AID TO PALESTINIANS OPAQUE; QUESTIONS ON GAZA

C O N F I D E N T I A L KUWAIT 003867 SIPDIS STATE FOR NEA/ARPI LONDON FOR TSOU E.O. 12958: DECL: 08/27/2015 TAGS: PREL PGOV EAID EFIN WE GZ KU SUBJECT: AID TO PALESTINIANS OPAQUE; QUESTIONS ON GAZA WITHDRAWAL REF: A. KUWAIT 3850 ¶B. KUWAIT 3775 ¶C. KUWAIT 3585 Classified By: Ambassador Richard LeBaron for reason 1.4 (b) Aid to Palestinians -------------- ¶1. (C) In an August 27 meeting with Foreign Minister Shaykh Dr. Mohammed Sabah Al-Salem Al-Sabah, the Ambassador followed up on his previous request to Prime Minister Shaykh Sabah Al-Ahmed Al-Jaber Al-Sabah (ref B) and asked for clarification on Kuwaiti aid to the Palestinian Authority, particularly the details of transfers. The FM denied that Kuwait used cash transfers, saying instead that, per an Arab League decision in 2000, all project finance aid to the Palestinians was handled by the Islamic Development Bank (IDB). Shaykh Dr. Mohammed said that Kuwait was current on all its aid commitments to the Palestinians; the last payment, in the amount of $21 million, was made to the IDB three weeks ago, he said. (Note: Further details on GOK aid to the Palestinian Authority are included in reftels. End note.) ¶2. (C) Separately, according to a spreadsheet given to the Ambassador during an August 24 meeting with Abdulwahab Al-Bader, the Director General of the Kuwait Fund for Arab Economic Development (KFAED),KFAED provided $25 million worth of grants, administered by the Arab Fund, for health and education sector projects in Palestinian territories (ref A). (Note: All figures are in USD unless otherwise stated. End note.) Of this amount, $16.5 million was allocated to health projects: surgery facilities at Ramallah and Dar-Al-Salam hospitals ($10 and $1.5 million, respectively), a rehabilitation unit at Abu Raya hospital ($2 million),a head injury treatment unit at Beit-Lahim hospital ($1 million),and a handicapped rehabilitation facility in the Gaza Strip ($2 million). The remaining $8.5 million was allocated to education sector projects including a kindergarten for orphans in Gaza ($1 million),schools in Beit-Sahour and Nablis ($1 million),a Coptic College facility in Jerusalem ($700,000),a "University Graduates League" in Khalil ($1.5 million),and a new library section at Beir-Zeit University ($1 million). Tough Questions on Gaza Withdrawal -------------- ¶3. (C) During the meeting, Shaykh Dr. Mohammed asked the Ambassador for an update on the Israeli withdrawal from Gaza. The Ambassador responded that the possibility of further terrorist activities by Hamas remained a concern and emphasized that the success of the withdrawal depended to a great extent on the ability of the Palestinian leadership, in cooperation with the international community, to create viable economic options for the Palestinian people in Gaza. Shaykh Dr. Mohammed asked if the Palestinian Authority (PA) would be allowed to import weapons if PA President Mahmoud Abbas wanted to confront Hamas. The Ambassador said that the problem did not appear to be lack of weapons, but rather the way President Abbas wanted to deal with Hamas. ¶4. (C) How would the U.S. respond to Prime Minister Ariel Sharon's recent decision to expand Israeli settlements in the West Bank while international attention was focused on the Gaza withdrawal, Shaykh Dr. Mohammed asked. The Ambassador stated long-standing U.S. opposition to an expansion of Israeli settlements in the West Bank and said that we had expressed our concerns regarding this issue to the Israeli government. ********************************************* 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