KUWAIT FOREIGN MINISTER SEES "NO PROBLEM" WITH

S E C R E T KUWAIT 003578 SIPDIS DOHA FOR BLOOMFIELD PARTY STATE FOR PM, NEA, NEA/ARP, NEA/NGA E.O. 12958: DECL: 10/18/2014 TAGS: MOPS PREL EAID MARR KU IZ SUBJECT: KUWAIT FOREIGN MINISTER SEES "NO PROBLEM" WITH CONCLUDING CONTRACT ON FUELS FOR OPERATION IRAQI FREEDOM REF: A. KUWAIT 3465 ¶B. KUWAIT 2772 ¶C. KUWAIT 2747 ¶D. KUWAIT 0390 Classified By: Ambassador Richard LeBaron for reasons 1.4 (b) and (d). ¶1. (C) Ambassador met on 18 October 2004 with H.E. Shaykh Dr. Mohammed Sabah al-Salem al-Sabah to discuss the A/S Lincoln Bloomfield and DASD Peter Flory delegation's 19-20 October visit to finalize a contract for Kuwait's continued provision of fuels for Operation Iraqi Freedom. Ambassador reiterated USG appreciation for Kuwait's continued and considerable fuel support for U.S. Forces' use. Noting that the fuels issue unfortunately had become a bilateral irritant, Ambassador emphasized the need to conclude negotiations in as smooth, cooperative, trouble-free and timely a manner as possible. Dr. Mohammed welcomed the delegation's visit and agreed that the objective of the trip was to resolve arrangements for the duration and timing of deliveries of fuels to coalition forces. Ambassador noted, and Dr. Mohammed concurred, that the immediate issue of cost had been settled already, that the fuel would continue to be provided free of charge for now. ¶2. (C) Dr. Mohammed said he believed that our governments already had a framework agreement in essence and that he saw "no problem" in finalizing the terms during the delegation's visit to Kuwait. He said it was important, however, to have a formal framework in place quickly in order to inform the National Assembly and to clarify the fuel relationship which, he said, "is not budgeted." To "cover the commitment," he explained, "we must have a persuasive argument; we need a contract." He observed that the Defense Cooperation Agreement, dated 19 September 1991, still covered fuel used in Kuwait but that it did not account for the fuels now used in Iraq as well (Ref D). He asked that "the technicians" work out "the percentages that go for Kuwait and for Iraq," in preparing the contract on fuels usage. ¶3. (C) Dr. Mohammed also said he had heard "rumors" that other members of the GCC were fully reimbursed for their operations and facilities used in support of Operation Iraqi Freedom. He said that some members of the National Assembly had questioned why "other GCC partners should be let off the hook?" Ambassador reiterated USG interest in resolving the fuels issue with dispatch; Dr. Mohammed repeated his observation that he saw "no problem" in doing that. ¶4. (U) Note: The Bloomfield/Flory delegation started meetings on Tuesday with a courtesy call on the Defense Minister by DASD Flory. Talks with the Energy and Foreign Ministers are scheduled for Wednesday. ¶5. (U) Baghdad: minimize considered. LeBaron