(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