. (U) Prime Minister Allawi expressed appreciation for
Kuwait,s role in ousting Saddam,s regime and for its
willingness to assist in the reconstruction and development
of Iraq. During a press conference, Allawi expressed regret
over the 1990 invasion of Kuwait and said the invasion was
&a disaster, and we hope we can overcome such a disaster.8
He also mentioned that the invasion was &against the Arab
logic and the Arab reason.8

Diplomatic Ties and Reparations


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4. (U) Both sides agreed to a resumption of full diplomatic
ties at the ambassadorial level to begin as soon as possible.
Allawi, on August 1, said that Iraq respects Kuwait,s
independence and was committed to the UN resolutions related
to the 1990 invasion reparations and border demarcation
between the two states. Allawi said the Interim Iraqi
Government has reached consensus on the reparations issue
and that Iraq was ready to begin talks with Kuwait on
development and reconstruction issues in Iraq.



5. (U) Both sides also agreed on the need to increase
bilateral economic and trade cooperation. Such cooperation
would be supported by the formation of a higher committee to
meet annually and co-chaired by both prime ministers. Other
technical committees were also proposed to support additional
sectors of economic cooperation. Both countries also
vocalized their support for Arab interests expressed in UN
Security Council Resolutions guaranteeing the liberation of
occupied Arab territories, the establishment of a Palestinian
state and the maintenance of security and stability in the
region.

Internal Iraqi Issues


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6. (U) Allawi mentioned that America's mistaken dissolution
of Iraqi state institutions led to several problems in Iraqi
internal affairs. The problems arising from the resulting
unemployment of Iraqi citizens, he said, included the
increase in those with extreme religious beliefs crossing
into Iraq, the strengthening of Saddam loyalists, and the
increase in crime from those prisoners Saddam released ahead
of the war. Allawi reiterated that members of the Iraqi
resistance are welcome to cease fighting and to participate
in the Iraqi political process because &Iraq is for all
Iraqis.8



7. (U) Allawi expressed satisfaction with his visit and
appreciation for the warm welcome received throughout his
stay. Shaykh Sabah accepted an offer from Allawi to visit
Iraq, however, no date has been set for meetings.



8. (C) Comment: Although Iraqi flags were seen flying in
Kuwait City on August 2nd and a new page has certainly been
turned in the bilateral relationship, Kuwaitis are still wary
of Iraqi long-term intentions and Kuwait,s leaders have
shared with us their concerns over the future offensive
capability of the Iraqi military. Reducing Gulf War
reparations to Kuwait continues to be a red line for the GOK
and because over 400 Kuwaiti POWs are still missing, Kuwait's
memory of the Iraqi brutality will not be easily erased.



9. (C) Comment Continued: Several Kuwaiti news editors
expressed editorial dissatisfaction with Allawi,s references
to the 1990 invasion as a &Mooshkila8--the Arabic word for
problem--and not as a terrible atrocity. Half the Kuwaiti
press reaction complained that he trivialized the invasion by
not going far enough to place it in its proper context.
Indicating the GOK's interest in improving GOK-Iraqi
relations the Ministry of Information issued recently a
decree directing local news outlets to refer to the 1990
invasion as "Saddam,s invasion" and not an "Iraqi
occupation."


TUELLER