Identifier
Created
Classification
Origin
08KUWAIT1247
2008-12-28 14:08:00
UNCLASSIFIED
Embassy Kuwait
Cable title:  

KUWAIT MEDIA REACTION -- MEDIA SPECULATES ON GOK DEAL WITH

Tags:  ECON EINO EPET OPRC KMDR KPAO XF KU MEDIA REACTION 
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UNCLAS SECTION 01 OF 02 KUWAIT 001247 

SIPDIS

STATE FOR NEA/ARP, NEA/PA, NEA/AIA, NEA/PI, INR/NESA, R/MR, I/GNEA,
B/BXN, B/BRN, NEA/PPD, NEA/IPA, EEB
LONDON FOR NEA WATCHER
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E.O. 12958: N/A
TAGS: ECON EINO EPET OPRC KMDR KPAO XF KU MEDIA REACTION
SUBJECT: KUWAIT MEDIA REACTION -- MEDIA SPECULATES ON GOK DEAL WITH
DOW CHEMICAL

KUWAIT 00001247 001.2 OF 002


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SUMMARY
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Sunday, December 28, 2008

UNCLAS SECTION 01 OF 02 KUWAIT 001247

SIPDIS

STATE FOR NEA/ARP, NEA/PA, NEA/AIA, NEA/PI, INR/NESA, R/MR, I/GNEA,
B/BXN, B/BRN, NEA/PPD, NEA/IPA, EEB
LONDON FOR NEA WATCHER
PARIS FOR NEA WATCHER
NSC FOR ABRAMS

E.O. 12958: N/A
TAGS: ECON EINO EPET OPRC KMDR KPAO XF KU MEDIA REACTION
SUBJECT: KUWAIT MEDIA REACTION -- MEDIA SPECULATES ON GOK DEAL WITH
DOW CHEMICAL

KUWAIT 00001247 001.2 OF 002


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SUMMARY
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Sunday, December 28, 2008


1. (U) Summary and Comment. As of late Sunday, December 28, Al-Rai
and Al-Watan T.V. reported that the Council of Ministers had arrived
at a negative decision in regards to the Government of Kuwait (GOK)
deal with Dow Chemical. This media reaction cable covers the
lead-up to the Council's decision; subsequent post-decision media
coverage and details will be reported SEPTEL. On Monday, December
29, all Kuwaiti dailies are certain to carry headlines and
commentaries detailing the Council's decision. However, on the
morning of December 28, all Kuwaiti dailies had continued to
speculate on the deal's fate, with one daily carrying the headline
"D-Day for K-Dow Deal." The same day, all Arabic and English
dailies quoted "sources," when discussing possible outcomes of the
deal, but none would cite names, exemplifying the level of
conjecture and rumor surrounding the deal's details. Several
politicians gave interviews or went on record with the press,
including the Speaker of Parliament as well as the spokesman for the
conservative Public Action Bloc. On Saturday, December 27, Kuwaiti
Minister of Oil Engineer Mohammed Abdullah Hadi Al-Olaim spoke to
Kuwait's privately owned moderate Al-Rai TV, in which he expressed
his and the GOK's support for the deal. Subsequently, many Kuwaiti
dailies ran a print version of the interview, with al-Rai
television's print counterpart covering the interview with the
greatest depth.

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"D-Day for K-Dow Deal"
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2. (U) Under the front page headline, "D-Day for K-Dow Deal," the
staff of the conservative English language newspaper, al-Watan
daily, wrote (12/28): "The government is expected to take a
historic decision today Dec. 28, 2008 on the controversial Dow deal
which has caused a chorus of public outcry amid concerns over its
economic feasibility as well as the huge costs involved. Several

lawmakers have already threatened to exercise their constitutional
rights by grilling His Highness the Prime Minister Shaykh Nasser Al
Sabah in the event that he decides to proceed with the controversial
venture despite an overwhelming popular opposition to the deal. In
another development, a number of lawmakers have cautioned the Oil
Minister Mohammed Al-Olaim that his resignation from the upcoming
Cabinet lineup will not exempt him from political accountability in
signing the deal."

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Press Cites Unnamed Sources
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3. Many newspapers cited "sources" or "informed sources" as the
origin of the information for their articles. For example,
"informed sources" told the liberal Arabic language daily Al-Jarida
that the difficulties that the project is facing are results of
political struggles in Kuwait, rather than comprehension of the
impact of the deal. The same sources confirmed that the Oil Council
has full authority to do what it sees best for Kuwait's oil sector
interests. The sources also asserted that the studies of the K-Dow
project had considered all possible changes in oil prices, and the
final results were 10% profit, which is considered a favorable
profit margin. Likewise, the new moderate Arabic language daily,
Assawt, cited unnamed sources in their coverage of the run-up to the
deal, claiming that all Kuwaiti Cabinet Ministers have voted in
favor of the agreement, except Minister of Commerce and Industry
Ahmed Baqer Al-Abdullah. The unnamed sources also said that the
Revision and Accountability Council had submitted documentation
proving that the financial viability of the project had been
considered, and will be reviewed by the Council in future
assessments. Finally, the same unnamed sources also said that the
decision to cancel the agreement or to proceed with it would have to
be put before the Council of Ministers and the Kuwaiti public.

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Politicians Go to the Press
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4. (U) Several of the Kuwaiti dailies also carried interviews with
figures in Kuwait's political scene, as well as Minister of Oil,
Engineer Mohammed Abdullah Hadi Al-Olaim. At a press conference

KUWAIT 00001247 002 OF 002


picked up by Kuwait News Agency (KUNA),the Speaker of Parliament,
Jassem al-Khorafi, vehemently denounced the deal. This press
conference appeared in most major Kuwaiti dailies on December 28.
Additionally, the front page of Arrouiah (12/28) carried a press
interview with Public Action Bloc spokesperson Msalam Al-Barak. In
the interview, he told reporters that Dow Chemical's CEO and other
parties in Kuwait are only interested in making profits out of
Kuwait's public funds, through the penalty terms outlined in the
deal. Al-Barak questioned if Kuwaiti money has become the savior of
American companies. He also urged officials to invest these funds
in domestic development projects. Al-Barak responded ferociously to
statements made by the CEO of Dow on the American news channel,
MSNBC, where the CEO reportedly said that Kuwait had saved DOW with
this deal. The spokesperson for the political group then challenged
the CEO to publish for the Kuwaiti public the full terms of the
proposed deal.

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Minister of Oil Speaks to Al-Rai T.V.
--------------


5. (U) On Saturday, December 27 Al-Rai TV interviewed Kuwaiti
Minister of Oil Engineer Mohammed Abdullah Hadi Al-Olaim. On
Sunday, December 28 Al-Rai newspaper published his statements, with
a front page headline that read (12/28),"Al-Olaim to Al-Rai: The
Dow Agreement has gone through all the channels that qualify it for
implementation." In the interview, which continued on page 54,
Al-Olaim said, "We have undertaken all the legal steps to bring the
project proposal to its final copy. We have worked together with
experts and consultants from all over the world." Al-Olaim
mentioned that the December 28 session of Parliament will look into
all of the legal questions that the Council of Ministers submitted
to the Legal Committee. Added Al-Olaim: "We sat with members of
the Legal Committee and we discussed the issues with them in total
transparency. All points should be clear to them." When asked why
he was still supportive of the project although he does not intend
to be part of the new GOK Cabinet, Al-Olaim replied: "One must be
true to himself first, and to his country too. I believe the Dow
project is good for our country and would serve our interests,
especially in its final form, which has gone through all the legal
revisions. It is my responsibility as a government official to
defend a project that would serve the interests of my country."

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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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MISENHEIMER