US embassy cable - 04KUWAIT2524

S E C R E T SECTION 01 OF 02 KUWAIT 002524 
 
SIPDIS 
 
STATE FOR NEA/ARP, NEA/I 
STATE FOR INR/B 
 
E.O. 12958: DECL: 08/08/2014 
TAGS: PREL, KU, IZ, MOPS, EAID, EFIN, PTER 
SUBJECT: PRIME MINISTER'S AIDE REPORTS ALLAWI CRITICAL OF 
U.S.; URGES CONCLUSION OF FUEL AGREEMENT 
 
REF: KUWAIT 2426 
 
Classified By: CDA Matthew Tueller for reasons 1.4 (b) and (d) 
 
1. Biographical information included.  For biographical 
information, please see para. 10. 
 
2. (C) Summary.  During an August 8 meeting,  Assistant U/S 
of the Diwan of the Prime Minister Shaykh Fawaz Saud Al-Sabah 
gave Poloff a readout of Iraqi Prime Minister Iyad Allawi's 
July 30 meeting with Kuwaiti Prime Minister Shaykh Sabah 
Al-Ahmed Al-Sabah.  A long-time aide to the Kuwaiti Prime 
Minister, Shaykh Fawaz said Allawi was highly critical of US 
policies in Iraq.  On the subject of Kuwaiti fuel as 
Assistance-In-Kind, Fawaz urged the USG to conclude an 
agreement with Kuwait before the return of the National 
Assembly, scheduled for October.  Shaykh Fawaz also outlined 
the the Kuwaiti PM's planned travel schedule and discussed 
border security.  End Summary. 
 
Visit of Iraqi PM 
 
3. (C) Although it produced no new agreements, Shaykh Fawaz 
said Iraqi Prime Minister Iyad Allawi,s visit to Kuwait had 
been a mild success simply because it marked a new beginning 
in Kuwaiti-Iraqi relations.   Describing Allawi,s meeting 
with Kuwaiti Prime Minister Shaykh Sabah al-Ahmed al-Sabah, 
he said Allawi spent the first twenty minutes praising Kuwait 
and the next twenty-five criticizing the United States and 
its handling of Iraq.  Shaykh Fawaz said Allawi had referred 
to former CPA Administrator L. Paul Bremer III as "Ali Baba" 
and the CPA as "his forty thieves." Allawi said that Bremer 
and CPA had badly managed the country during its tenure and 
he blamed the lack of security in Iraq solely on the United 
States. "You wouldn,t be sitting here without the 
Americans," replied the Kuwaiti Prime Minister, to which he 
received no response from Allawi. 
 
4. (C) Shaykh Fawaz said that although the meeting between 
the two Prime Ministers had been largely ceremonial, the 
Iraqi Prime Minister did raise some bilateral issues.  Allawi 
proposed that Kuwait establish  a "fund" for Iraq and had 
requested that Kuwait forgive Iraq,s debts.  Offering no 
reply to the request for the establishment of a fund, Shaykh 
Sabah told Allawi that debt negotiations should be done 
through the Paris Club. 
 
5. (C) In a subsequent meeting between Iraqi Defense Minister 
Hazem Shalan and Kuwaiti Acting Minister of Defense and 
Interior Minister Shaykh Nawaf al-Ahmed Al-Sabah, the Iraqi 
Defense Minister had presented various "demands" of his 
Kuwaiti counterpart.   Producing a handwritten list in Arabic 
(on Bayan Palace stationery), Shaykh Fawaz went through the 
requests one-by-one with Poloff.  Among the highlighted items 
the Iraqi Defense Minister had requested Kuwait buy for Iraq 
were: 15 helicopters, 5 C-130's, 100 armored vehicles, and an 
unspecified number of Russian-built APC,s. 
 
Fuel/AIK 
 
6. (S) On the ongoing issue of the provision of Kuwaiti fuel 
as AIK, Shaykh Fawaz urged that the USG work as quickly as 
possible to conclude an agreement with Kuwait, and warned 
that we should not/not negotiate with Energy Minister Shaykh 
Ahmed al-Fahad, but work directly with the Prime Minister on 
this issue.  Shaykh Fawaz noted that during Secretary 
Powell's July 30 meeting with Shaykh Sabah, the Prime 
Minister said he needed an agreement  to continue providing 
fuel, but had not been specific about the type of agreement 
he was seeking.  Shaykh Fawaz indicated that the PM would be 
amenable to an agreement with very favorable terms for the 
US, if it could be concluded quickly (and presumably 
quietly).  Shaykh Fawaz urged Poloff to relay that such an 
agreement "must be concluded before the National Assembly 
returns."  Shaykh Fawaz added that the continued provision of 
fuel for coalition forces without an agreement was widely 
unpopular within the Council of Ministers and the National 
Assembly. 
 
Travel 
 
7. (C) Shaykh Fawaz said the Prime Minister would be 
traveling extensively in the months to come, something he had 
advised the Prime Minister to do to increase his 
effectiveness.  He said current plans call for the Prime 
Minister's travel to Iran, Pakistan, India and Russia before 
the return of Parliament in October, followed by a 
post-Ramadan (November) trip to England, France, Germany and 
Italy.  The Prime Minister intends to visit the United States 
after this, if time will permit.  Shaykh Fawaz said the 
maintenance of Kuwait,s economic relationships with its 
allies is a priority that Shaykh Sabah intends to focus on 
during the visits. "Maintaining (political) contact is not 
enough," he added. 
Borders/ Dosari 
 
8. (S) Confirming local news reports, Shaykh Fawaz said that 
Kuwait fugitive Khaled al-Dosari (wanted by Kuwaiti 
authorities for his involvement in terrorist activities) had 
fled Kuwait on August 6 and was now in Fallujah.  Shaykh 
Fawaz said he advised Shaykh Sabah not to close the borders, 
so as to allow fugitive terror suspects to flee to 
neighboring countries, where they would be dealt with using 
military force.   Responding to Poloff's question, he said he 
felt it unlikely that terrorists fleeing the Saudi or Iraq 
crackdowns would end up in Kuwait, as the country is too 
small to hide in. (Comment: If Shaykh Fawaz did offer this 
advice, it is troubling but not surprising for a government 
that is making a concerted effort to ensure that Kuwait does 
not become a country unsafe for foreigners.  End Comment.) 
 
KPC/Nader Sultan 
 
9. (C) Shaykh Fawaz also confirmed local news reports that 
the long-time Chairman of Kuwait Petroleum Corporation (KPC), 
Nader Sultan, would be stepping down from his post.  He said 
that Energy Minister Shaykh Ahmed Al-Fahad Al-Sabah had made 
this decision six months ago, but did not elaborate as to why. 
 
10. (C) Biographical Information: Shaykh Fawaz is the son of 
former Kuwaiti Ambassador to the United States, Shaykh Saud 
Nasser Al-Sabah.  He is the brother of the current Director 
of the Washington office of KPC, Shaykh Nawaf Saud Al-Sabah. 
Shaykh Fawaz is the father of two boys and one girl.  His 
oldest son, Nasser, a US citizen, is 18 and attends Valley 
Forge Military Academy in Wayne, Pennsylvania.  His younger 
son and daughter both attend school in Kuwait.  Shaykh Fawaz 
has been working for Shaykh Sabah for 18 years. 
TUELLER