LEBANON: DEMARCHE ON ECONOMIC AND SECURITY

C O N F I D E N T I A L KUWAIT 004650 SIPDIS SIPDIS STATE PASS TO USAID, NEA/ARP FOR JACKSON E.O. 12958: DECL: 12/13/2011 TAGS: EAID ECON EFIN KU PREL SUBJECT: LEBANON: DEMARCHE ON ECONOMIC AND SECURITY ASSISTANCE REF: A. STATE 198236 ¶B. KUWAIT 4415 Classified By: DCM Matt Tueller for reasons 1.4 (b) and (d) ¶1. (C) In response to reftel encouraging additional economic and security assistance to Lebanon, Econcouns spoke with MFA Director of Arab Affairs Jassem Al-Mubaraki and Director of the Arab Fund for Economic and Social Development December 13 to encourage additional assistance beyond the substantial amounts already pledged to Lebanon by the GOK and the Arab Fund. ¶2. (C) Al-Mubaraki said he was unaware of additional assistance in the pipeline for Lebanon but agreed fully with the need to demonstrate strong support for the Siniora government. He said the US and Kuwait are in full agreement on this and that Kuwait views the current situation in Lebanon with great concern. He noted that at the request of the MFA, Kuwaiti ambassadors from Egypt, Lebanon, Syria, and other countries in the region will gather the following week in Kuwait for a special meeting to discuss the situation in Lebanon, the Palestinian territories, and Iraq. Al-Mubaraki said additional offers of assistance for Lebanon could emerge from that meeting, and he promised to be in touch with us afterwards. ¶3. (C) Arab Fund Chairman Abdelatif Al-Hamad said the Fund was considering additional loans to Lebanon along the lines of amounts pledged earlier this year, ie, USD 100 million. He said the loans would be directed toward housing reconstruction and assistance to help business activity resume. He hoped the Arab Fund Board would approve the funds the following week. Al-Hamad said the Fund had already discussed the loans with the Lebanese government. ¶4. (U) Separately, Kuwait responded to ICRC's urgent appeal for Lebanon by donating USD 500,000 to the ICRC on December 12, through Kuwait's UN mission in Geneva. Kuwait reportedly provided an additional USD 500,000 to UNHCR programs in Lebanon, also on December 12. 5, (C) Mohamed Al-Shatti of the International Marketing Division of Kuwait Petroleum Company (KPC) told Econoff December 13 that KPC has an active contract to provide diesel fuel to the GOL at market price. While deliveries of fuel were interrupted during the Lebanon conflict over the summer, Al-Shatti confirmed that regular deliveries have resumed. He insisted the GOK does not provide discounted fuel to Lebanon. ¶6. (C) Embassy will continue to engage with MOD on possible security assistance to Lebanon. ¶7. (U) Reftel B provides a comprehensive look at Kuwaiti financial assistance provided to Lebanon through early November. ********************************************* * 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