KUWAIT WILL CONTINUE TO PUBLICLY SUPPORT ITG AND

C O N F I D E N T I A L SECTION 01 OF 02 KUWAIT 001900 SIPDIS FOR NEA/ARPI E.O. 12958: DECL: 05/07/2015 TAGS: PREL PGOV KU IZ KUWAIT IRAQ RELATIONS SUBJECT: KUWAIT WILL CONTINUE TO PUBLICLY SUPPORT ITG AND CONSIDER TRANSFER OF DFI ASSETS REF: A. STATE 81769 ¶B. KUWAIT 1860 ¶C. KUWAIT 1791 ¶D. STATE 79107 ¶E. KUWAIT 1560 ¶F. KUWAIT 1557 ¶G. 04 KUWAIT 3897 Classified By: Ambassador Richard LeBaron for reasons 1.4 (b) and (d). ¶1. (C) Summary: During a May 7 call on Ministry of Foreign Affairs Under Secretary Khaled Al-Jarallah, the Ambassador noted progress in Iraq since the formation of the Iraqi Transitional Government (ITG) and encouraged Kuwait to continue to make public statements of support. He stressed the need to assist the ITG in drafting its constitution and emphasized that such assistance should be practical and focused on Iraq. He reviewed with Al-Jarallah U.S. plans for strengthening the capacity of provincial governing councils and recommended the GOK develop means for regular interaction with the ITG. He also restated U.S. views that there were no outstanding Kuwaiti claims against DFI monies held by Kuwait and encouraged their immediate transfer. Al-Jarallah said the GOK would continue to publicly support the ITG, investigate transferring at least a major part of the DFI frozen assets, and actively seek to normalize relations with Iraq. End summary. ¶2. (C) The Ambassador opened his May 7 meeting with MFA Under Secretary Khaled Al-Jarallah by expressing U.S. appreciation for Prime Minister Shaykh Sabah Al-Ahmed Al-Jaber Al-Sabah's positive comments on the April 28 formation of the Iraqi Transitional Government (ITG) (ref c). He said there was steady progress in Iraq and it was important for friends and allies to publicly encourage the ITG. Drawing from ref d, he said the ITG would benefit from continued supportive statements and references to UN Security Council resolution 1456 as well as the need for an inclusive constitutional process. In addition to such statements, the Ambassador told Al-Jarallah that Iraq needed assistance as it began drafting its constitution. The aid, whether financial support or technical assistance, should be focused on and take place in Iraq. He also outlined for Al-Jarallah U.S. plans for strengthening Iraq's provincial governing councils and encouraged Kuwait to develop a more structured mechanism for dealing with the ITG. He stressed the importance of an active Kuwaiti-Iraqi dialogue and recommended GOK ministers consult regularly with their counterparts in the ministries of oil, defense, interior, finance, and foreign affairs. ¶3. (C) Al-Jarallah responded the GOK was concerned about the ongoing violence in Iraq and wondered how long the Iraqi people could withstand the situation. He agreed with the Ambassador that the recent spike in violence should not impede democratic progress. Despite the attacks and civilian deaths, Al-Jarallah saw a "bright" side to the picture: a new government and the beginning of the drafting process for the constitution. It was also encouraging and important that Sunnis were participating in the political process, (the new Defense Minister was announced just before the meeting). He agreed on the need for talks with the ITG and said FM Shaykh Dr. Mohammed Al-Sabah Al-Salem Al-Sabah had excellent relations with Iraqi FM Zebari. He also spoke highly of new Oil Minister Ibrahim Bahr Al-Uloum and new Defense Minister Saadoun Al-Duleimi. He added that the GOK was ready to receive an Iraqi ambassador and commented the GOK understood that Faeq Al Shaykh Ali was Zebari's candidate, but had yet to receive a formal agrement request from Baghdad (ref e). ¶4. (C) The Ambassador again raised the Development Fund for Iraq (DFI),emphasizing that the funds were necessary for continued progress in Iraq and restating the U.S. position that there were no pending Kuwaiti claims against them. Al-Jarallah said he would press the MFA legal department for a determination on the claim issue and proffered that a large portion of the $78 or $80 million could be released pending a decision on claims (ref b). Al-Jarallah informed the Ambassador that the GOK and ITG had reached, in the past week, agreement on Kuwait's pledge of $60 million for hospital and school construction in southern Iraq (ref g). The grant will be administered by the Kuwait Fund for Arab Economic Development and the parties are in the process of selecting consultants. ¶5. (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