US embassy cable - 03KUWAIT4486

C O N F I D E N T I A L SECTION 01 OF 02 KUWAIT 004486 
 
SIPDIS 
 
STATE FOR NEA/NGA, SA, NEA/ARP 
 
E.O. 12958: DECL: 09/30/2013 
TAGS: PREL, EAID, ECON, ETRD, OPDC, IZ, AF, KU 
SUBJECT: (C) KUWAITI FM DISCUSSES AID TO IRAQ, AFGHANISTAN 
 
REF: A. KUWAIT 4451 (NOTAL) 
     B. STATE 276206 (NOTAL) 
     C. BELL-WILLIS TELCON 9/30/03 
 
Classified By: AMB. RICHARD H. JONES; REASON 1.5 (B, D) 
 
1.  (U) Action Request - see paragraphs 8, 12. 
 
2.  (C) SUMMARY:  The Ambassador discussed Iraq -- and, 
briefly, Afghanistan -- with Foreign Minister Shaykh Dr. 
Mohammed Sabah September 30 (other topics septels).  The 
Minister was keenly interested in how the Madrid donors 
conference will be structured, and how contributions will be 
handled.  He was reassured to hear the USG stands by the 
principle of compensation contained in UNSCR 1483.  He said 
his government was lobbying in New York in favor of Iraqi 
participation in the OIC summit in Kuala Lumpur.  Noting the 
POTUS letter to the Amir asking for continued support to Iraq 
and Afghanistan, the Minister wanted to know what the USG has 
in mind.  Dr. Mohammed also raised a shipload of live sheep 
from Australia that is creating difficulty.  END SUMMARY. 
 
3.  (U) PARTICIPANTS:  The Ambassador, accompanied by DCM and 
Pol Chief (Notetaker), called on Foreign Minister Shaykh Dr. 
Mohammed Sabah al-Salem al-Sabah September 30.  MFA Americas 
Dept. Director Amb. Khaled al-Babtain and his Deputy Ayham 
al-Omar sat in. 
 
(U) IRAQ 
-------- 
 
4.  (C) Compensation:  Drawing on cleared press guidance 
prepared for the 9/29 Noon Briefing, the Ambassador began by 
assuring the FM that US policy remains unchanged from the 
position enshrined in UNSCR 1483, in which we fought 
successfully to preserve the principle of Iraq's obligation 
to pay compensation for the depradations of its occupation of 
Kuwait.  Dr. Mohammed appreciated the clarification.  He 
noted that he had been bombarded with concerns at diwaniyas 
(following over-reactions by local media and parliamentarians 
to remarks made by CPA Administrator Bremer - ref A), and had 
responded:  "without the US, we would have no compensation to 
talk about."  He said the Council of Ministers had discussed 
calling on the media to "cool it," as their hysteria was no 
way to build a positive relationship with the new Iraq.  He 
commented that most of the verbal attacks were from "the 
usual suspects." 
 
5.  (C) OIC Summit:  The Minister confirmed that his 
government is working in New York in support of allowing the 
Iraqi Governing Council (GC) to participate in the upcoming 
OIC summit in Kuala Lumpur.  He said that the GC had 
indicated Malaysia and Cuba were being difficult, and the GOK 
had expressed its displeasure to those two governments. 
Cuba's objection was to language in the summit communique 
condemning the Saddam regime for its mass killings and 
welcoming UNSCR 1500; the GOK had postponed the new Cuban 
ambassador's presentation of credentials as a show of 
displeasure.  Malaysia's problem was protocolary:  it is 
hosting a summit, and Iraq has no head of state.  He added 
that Venezuela had opposed GC participation at the most 
recent OPEC meeting, but had finally acquiesced to the will 
of the majority. 
 
6.  (C) New UNSCR:  The Ambassador shared 9/29 NEA press 
guidance on the status and prospects of a new UNSCR on Iraq. 
Dr. Mohammed was encouraged by the EC's statement indicating 
that there need not be a firm deadline for establishing a 
sovereign Iraqi government.  He was interested in the 
Secretary's reference to a six-month period for producing a 
 
SIPDIS 
new constitution; the Ambassador replied that he did not 
believe it was a deadline.  The FM also wondered whether 
France was moving away from abstention, towards supporting a 
resolution; the Ambassador assured him that is what we would 
like. 
 
7.  (C) Madrid Conference:  Dr. Mohammed sought clarification 
of the structure of the Madrid donors conference on Iraq, and 
of the mechanism for managing contributions that countries 
may pledge.  Specifically, he wanted to know:  who would 
chair the conference, whether contributions would be 
funnelled through the Iraq Development Fund (IDF) -- or if 
not, through what mechanism, managed by whom --, and who 
would represent Iraq.  He also wanted to know what the CIC's 
role, if any, was in relation to the IDF, and how oil 
revenues would be handled once the Oil-For-Food Program 
ceased operation.  The Ambassador promised to seek 
clarification. 
 
8.  (C) ACTION REQUEST:  Please provide answers to the 
questions in paragraph 7, that we can share with MFA. 
 
9.  (C) Kuwait Airways-Iraq Air Court Case:  The Ambassador 
raised the UK court case in which Kuwait Airways is suing 
Iraq Air, and asked that the GOK request a six-month delay, 
without which Iraq Air would face bankruptcy (refs B, C). 
Dr. Mohammed seemed unaware of the October 1 court date; he 
stated that an out-of-court settlement of $150 million had 
been agreed.  The matter involved insurance companies and was 
"quite complicated."  He encouraged the Ambassador to contact 
the Minister of Finance, who has responsibility for Kuwait 
Airways, directly. 
 
10.  (C) Australian Sheep:  the FM raised the issue of a 
shipload of live sheep from Australia that had been denied 
entry into Saudi Arabia on grounds of disease.  He said his 
Australian counterpart had phoned him about this, asking 
Kuwait to receive the shipment and process it in its 
slaughterhouses, the meat to be distributed free of charge in 
Iraq as a donation from Australia.  This was a very awkward 
matter for Kuwait:  there is a GCC rule against landing cargo 
in one state that has been banned from another.  Furthermore, 
the local press play is highly negative:  it is being called 
"the shipment of death," portrayed as poisoned meat for 
Iraqis to be sent through Kuwait.  The Australians are very 
generous people, Dr. Mohammed remarked, but the whole idea 
makes no sense:  Iraq exports livestock - "you can buy a 
sheep there with a banana".  Amb. Babtain interjected that 
the problem may be about to move off of Kuwait's doorstep: 
he understood the Australians were thinking about 
re-approaching the Saudis or sending the sheep to Africa. 
 
(U) AFGHANISTAN 
--------------- 
 
11.  (C) POTUS Letter:  The Minister mentioned President 
Bush's recent letter to the Amir, asking Kuwait to continue 
to provide support to Iraq and Afghanistan.  He wanted to 
know what the USG has in mind.  On Afghanistan, he recalled 
that Kuwait has so far pledged a total of $30 million; the 
Ambassador reminded him that half that amount was 
balance-of-payments support and half was for a road project. 
The Ambassador noted that the President's $87 billion 
supplemental budget request to Congress includes money for 
Afghanistan, and that we are doubling our aid to Afghanistan 
this year.  He promised to try to provide more information on 
our aid strategy for Afghanistan. 
 
12. (C) ACTION REQUEST:  Please provide fuller information on 
our aid strategy for Afghanistan and how the GOK could fit 
in, for delivery to MFA. 
 
13.  (U) Baghdad, Kabul minimize considered. 
JONES