US embassy cable - 04KUWAIT4016

UNCLAS KUWAIT 004016 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON, EFIN, PREL, IZ, KU 
SUBJECT: GOK MOVES CLOSER TO DEBT REDUCTION FOR IRAQ, NO 
PUBLIC STATEMENT YET ON AMOUNT OR TIMING 
 
REF: A. STATE 248796 
 
     B. KUWAIT 3984 
 
1.  (U) 22 November newspapers reported that "diplomatic 
sources asserted that Kuwait will write off 80 percent and 
more of the Iraqi debts, if there was an international 
consensus in the Club of Paris."  The newspapers did not 
identify the diplomatic sources, and no one from the GOK has 
been quoted on record yet as saying that Kuwait would 
definitely provide comparable treatment to the Paris Club 
agreement.  Diplomatic contacts tell us that the Foreign 
Minister was the unnamed GOK source.  Other 22 November 
newspapers reported that Kuwait would write off between $6 
and $6.5 billion of Iraqi debt.  Prior to departing for the 
Sharm El-Sheikh conference, Foreign Minister Dr. Mohammed 
told Ambassador that the GOK favored substantial debt 
reduction and that Parliament would have to ratify any 
write-down of debt (Ref B.) 
 
2.  (U) Comment:  While we appear to have a public commitment 
from the GOK to substantial debt reduction in principle, the 
actual method, amount, and timing of implementing the 
write-down is not clear.  The GOK has already made statements 
similar to the proposed draft announcement (Ref A), but Post 
will continue to press for a clear statement by the GOK on 
Iraqi debt relief. End Comment. 
 
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