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.

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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/
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LEBARON