GOK RESPONSE ON RELEASE OF IRAQ ASSETS TO DFI AND

S E C R E T KUWAIT 001557

SIPDIS

FOR NEA/ARPI - BERNS

E.O. 12958: DECL: 04/16/2015
TAGS: ECON EFIN PTER KU IQ TERRORISM
SUBJECT: GOK RESPONSE ON RELEASE OF IRAQ ASSETS TO DFI AND
INFO ON AL-FAHDLI DESIGNATION

REF: STATE 59301

Classified By: Ambassador Richard LeBaron for reasons 1.4 (b) and (d)

(S) 1. In the course of an April 17 meeting on several
topics, Ambassador raised April 17 with Ministry of Foreign
Affairs Under Secretary Khaled Al-Jarallah the transfer to
the Development Fund for Iraq (DFI) of frozen Iraqi assets
and a request for data on the frozen assets of of Muhsin
Al-Fadhli. Al-Jarallah confirmed that the Kuwaiti Mission to
the UN has an account holding $78 million of Iraqi assets and
said the GOK supported transferring the funds to the
Development Fund for Iraq (DFI) in accordance with UNSC 1483.
He noted that the resolution exempted the transfer of funds
subject to a claim by an individual or non-governmental body
and expressed the possibility of claims by Kuwaiti entities.
Al-Jarallah promised to review the resolution, determine
whether there were Kuwaiti liens against the funds, and
report back to us. On April 18,the Ambassador provided
Al-Jarallah a fax message with information from Treasury
Deputy Assistant Secretary Glaser clarifying that any claims
for judgment or arbitration would have had to been submitted
before UNSCR 1483 was adopted on May 22, 2003. Ambassador
spoke to Al-Jarallah again on April 18 to confirm receipt of
the message and reinforce the need for prompt action.
Al-Jarallah said he had passed our information to the MFA
Legal Affairs Office and that he would get back to us on the
issue.


2. (S) On the reftel request for information on the frozen
assets of Mushin Al-Fadhli, Al-Jarallah referred us to the
MFA Department of Coordination and Follow-up. PolChief
discussed April 18 the Al-Fadhli designation with Feisal
Al-Enezi in the MFA Office of Coordination and Follow-Up, who
said Central Bank representatives orally confirmed to him
that the assets of Al-Fadhli had been frozen. He said his
office had received no written confirmation from the bank on
the measures taken, but assured PolChief that the bank took
immediate action upon receiving MFA instructions.
(NOTE: This information is at odds with what the Central Bank
Governor told DAS Glaser on April 18, when he said that a
written report had been provided by the Central Bank to the
MFA. The information maynot have been sent, it may have gone
to another office in the MFA or the MFA may be unwilling to
provide the detailed data. We will continue to pursue the
matter.)
LEBARON