Identifier
Created
Classification
Origin
05KUWAIT3867
2005-08-29 09:18:00
CONFIDENTIAL
Embassy Kuwait
Cable title:  

AID TO PALESTINIANS OPAQUE; QUESTIONS ON GAZA

Tags:  PREL PGOV EAID EFIN WE GZ KU 
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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
--------------------

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.

*********************************************
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*********************************************
LEBARON