U/S JARALLAH: IRANIAN WHEEDLING, IRAQI DAWDLING,

C O N F I D E N T I A L SECTION 01 OF 03 KUWAIT 000808

SIPDIS

NEA/ARP, NEA/I, NEA/IPA

E.O. 12958: DECL: 2018
TAGS: PREL PGOV MOPS KPAL PBTS KU
SUBJECT: U/S JARALLAH: IRANIAN WHEEDLING, IRAQI DAWDLING,
PALESTINIAN PLEADING

Classified By: Ambassador Deborah K. Jones for reasons 1.4 b and d

Summary
--------------


1. (C) During their July 15 meeting, Ambassador chided MFA
U/S Khaled Al-Jarallah over Kuwaiti National Assembly Speaker
Jassem Al-Khorafi's public criticism that USG policy toward
Iran was "provocative," noting that now is not the time for
irresponsible rhetoric. Al-Jarallah characterized as "very
positive" the July 14 visit of Iranian MFA U/S Ali Redha
Attar, who was received by the Amir. Attar reportedly
assessed the P5 1 negotiations as 'positive' and offered
Iran's analysis that war with the US is unlikely because the
US military is overly extended in Iraq and Afghanistan, while
Israel is distracted by domestic turmoil. Al-Jarallah
lamented the GOI's perceived unresponsiveness to Kuwaiti
overtures and outstanding issues such as relocating
encroaching Iraqi farmers, settling on Green Zone property
for the new Kuwaiti Embassy, and creating new facilities to
ease the movement of commercial traffic. Al-Jarallah
confirmed that $80 million in aid to the Palestinian
Authority would be disbursed through the World Bank's Trust
Fund within ten days. End summary.

Parliament Speaker: "U.S. provoking Iran!"
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2. (C) Ambassador opened the July 15 meeting with MFA U/S
Al-Jarallah by expressing concern over local headlines
quoting National Assembly Speaker Jassem Al-Khorafi as
accusing the USG of "provoking" Iran. Now was not the time
for irresponsible rhetoric, the Ambassador noted, but for
serious diplomacy. Ambassador pondered aloud whether
Al-Khorafi was speaking on behalf of the GOK and -- if so --
how such remarks by our friends might be received in
Washington. Ambassador also provided Al-Jarallah with a copy
of U/S Burns' recent remarks to the HFAC on our approach to
Iran. (Note: This meeting preceded the announcement that U/S
Burns would travel to Geneva to join the P5 1 talks. End
note.)

Amir Receives "Positive" Message from Iranian MFA U/S Attar
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3. (C) In turn, Al-Jarallah briefed Ambassador on the July
14 visit of Iranian MFA U/S Ali Redha Attar, who was received
by the Amir and reportedly delivered an oral message from
Ahmadinejad. Al-Jarallah characterized Attar's visit as
"very positive" and aimed at relieving regional tensions and
fears of pending war. Attar reportedly conveyed Iran's
satisfaction with the P5 negotiations and offered Iran's
assessment that "war was unlikely because the US military is
overly extended in Afghanistan and Iraq, while Israel is
distracted by domestic turmoil." The press reported that the
Amir "gladly accepted" Attar's official invitation to visit
Iran, although Al-Jarallah made no menion of this.

Proposal for US Military Use of Abdaly-Safwan Crossing
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4. (C) Turning to Iraq, Ambassador conveyed a request from
General Petraeus that US military be permitted limited use of
the Abdaly-Safwan commercial crossing in support of Camp
Bucca (in lieu of our earlier request that the GOK open an
additional crossing at Bucca). Al-Jarallah was receptive but
said further study was needed. (Note: Embassy sent a
diplomatic note on July 14 via the Ministry of Foreign
Affairs to the Minister of Interior requesting permission to
allow US military convoys to cross at Abdaly-Safwan with
accompanying logistical details and maps. Results of this
request to be reported septel. End note).

Al-Jarallah: "We are suffering from the Iraqis!"
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5. (C) Ambassador advised that former DAS Gordon Gray, who
had served in Kuwait and was now in Baghdad, would be focused
on facilitating progress on some of the outstanding issues
between Kuwait and Iraq and would be visiting Kuwait July
21-23 for orientation. Al-Jarallah warmly welcomed this
development. He complained that while Iraq had indeed paid
the $500K needed to establish and install the UN land border
boundary markers (note: contrary to what the PM had

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suggested earlier to S/I Satterfield. End note.) the Iraqis
had not responded to numerous GOK requests to come and
maintain the boundary markers and to deal with other
troublesome issues related to the border. Al-Jarallah
complained the Iraqis were not "dependable:" the GOI had not
been responsive regarding the relocating of Iraqi farmers who
encroach on Kuwaiti land, despite Kuwait's offer to pay for
new housing according to "five star" plans the GOI had drawn
up; the GOI had yet to respond to a GOK request -- passed
through the Iraqi Embassy here -- to purchase and refurbish
five units in the Green Zone to house their diplomatic
mission. Meanwhile, he said, the GOI was now entertaining a
request from an Iraqi national to auction off the GOK's
former properties, a Consulate in Basra and the former
embassy in Jadriyah, with no discussion of compensation for
the GOK (Note: a subsequent press report carried Iraqi
government denial of this. End note); Finally, problems
continued at Safwan, with Kuwaiti truckers delayed for hours
in queues of "up to a thousand trucks," while the Iraqis shut
down their customs and border operations at 1300 or 1400 in
the afternoon. Al-Jarallah said the GOK had offered to pay
for new facilities to ease the movement of commercial traffic
but the GoI had been non-responsive.


6. (C) Ambassador asked whether any of these issues were a
factor in the GOK's delay in sending its Ambassador to Iraq
and al-Jarallah replied in the negative, "apart of course,
for the delay in preparing secure facilities." Al-Jarallah
also confirmed that debt relief would not be immediately
forthcoming and suggested it would be dealt with along the
lines of the deals worked out for the outstanding Kuwaiti
Airlines claims, i.e. profit sharing commercial arrangements
heavily weighted in favor of the Kuwaitis.

GOK to disburse $80 million to Palestinian Authority
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7. (C) Ambassador asked whether there was not some way to
expedite disbursement of Kuwait's $80 million commitment
through the World Bank Trust Fund. Al-Jarallah said Abu
Mazen had reached out directly to the Kuwaitis in recent days
and they had initiated payment, which -- according to
Al-Jarallah -- would be completed within 10 days.
Al-Jarallah said the Kuwaitis were working directly with Abu
Mazen's assistant, Majdi Al-Khalidi.

A New Lion in Damascus?
--------------


8. (C) Al-Jarallah cautiously extolled SARG President Bashar
Al-Assad's new and developing role as a dealmaker in regional
politics, wondering aloud if Al-Assad can effectively
navigate the intricacies of working with Iran, Lebanon,
Israel and Turkey. Al-Jarallah also expressed optimism that
the new government in Lebanon will contribute to the
stability of the country, and highlighted the important role
that SARG must have in order to secure peace there, welcoming
the reported restoration of diplomatic relations.

Comment
--------------


9. (C) The increased volume in Iranian rhetoric over a
possible military confrontation with the US or Israel and its
threats to shut down the Strait of Hormuz has produced high
anxiety in this small and vulnerable regional neighbor.
Kuwait believes it inevitably would suffer the fallout of
these actions, whether collateral damage or direct attacks on
US military assets here. Familiar with Iranian treachery and
confident of USG reliability, the GOK unfortunately
occasionally takes greater care with the coiled serpent than
with the dependable eagle in its public remarks. Kuwaitis
are relieved by US participation in the P5 1 process although
political analysts here are already assessing that any
negotiated settlement will increase Iranian influence at GCC
expense. While Iraq remains a frustration and suspicions
remain, our sense is that we are beginning to deal more with
practical than political issues, particularly if the security
improvements hold and PM Maliki maintains a perceptibly
nationalist Iraqi (vice Shi'a) posture. As for Syria, the
Kuwaitis have made no secret of their wish to wean it away
from Iran's calculating bosom. They view Bashar Al-Assad's
steps with Turkey and Israel as indicative of his ability to
act independently of Tehran and have urged that we leave the

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path open for him to "find his way to us." End comment.




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JONES