US embassy cable - 03KUWAIT4451

C O N F I D E N T I A L KUWAIT 004451 
 
SIPDIS 
 
STATE FOR NEA/FO, NEA/ARP, NEA/NGA 
 
E.O. 12958: DECL: 09/27/2013 
TAGS: PREL, EAID, IZ, KU 
SUBJECT: (U) COMPENSATION REMARKS PROVOKE FIRESTORM, 
COMPLICATE GOK SUPPORT FOR IRAQ 
 
Classified By: Ambassador Richard H. Jones for reasons 1.5 (b) and (d) 
 
1. (U) NIACT Immediate due to need for earliest possible 
Washington action. See para 7 for action request. 
 
2. (C)  Summary: Kuwaiti MP's have over-reacted predictably 
to Ambassador Bremer's September 26 remarks suggesting Kuwait 
and Saudi Arabia give up compensation claims against Iraq. 
This is likely to complicate efforts to get the GOK to pledge 
generous support for Iraqi reconstruction.  Post recommends 
an immediate press release clarifying that there has been no 
change in official USG policy on the issue of compensation 
payments.  End Summary. 
 
3. (C) Kuwaiti dailies ran numerous articles on September 28 
in which MP's denounced the idea of giving up compensation 
claims against Iraq.  Every MP Poloff encountered during a 
September 28 visit to the National Assembly said Kuwaitis are 
misinterpreting Ambassador Bremer's September 26 remarks at a 
Pentagon press conference as a change in official USG policy, 
and they were very concerned this could affect the GOK's 
ability to maintain support for coalition efforts in Iraq. 
 
4. (C) Responding to Poloff's reminder that the USG had 
fought to maintain the current 5% allocation of Iraqi oil 
revenues to the UN Compensation Commission (UNCC), MP Ahmed 
Al-Mulaifi (Independent) said he was aware that the USG had 
been supportive of Kuwait's position on this issue, but the 
Kuwaiti public was not.  Mulaifi said he had just come from a 
meeting at the Ministry of Interior where officials 
discussing Bremer's remarks were contrasting them to US 
demands that Libya pay compensation to the families of 
Lockerbie  victims, and finding them hypocritical. 
 
5. (C) Mulaifi urged the Embassy and/or USG to quickly 
counter the spread of this misinformation by issuing a press 
statement specifying there has been no change in US policy on 
compensation payments.  He said that failure to do so could 
lead to a diminution of support by MPs and the general public 
for GOK efforts to assist the coalition in Iraq.  Mulaifi 
also indicated that opponents of the GOK will use this 
opportunity to attack it for its close cooperation with the 
United States. 
 
6. (C) COMMENT:  Iraqi compensation for the depradations of 
the 1990-91 Iraqi occupation is one of the most sensitive 
issues in Kuwait.  The USG position, to our knowledge, 
remains consistent with UNSCR 1483, which cut the UNCC's 
share of Iraqi oil revenues by 80 percent but preserved the 
all-important principle of compensation.  At minimum, this 
issue should be the subject of frank but discreet diplomatic 
engagement, and handled in such a way that the GOK would be 
able to garner international credit for magnanimity.  Kuwait 
has supported the liberation of Iraq more generously relative 
to the size of its economy than any other country, including 
the US.  It is in our interest to keep the GOK feeling like a 
full partner whose contributions are fully understood and 
deeply appreciated. 
 
7.  (C) Action Request:  Unless otherwise instructed, Embassy 
intends to issue a local press release along the following 
lines at 10:00 a.m. local on September 29: 
 
- USG policy on Iraq's fulfillment of its international 
obligations, as established by UNSC Resolutions, has not 
changed. 
 
- UNSCR 1483, which we drafted, reaffirmed the principle of 
compensation for the depradations of Iraq's occupation of 
Kuwait. 
 
- The international community has a shared interest in seeing 
that the new Iraq is securely established on the path to 
prosperity.  We urge all members of the international 
community to work together to achieve this goal as quickly as 
possible. 
 
We also recommend the Department's Press Spokesman be 
prepared to respond to questions on the topic at the 9/29 
Noon press briefing. 
 
8.  (U) Baghdad minimize considered. 
JONES