SECURITY ADVISOR PROMISES FINANCIAL ASSISTANCE TO

C O N F I D E N T I A L SECTION 01 OF 02 KUWAIT 004369 SIPDIS FOR NEA/ARPI, NSC FOR DEPUTY NATIONAL SECURITY ADVISOR HADLEY E.O. 12958: DECL: 12/14/2014 TAGS: PREL PGOV KU IZ NATO SUBJECT: SECURITY ADVISOR PROMISES FINANCIAL ASSISTANCE TO THE PA AND DEBT REDUCTION FOR IRAQ AFTER ELECTIONS REF: A. MANAMA 1867 (NOTAL) ¶B. KUWAIT 4106 (NOTAL) ¶C. USNATO 1064 (NOTAL) ¶D. KUWAIT 3984 (NOTAL) Classified By: Ambassador Richard LeBaron for reasons 1.4 (b) and (d) ¶1. (C) Summary: During a December 15 courtesy call by the Ambassador, Kuwaiti National Security Bureau (NSB) President Shaykh Sabah Al-Khaled Al-Hamad Al-Sabah confirmed the GOK will provide financial assistance and political support to the Palestinian Authority. The GOK looks forward to PA elections in January and the chance to discuss Kuwaiti-Palestinian relations with Abu Mazen as the elected representative of the Palestinian people and not as PLO Chairman. No money amounts were provided in response to Ambassador's query. Shaykh Sabah Al-Khaled also said that following January elections in Iraq, the GOK would be prepared to address with an elected Iraqi government debt reduction along the lines of the Paris Club Agreement. The Shaykh noted Kuwait's pride in becoming the first country to join the ICI and hoped its eventual coordination with NATO members on terrorism, WMD, and border issues, would encourage other Gulf States to follow suit. He further welcomed the Ambassador's suggestion to examine U.S.-Kuwaiti long-term relations. End Summary. Funds Will Flow Once Abu Mazen is in Office -------------- ¶2. (C) Shaykh Sabah Al-Khaled opened the meeting by reporting on his trip to Bahrain and meeting with Deputy National Security Advisor and National Security Advisor-designate Stephen Hadley. As reported ref A, he said he and Hadley had a useful discussion on the need for full participation in Iraqi elections; new opportunities presented by the change in Palestinian leadership; and the strength of U.S.-Kuwaiti relations, particularly in trade, intelligence sharing, and military and political cooperation. ¶3. (C) Expounding on Palestinian issues, he described Abu Mazen's December 12 - 14 visit to Kuwait as a success and reported the two sides made progress on several long-standing issues. Abu Mazen raised the need for financial assistance and broached establishing a diplomatic mission in Kuwait. Shaykh Sabah Al-Khaled said despite criticism from the National Assembly and some media outlets, the GOK was ready to rebuild its relationship with the PA and ready to assist the Palestinian people. The GOK has confidence that PA Finance Minister Salam Fayyad will make appropriate use of the funds previously pledged at the Arab League Beirut meeting, yet Kuwait prefers to address the details of its assistance after elections. It wants to deal with Abu Mazen as President of the Palestinian Authority and not as PLO Chairman. Shaykh Sabah Al-Khaled emphasized the need for improving the quality of life for Palestinians so that the situations in the West Bank and Gaza do not further deteriorate, creating a welcome environment for terrorists. He expressed concern about the growth of Hamas and Hezbollah should the PA not receive ample support from the international community and called on the U.S., the UN, western nations, and Arab states to play a supporting role. ¶4. (C) The Ambassador agreed on the importance of supporting the PA's new leadership and thanked Kuwait for responding quickly and publicly. He added that while humanitarian assistance is critical, it is also necessary to focus on trade, noting the close relationship between assuring security and facilitating trade flows. He said the U.S. was actively engaging the Israelis and reported progress on the transfer of tax revenues to the PA. GOK Welcomes Polling in Iraq, Wary about Voting in Iran -------------- -------------- ¶5. (C) The Ambassador also raised Iraq's debt to Kuwait and the positive impact of its resolution for Iraq. Shaykh Sabah Al-Khaled said Foreign Minister Shaykh Dr. Mohammed Al Sabah Al Salim Al Sabah had publicly announced that the Paris Club agreement would guide discussions with Iraq. The GOK is prepared to address debt reduction bilaterally with the Iraqi government after the January elections. ¶6. (C) Shaykh Sabah Al-Khaled mentioned the GOK was keenly following the run-up to May elections in Iran. With President Khatami unable to seek another term of office, the GOK was afraid conservatives would gain ground. He reported that Intelligence Minister Yunesi, former President Rasfanjani, and former Foreign Minister Velayati were all possible successors to Khatami. The GOK, not convinced of the sincerity of recent GOI promises, is also keeping watch on Iran's nuclear aspirations. Kuwait and ICI: Setting an Example for the Region -------------- -------------- ¶7. (C) The Ambassador applauded the GOK's decision to seek membership in the Istanbul Cooperation Initiative (ICI). Shaykh Sabah Al-Khaled reviewed his November meetings with NATO and USNATO representatives and said the GOK viewed the ICI as a means to enhance regional security and stability. They are seeking cooperation on crisis management, terrorism, WMD, border control, and training. He added that the GOK was the first country NATO Deputy Secretary General Minuto Rizzo visited to discuss the ICI and by being the first country to join, Kuwait hoped to set an example for the other Gulf states. He also sees NSB leadership in the ICI process as an opportunity to strengthen the NSB's coordination abilities within the GOK. The U.S. and Kuwait After Iraq -------------- ¶8. (C) The Ambassador further engaged Al-Khaled on long-term bilateral relations, noting that the ongoing Kuwait strategic review being carried out with U.S. assistance presented an opportunity to look beyond the issues of the day. He encouraged the Shaykh to use the weight of his office to promote the participation of all appropriate Kuwaiti ministries and agencies in the process. Shaykh Sabah Al-Khaled said he had met with members of the U.S. review team and promised to enlist, in addition to the Ministries of Defense and Interior, the involvement of the Ministries of Health, Education, Information, Foreign Affairs, and others. He said he would be meeting with Chief of General Staff for the Kuwait Armed Forces LTG Fahed Ahmed Al Amir next week to further define the NSC role. ¶9. (U) Baghdad: Minimize considered. ********************************************* Visit Embassy Kuwait's Classified Website: http://www.state.sgov.gov/p/nea/kuwait/ You can also access this site through the State Department's Classified SIPRNET website ********************************************* LEBARON