Identifier
Created
Classification
Origin
05KUWAIT326
2005-01-19 13:44:00
CONFIDENTIAL
Embassy Kuwait
Cable title:  

ISLAMIST MP TALKS ABOUT TERRORISM, IRAQI DEBT,

Tags:  PTER PREL EFIN ETTC PGOV EAID EPET KISL KWMN KU 
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C O N F I D E N T I A L SECTION 01 OF 04 KUWAIT 000326 

SIPDIS

E.O. 12958: DECL: 01/18/2015
TAGS: PTER PREL EFIN ETTC PGOV EAID EPET KISL KWMN KU
SUBJECT: ISLAMIST MP TALKS ABOUT TERRORISM, IRAQI DEBT,
KUWAIT PROJECT, WOMEN'S RIGHTS

REF: A. KUWAIT 264

B. 04 KUWAIT 494

C. 04 KUWAIT 91 (STADIS)

D. 03 KUWAIT 5188

E. 03 KUWAIT 4840

F. 03 KUWAIT 3044

C O N F I D E N T I A L SECTION 01 OF 04 KUWAIT 000326

SIPDIS

E.O. 12958: DECL: 01/18/2015
TAGS: PTER PREL EFIN ETTC PGOV EAID EPET KISL KWMN KU
SUBJECT: ISLAMIST MP TALKS ABOUT TERRORISM, IRAQI DEBT,
KUWAIT PROJECT, WOMEN'S RIGHTS

REF: A. KUWAIT 264

B. 04 KUWAIT 494

C. 04 KUWAIT 91 (STADIS)

D. 03 KUWAIT 5188

E. 03 KUWAIT 4840

F. 03 KUWAIT 3044


1. (C) SUMMARY. During a January 16 call on influential
Islamist Member of Parliament (MP) Dr. Nasser Al-Sane, the
Ambassador discussed a wide range topics, including terrorist
finance, cancellation of Iraq's debt to Kuwait, the Kuwait
Project to develop the northern oilfields, and political
rights for women. Al-Sane condemned the January 10 and 15
shoot-outs between terrorists and security forces, saying
that the ICM is squarely opposed to such acts (ref A). But
he expressed concern that not all Islamist be "pigeonholed as
extremists." Al-Sane complained to the Ambassador about a
long-running dispute that he has had with the Treasury
Department's Office of Foreign Assets Control (OFAC),saying
he was still awaiting data promised to him by the former
director. The Ambassador pointed out that Kuwait,s
terrorist finance laws were not sufficiently strong and some
banking laws need refinement, especially with regard to the
Financial Intelligence Unit. Concerning reducing Iraqi debt,
Al-Sane said he did not see serious opposition in the
National Assembly if the reductions are justified in terms of
Paris Club actions.


2. (C) On the Kuwait Project (a major pending effort to
revitalize Kuwait's northern oilfields using foreign
operating companies),Al-Sane said that he still has concerns
about the project's constitutionality and transparency.
According to him, the government has made a number of
missteps that have turned MPs in his movement against the
project in the past. Still, Al-Sane has been impressed by
the lobbying carried out by Kuwait Project Director Ahmed
Al-Arbeed, (himself an ICM member),and he conceded that the
Kuwait Project would likely be approved, albeit with "a lot

of noise." Al-Sane was highly critical of the current
cabinet, saying that Prime Minister Shaykh Sabah seemed "like
a person without a team," and he worried that the Prime
Minister does not have a clear vision and plan for the
country's future, nor the proper people around him to
implement one. Finally, the Ambassador asked about the
status of legislation to grant women political rights.
Al-Sane, who supports women's rights, said the government
would like to resolve women,s political rights during the
current session. According to him, there is much more
pressure now for granting women's rights, including from
foreign governments, than there was when it was debated
before. In addition, local activists are becoming more
professional, favoring dialogue to convince others to support
women's rights. END SUMMARY.


3. (C) During a January 16 courtesy call on Islamist Member
of Parliament (MP) Dr. Nasser Al-Sane, the Ambassador
discussed a wide range of topics, including terrorist
finance, cancellation of Iraq's debt to Kuwait, the Kuwait
Project, and political rights for women. Al-Sane, a
prominent member of the Islamic Constitutional Movement (the
political arm of the Kuwaiti Muslim Brotherhood) and the
Islamist Social Reform Society (SRS),is an influential
Islamist within the National Assembly and is more moderate
than others in the Salafist movements.

Terrorism in Kuwait
--------------


4. (C) Al-Sane condemned the January 10 and 15 shoot-outs
between terrorists and security forces, saying that the ICM
is squarely opposed to such acts (ref A). But he expressed
concern that not all Islamists be "pigeonholed as
extremists," citing the case of ICM member Tariq Swaidan
(also spelled Suwaidan),a Kuwaiti who was an officer with
the Washington, DC and Virginia branches of the International
Islamic Relief Organization (IIRO). Swaidan has been named
as a defendant in the lawsuit filed by 9/11 victims,
families against a variety of charities and foreign nationals
(although neither Swaidan nor IIRO has been formally
designated by the USG or the UN). Al-Sane argued that
Swaidan is very influential in the region and is "just the
kind of person who we need at this time:" a moderate who
supports women,s rights, freedom of speech, and dialogue
among religions. He added that moderates like Swaidan should
be protected, not shunned.

Terrorist Finance and Misunderstandings with OFAC
-------------- --------------


5. (C) Al-Sane complained to the Ambassador about a
long-running dispute that he has had with the Treasury
Department's Office of Foreign Assets Control (OFAC).
Al-Sane, whose Social Reform Society (SRS) was the parent
organization for Lajnat al-Da wa al-Islamiyya (LDI),a
charity designated by the U.S. and the UN as a supporter of
terrorism, has been trying to convince OFAC to delist LDI for
eighteen months. As part of this effort, Al-Sane has sought
financial data that reportedly shows transactions made by SRS
on behalf of LDI after the latter's designation. After a
meeting with Al-Sane in October 2003, former OFAC Director
Richard Newcomb promised to provide these data to the MP, but
later discovered that a confidentiality agreement with the
source of the transaction data precluded sharing them (refs
B-F).


6. (C) Al-Sane said he met with Newcomb most recently in the
spring of 2004 when, he alleged, Newcomb told him that they
needed to "turn a new page" on the topic. Newcomb told him
that he could not release the transaction data, but allegedly
agreed that he could give Al-Sane a "hint" about the
transactions, like the dates of the transfers, so that SRS
could clarify. Al-Sane further claimed that Newcomb said he
would send someone to Kuwait with all the information that
Al-Sane needed. However, no one ever came.


7. (C) Al-Sane also expressed his displeasure with
statements attributed to Newcomb in a January 15 Kuwaiti
newspaper article, which quoted an unnamed "high-ranking
official" as saying that Newcomb believed he had received
poor responses from Kuwait about charities and charitable
donations. (NOTE. The relevant portion of the article said
that "A high-ranking official told Al-Qabas that the former
director of the Office of Foreign Assets Control at the U.S.
Treasury, Richard Newcomb, who had visited Kuwait three times
and discussed the fate of (charitable) donations with the
government, told him that the government and Islamic
charitable organizations were not cooperating on this issue.
The official quoted Newcomb: 'I am greatly disappointed; no
one has given us what we had requested. We are aware that
charitable organizations have committees, and no one knows
how much money these committees collect, and no one knows
where this money goes.'") Al-Sane contended that when he met
with Newcomb in 2004, "his story was different," and he hoped
that this was an old quote.


8. (C) The Ambassador noted that for its part, the Embassy
has had difficulties getting the GOK to do something about
Kuwaitis financing terrorist attacks on U.S. soldiers in
Iraq, and pointed out that Kuwait,s terrorist finance laws
were not sufficiently strong. He also noted that some of
Kuwait,s banking laws need refinement, specifically citing
the provision that prohibits Kuwait,s Financial Intelligence
Unit (FIU) from sharing information without the Public
Prosecutor,s Office,s pre-approval, thereby disabling the
FIU as an independent, quick-acting entity.

Iraqi Debt
--------------


9. (C) The Ambassador asked for Al-Sane's help as a member
of the Economic and Finance Committee with Iraqi debt
forgiveness (the committee will have to review any government
recommendation on debt reduction). While acknowledging that
debt relief for Iraq raises emotional issues for Kuwait, the
Ambassador noted its importance to the Iraqi people and to
the U.S.-Kuwaiti relationship. Al-Sane replied that he did
not see serious opposition in the National Assembly to Iraqi
debt forgiveness if it was in line with Paris Club reductions
and could be framed as Kuwait fulfilling its obligations as a
member of the international community. He added that he had
made a public statement on Al Jazeera in support of reducing
Iraq's debt. Al-Sane also suggested that the GOK consider
reducing Kuwaitis' personal debts if it is going to reduce
Iraq's debts (he cited the Ministry of Energy's plans to
collect residents' outstanding water and electricity bills,
some of which are 14 years delinquent). When pressed, he
admitted that the government's failure to offer Kuwaitis
leniency would not be a deal-breaker.

Kuwait Project
--------------


10. (C) On the Kuwait Project, which would open up the
northern oilfields to foreign investors, Al-Sane said that he
still has concerns about the project's constitutionality and,
more important, its transparency (Al-Sane is the vice chair
of the Global Organization of Parliamentarians against
Corruption, or GOPAC). He noted that the government had only
last week given the parliament documents on the Kuwait
Project that the National Assembly had been requesting since

1998. Because the GOK has always kept the project "hidden and
not transparent," the ICM has opposed it, he said.


11. (C) According to Al-Sane, the government has made a
number of missteps. First, the cabinet has been inconsistent
about whether or not it would consult with the parliament
before bidding out the project. (NOTE. Since Kuwait's
constitution stipulates that its natural resources belong to
the people -- and not the state -- there is widespread debate
about whether opening up Kuwait's fields to foreign investors
would violate the constitution. To circumvent the
constitutional question, the government considered framing
the Kuwait Project as a pure services contract that would not
cede ownership of the oil, and would therefore not require
parliamentary approval. END NOTE.)


12. (C) Al-Sane said that the Prime Minister spoke privately
with the parliament at the beginning of the current session
and said that the government did not need to bring the
project before the National Assembly, but that the government
might keep them informed as a courtesy. "We did not like
that language," Al-Sane added. By contrast, Al-Sane
reported, Energy Minister Shaykh Ahmed Al-Fahad Al-Sabah
delivered a different message, saying that the government
would never proceed without the National Assembly's
involvement and that he personally did not want to be known
as the minister who gave away Kuwait's resources. One week
later, however, Shaykh Ahmad went to the press to present the
same argument as the Prime Minister.


13. (C) Second, Al-Sane has concerns about alleged backroom
deal-making by former Energy Minister Shaykh Saud Nasser
Al-Sabah with foreign oil companies and the latter's failure
to clear the record. Nevertheless, Al-Sane said that he has
been impressed by the lobbying carried out by Kuwait Project
Director Ahmed Al-Arbeed, (himself an ICM member),and his
efforts to outline the project's technical, legal and
financial merits. The Ambassador replied that he had spent
some time with Al-Arbeed, and believed Al-Arbeed understood
the need for transparency. The Ambassador added that he
hoped the project's past history would not unduly bias MPs
against it. Al-Sane conceded that the Kuwait Project would
likely be approved, but that there would be "a lot of noise."
He also suggested that the government begin actively
campaigning on the project's behalf, both with the National
Assembly and through the media.

Shaykh Sabah: "Like a Person without a Team"
--------------


14. (C) Al-Sane was highly critical of the current cabinet,
saying that Prime Minister Shaykh Sabah seemed "like a person
without a team." At the same time, he commented, ministers
are frustrated because the Prime Minister is not backing them
on issues that might be controversial, but in which the Prime
Minister says he believes. As an example, Al-Sane spoke
about the former housing minister, who he said did a good job
of fighting corruption but had to resign because of the
unpopularity of his actions. Although the Prime Minister
said he supports rooting out corruption, he replaced the
housing minister with someone "who gets all smiles," Al-Sane
said.


15. (C) Al-Sane said he was also worried that the Prime
Minister does not have a clear vision and plan for the
country's future, noting that several long-term programs --
all of which differ from one another -- have been proposed.
He contended that the government has a majority in
Parliament, and therefore has the opportunity to pass
legislation to promote its vision. "He will never get a
better Parliament than this one," Al-Sane asserted. However,
he added, the government is not using its majority every
time. Rather, when it is uncertain how the public will react
to certain initiatives, the government is not pushing its
agenda and is instead "burning" MPs who champion these
initiatives.

Women's Rights
--------------


16. (C) The Ambassador concluded by asking about the status
of legislation to promote women's rights. Al-Sane said that
the ICM's new secretary-general supports women's political
rights (as does Al-Sane),and has asked the ICM to reconsider
its position opposing women's right to run for office. The
secretary-general's position has been opposed by the ICM's

SIPDIS
general assembly (most of whose members do not favor women's
political rights),but the shura majlis (consultative
council) -- which may overrule the general assembly -- has
yet to meet about this issue. On a less encouraging note, he
said that the secretary general makes it a practice not to
lobby on behalf of his positions.


17. (C) The Ambassador inquired when the issue of women's
political rights would come up in the National Assembly.
Al-Sane replied that the Prime Minister told him that that
the government would like to resolve women's political rights
during the current session. Al-Sane added that if the
government would like to move more quickly, they must simply
declare this to be an urgent issue, which would force the
National Assembly to set a date for debate. According to
Al-Sane, there is much more pressure now for granting women's
rights, including from foreign governments, than there was
when it was debated before. "All (diplomatic) missions in
Kuwait are pressing" the Kuwaitis for change, he noted, both
in Kuwait and through Kuwait's embassies abroad.


18. (C) In addition, Al-Sane observed, local activists are
becoming more professional, favoring dialogue to convince
others to support women's rights. Al-Sane said that a "great
majority" of ICM's women members are for women's political
rights, and the ICM has started including them in the "men's
meetings" (albeit separated by a barrier); previously, the
women met separately.

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