TFUS01: GOK OFFERS $500 MILLION IN HURRICANE

C O N F I D E N T I A L SECTION 01 OF 02 KUWAIT 003947

SIPDIS

STATE FOR TASK FORCE 1, NEA, EB
LONDON FOR TSOU
STATE PLEASE PASS TO USAID/OFDA

E.O. 12958: DECL: 09/06/2015
TAGS: AEMR EAID PREL ENRG KU US KATRINA AID
SUBJECT: TFUS01: GOK OFFERS $500 MILLION IN HURRICANE
KATRINA RELIEF

REF: A. STATE 163405

B. STATE 163366

C. 09/04/2005 TASK FORCE-1 DIRECTOR - AMBASSADOR
LEBARON EMAIL

Classified By: Ambassador Richard LeBaron for reason 1.4 (b)


1. (U) This is an action request. Please see Embassy
recommendation in para 6 and action request in para 7.


2. (C) The Government of Kuwait (GOK) has decided to provide
$500 million in aid to the victims of Hurricane Katrina,
through a $100 million cash grant and $400 million in oil
products. The Council of Ministers made this decision during
its weekly meeting on September 4, and this was confirmed to
the Ambassador in a telephone call with Foreign Minister
Shaykh Dr. Mohammed Al-Sabah the evening of September 4. Dr.
Mohammed said that the $400 million in "bulk oil products"
would be organized by the Ministry of Energy, and that the
$100 million cash grant would be organized through Kuwait's
Embassy in Washington. Dr. Mohammad said that the Kuwaiti
aid is subject to approval by the National Assembly, which is
currently not in session (it returns in October),but that
the GOK had already consulted with the Assembly leadership
and "did not expect any resistance." Dr. Mohammed opened and
closed the conversation with expressions of sympathy and
solidarity with the American people.


3. (C) Ambassador spoke by telephone the afternoon of
September 5 with Energy Minister Shaykh Ahmad Fahd Al-Ahmad
Al-Sabah to get a better idea of modalities for the Kuwaiti
assistance. Shaykh Ahmed said that he had spoken to the
Prime Minister earlier in the day, and provided the current
Kuwaiti thinking. He said that the initial $100 million is
already in the GOK budget so that they can go ahead and move
it without further National Assembly approval. Contrary to
what we are hearing from the Task Force, Shaykh Ahmad
indicated that the GOK is considering doing half of the
initial $100 million in petroleum products - he said through
buying refined product already on ships or at European
refineries. He said that he thought the other half of the
initial $100 million would go to humanitarian aid, such as to
the Red Cross. He encouraged us to engage the Foreign
Ministry on the initial $100 million tranche, as this would
be that Ministry's responsibility, and said it would be
useful to meet with Foreign Minister Shaykh Dr. Mohammad
Al-Sabah when he is in the U.S. for UN meetings. (The
Foreign Minister is off to GCC and Arab League meetings
starting tomorrow. Ambassador is scheduled to see the Acting
Undersecretary on Wednesday. The Energy Minister is
traveling today to China and on to New York for UN meetings.)


4. (C) Regarding the other $400 million in petroleum
products, the Energy Minister indicated that this would
require Assembly approval in October before firm plans could
be made. He indicated that the GOK had not yet considered
how this part of the package would work. He noted that part
of the support could be a year's free supply of the increment
of additional fuel requested by OSD recently for operations
in Iraq. (Note: OSD A/S Peter Rodman made this request to
Amb. Salim, before Hurricane Katrina. The GOK has been a
major supplier of free and heavily discounted jet fuel that
U.S. forces use for both ground and air operations in Iraq
and Kuwait.) He said KPC is going to try to figure out where
they can find additional fuel, because at this time, they do
not have any available uncommitted jet fuel.


5. (U) Embassy point of contact for follow up on the oil
products donation is Deputy Chief Of Mission Matthew Tueller.
Unclass Email: tuellermh@state.gov / Class Email:
tuellermh@state.sgov.gov / Phone: 965-259-1362. On any
communications regarding the oil products donation, please
also CC: Ambassador Richard Lebaron (lebaronrb@state.gov /
lebaronrb@state.sgov.gov) and Economic Counselor Stephen
Carrig (carrigsj@state.gov / carrigsj@state.sgov.gov).


6. (SBU) Embassy Recommendation: Ambassador recommends that
Washington coordinate closely with Kuwaiti Ambassador and KPC
rep in Washington. Washington should confirm with them what
the Energy Minister told us today. At this time, contact by
working level USG offices in Washington with officials in
Kuwait would not be productive and add to existing confusion
about the details of the Kuwaiti donations. Working with the
Ambassador and KPC in Washington will reveal whether it will
be useful or necessary to engage the Foreign Minister when he
comes to New York. The Energy Minister will also be with the
Prime Minister in New York for the UN High Level Meeting.


7. (U) Per Ref C, it appears that someone in the GOK has
been in contact with the Task Force or elsewhere in the
Department regarding the specifics of the $100 million cash
donation. Per the Ref C Email, Department advised that the
GOK would make its cash donation to the USG versus a donation
to a U.S. assistance organization. Please let us know who
has been in contact on this and the details of arrangements
discussed.

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Visit Embassy Kuwait's Classified Website:
http://www.state.sgov.gov/p/nea/kuwait/
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LEBARON