PRIME MINISTER SAYS NO CHANCE OF CONTINUED FREE

C O N F I D E N T I A L KUWAIT 000112

SIPDIS

STATE FOR PM A/S BLOOMFIELD AND NEA/ARPI
SECDEF FOR ISA A/S RODMAN AND PDAS FLORY

E.O. 12958: DECL: 01/07/2015
TAGS: PREL PARM KU IZ
SUBJECT: PRIME MINISTER SAYS NO CHANCE OF CONTINUED FREE
FUEL

REF: SECSTATE 4762

Classified By: Ambassador Richard LeBaron for reasons 1.5 (b) and (d)


1. (C) The Ambassador delivered reftel points on continued
provision of free fuel to OIF forces to Kuwaiti Prime
Minister Shaykh Sabah Al-Ahmad on January 8. Shaykh Sabah
said that Kuwait was now spending USD 20-23 million a month
on fuel for OIF and had been providing that support for
almost two years, including for planes coming to and from
Afghanistan. That arrangement was over as of January 1 and
there was no possibility of extending the free fuel into

2005. He said that based on confidence in the letter
received on December 30 from A/S Rodman, the fuel was
continuing to flow, but "now we have an agreement" and it
will continue "with money" from the first of the year.


2. (C) Shaykh Sabah made additional references to the
difficulty of dealing with the Kuwaiti National Assembly
which he claimed has little inkling of the extent of fuel and
other financial support the GOK is giving to the U.S. He
suggested that the only option available to him to extend the
free fuel further would require dissolving the government and
parliament and calling new elections.


3. (C) Ambassador referred the PM to the element in the
Rodman letter containing the "hope that Kuwait would agree to
this extension," (through March). Shaykh Sabah reiterated
that the arrangement had ended on December 31. The
Ambassador said he was disappointed by PM's analysis that the
Kuwaiti National Assembly would reject further fuel
assistance.


4. (C) Comment: The Prime Minister was categoric. Whatever
nuance the Kuwaiti Ambassador may have conveyed about the
possibility of extending the terms of free fuel was nowhere
to be found in the the position Shaykh Sabah staked out.
Post recommends moving quickly to establish a price for the
fuel with KPC. There is nothing in what we have heard from
the Kuwaitis that would indicate they are thinking about a
concessional price. To the contrary, in their end-of-year
communications to us on the issue they have placed an
emphasis on "commercial terms" for fuel supply as of January

1.
LEBARON