Identifier
Created
Classification
Origin
06KUWAIT2637
2006-07-02 05:58:00
UNCLASSIFIED
Embassy Kuwait
Cable title:  

GOK INDUSTRY HEAD SAYS IMPORT INSPECTION CONTRACT

Tags:  BEXP EINV PINR KU 
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VZCZCXRO6978
RR RUEHDE
DE RUEHKU #2637 1830558
ZNR UUUUU ZZH
R 020558Z JUL 06
FM AMEMBASSY KUWAIT
TO RUEHC/SECSTATE WASHDC 5555
INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC
UNCLAS KUWAIT 002637 

SIPDIS

SIPDIS

STATE PASS TO USTR PBURKHEAD

E.O. 12958: N/A
TAGS: BEXP EINV PINR KU
SUBJECT: GOK INDUSTRY HEAD SAYS IMPORT INSPECTION CONTRACT
CANCELED; TALKS UP POSSIBLE INDUSTRIAL PARK, JOINT-VENTURES


UNCLAS KUWAIT 002637

SIPDIS

SIPDIS

STATE PASS TO USTR PBURKHEAD

E.O. 12958: N/A
TAGS: BEXP EINV PINR KU
SUBJECT: GOK INDUSTRY HEAD SAYS IMPORT INSPECTION CONTRACT
CANCELED; TALKS UP POSSIBLE INDUSTRIAL PARK, JOINT-VENTURES



1. On June 28, CDA met with Public Authority for Industry
(PAI) Director General Dr. Mirza Hasan to discuss potential
investments by U.S. firms in Kuwait. Hasan described plans
for an industrial park of "a couple of million square meters"
that would focus on research and development in fuel cells,
biotechnology, and water resource management. He stressed
that Kuwait's abundance of cheap energy could serve as
feedstock for industrial projects, and that a GOK-owned
company with $700 million in capital is ready to partner with
a U.S. firm in a joint-venture. Hasan said the project would
aim for a Kuwaiti labor force, but admitted that
third-country national labor would also be needed. CDA
referred Hasan to the American Business Council to gauge
potential investor interest, and Post's FCS section will
follow-up as appropriate.


2. CDA asked Hasan about various issues affecting the
investment climate for foreign firms in Kuwait, including
taxation and the cumbersome Conformity Assessment Scheme
(CAS) import pre-inspection regime. Hasan agreed that the
tax law's implementation has been arbitrary and is a barrier
to investment. Regarding the CAS, which falls under the
purview of the PAI, Hasan said "sees the U.S.'s point" about
it being a barrier to trade, and that he had "canceled the
contract" with the administering company.


3. Bio note: Dr. Mirza Hasan was appointed as Director
General of the PAI in April 2006. He previously served as
Director of Kuwait's Information Office in Washington, DC
from 2001-2005. He is in his mid-50's and speaks excellent
English.

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For more Embassy Kuwait reporting, see:
http://www.state.sgov.gov/p/nea/kuwait/index. cfm

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

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