Identifier
Created
Classification
Origin
05KUWAIT3085
2005-07-12 06:39:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Kuwait
Cable title:
GOK LIKELY TO REACTIVATE OFFSET PROGRAM SOON
how-toThis record is a partial extract of the original cable. The full text of the original cable is not available. 120639Z Jul 05
UNCLAS KUWAIT 003085
SIPDIS
SENSITIVE
USDOC FOR 4520/ITA/MAC/OME/CLOUSTAUNAU/COBERG
E.O. 12958: N/A
TAGS: ECON BEXP KU
SUBJECT: GOK LIKELY TO REACTIVATE OFFSET PROGRAM SOON
REF: 2004 KUWAIT 4366
This cable is sensitive but unclassified; please protect
accordingly. Not for Internet distribution.
UNCLAS KUWAIT 003085
SIPDIS
SENSITIVE
USDOC FOR 4520/ITA/MAC/OME/CLOUSTAUNAU/COBERG
E.O. 12958: N/A
TAGS: ECON BEXP KU
SUBJECT: GOK LIKELY TO REACTIVATE OFFSET PROGRAM SOON
REF: 2004 KUWAIT 4366
This cable is sensitive but unclassified; please protect
accordingly. Not for Internet distribution.
1. (U) At a July 11 signing ceremony between Boeing and the
Ministry of Finance for an offset program project (reftel),
the Minister of Finance said that Kuwait "has to go along
with the program," indicating that the offset program,
suspended in September 2004, would be reactivated. (Note:
The signing ceremony was for an offset project dating from a
contract between Boeing and the GOK in the 1990's. End Note.)
In September 2004, the Council of Ministers decided to
suspend implementation of the offset program for all new
government contracts in the military and civilian sectors
pending further review by the Ministry of Finance. A
six-month review of the program was to take place, at the end
of which the offset program would either be modified,
reinstated or discontinued. No contracts awarded during the
review period will carry an offset requirement.
2. (SBU) Ministry of Finance Offset Program Department
Director Mazan Madooh confirmed to Econ Officer after the
signing ceremony that the program would likely be reactivated
soon. He said that the Ministry of Finance would bring its
recommendation to the next Council of Ministers meeting on
July 17 and that the Council could choose to reactivate the
program on that date or shortly thereafter. He said that
there would be a one-to-two month grace period before the
program actually goes into effect again. Asked about the
potential for an offset requirement in the project to develop
Kuwait's northern oilfields (Project Kuwait),Madooh said
that he did not think that there would be an offset
requirement and that all projects involving exploration and
development of natural resources would be exempt from offset
requirements.
********************************************
Visit Embassy Kuwait's Classified Website:
http://www.state.sgov.gov/p/nea/kuwait/
********************************************
TUELLER
SIPDIS
SENSITIVE
USDOC FOR 4520/ITA/MAC/OME/CLOUSTAUNAU/COBERG
E.O. 12958: N/A
TAGS: ECON BEXP KU
SUBJECT: GOK LIKELY TO REACTIVATE OFFSET PROGRAM SOON
REF: 2004 KUWAIT 4366
This cable is sensitive but unclassified; please protect
accordingly. Not for Internet distribution.
1. (U) At a July 11 signing ceremony between Boeing and the
Ministry of Finance for an offset program project (reftel),
the Minister of Finance said that Kuwait "has to go along
with the program," indicating that the offset program,
suspended in September 2004, would be reactivated. (Note:
The signing ceremony was for an offset project dating from a
contract between Boeing and the GOK in the 1990's. End Note.)
In September 2004, the Council of Ministers decided to
suspend implementation of the offset program for all new
government contracts in the military and civilian sectors
pending further review by the Ministry of Finance. A
six-month review of the program was to take place, at the end
of which the offset program would either be modified,
reinstated or discontinued. No contracts awarded during the
review period will carry an offset requirement.
2. (SBU) Ministry of Finance Offset Program Department
Director Mazan Madooh confirmed to Econ Officer after the
signing ceremony that the program would likely be reactivated
soon. He said that the Ministry of Finance would bring its
recommendation to the next Council of Ministers meeting on
July 17 and that the Council could choose to reactivate the
program on that date or shortly thereafter. He said that
there would be a one-to-two month grace period before the
program actually goes into effect again. Asked about the
potential for an offset requirement in the project to develop
Kuwait's northern oilfields (Project Kuwait),Madooh said
that he did not think that there would be an offset
requirement and that all projects involving exploration and
development of natural resources would be exempt from offset
requirements.
********************************************
Visit Embassy Kuwait's Classified Website:
http://www.state.sgov.gov/p/nea/kuwait/
********************************************
TUELLER