US embassy cable - 04KUWAIT2772

C O N F I D E N T I A L KUWAIT 002772 
 
SIPDIS 
 
STATE FOR PM, NEA, NEA/ARP, NEA/NGA 
 
E.O. 12958: DECL: 08/24/2014 
TAGS: MOPS, PREL, EAID, MARR, PGOV, KU, IZ 
SUBJECT: GOK AWAITS NEGOTIATING TEAM FOR MNF-I FUEL CONTRACT 
 
REF: KUWAIT 02747 
 
Classified By: Charge d'Affaires Matthew H. Tueller, Reasons 1.4(a), 
(b) and (d) 
 
1.  (U) This is an action request; see paragraph 4. 
 
2.  (C) CDA was called to a meeting with Minister of Energy 
Sheikh Ahmad Al-Fahd on August 24 to discuss the MNF-I fuel. 
The Minister said that he had been tasked by the GOK to 
resolve the matter, in response to the recent meeting in 
Washington (reftel).  He listed a number of ways that the GOK 
has supported the U.S. in OIF (electricity, water, land, 
ports) and also listed a number of problems he has 
encountered in the National Assembly (NA) specifically 
because of this support, citing the GOK's assistance to 
Jordan and provision of humanitarian fuel aid to Iraq (the 
Altanmia/KBR contract).  The GOK did not ask for any 
contractual agreement or payment for MNF-I fuel "even after 
the President stopped the war," but needed to ask for this 
one thing now.  The GOK needed to have a contract in hand 
before the start of the next NA session, in order to be in 
compliance with its own laws.  The GOK budgeted money for 
fuel and other OIF costs in the previous fiscal year, but not 
for the current fiscal year, which began in April. 
 
3.  (C)  CDA said that Washington does understand that Kuwait 
has been a strong ally, but that suspension of fuel would 
have serious repercussions on the stability and security of 
Iraq.  The Minister said that the GOK was "amenable to 
finding a solution" and needed to reach a contractual 
agreement as soon as possible.  The Minister also said that a 
contract for the continued provision of fuel could go into 
effect while a contractual price is worked out at a higher 
political level. 
 
4.  (C) Action Request: Embassy requests Department provide 
the details on the contract negotiating team that will arrive 
in Kuwait and their itinerary, if possible, by Wednesday, 
August 25.  A technical team from the Kuwait Petroleum 
Company (KPC) and the Minister's office will conduct the 
contract negotiations, under supervision by the Minister. 
 
5.  (U) Baghdad minimize considered. 
TUELLER