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.

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LEBARON