Identifier
Created
Classification
Origin
06KUWAIT3294
2006-08-14 13:54:00
CONFIDENTIAL//NOFORN
Embassy Kuwait
Cable title:  

IRAQ'S FUEL SHORTAGES: KUWAIT SAYS IT'S HONORING

Tags:  PREL ECON EPET KU KUWAIT IRAQ RELATIONS 
pdf how-to read a cable
VZCZCXRO9761
OO RUEHBC RUEHDE RUEHIHL RUEHKUK
DE RUEHKU #3294 2261354
ZNY CCCCC ZZH
O 141354Z AUG 06
FM AMEMBASSY KUWAIT
TO RUEHGB/AMEMBASSY BAGHDAD IMMEDIATE 0663
RUEHC/SECSTATE WASHDC IMMEDIATE 6263
INFO RUCNRAQ/IRAQ COLLECTIVE PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RHMFISS/CDR USCENTCOM MACDILL AFB FL PRIORITY
C O N F I D E N T I A L KUWAIT 003294 

SIPDIS

NOFORN
SIPDIS

FOR NEA/ARP

E.O. 12958: DECL: 08/13/2016
TAGS: PREL ECON EPET KU KUWAIT IRAQ RELATIONS
SUBJECT: IRAQ'S FUEL SHORTAGES: KUWAIT SAYS IT'S HONORING
ALL AGREEMENTS, NOTES CONCERNS ABOUT CORRUPTION

REF: A. BAGHDAD 2933

B. KUWAIT 3275

C. KUWAIT 2776

Classified By: Ambassador Richard LeBaron for reasons 1.4(b) and (d)

C O N F I D E N T I A L KUWAIT 003294

SIPDIS

NOFORN
SIPDIS

FOR NEA/ARP

E.O. 12958: DECL: 08/13/2016
TAGS: PREL ECON EPET KU KUWAIT IRAQ RELATIONS
SUBJECT: IRAQ'S FUEL SHORTAGES: KUWAIT SAYS IT'S HONORING
ALL AGREEMENTS, NOTES CONCERNS ABOUT CORRUPTION

REF: A. BAGHDAD 2933

B. KUWAIT 3275

C. KUWAIT 2776

Classified By: Ambassador Richard LeBaron for reasons 1.4(b) and (d)


1. (C/NF) The Ambassador used the occasion of a previously
scheduled meeting with Kuwaiti Deputy Prime Minister and
Foreign Minister Shaykh Dr. Mohammed Al-Sabah Al-Salem
Al-Sabah to raise the growing fuel shortage in Iraq and
encourage the GOK to provide all possible assistance.
Responding to the FM's comments about deteriorating security
conditions (more in septel),he stressed the importance of a
reliable fuel supply in promoting security and stability in
Iraq. The FM noted a slight early summer interruption in
fuel supplies to Iraq due to technical problems, but asserted
that Kuwait was honoring all of its fuel contracts with Iraq.
He seemed a bit surprised by the severity of the problem and
said that PM Al-Maliki did not/not raise the issue with the
Amir during his July visit to Kuwait (ref C).


2. (C/NF) The FM also commented on reported smuggling and
corruption in the Iraqi oil sector. Citing a recent World
Bank report, he said corruption in Iraq was pervasive at all
levels of government and wondered how much fuel was being
siphoned off for other purposes. He said the GOI needed to
immediately address corruption so that donors would have
confidence that fuel and monetary grants were not being
"hijacked." The Ambassador encouraged the GOK to raise the
corruption issue and need for transparency with the GOI
directly.


3. (C/NF) Comment: During the meeting, the FM clearly
outlined his concerns about security in Iraq (septel) and
showed he appreciates the relationship between a steady fuel
supply and stability. Nonetheless, corruption, transparency,
and the GOK's view that Maliki's government lacks a solid
plan undermine its current willingness to increase assistance
levels. A direct GOI approach to the GOK, with the degree of
detail provided ref A, would likely result in increased
short-term assistance. Such an approach would have to be
made immediately, however, as the Amir and other senior
officials depart August 21 for a month of official and
personal travel. End comment.

********************************************* *
For more reporting from Embassy Kuwait, visit:
http://www.state.sgov.gov/p/nea/kuwait/?cable s

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