KUWAIT DELEGATION REINFORCES IRAQ COMPENSATION

C O N F I D E N T I A L USUN NEW YORK 000148 SIPDIS SIPDIS E.O. 12958: DECL: 02/14/2018 TAGS: PREL EAID EFIN KU IZ SUBJECT: KUWAIT DELEGATION REINFORCES IRAQ COMPENSATION MESSAGE IN NEW YORK REF: 2/5 KINZER E-MAILS Classified By: DEPUTY POLITICAL COUNSELOR MOLLY PHEE, FOR REASONS 1.4 B /D ¶1. (SBU) A Kuwaiti delegation headed by Khalid al-Mudhaf, the Chairman of the Public Authority for Assessment of Compensation related to Iraq,s 1990 invasion (PAAC),visited New York February 6-8 and met with key Security Council delegations, as well as the UN Comptroller. The Kuwaiti message in New York was the same as that conveyed in meetings with Washington officials (ref e-mails): Iraq,s UN Compensation Committee (UNCC) obligations should not be reduced until the second tranche of environmental claims is fully paid, which Kuwait estimates will occur in 2009 or ¶2010. Following full payment of the environmental claims, the Kuwaiti delegation expressed a willingness to consider a change to the payment regime for the third and final tranche of claims. ¶2. (SBU) The delegation met with representatives from the UK, Russian, French and Iraqi missions, as well as the UN comptroller. The UK, Russian and French missions expressed general support for this approach, and noted that they had supported the UNCC,s recent decision not to reduce the Iraqi obligation to deposit five percent of its oil revenues in the Compensation Fund to pay outstanding claims. The UN Comptroller did not express an opinion on the matter, explaining that this issue is up to the UNCC Governing Council (which mirrors the composition of the Security Council). The delegation also met with Panamanian PermRep Aria, the current President of the Security Council, who reported to the Council February 13 that he had encouraged the Kuwaitis to engage in direct contacts with the Iraqis. ¶3. (C) On February 15, Poloff spoke with Jwan Tawfiq from the Iraqi Mission to the UN. Tawfiq confirmed that the delegation had met with Iraqi PermRep al-Bayati, and had delivered the same message: Kuwait would be ready to compromise after 2009/2010. Bayati said he would pass on the message to Baghdad, but underscored Iraq,s position: five percent of oil revenues is too high, and the percentage needs to be decreased well before 2009/2010. WOLFF