PRIME MINISTER'S AIDE REPORTS ALLAWI CRITICAL OF

S E C R E T SECTION 01 OF 02 KUWAIT 002524

SIPDIS

STATE FOR NEA/ARP, NEA/I
STATE FOR INR/B

E.O. 12958: DECL: 08/08/2014
TAGS: PREL KU IZ MOPS EAID EFIN PTER
SUBJECT: PRIME MINISTER'S AIDE REPORTS ALLAWI CRITICAL OF
U.S.; URGES CONCLUSION OF FUEL AGREEMENT

REF: KUWAIT 2426

Classified By: CDA Matthew Tueller for reasons 1.4 (b) and (d)


1. Biographical information included. For biographical
information, please see para. 10.


2. (C) Summary. During an August 8 meeting, Assistant U/S
of the Diwan of the Prime Minister Shaykh Fawaz Saud Al-Sabah
gave Poloff a readout of Iraqi Prime Minister Iyad Allawi's
July 30 meeting with Kuwaiti Prime Minister Shaykh Sabah
Al-Ahmed Al-Sabah. A long-time aide to the Kuwaiti Prime
Minister, Shaykh Fawaz said Allawi was highly critical of US
policies in Iraq. On the subject of Kuwaiti fuel as
Assistance-In-Kind, Fawaz urged the USG to conclude an
agreement with Kuwait before the return of the National
Assembly, scheduled for October. Shaykh Fawaz also outlined
the the Kuwaiti PM's planned travel schedule and discussed
border security. End Summary.

Visit of Iraqi PM


3. (C) Although it produced no new agreements, Shaykh Fawaz
said Iraqi Prime Minister Iyad Allawi,s visit to Kuwait had
been a mild success simply because it marked a new beginning
in Kuwaiti-Iraqi relations. Describing Allawi,s meeting
with Kuwaiti Prime Minister Shaykh Sabah al-Ahmed al-Sabah,
he said Allawi spent the first twenty minutes praising Kuwait
and the next twenty-five criticizing the United States and
its handling of Iraq. Shaykh Fawaz said Allawi had referred
to former CPA Administrator L. Paul Bremer III as "Ali Baba"
and the CPA as "his forty thieves." Allawi said that Bremer
and CPA had badly managed the country during its tenure and
he blamed the lack of security in Iraq solely on the United
States. "You wouldn,t be sitting here without the
Americans," replied the Kuwaiti Prime Minister, to which he
received no response from Allawi.


4. (C) Shaykh Fawaz said that although the meeting between
the two Prime Ministers had been largely ceremonial, the
Iraqi Prime Minister did raise some bilateral issues. Allawi
proposed that Kuwait establish a "fund" for Iraq and had
requested that Kuwait forgive Iraq,s debts. Offering no
reply to the request for the establishment of a fund, Shaykh
Sabah told Allawi that debt negotiations should be done
through the Paris Club.


5. (C) In a subsequent meeting between Iraqi Defense Minister
Hazem Shalan and Kuwaiti Acting Minister of Defense and
Interior Minister Shaykh Nawaf al-Ahmed Al-Sabah, the Iraqi
Defense Minister had presented various "demands" of his
Kuwaiti counterpart. Producing a handwritten list in Arabic
(on Bayan Palace stationery),Shaykh Fawaz went through the
requests one-by-one with Poloff. Among the highlighted items
the Iraqi Defense Minister had requested Kuwait buy for Iraq
were: 15 helicopters, 5 C-130's, 100 armored vehicles, and an
unspecified number of Russian-built APC,s.

Fuel/AIK


6. (S) On the ongoing issue of the provision of Kuwaiti fuel
as AIK, Shaykh Fawaz urged that the USG work as quickly as
possible to conclude an agreement with Kuwait, and warned
that we should not/not negotiate with Energy Minister Shaykh
Ahmed al-Fahad, but work directly with the Prime Minister on
this issue. Shaykh Fawaz noted that during Secretary
Powell's July 30 meeting with Shaykh Sabah, the Prime
Minister said he needed an agreement to continue providing
fuel, but had not been specific about the type of agreement
he was seeking. Shaykh Fawaz indicated that the PM would be
amenable to an agreement with very favorable terms for the
US, if it could be concluded quickly (and presumably
quietly). Shaykh Fawaz urged Poloff to relay that such an
agreement "must be concluded before the National Assembly
returns." Shaykh Fawaz added that the continued provision of
fuel for coalition forces without an agreement was widely
unpopular within the Council of Ministers and the National
Assembly.

Travel


7. (C) Shaykh Fawaz said the Prime Minister would be
traveling extensively in the months to come, something he had
advised the Prime Minister to do to increase his
effectiveness. He said current plans call for the Prime
Minister's travel to Iran, Pakistan, India and Russia before
the return of Parliament in October, followed by a
post-Ramadan (November) trip to England, France, Germany and
Italy. The Prime Minister intends to visit the United States
after this, if time will permit. Shaykh Fawaz said the
maintenance of Kuwait,s economic relationships with its
allies is a priority that Shaykh Sabah intends to focus on
during the visits. "Maintaining (political) contact is not
enough," he added.
Borders/ Dosari


8. (S) Confirming local news reports, Shaykh Fawaz said that
Kuwait fugitive Khaled al-Dosari (wanted by Kuwaiti
authorities for his involvement in terrorist activities) had
fled Kuwait on August 6 and was now in Fallujah. Shaykh
Fawaz said he advised Shaykh Sabah not to close the borders,
so as to allow fugitive terror suspects to flee to
neighboring countries, where they would be dealt with using
military force. Responding to Poloff's question, he said he
felt it unlikely that terrorists fleeing the Saudi or Iraq
crackdowns would end up in Kuwait, as the country is too
small to hide in. (Comment: If Shaykh Fawaz did offer this
advice, it is troubling but not surprising for a government
that is making a concerted effort to ensure that Kuwait does
not become a country unsafe for foreigners. End Comment.)

KPC/Nader Sultan


9. (C) Shaykh Fawaz also confirmed local news reports that
the long-time Chairman of Kuwait Petroleum Corporation (KPC),
Nader Sultan, would be stepping down from his post. He said
that Energy Minister Shaykh Ahmed Al-Fahad Al-Sabah had made
this decision six months ago, but did not elaborate as to why.


10. (C) Biographical Information: Shaykh Fawaz is the son of
former Kuwaiti Ambassador to the United States, Shaykh Saud
Nasser Al-Sabah. He is the brother of the current Director
of the Washington office of KPC, Shaykh Nawaf Saud Al-Sabah.
Shaykh Fawaz is the father of two boys and one girl. His
oldest son, Nasser, a US citizen, is 18 and attends Valley
Forge Military Academy in Wayne, Pennsylvania. His younger
son and daughter both attend school in Kuwait. Shaykh Fawaz
has been working for Shaykh Sabah for 18 years.
TUELLER