US embassy cable - 04KUWAIT1649

C O N F I D E N T I A L KUWAIT 001649 
 
SIPDIS 
 
STATE FOR D, NEA/ARP, IO/UNP, L/CID, NEA 
CPA FOR DEPUTY ADMINISTRATOR JONES 
 
E.O. 12958: DECL: 05/24/2014 
TAGS: PREL, IZ, KU, UNSC 
SUBJECT: (C) UNCC:  GOK APPEALS TO HOLD THE LINE 
 
REF: STATE 78069 
 
Classified By: CDA FRANK URBANCIC; REASON 1.4 (B, D). 
 
1.  (C) An agitated MFA IO Director Amb. Abdullah al-Murad 
called in CDA May 24 to stress that the GOK at the highest 
levels attaches great importance to maintaining the existing 
UN Compensation Commission (UNCC) arrangement.  He was 
concerned about reports from New York that Germany "supported 
by France" was trying to have the prospective UNSCR on Iraq 
cancel the UNCC altogether if possible, or failing that, 
reduce the take from the current 5% of Iraqi oil revenues 
(already inadequate in the GOK's view), or reprogram those 
monies.  MFA was calling in all UNSC members to seek their 
support on this issue.  He expressed appreciation that the 
USG is a "friend and ally" doing its best to resist "these 
manipulations." 
 
2.  (C) Al-Murad advanced the following arguments:  the UNCC 
was created by the UNSC in Resolutions 687 and 705, based on 
the principle of legal responsibility.  The UNCC was not 
established against Saddam Hussein or any particular regime, 
but in favor of the victims of Iraq's deliberate 
depradations.  To cancel it now would give the lie to that 
principled stance, undermining the legitimacy of all the 
UNSC's actions.  It would harm the USG's image and 
undoubtedly lead to protests in Kuwait.  From 1995 until 
2000, the UNCC take was 30%, then 25% until 2003 when it was 
slashed to 5%.  This level is already inadequate:  there are 
thousands of victims of many nationalities, and at this rate 
some will have to wait another "ten or fifteen years" -- i.e. 
a quarter of a century from the time of loss -- to collect. 
 
3.  (C) Now, when Iraq still does not yet have a sovereign 
government, the time is not yet right to consider any 
additional action, al-Murad continued.  The Germans are 
mixing debt and compensation, which are two separate issues: 
debt is bilateral, but compensation is multilateral and based 
on Chapter VII of the UN Charter.  Kuwait holds "$18 to 20 
billion, I don't have the figure" of Iraqi debt, which will 
be discussed in the Paris Club. 
 
4.  (C) Al-Murad noted that Saudi Arabia and Kuwait intended 
to put forth governmental claims for environmental 
devastation "by the end of next year." He did not know 
whether Saudi Arabia was demarching UNSC members on the 
importance of maintaining the UNCC, but he took the point 
that that would help. 
 
5.  (C) COMMENT:  the GOK believes it has a firm commitment 
from the USG to the Foreign Minister on April 2 that the USG 
will continue to support maintaining the UNCC at its current 
level (reftel). 
 
6.  (U) Baghdad minimize considered. 
URBANCIC