DEMARCHES DELIVERED: KUWAIT SUPPORTS PARIS CLUB

C O N F I D E N T I A L KUWAIT 003099 SIPDIS E.O. 12958: DECL: 07/11/2015 TAGS: EFIN ECON PGOV PREL EAID KU IZ SUBJECT: DEMARCHES DELIVERED: KUWAIT SUPPORTS PARIS CLUB IRAQI DEBT FORGIVENESS, WILL ATTEND DEAD SEA MEETING REF: A. STATE 127710 ¶B. STATE 125850 ¶C. KUWAIT 2730 Classified By: CDA Matthew Tueller for reasons 1.4 (b) and (d) ¶1. (C) During a July 12 meeting with the Charge d'Affaires, Kuwaiti Ministry of Foreign Affairs Undersecretary Khaled Al-Jarallah said that Kuwait is still committed to forgiving Iraqi debt but in accordance with the Paris Club formula. He did not react to the CDA's suggestion that Kuwait forgive 100% of its Iraqi debt, just as the U.S. has already done (ref B). He accepted the suggestion that Kuwait reach out to the Iraqi Transitional Government (ITG) at the upcoming meetings in Jordan to move the issue of debt forgiveness forward. ¶2. (C) Al-Jarallah disputed press statements attributed to ITG Foreign Minister Hoshyar Zebari about Baghdad awaiting word from Kuwait on the opening of an embassy. Al-Jarallah said Kuwait was awaiting a request and name from Baghdad to approve an ambassador. In response to the CDA's suggestion, he agreed that MFA would contact Iraqi counterparts to remove any misunderstanding. Al-Jarallah said it was very much in Kuwait's interest to have an Iraqi Embassy open promptly. ¶3. (C) As for the upcoming Dead Sea donors' meeting (ref A), Al-Jarallah said that the director of the Kuwait Fund for Arab Economic Development, Abdulwahab Al-Bader, will attend the conference; however, he was not certain which GOK officials would compose the remainder of the delegation. The U/S restated that Kuwait pledged an additional $60M to Iraqi reconstruction efforts, earmarked for education and health programs, after Iraqi Prime Minister Ibrahim Al-Jaafari's June visit to Kuwait (ref C). To date, he commented, no money had been dispersed as Iraq has yet to propose any specific projects. ¶4. (U) Baghdad minimize considered. TUELLER