FM SAYS MOD SHOULD ADDRESS FUEL; PROMISES AID FOR

C O N F I D E N T I A L SECTION 01 OF 02 KUWAIT 000539 SIPDIS DEPT FOR NEA/ARPI E.O. 12958: DECL: 02/07/2015 TAGS: PARM EAID PTER PREL PGOV MOPS MARR PHUM KU SUBJECT: FM SAYS MOD SHOULD ADDRESS FUEL; PROMISES AID FOR PA AFTER RESUMPTION OF RELATIONS REF: A. KUWAIT 512 ¶B. KUWAIT 446 ¶C. KUWAIT 417 ¶D. KUWAIT 405 ¶E. KUWAIT 112 ¶F. KUWAIT 111 Classified By: Ambassador Richard LeBaron for reasons 1.4 (b) and (d) ¶1. (C) Summary: In a February 7 meeting with the Ambassador, Kuwaiti FM Shaykh Dr. Mohammed encouraged that a timeline be established for resolving the fuel issue. He reported that members of Parliament were expressing interest in what that the GOK was providing and that a plan could help to quell criticism of the assistance. He informed the Ambassador that the Ministry of Defense (KMOD) was now the lead negotiator and recommended that the Joint Military Commission be tasked in some way to address the broader issues implied in the KMOD approach to the issue. The Ambassador commended the GOK for its more aggressive response to security threats and reminded the FM that addressing money laundering and terror financing are also critical tools in the global war on terror. The Ambassador inquired about timing for the release of GOK financial assistance to the Palestinian Authority. The FM reaffirmed Kuwait's readiness to assist the PA, but said diplomatic and political relations would need to be reestablished before the GOK could release promised funds. The FM agreed that elections in Iraq went well and said he hoped a government would be in place before the Arab League summit. He also welcomed a second Sharm Al-Shaykh conference. The FM informed the Ambassador of the Prime Minister's desire to travel to Washington in May and said the GOK would welcome a visit by Secretary Rice. The Ambassador shared with the FM his response to a newspaper reporter on Embassy attendance at an Islamist political function, stressing that reporting officers attend a variety of functions in order to be fully aware of developments in Kuwait. The FM said the interview would give the Kuwaiti people a change to hear from the Ambassador directly. End Summary. FM on Fuel: Joint Military Commission Involvement Needed -------------- -------------- ¶2. (C) Ambassador LeBaron opened his February 7 meeting with Foreign Minister Shaykh Dr. Mohammed Sabah Al-Salem Al-Sabah by reviewing possible next steps to resolve the fuel issue. The Ambassador sought clarification on whether the Kuwaiti Ministry of Defense (KMOD) was the appropriate interlocutor or whether an inter-ministry team had been established to settle the negotiations. The Ambassador also informed Dr. Mohammed a Pentagon team was developing proposals based on the KMOD request, but KMOD had not made any specific requests to facilitate the process. The FM responded that, without an agreement, the GOK is in violation of its constitution and members of Parliament are starting to ask questions. It is essential that the fuel issue be resolved and he recommended KMOD and the U.S. establish a timeline for completing the deal so that the GOK can demonstrate to Parliament a process was underway. He said KMOD was the point of contact for the matter. ¶3. (C) The Ambassador noted that the Defense Department was inquiring what had happened on its request for reconsideration of the proposal to pay production costs. Dr. Mohammed said the matter had not been formally discussed and he did not consider it constructive to pursue it. He explained that production cost can be calculated in many ways and that for an exhaustible resource such as fuel, the replacement cost had to be considered, thereby raising the price to about 100 dollars (it was not clear if he meant gallons or barrels). Dr. Mohammed supported the Joint Military Commission as a venue to address the broader trade-offs involving fuel and enhanced military cooperation. GOK Must Stay Tough on Terror -------------- ¶4. (C) Turning to recent security incidents, the Ambassador commended the GOK for its decisive response to the presence of terror cells and said the U.S. appreciated its good collaboration with Kuwaiti security apparatus. He noted a substantial change in the GOK's attitude and reaction to terror threats and encouraged Kuwait to use the momentum to more fully address money laundering and terror financing. The FM reasserted Kuwait's resolve to wipe out terror and said he looked forward to the recommendations of the counterterrorism conference hosted by Saudi Arabia. Further commenting on Saudi Arabia, the FM noted its reform efforts, lamenting that if Saudi women participated in municipal elections this month, the SAG would surpass Kuwait in granting women's rights, and suggested the U.S. acknowledge and "encourage" the SAG's progress. GOK Seeks Return Abu Mazen Visit -------------- ¶5. (C) The Ambassador informed Dr. Mohammed of the Secretary's visit to Israel and Palestinian-controlled areas. SIPDIS Referring to previous discussions on Kuwaiti aid to the Palestinian people, he said the election of Abu Mazen opened the door for Kuwait to resume its financial assistance and encouraged the GOK to act. Dr. Mohammed said the GOK intended to fulfill the pledge previously made at the Arab League Summit, however, Kuwait was waiting for Abu Mazen to name his full cabinet. Additionally, since Kuwait had severed ties with the Palestinian Authority, Abu Mazen would need to return to Kuwait to address the resumption of diplomatic and political relations before funds could be disbursed. Dr. Mohammed said this point had been made clear to Abu Mazen during his December 2004 trip and the GOK welcomed his return visit. The FM commented relations with the PA remains a sensitive subject for the Kuwaiti people and if the new cabinet included individuals who supported Saddam Hussein's 1990 invasion of Kuwait, there would not be any public support for a resumption of financial assistance. GOK Supports 2nd Sharm Al-Shaykh Meeting on Iraq -------------- --- ¶6. (C) Commenting on the January 30 elections in Iraq, the Ambassador said they went well and set the stage for the continued evolution of the Iraqi political process. He stressed the U.S. will remain engaged and reminded Dr. Mohammed that the new Iraqi government will need encouragement and support from its neighbors. Dr. Mohammed shared the assessment that elections were largely successful and asked for U.S. views on the proposal for a second Sharm Al-Shaykh summit. The GOK favors another gathering. The FM also hoped that an Iraqi government would be in place by March so that it can participate in the Arab League Summit. Dr. Mohammed further asked for U.S. views on Syria's role in Iraq. He questioned the GOS's intent and wondered how much influence President Bashar Al-Asad really has. The Ambassador replied that Syrian behavior remains inconsistent. PM Visit to Washington -------------- ¶7. (SBU) Dr. Mohammed informed the Ambassador that Prime Minister Shaykh Sabah Al-Ahmed Al-Jaber Al-Sabah would like to visit the U.S. in May. He also extended an open invitation for the Secretary to visit Kuwait. Emboff Attendance at Rally Taken Out of Context -------------- -- ¶8. (C) Referring to recent criticism of Emboff attendance of the launching of a new Islamist political party, the Ambassador told Dr. Mohammed the flack was unfortunate and U.S. attendance was in no way a political statement. As a matter of course, officers attend a variety of functions in order to be fully aware of developments in Kuwait. The Ambassador also shared with Dr. Mohammed his response to Al-Qabas newspaper on the matter, to be published February 8 as part of a larger interview. The Foreign Minister welcomed the explanation and said the newspaper interview would give the Kuwaiti people a chance to hear from the Ambassador directly. He added that the GOK's concern was not U.S. attendance at a politically-motivated press conference, rather that the group advocates violence in that it terms the U.S. military presence in Kuwait an "occupation." He said the GOK does not oppose political groups, but the Hizb Al-Ummah had called itself a party and there was a process for party formation which was violated. ¶9. (U) Baghdad: Minimize considered. ********************************************* 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