Identifier
Created
Classification
Origin
09KUWAIT624
2009-06-24 13:24:00
CONFIDENTIAL
Embassy Kuwait
Cable title:  

KUWAITI VIEWS ON CRITICAL ENERGY MOU

Tags:  PTER ENRG PREL PINS KCIP ECON KU 
pdf how-to read a cable
VZCZCXYZ0000
PP RUEHWEB

DE RUEHKU #0624/01 1751324
ZNY CCCCC ZZH
P 241324Z JUN 09
FM AMEMBASSY KUWAIT
TO RUEHC/SECSTATE WASHDC PRIORITY 3530
INFO RHEBAAA/DEPT OF ENERGY WASHDC
C O N F I D E N T I A L KUWAIT 000624 

SIPDIS

STATE FOR NEA/ARP, S/CT AVERILL

E.O. 12958: DECL: 06/24/2019
TAGS: PTER ENRG PREL PINS KCIP ECON KU
SUBJECT: KUWAITI VIEWS ON CRITICAL ENERGY MOU

REF: A. KUWAIT 541

B. KUWAIT 32

C. 08 STATE 126863

Classified By: Economic Counselor Oliver B. John for reasons 1.4 (b & d
).

C O N F I D E N T I A L KUWAIT 000624

SIPDIS

STATE FOR NEA/ARP, S/CT AVERILL

E.O. 12958: DECL: 06/24/2019
TAGS: PTER ENRG PREL PINS KCIP ECON KU
SUBJECT: KUWAITI VIEWS ON CRITICAL ENERGY MOU

REF: A. KUWAIT 541

B. KUWAIT 32

C. 08 STATE 126863

Classified By: Economic Counselor Oliver B. John for reasons 1.4 (b & d
).


1. (C) Summary and Key Points

-- The NSB is happy with USG-GoK cooperation thus far and
believes that it is in both countries' best interest to
continue it.

-- The NSB would be happy to sign the amended MOU.

-- Kuwait is willing to cover expenses for USG personnel
visiting Kuwait under the CEIP MOU.

-- Kuwait is not willing to pay salaries for U.S. officials.
The NSB "can't sell that."


2. (C) Econcouns met with Kuwait National Security Bureau
(NSB) Vice President Shaykh Thamer Ali Sabah Al-Salem Al
Sabah and his team on June 22 to discuss GoK changes to the
draft Critical Energy Infrastructure Protection MOU. Shaykh
Thamer stated that he welcomed the cooperation with the USG,
adding that it served the interest of both nations. He said
that Kuwait had already addressed many of the recommendations
arising from the two visits of USG assessment teams.


3. (C) Econcouns asked for clarification on Kuwait's change
to section 8 of the draft MOU from "the State of Kuwait is to
pay for all costs for services performed,(" to "each party
shall bear all the expenses for services provided to it by
the other party." Shaykh Thamer replied that the GoK had
been perfectly happy with bilateral cooperation, but wanted
to be responsive to the USG's interest in having an MOU. The
subsequent inclusion of Section 8, which had not been in the
original USG draft, had "raised eyebrows" as had the
additional language referring to section 572 of the Foreign
Assistance Act and advance payment. The GoK's substitute
language, he said, meant that Kuwait would cover living
expenses, transportation, etc. for USG visits to Kuwait and
that the USG would provide reciprocal treatment to Kuwaiti
visitors. "I fully expect that most meetings will be in
Kuwait," he added, "We are not looking at improving U.S.
facilities' security." (Note: as envisaged by Shaykh Thamer,

this appeared to reflect the kind of reciprocal Qtality
that the Kuwaitis excel at. End note.) He explained,
however, that Kuwait would not pay the salaries of USG
personnel. There was no law in Kuwait permitting prior
payment and it would run into parliamentary opposition. "I
can't sell that." He stressed that this was a "government
decision not just an NSB decision." He added that the annual
Gulf Security Dialogue took place without any discussion of
salary payments.


4. (C) Shaykh Thamer suggested that Kuwait was not likely to
need further assessments and that a few USG recommendations
on good companies to work with would be useful. He added
wryly that he could have contractors lining up to conduct
studies for free, merely on the hope of getting follow-on
contracts to provide security upgrades. Econcouns responded
that the USG had a great deal of expertise on critical
infrastructure protection and that "you get what you pay
for." Shaykh Thamer reiterated that improving the protection
of Kuwait's oil export facilities was in the best interests
of both countries, and that he hoped there would be a way to
continue cooperation. Econcouns explained the difficulty in
moving forward absent a clear funding mechanism, but promised
to consult with Washington. (Note: Before Shaykh Thamer
arrived, NSB International Relations Director, Shaykh Fawaz
Al-Sabah asked, when the USG would be ready to sign the
agreement and appeared disappointed as the conversation
started to highlight the difficulties with the GoK revised
text. End note.)


5. (C) EconCouns and Shaykh Thamer briefly discussed the
other GoK changes to the document, particularly on the coming
into force section. Shaykh Thamer said that after an
exchange of diplomatic notes, the document could be signed by
both sides, without parliamentary approval.


6. (C) Shaykh Thamer briefly discussed improvements to oil
sector security. He said that the GoK was in the process of
adding more security, including bomb sniffing dogs, more
people on the ground to conduct searches, and blast proof
walls to the Shuaiba refinery. There are already around 280
cameras at Shuaiba alone, he said proudly. He noted that the
most challenging change had been to coordinate the efforts of
all of the organizations involved in providing security. "We
examined it, and everyone thought it was their
responsibility, and it therefore was no one's
responsibility." The GoK's response was to create the higher
coordination committee to coordinate efforts, which Shaykh
Thamer said was working well. "National Security (Bureau) is
in charge. (Note: Shaykh Fawaz subsequently told Econcouns
that the new NSB President Shaykh Mohammed Al-Khaled Al Sabah
(a former Minister of Interior) was bringing new energy to
the position and was responsible for improving the Ministry
of Interior's cooperation with the NSB. End note.)


7. (C) Comment: Shaykh Thamer's response was much more
dismissive than when Econoffs met with him in January to pass
the USG revised text. We briefed him clearly on the payment
issue at that time and though he made no commitments, he
seemed unconcerned. Given the constant drumbeat of
parliamentary criticism of government spending, his comment
that the GoK, not just the NSB, had determined that it would
not pay salaries rings true. We believe that the GoK would
love to have a deliverable for the Amir's possible visit to
the U.S. in late July, but as presently structured, this does
not appear to be it. Assuming it remains in the USG's
interest to help the Kuwaitis to continue improving oil
infrastructure security, post sees two possible ways forward:
a) look for ways to cooperate absent a formal MOU
sidestepping the question of payment; b) do a better job of
marketing USG "fee based consulting services." The
long-standing FMS program shows that Kuwaitis are willing to
pay for training and support, but need to be convinced that
they are getting value for money. The second approach is
likely to be a long process, however.

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For more reporting from Embassy Kuwait, visit:
visit Kuwait's Classified Website at:

http://www.intelink.sgov.gov/wiki/Portal:Kuwa it
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JONES