A BIG FOOTPRINT IN THE SAND: THE U.S. PRESENCE IN

S E C R E T SECTION 01 OF 04 KUWAIT 001036

SIPDIS

NEA/ARP, NEA/RA

E.O. 12958: DECL: 10/05/2024
TAGS: PREL UNGA KU
SUBJECT: A BIG FOOTPRINT IN THE SAND: THE U.S. PRESENCE IN
KUWAIT

Classified By: Political Counselor Pete O'Donohue for reasons 1.4 b and
d


1. (S) Summary and Comment: During the nearly two decades
since U.S. and Coalition forces liberated Kuwait, a robust
USG presence -- military and civilian -- has become virtually
a fixture here. This posture has been encouraged by a
welcoming host government that has seen its own long-term
security linked to a significant USG presence, particularly
on the military side. The generally hospitable official
Kuwaiti environment, expressed in material terms by over USD
1.2 billion annually in such benefits as free access to
bases, waived port and air support fees, customs waivers,
subsidized fuel and other services, has rendered Kuwait an
indispensable ally in the conduct of Operation Iraqi Freedom
(OIF). Latterly, our presence in Kuwait has significantly
facilitated USG operations in the AF/PAK theater. U.S.
military operational flexibility here has largely been
governed by the favorable terms of a Defense Cooperation
Agreement (DCA) with the GOK signed in 1991 and extended for
ten years in 2001; at the conclusion of the extension, the
DCA will continue in force indefinitely unless terminated by
either side on one years' written notice.


2. (S) Summary and Comment (cont'd): But with 17 USG
departments and agencies present, the GOK directly or
indirectly supports more than just the U.S. military (which
has ten support locations in Kuwait, including ARCENT forward
headquarters and the largest USG military logistics facility
in the world),and upwards of 15-20K military personnel on
the ground at any one time. Civilian support includes
funding positions for the Federal Highway Administration, a
U.S. Customs team, a Coast Guard contingent of 117, and
providing free land and a generous energy subsidy (at the
same rate as that provided other USG agencies in Kuwait of
.66 US cent/kw hour) for IBB operations that reach from
Europe to Asia. The material support and general ease and
flexibility of USG operations here -- from beaming radio and
satellite programming well beyond the region, or being able
to conduct realistic live-fire training at Kuwait's huge
Udairi Range -- is irreplaceable, at least in the near term.
With the U.S. transitioning combat forces out of Iraq and
considering its future footprint in Kuwait, the GOK will need
to be engaged on ongoing areas of support, and at what level.
Post consequently provides the following overview of USG
operations here to give policy-makers a better sense of what
is at stake. End Summary and Comment.

U.S. Military Presence
--------------

3. (C) The GOK presently provides the U.S. military with
essentially open access to ten bases, including two air bases
(Ali Al Salem Air Base and Al Mubarak Air Base at Kuwait City
International Airport),five land bases (Camps Arifjan,
Buehring, and Virginia, plus access to a Life Support Area
facility located on Ali Al Salem Air Base -- which serves as
the primary ARCENT hub for moving U.S. forces to CENTCOM
forward-deployed bases -- and the joint U.S./Kuwait Khabari
border crossing facility, which streamlies convoy operations
into and out of Iraq),two port facilities (Kuwait Naval Base
and Shuaybah Port),and a Defense Distribution Depot, a 100
acre warehouse complex which facilitates, on average, 1.4
million shipments per year of military equipment. Camp
Buehring, notably, serves as a venue for U.S. Army/Marines
"spin-up" training prior to deployment in Iraq (and, on
occasion, Afghanistan) and serves, as well, as a location
where joint exercise training is conducted involving U.S. and
Kuwaiti forces. Kuwait also provides U.S. forces with access
to its 2,250 sq/km Udairi Range facility, considered one of
the world's best venues for land/air live-fire and combined
arms combat training. Approximately 90,000 U.S. military
personnel per year utilize this facility for live-fire
training purposes.


4. (C) At present, over 20,000 U.S. military personnel
(including some 5,000 contractors) are located at bases and
facilities in Kuwait, with the bulk at Camp Arifjan. GOK
support for the presence of these personnel, together with
open access to this extraordinary range of facilties, has
been essential to our ability to conduct OIF and has enhanced
our ability to conduct operations in the Afghanistan/Pakistan
theater. In CY 08 alone, some 1,750,000 U.S. forces
transited through Kuwait, either en route to Iraq or other
deployment locations or back to the U.S., utilizing Kuwaiti
bases and benefitting from Kuwaiti provided fuel and
services. (Note: From 2005 until the end of 2008, Kuwait

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provided the U.S. military with quantities of subsidized JA1
aviation fuel for OIF. Since the expiration of this
agreeement, the U.S. has been paying "fair market price" for
the JA1 fuel. Under the terms of the Defense Cooperation
Agreement, Kuwait continues to provide 7,500 gallons per day
of free JA1 aviation fuel to the U.S. military. End Note.)



5. (C) The Embassy-based Office Of Military Cooperation -
Kuwait (OMC-K) facilitates training of Kuwaiti military
counterparts and is also responsible for the conduct of an
extensive Foreign Military Sales (FMS) program. The OMC-K
training program includes two components: FMS training
(valued at USD 13 million in FY 2009),under which 314 Kuwait
military personnel attended military schools in the U.S. in
FY 2009 and a training exercise program that has engaged all
components and staff of the Kuwait Armed Forces. (Note: the
214 FY 2009 students are a small fraction of the several
thousand who have attended U.S. military schools since the
early 1990's. End Note.) In addition to training exercises
that have included elements of Kuwait's land and air forces
and its independent brigades, a particular focus has been on
enabling the Kuwait Naval Force to participate as a
contributing member of a coalition task force responsible for
security in the central Arabian Gulf. At present, the U.S
has over 125 active FMS cases with Kuwait amounting to over
USD 8.1 billion in value, including, among the more
significant items, the sale of 218 M1A2 Main Battle Tanks and
associated equipment, 39 F/A-18 C/D Hornet aircraft, 16 AH-64
Apache helicopters, and 5 Patriot Air Defense Systems.
Notably, the GOK is in final stages of agreement for a USD
1.1 billion purchase of six KC-130 tanker aircraft and
associated support. Kuwait funds under the current FMS
support case 42 U.S. military billets in OMC-K and 11 civilan
billets, as well as associated housing and vehicle costs. As
Kuwait is a "cash customer," the GOK's contribution to the
U.S. economy through equipment purchases is significant.
(Note: Per para 8, below, the USG presence also contributes a
reciprocal boost to Kuwait's economy, with average annual
expenditures of over USD 6 billion/yr on fuel, base support
operations, and transportation. End Note.)


6. (C) The U.S. Army Corps of Engineers (USACE) presence in
Kuwait, which pre-dates the Gulf War, was instrumental
post-Liberation in helping Kuwait re-establish critical
buildings and infrastructure; in recent years, it has
assisted in the reconstruction of a number of GOK buildings
while focusing its energies on construction projects in
support of both the U.S. and Kuwait military at Ali Al Salem
Air Base, Ahmed Al Jaber Air Base, 25th Commando BDE, 94th
Yarmouk BDE, Camp Arifjan, the Udairi Range Complex, and the
Khabari Military Crossing. USACE is presently involved in
projects to upgrade Kuwait ammunition supply points and
upgrade maintenance facilities on the Kuwait Naval Base.
While USACE does not receive direct funding for personnel
from the GOK, personnel costs are built into FMS construction
cases. USACE currently has approximately USD 10 million in
FMS cases for several projects, including USD 3.6 million for
construction of a training building and USD 1.3 million for
synchrolift repairs at the Kuwait Navy Base. If approved by
KMOD, USACE could be awarded USD 800 million in projects
during the coming year, including work on the Kuwait Joint
Command and Staff College, Kuwait's Air Force Headquarters,
Al Mubarak Air Base, and brigade complex; an additional two
projects worth over USD 500 million (work on the Falaika Navy
Base and construction of a Kuwait Navy HQ complex) are under
consideration. The GOK recently called on USACE to assist in
assessing needed repairs to the USD 160 million Mishref
wastewater recycling facility whose systemic failure on
August 24 resulted in extensive environmental damage.


7. (C) The U.S. Coast Guard operates in Kuwait in support of
CENTCOM and NAVCENT operations in the region. At present, a
USCG detachment of some 117 personnel conducts port security
operations at Kuwait Naval Base and Shuwaybha Port related to
U.S. military movements/shipments and protective measures for
Iraq's Al-Basra oil terminal (ABOT). In addition, USCG
personnel conduct periodic training of Kuwaitis in maritime
law enforcement issues. The presence of USCG personnel in
Kuwait is supported by normal OIF deployment funding.


8. (C) The U.S. military presence also has a significant
impact on the Kuwaiti economy, through local contracts and
purchases, housing and transportation for contractors and
other purchases. The U.S. military has estimated that the
direct annual economic impact of the U.S. military on the

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Kuwaiti economy was $6.2 billion. Of that, however, almost
$2.6 billion consisted of fuel purchases which are either
subsidized or could be sold for an equal price to another
customer. From 2003 to 2005, Kuwait provided the U.S.
military with free jet fuel for Operation Iraqi Freedom.
From March 2005 until end-December 2008, it provided jet fuel
at a discount. In 2008, the estimated cost of that subsidy
to the GOK in 2008 when oil prices reached record levels was
USD 528 million (Kuwait 477). Subtracting out the fuel
payments (since Kuwait would presumably have been able to
sell fuel at a higher price),still leaves a direct economic
impact of $3.6 billion. This figure does not take into
account any multiplier effect of additional funds circulating
through the Kuwaiti economy. It also does not directly
address the fact that Kuwaiti companies, such as the global
logistics giant Agility, grew rapidly by supporting the U.S.
military.

Customs
--------------

9. (C) A U.S. Customs Advisory Team (comprised of two AMCIT
personal services contractors and two local-hire support
personnel) has operated in Kuwait since 1992, with the
primary objective of providing training to the Kuwait General
Administration of Customs (KGAC) on core enforcement issues
including narcotics interdiction, narcotics investigations,
terrorist financing/money laundering, financial
investigations, intellectual property rights, and
organizational structure. Working in close cooperation with
Embassy, the Customs team has significantly enhanced GOK
capacities to address international crime with minimal
intra-GOK duplication of effort. Significantly, all training
conducted under the U.S. Customs and Border Protection
Advisory Program is funded by the KGAC at no cost to the USG.
In FY 2010, the U.S. Customs team will send 45 Kuwait
Customs employees and enforcement personnel for training in
the U.S. on a range of matters related to trans-national
crime, smuggling and radiation detection; the USD one million
costs for this program will be borne by the GOK.

International Broadcasting Bureau Station
--------------

10. (C) The International Broadcasting Bureau (IBB) has
operated a station in Kuwait (IBB/BGG) since 1993 under the
terms of a twenty-year agreement. The facility, operated by
three Amcit officers and twenty-six local hires, serves as a
short and medium wave broadcasting facility and satellite
gateway facility for IBB's global network. The station
currently operates four 250 KW shortwave transmitters and two
medium wave transmitters (one at 150 KW and one at 600 KW) as
well as two FM transmitters. The station broadcasts BBG
programming in several languages to target audiences in the
Middle East and western Asia. In addition to its radio
broadcasts, IBB Kuwait also uplinks to several regional
commercial satellites, broadcasting direct satellite-to-home
transmissions of BBG radio and television programs. The
Kuwait facility also functions as a major network switching
center, routing BBG programming to other BBG transmitting
stations in Asia. The facility is presently building a third
medum wave transmitter to enable direct broadcasting of Radio
Farda (Persian language) programs to Iran, as well as
expanding its ability to broadcast towards Africa and
additional regions of Asia. For cost reasons (high local
cost of land and salaries),IBB closed down its Ismaning
facility in Munich, Germany in 2007 and moved the station's
satellite gateway operations to the Kuwait transmitting
station. (Note: It is not clear that the GOK is aware of
this transfer. IBB believes the transfer is covered by its
existing Duly Authorized Telecommunications Entity authority
to operate uplink and downlink operations. End Note.) The
move saved the USG an estimated USD 2.1 million per year,
including approximately USD 1.8 million in lower local salary
costs and 300,000 in land lease costs (land lease costs in
Germany were about USD 300,000; land for the site in Kuwait
-- a twelve square kilometer site protected by Kuwait's
military -- is provided by the GOK at no cost).

Federal Highway Admininstration Programs
--------------

11. (C) The U.S. Federal Highway Administration (FHWA) has
fielded programs in Kuwait since 1968 under the terms of a
1968 Consulting Agreement with Kuwait's Ministry of Public
Works (MPW). Under the agreement, FHWA provides consulting
services to MPW in the areas of highway planning, design,
construction, administration and maintenance. FHWA staff in
Kuwait also facilitate the travel of Kuwaiti highway

KUWAIT 00001036 004 OF 004


engineers for technical training in the U.S. and the travel
of U.S. technical experts to Kuwait to conduct technical
courses. Currently, FHWA is working with MPW to develop a
master plan to manage the overall operation and maintenance
of Kuwait's highway system. These consulting services are
provided to MPW by a three-person FHWA team based in Kuwait
at GOK expense. The program is fully covered by the GOK
(approximately USD 1,400,000 per year in personnel salary and
support costs) at no cost to the USG. U.S./Kuwait bilateral
highway cooperation has been a factor in maintaining the U.S.
position as a leading exporter of transportation-related
commercial goods and services, thereby creating economic
opportunities for U.S. firms and workers.


12. (S) Comment: For nearly twenty years, the USG has been
able to count on a Kuwaiti environment that permitted maximum
operational freedom in the military sphere and others. While
those days are not yet over -- and Kuwait's nervousness about
being a small state in a dangerous neighborhood means they
will want a significant U.S. presence for the foreseeable
future -- many Kuwaitis believe that the time is approaching
when we can jointly look at a "right-sized" USG presence,
particularly regarding the U.S. military presence and Kuwaiti
support for the same. In part, this sentiment comes from a
sense that the immediate danger from a weakened Iraq has
diminished and, in part, it comes from an understandable
Kuwaiti desire to redirect resources where possible to meet
other needs. The GOK -- and Kuwaitis in general -- retain a
large reservoir of good will towards the U.S. and recognize
their small size and dangerous neighborhood requires a
protector, preferably the U.S. Consequently, they decidedly
are not seeking to push us out the door. Nonetheless, many
anticipate that as Iraq combat operations wind down there
will be a commensurate shift in our military footprint here,
writ large. What size that footprint should or will be --
and how much Kuwaiti territory and financial resources should
remain dedicated to supporting it as the U.S. re-directs its
attention to other theaters -- is a conversation we need to
begin to shape now, recognizing that the tenor and ultimate
outcome of that discussion will likely have consequences for
other U.S. civilian operations as well. End Comment.









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