FOREIGN MINISTER CLARIFIES (SORT OF) BREAKDOWN OF

C O N F I D E N T I A L KUWAIT 004281 SIPDIS FOR NEA/ARPI AND EB E.O. 12958: DECL: 10/01/2015 TAGS: EAID PREL PGOV ENRG KU AMER SUBJECT: FOREIGN MINISTER CLARIFIES (SORT OF) BREAKDOWN OF HURRICANE KATRINA ASSISTANCE REF: A. KUWAIT 4146 ¶B. KUWAIT 4050 ¶C. KUWAIT 3947 ¶D. STATE 163405 Classified By: Ambassador Richard LeBaron for reasons 1.4(b) and (d). ¶1. (C) During an October 1 meeting, the Ambassador restated to Kuwaiti Foreign Minister Shaykh Dr. Mohammed Al-Sabah Al-Salem Al-Sabah U.S. appreciation for Kuwait's generosity to victims of Hurricane Katrina. He noted the $500 million pledge from the GOK as well as the reported $1.7 million in contributions from private citizens and companies. He said the American people were becoming increasingly aware of Kuwait's support, citing the hundreds of e-mails sent to Information Minister Dr. Anas Al-Reshaid following a notice placed in USA Today and the New York Times. ¶2. (C) Referring to the $25 million check presented by Prime Minister Shaykh Sabah Al-Ahmed Al-Jaber Al-Sabah to former presidents Clinton and Bush on the margins of the UNGA, the Ambassador queried the FM on plans for disbursement of the remaining funds. The FM explained that the GOK has authority to spend without parliamentary approval $100 million, which will be divided between humanitarian assistance and petroleum products. In addition to the $25 million presented by the PM, the Kuwait Red Crescent Society will present to the Red Cross an additional $25 million. The $50 million balance could be assistance-in-kind (AIK),fuel shipments to the U.S., or the proceeds of open market sales. The FM requested that the Ambassador be in touch with Minister of Energy Shaykh Ahmad Fahd Al-Ahmad Al-Sabah to discuss the details of the petroleum product distribution. Ambassador will reiterate the U.S. preference for the cash proceeds (ref a). ¶3. (C) The remaining $400 million, which requires parliamentary approval, would be in petroleum product assistance (ref a). Of this amount, $350 million would be AIK, including $100 million for OIF through a no-charge extension to the current contact. The remaining $50 million would be in humanitarian aid. (Note: Parliament is scheduled to reconvene October 17. End note.) ¶4. (C) Comment: Until this meeting, we had been advised that the entire $100 million initial tranche would be in humanitarian aid. As noted above, the "other" $50 million now appears to be coming in the tranche requiring National Assembly approval. End comment. ********************************************* 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