Identifier
Created
Classification
Origin
05KUWAIT651
2005-02-14 09:27:00
CONFIDENTIAL
Embassy Kuwait
Cable title:  

KUWAIT NATIONAL ASSEMBLY MEMBERS AGREE WITH GOK ON

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C O N F I D E N T I A L KUWAIT 000651 

SIPDIS

STATE FOR NEA/ARPI

E.O. 12958: DECL: 02/15/2005
TAGS: EAID ECON KU IZ KUWAIT IRAQ RELATIONS NATIONAL ASSEMBLY
SUBJECT: KUWAIT NATIONAL ASSEMBLY MEMBERS AGREE WITH GOK ON
IRAQI DEBT RELIEF

REF: A. KUWAIT 0326

B. 2004 KUWAIT 4081

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

C O N F I D E N T I A L KUWAIT 000651

SIPDIS

STATE FOR NEA/ARPI

E.O. 12958: DECL: 02/15/2005
TAGS: EAID ECON KU IZ KUWAIT IRAQ RELATIONS NATIONAL ASSEMBLY
SUBJECT: KUWAIT NATIONAL ASSEMBLY MEMBERS AGREE WITH GOK ON
IRAQI DEBT RELIEF

REF: A. KUWAIT 0326

B. 2004 KUWAIT 4081

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


1. (C) Summary and Comment: During January and February,
Ambassador met with five prominent MPs and discussed Iraqi
debt relief. Most of the MPs were supportive of the GOK's
efforts to offer comparable treatment to the Paris Club
decision to forgive 80% of Iraqi debts, but voiced a need to
show their constituents that any debt relief was in line with
international efforts. They, and other post contacts, have
made clear though that UNCC payments are not up for
discussion and that Kuwait would only consider forgiving
pre-Gulf War Iraqi debt. Comment: The GOK is waiting for
formation of the Iraqi government in order to engage in debt
discussions. Forgiveness of Iraqi debt is not popular here,
thus the expressed need to wrap Kuwait's efforts into an
international context -- the Paris Cub terms. End Summary
and Comment.

Iraqi Debt Relief: MPs Agree - But Stay Away from UNCC!
-------------- --------------


2. (C) The MPs were all in agreement that providing
comparable treatment to the Paris Club's planned 80% debt
reduction for Iraq was the right thing to do, as long as it
was in line with international agreements. At the same time,
some of them placed specific conditions on the debt, and post
has heard loud and clear from these MPs and others that any
debt forgiveness for Iraq would only involve pre-Gulf War
debt and that a reduction or forgiveness of United Nations
Compensation Committee payments from Iraq's invasion of
Kuwait was not up for discussion (Ref B). The Ambassador
explained to each MP that the USG was forgiving 100% of its
Iraqi debt and asked the MPs to support the GOK's plan to go
along with the 80% Paris Club reduction. MP Al-Haroun said
"at the end of the day, we will support the government." MP
Al-Roumi said it was "not a problem," but wanted to "link
forgiving debts to a legitimacy of (Kuwait's) borders." "How
can we forgive the debt," he asked, "when we still have
border problems?" MP Al-Zalzalah said that Kuwait would not
forgive Iraq debt independently, but that Kuwait would not
"single ourselves out of it" if it is an international
decision. "Iraq does need our help," he admitted, but added
that the MPs needed to "convince the average Kuwaiti because
some want the benefits for themselves."


3. (C) Al-Sane also did not oppose debt relief if it was in
line with Paris Club reductions and pointed out that he had
made a public statement on Al-Jazeera in support of reducing
Iraq's debt. Al-Sane also suggested that the GOK consider
reducing Kuwaitis' personal debts if it is going to reduce
Iraq's debts but admitted that the government's failure to
offer Kuwaitis debt leniency would not be a deal-breaker (Ref
A). MP Al-Saadoun said that he did not think Kuwait would
"depart from agreements made in the international community"
concerning debt relief, but was adamantly against any
reduction or elimination of the UNCC reparation payments.
"There is a unified Kuwaiti position" on those payments, and
he said that he and other MPs would "stress to the GOK to
adopt a firm position to keep these compensations." "They
are not meant to be against the Iraqi people," he added, "but
Kuwait has borne much. We hope the international community
will support this." The Ambassador said that the U.S. has
always been the strongest supporter for the compensation
issues but that forgiveness of debt is key to helping the
Iraqi economy and he hoped the MPs would be supportive.

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