(C) U.S. FUNDING REQUESTS PUSHING HARD CHOICES ON

S E C R E T KUWAIT 000811

SIPDIS

NOFORN

STATE FOR NEA, NEA/ARP, NEA/NGA, PM
TUNIS FOR NATALIE BROWN

E.O. 12958: DECL: 03/09/2014
TAGS: MARR PREL IZ KU
SUBJECT: (C) U.S. FUNDING REQUESTS PUSHING HARD CHOICES ON
GOK

REF: KUWAIT 777

Classified By: CDA FRANK URBANCIC; REASON 1.4 (A, B, D)


1. (S/NF) The GOK has been the most stalwart supporter of
U.S. actions in Iraq anywhere in the Arab world. As a result
of our close partnership, the Kuwaitis have given us
tremendous support. The large number of pending U.S.
requests for additional support, however, is beginning to
pinch, and the GOK may now start making choices among the
many American requests. We have just learned unofficially,
for example, that the MOD has stopped many of its upgrades
because, within the Kuwaiti bureaucracy, MOD is actually
paying the bill for the AIK fuel currently being provided to
U.S. and coalition forces out of its own budget since there
is no funding in the regular government budget -- which
parliament must approve. Military projects being put on hold
for the time being while payment for this fuel bill is sorted
out follow:

- There has been no progress on the $55 million upgrades to
Camp Arifjan previously agreed to by Kuwait, which are needed
in order for us to vacate Camp Doha by end 2005 as promised;

- We have deferred requesting ten-day basing for C-23 Sherpa
aircraft;

- The requested deployment of two EC-130H Compass Call
aircraft remains on hold. Their purpose is to provide
sophisticated electronic warfare support to defeat IEDs in
Iraq. The best the Chief of Staff of the Armed Forces (CoS)
is willing to allow is to exchange them for any two existing
C-130s;


2. (S) The CoS has ambitious plans for the Kuwaiti Armed
Forces that are being stymied by the drain on his resources
from paying for our forces' fuel, including:

- Acquisition of C-130Js;

- Upgrades of the Kuwaiti F-18 program (Boeing);

- Short-range radar (Motorola),$22 million;

- Acquisition of the Helicopter Integrated Defensive Aids
Systems (HIDAS) aviation survival equipment suite for the
Apache, in time to ensure HIDAS is integrated while the
aircraft are on the production line.


3. (S) In addition, the United States is squeezing the
Kuwaitis to provide cash or AIK funding in the following
amounts for various other causes:

- Afghanistan ($30 million pledged previously, we have asked
for more);

- Jordan (25,000 barrels/day oil for 6 months, worth $135
million at $30/barrel);

- Palestinian Authority;

- Liberia;

- Ukraine/Chornobyl;

- A potentially huge additional military-cooperation project
has not even been broached in any comprehensive way with the
Kuwaitis yet: relocation of the strategic Aerial Port of
Debarkation/Embarkation (APOD) from Kuwait City International
Airport to Ali al-Salem airbase, with a potential total
price-tag near $500 million, for which the USG could seek
considerable Kuwaiti participation.


4. (S) COMMENT: The more we are able to give the Kuwaiti
leadership a clear sense of the total support we seek from
them, the easier it will be for them to meet our requests.


5. (U) Baghdad minimize considered.
URBANCIC