Identifier
Created
Classification
Origin
05KUWAIT1913
2005-05-09 14:25:00
CONFIDENTIAL
Embassy Kuwait
Cable title:  

KUWAIT GAS OPTIONS AND ILSA CONCERNS: GOK SAYS

pdf how-to read a cable
This record is a partial extract of the original cable. The full text of the original cable is not available.
C O N F I D E N T I A L KUWAIT 001913 

SIPDIS

FOR NEA/ARPI - BERNS AND EB/ESC/IEC/EPC - DOWDY

E.O. 12958: DECL: 05/08/2015
TAGS: ENRG EPET ETTC PREL KU IR IZ OIL SECTOR KUWAIT IRAN RELATIONS
SUBJECT: KUWAIT GAS OPTIONS AND ILSA CONCERNS: GOK SAYS
IRAN IS A HEADACHE BUT IT'S DIFFICULT TO CLOSE ALL DOORS

REF: A. KUWAIT 1884

B. STATE 83661

C. KUWAIT 1089

D. KUWAIT 943

E. DOWDY/MOORE/NEWSOME/WERBERG EMAILS

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

C O N F I D E N T I A L KUWAIT 001913

SIPDIS

FOR NEA/ARPI - BERNS AND EB/ESC/IEC/EPC - DOWDY

E.O. 12958: DECL: 05/08/2015
TAGS: ENRG EPET ETTC PREL KU IR IZ OIL SECTOR KUWAIT IRAN RELATIONS
SUBJECT: KUWAIT GAS OPTIONS AND ILSA CONCERNS: GOK SAYS
IRAN IS A HEADACHE BUT IT'S DIFFICULT TO CLOSE ALL DOORS

REF: A. KUWAIT 1884

B. STATE 83661

C. KUWAIT 1089

D. KUWAIT 943

E. DOWDY/MOORE/NEWSOME/WERBERG EMAILS

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


1. (C) During a May 7 meeting with Ministry of Foreign
Affairs Under Secretary Khaled Al-Jarallah, the Ambassador
detailed U.S. concerns (ref B) about investment in Iran and
advised that the proposed gas deal could trigger ILSA
sanctions against companies involved in such investments. He
further cautioned that timing of the MOU was poor given
Iran's position on the nuclear issue. He said the U.S. was
sympathetic to Kuwait's gas needs and suggested that Iran was
not a reliable supplier for natural gas. He added the U.S.
was aware of the problem between Saudi Arabia and Qatar
regarding a gas pipeline through Saudi waters, and while the
U.S. did not want to be a party to this bilateral issue, we
would raise the matter with the SAG and encourage a prompt
settlement.


2. (C) Al-Jarallah agreed that Iran was not a reliable
partner, but said Kuwait's gas situation was critical. The
GOK had not abandoned the idea of receiving gas from Qatar
and was working to resolve the territory issue with the SAG
and GOQ. Turning to the gas deal, Al-Jarallah described the
negotiations as protracted, but said in the end, the deal was
weighted towards Kuwait in terms of price and quantity.
Still, Kuwait was not pleased with Iran, especially its views
toward GCC countries. Specifically, he accused the GOI of
meddling in the UAE and Bahrain and encouraging Shi'a groups.
Kuwait also shared U.S. concerns about Iran's nuclear
aspirations and Al-Jarallah was adamant "Iran should not be
nuclear weapon state." He noted the U.S. approach to
"isolate" Iran. Kuwait's approach, given its geographic
position, was to attempt to create some mutual interests.
Al-Jarallah further explained that the GCC's shared interests
with Iran focused on trade -- he described the annual volume
of trade between Iran and Dubai as $1 billion -- and
security. He said GCC relations with Iran have historically
been negative, but the GCC recently decided to welcome a
GCC-Iran dialog that would hopefully lead to better relations
and regional security. Despite Kuwait's decision to reach
out to Iran, the GOK still lacks confidence in the GOI and
described the relationship as a "headache."


3. (C) Commenting on Iranian elections, Al-Jarallah relayed
reports that Khatemi supporters were promoting extremists
with the notion that should they assume power, their views,
combined with Iran's precarious regional and international
situation and domestic security concerns, would combine to
damage the extremists.


4. (C) See ref A for an assessment that the Iran-Kuwait gas
deal is unlikely to proceed quickly.


*********************************************
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