KATRINA ASSISTANCE: NO IMMINENT HELP FROM KUWAIT

C O N F I D E N T I A L KUWAIT 004686 SIPDIS SIPDIS STATE PASS TO USAID, NEA/ARP FOR JACKSON E.O. 12958: DECL: 12/20/2011 TAGS: EAID ECON EFIN KU PREL SUBJECT: KATRINA ASSISTANCE: NO IMMINENT HELP FROM KUWAIT REF: A. STATE 198690 ¶B. KUWAIT 4109 ¶C. KUWAIT 4682 ¶D. 05 KUWAIT 4846 Classified By: Charge D'Affaires Matt Tueller for Reasons 1.4 (b) and ( d) ¶1. (SBU) As instructed Ref A, Econcouns raised the status of Kuwait's USD 500 million pledge for Hurricane Katrina relief with Hamad Al Mashan at the MFA America's Department on December 20. Econcouns thanked the GOK for the USD 50 million disbursed thus far and noted our understanding that USD 400 million of the remaining balance of the aid package had been approved by parliament's Budget and Closing Accounts Committee in 2005, and it was up to the GOK to request the Speaker of Parliament to have the issue moved up on parliament's agenda. Al Mashan was unaware of the status of the additional USD 50 million the USG understood to be available for projects, but he promised to look into it and get back to us. As noted Ref B, Polcouns raised the subject of Katrina assistance on October 15 with Chairman of the Foreign Affairs Committee, who promised to take up the issue with the Foreign Minister. ¶2. (SBU) Al Mashan responded that he believed the GOK would eventually make good on its pledge for the full amount, but he cautioned that this was not a propitious time for parliament to take up foreign aid causes. Al Mashan highlighted parliament's vote the previous day (Ref C) rejecting a bill that would have forgiven consumer loans of Kuwaiti citizens. (Note: During the debate supporters of the bill castigated opponents for demonstrating greater concern for Lebanon and Iraq than "for your own people." End Note). Moreover, Al Mashan noted there continued to be discussion and rumor about a possible cabinet re-shuffle following the upcoming Eid holiday (early January). Thus, even though parliament rejected the consumer loan bill, the time was not right for the GOK to make a push for Katrina assistance, Al Mashan advised, as parliament would almost certainly vote it down. Better to wait until the dust settles, Al Mashan said. ¶3. (C) Comment: We concur with the Department's presumption in Ref A that funds pledged by the GOK over a year ago and not disbursed are unlikely to be released at this point. There has been little movement on the USD 450 million balance for a year. It is also unlikely that any Kuwaiti official will tell us directly that no more money is forthcoming, and the prospect of the GOK expending political capital in parliament to lobby for aid to the U.S. is, in our view, not in the cards in the foreseeable future. ********************************************* * 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/ ********************************************* TUELLER