KUWAITI CABINET REJECTS "ARM-TWISTING" AS

C O N F I D E N T I A L SECTION 01 OF 02 KUWAIT 04364

ALSO FOR POLAD
LONDON FOR MILLIKAN

E.O. 12356: DECL:OADR
TAGS: PGOV PREL KU IZ
SUBJECT: KUWAITI CABINET REJECTS "ARM-TWISTING" AS
TALKS WITH IRAQ BEGIN JULY 31

REFS: A) FBIS LD2907132990
- B) FBIS LD2907140990
- C) FBIS LD2907143190
- D) FBIS LD3007173490
- E) FBIS LD2907150590
- F) FBIS LD2907171890
- G) FBIS JN2907075290
- H) FBIS JN2907074290


1. (U) SUMMARY. KUWAIT'S CABINET JULY 29 WELCOMED
TALKS WITH IRAQ -- NOW SET TO BEGIN IN JEDDAH JULY 31,
CALLED FOR A "FAIR AND CONCLUSIVE SETTLEMENT," AND
REJECTED "ALL FORMS OF ARM-TWISTING, INTIMIDATION, AND
THE USE OF FORCE." THE CABINET ALSO VOICED ITS APPROVAL
OF DECISIONS TAKEN BY OPEC TO RAISE OIL PRICES AND WAS
BRIEFED ON VISITS BY ARAB LEADERS, INCLUDING YASSER
ARAFAT. END SUMMARY.


2. (U) STATE MINISTER FOR CABINET AFFAIRS DR.
ABDULRAHMAN AL-AWADI JULY 29 SAID THE CABINET WELCOMED
PROPOSED TALKS BETWEEN KUWAIT AND IRAQ, NOW SCHEDULED TO
BEGIN IN JEDDAH JULY 31. THE CABINET EXPRESSED ITS
"SINCERE DESIRE" FOR A SUCCESSFUL MEETING WHICH WOULD
HELP PRODUCE A "FAIR AND CONCLUSIVE SETTLEMENT OF ALL
OUTSTANDING DIFFERENCES." THE MINISTERS EXPRESSED
APPRECIATION FOR ARAB LEADERS' EFFORTS, ESPECIALLY THOSE
OF PRESIDENT MUBARAK AND KING FAHD, AND REITERATED
KUWAIT'S REJECTION OF "ALL FORMS OF ARM-TWISTING,
INTIMIDATION, AND THE USE OF FORCE IN SETTLEMENT OF
DISPUTES AMONG BROTHERS." (REF A AND B FBIS REPORTS)


3. (C) THE CABINET ALSO EXPRESSED SATISFACTION WITH
RESULTS OF THE RECENT OPEC MINISTERIAL AND HOPED ALL
MEMBER STATES WOULD ABIDE BY THEIR QUOTAS. AL-AWADI
ADDED THAT KUWAIT "ASPIRES" TO RAISE OIL PRICES, BUT
ONLY WITHIN THE FRAMEWORK OF A COLLECTIVE AND BINDING
OPEC AGREEMENT. HE NOTED THAT INCREASED OIL REVENUES
WOULD RAISE THE STANDARD OF LIVING IN THE GULF STATES,
BUT SAID THAT "THE PROCESS OF RAISING PRICES DOES NOT
TAKE PLACE UNTIL THE EXPERTS SO RECOMMEND." (COMMENT:
I.E., UNTIL MARKET CONDITIONS ALLOW IT. END COMMENT)
(REF C FBIS REPORT)


4. (U) CROWN PRINCE/PRIME MINISTER SHAIKH SAAD
AL-ABDULLAH BRIEFED THE CABINET ON RECENT VISITS BY ARAB
LEADERS TO DISCUSS THE KUWAIT-IRAQ DISPUTE, INCLUDING
ARAB LEAGUE SECRETARY GENERAL KLIBI (JULY 26),EGYPTIAN
PRESIDENTIAL ADVISOR OSAMA AL-BAZ (JULY 26),SAUDI
FOREIGN MINISTER SAUD AL-FAISAL (JULY 28),AND PLO
LEADER YASSER ARAFAT (JULY 29). THE CROWN PRINCE WILL
LEAD KUWAIT'S DELEGATION TO THE JEDDAH TALKS. THE
DELEGATION WHICH DEPARTED FOR JEDDAH AT 1000 JULY 31,
INCLUDES MINSTATE FOR FOREIGN AFFAIRS SHAIKH NASSER
MOHAMMED AL-AHMED, MFA U/S SULAIMAN MAJID AL-SHAHEEN,
OIL MINISTER DR. RASHEED AL-AMIRI, JUSTICE MINISTER
DHARI AL-OTHMAN, AS WELL AS OTHER OFFICIALS FROM THE
CROWN PRINCE'S DIWAN, FOREIGN AFFAIRS AND OIL. (REF D
FBIS REPORT)


5. (U) DURING THE CABINET MEETING READOUT, AL-AWADI
SAID THE AGENDA FOR THE JEDDAH MEETINGS WAS KNOWN BY
BOTH SIDES BUT DIDN'T EXPAND ON THE SUBJECT. IN
RESPONSE TO A QUESTION ON WHETHER THE DISPUTE WOULD BE
RAISED AT THE UPCOMING OIC MINISTERIAL, HE STRESSED THAT
KUWAIT WANTS TO SEE THE PROBLEM SOLVED WITHIN AN ARAB
FRAMEWORK. (REF E FBIS REPORT)


6. (U) BEFORE DEPARTING KUWAIT MIDDAY JULY 29, ARAFAT
TOLD REPORTERS HIS MEETINGS WITH THE AMIR AND THE CROWN
PRINCE HAD BEEN "POSITIVE AND CONSTRUCTIVE." ISSUES
DISCUSSED INCLUDED SOVIET JEWISH EMIGRATION TO THE
OCCUPIED TERRITORIES AND THE UPCOMING JEDDAH TALKS.
ARAFAT EXPRESSED HOPE THAT THE JEDDAH TALKS WOULD PUT AN
END TO THE CRISIS THAT "HAS TARNISHED RELATIONS BETWEEN
ARAB BROTHERS." (REF F FBIS REPORT)


7. (U) IN OTHER BUSINESS, FINANCE MINISTER SHAIKH ALI
KHALIFA AL-ATHBI REPORTED ON HIS RECENT TALKS IN MUSCAT
WITH OTHER MEMBERS OF THE GCC TRIPARTITE COMMITTEE
CHARGED WITH STUDYING THE IMPACT OF RECENT INTERNATIONAL
CHANGES IN THE GULF STATE.


8. (C) COMMENT. THE CABINET'S "ARM-TWISTING"
STATEMENT WAS LIKELY A RESPONSE TO EDITORIALS OUT OF
BAGHDAD WHICH CONTINUE TO PRESS IRAQ'S CASE PUBLICLY AND
WHICH, KUWAITIS FEEL, DEMAND THAT KUWAIT ACT LIKE A
DOORMAT IN ITS TALKS WITH IRAQ (REF G AND H FBIS
REPORTS). THE CABINET STATEMENTS ARE A SIGNAL TO
BAGHDAD THAT THE KUWAITIS WILL NOT BE EASILY ROLLED. WE
NOTE THAT THE DPM/FM SHAIKH SABAH AL-AHMED AND FINANCE
MINISTER SHAIKH ALI KHALIFA AL-ATHBI WILL NOT ATTENT THE
TALKS. AS FORMER OIL MINISTER AND THE ARCHITECT OF
KUWAIT'S OIL POLICY, SHAIKH ALI KHALIFA IS NOT
WELL-LIKED BY THE IRAQIS AND SO HIS ABSENCE IS POLITIC.
THE ABSENCE OF ANY FINANCE OFFICIALS AT ALL, HOWEVER, IS
PROBABLY MEANT AS A SIGNAL THAT THE GOK INTENDS THESE
TALKS TO BE MORE THAN A NEGOTIATION ON HOW MUCH
PROTECTION MONEY IT WILL TAKE TO PAY OFF IRAQ FOR THE
TIME BEING. END COMMENT.


HOWELL