NEW PRIME MINISTER PROMISES ECONOMIC AND POLITICAL

C O N F I D E N T I A L SECTION 01 OF 02 KUWAIT 000601

SIPDIS

SIPDIS

FOR NEA/ARPI

E.O. 12958: DECL: 02/20/2016
TAGS: PGOV KU
SUBJECT: NEW PRIME MINISTER PROMISES ECONOMIC AND POLITICAL

REFORMS; SAYS THERE WILL BE CHANGES WITHIN SIX MONTHS

REF: A. KUWAIT 585

B. KUWAIT 578

C. KUWAIT 475

D. STATE 23896

E. KUWAIT 453

F. 05 KUWAIT 1712

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


1. (C) Summary and comment: During his first meeting with
the Ambassador as Kuwait's new Prime Minister, Shaykh Nasser
Mohammed Al-Sabah said Kuwait would look different in six
months and that he had instructed his Cabinet to streamline
the bureaucracy so that the GOK could proceed with important
economic and political reforms. He outlined as GOK
priorities security; economic developments including approval
of the northern oilfields development project; press freedom;
social affairs issues such as passage of a new labor law; and
engaging Kuwaiti youth. He asserted Kuwaiti support for
Iraqi reconstruction and agreed on the need for a common GCC
strategy for dealing with Iran. He also showed interest in
making progress on an FTA. The Ambassador noted the strength
of bilateral relations, commended the PM's priorities for the
new Government, and suggested the GOK also put first
strengthening CT cooperation as well as improving the working
conditions for Kuwait's large expatriate workforce. PM
Shaykh Nasser, who was functioning on only three hours of
sleep was energetic and deeply interested in the details of
any issue where the Ambassador suggested more focused GOK
attention. He explained that he consulted regularly with the
Amir, but had the authority, and was very committed to
affecting change. His staff remarked, "His Highness likes to
have heads rolling," and it appears that the PM was already
taking notes on the effectiveness of his new Cabinet. It
remains unclear how much influence he has with Parliament.
End summary and comment.

Iraq Needs Continued Kuwaiti Support
--------------


2. (C) During his courtesy call on recently sworn in Prime
Minister Shaykh Nasser Mohammed Al-Ahmed Al-Sabah, the
Ambassador reaffirmed the strength of U.S.-Kuwaiti bilateral
relations, noting particularly strong cooperation on military
and security issues. He expressed confidence that relations
would further strengthen under the leadership of PM Shaykh
Nasser and said that continued GOK support for U.S. military
efforts in Iraq and Iraqi economic development would be
critical. The Ambassador told the PM that the U.S. and
Kuwait have a shared interest in stabilizing Iraq and
encouraged the GOK to play an active role in Iraq's economic
development. PM Shaykh Nasser reasserted GOK support for
Iraqi reconstruction and was interested in the status of the
formation of new government.

Iran: "Have Patience and Talk"
--------------


3. (C) Turning to another regional concern, the Ambassador
solicited the PM's views on Iran, stressing the importance of
a unified front in response to the Iranian nuclear threat.
He encouraged a common GCC position and said the U.S. was
exhausting all options before referring the matter to the UN
Security Council. The PM said the GOK looked forward to the
upcoming meetings in Abu Dhabi of GCC Foreign Ministers with
the Secretary. He agreed on the need for a GCC position and
also recommended that the U.S. "have patience and talk." In
his view, the GOI could not risk an international
confrontation and would soon retreat; it was not in the
Iranian national interest to "have the whole world against
it." He described current Iranian arrogance and aggression
as typical, saying they push the envelope as far as possible,
and then retreat. He observed that it had almost been 30
years since the Iranian revolution and that the old
generation was almost gone. While calling the current
leadership very smart, he voiced concern that the "new
generation in power has been completely brainwashed."

GOK to Push Parliament on Economic and Political Reforms
-------------- --------------


4. (C) On domestic issues, PM Shaykh Nasser said his
Government would continue the policies begun under Shaykh
Sabah with a special focus on security, the economy, social
affairs, press freedom, and the youth. He said he instructed
the Cabinet to eliminate all obstacles, citing as an example
a Chamber of Commerce request to streamline business
licensing processes. He commented that several MPs offered
their help and he was optimistic that the coming six months
would bring significant change. He said the GOK would

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support any parliamentary initiative on electoral
redistricting and was simply waiting for Parliament to decide
how many districts it preferred. He also said the GOK was
prepared to "push" the northern oilfields project and was
ready to take part in a special parliamentary session to
review the details with MPs.


5. (C) The Ambassador commended the new Government's
priorities and suggested the GOK also look at the taxation of
foreign firms, explaining that several U.S. companies were
disadvantaged under current application of tax laws (ref F).
He added that eliminating the exploitation of foreign labors
was a U.S. foreign policy objective and welcomed the PM's
assurances that the new labor law would be adopted and
implemented. He further encouraged measures to strengthen CT
cooperation, recommending a better flow of information
between governments and the adoption of policies and laws to
facilitate surveillance, deterrence measures, and pre-trial
detention. Another U.S. priority, the Ambassador added, was
increasing the number of Kuwaiti students studying in the
U.S. and he encouraged Kuwait to follow the Saudi example of
promoting such study and making more scholarships available.
Shaykh Nasser inquired about Kuwaiti nationals still detained
at Guantanamo and the procedures for their repatriation.

Why Not an FTA for Kuwait?
--------------


6. (C) The PM asked why the U.S. had successfully
negotiated Free Trade Agreements (FTA) with other Gulf and
Middle East countries, but had not made progress with Kuwait.
He noted that he signed the 1966 GATT for Kuwait in Geneva
and was curious why Kuwait now lagged behind its neighboring
countries. The Ambassador asserted the President's desire to
have FTAs with all Middle East countries, reviewed the
process, and said that economic reform measures, including
labor reform, stricter IPR protection laws and observance,
and improvements in the inspection of imported goods, were
FTA prerequisites which Kuwait had not yet met. Referring to
the early February visit to Washington of a TIFA delegation
(ref D),he said that countries that had successfully
concluded FTAs had designated and empowered a senior
coordinator for FTA issues and suggested the GOK consider
such a step.


7. (C) Amongst the PM staff in the meeting was Shaykh
Muhammad Abdullah Al-Sabah, the young head of the Citizens
Complaint and Follow-up Bureau. On a few points raised
during the discussion, the Prime Minister specifically asked
Shaykh Muhammad to take note of an action item and provide
follow-up. Shaykh Muhammad spoke up on several issues,
urging the Ambassador to explain to the Prime Minister in
more detail where Kuwait was lagging in progress towards an
FTA or in security cooperation. It will be interesting to
see whether his position within the Prime Minister's Diwan
includes authority to act on policy issues of interest to the
USG.

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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