US embassy cable - 04KUWAIT4369

C O N F I D E N T I A L SECTION 01 OF 02 KUWAIT 004369 
 
SIPDIS 
 
FOR NEA/ARPI, NSC FOR DEPUTY NATIONAL SECURITY ADVISOR 
HADLEY 
 
E.O. 12958: DECL: 12/14/2014 
TAGS: PREL, PGOV, KU, IZ, NATO 
SUBJECT: SECURITY ADVISOR PROMISES FINANCIAL ASSISTANCE TO 
THE PA AND DEBT REDUCTION FOR IRAQ AFTER ELECTIONS 
 
REF: A. MANAMA 1867 (NOTAL) 
 
     B. KUWAIT 4106 (NOTAL) 
     C. USNATO 1064 (NOTAL) 
     D. KUWAIT 3984 (NOTAL) 
 
Classified By: Ambassador Richard LeBaron for reasons 1.4 (b) and (d) 
 
1.  (C)  Summary:  During a December 15 courtesy call by the 
Ambassador, Kuwaiti National Security Bureau (NSB) President 
Shaykh Sabah Al-Khaled Al-Hamad Al-Sabah confirmed the GOK 
will provide financial assistance and political support to 
the Palestinian Authority.  The GOK looks forward to PA 
elections in January and the chance to discuss 
Kuwaiti-Palestinian relations with Abu Mazen as the elected 
representative of the Palestinian people and not as PLO 
Chairman.  No money amounts were provided in response to 
Ambassador's query.  Shaykh Sabah Al-Khaled also said that 
following January elections in Iraq, the GOK would be 
prepared to address with an elected Iraqi government debt 
reduction along the lines of the Paris Club Agreement.  The 
Shaykh noted Kuwait's pride in becoming the first country to 
join the ICI and hoped its eventual coordination with NATO 
members on terrorism, WMD, and border issues, would encourage 
other Gulf States to follow suit. He further welcomed the 
Ambassador's suggestion to examine U.S.-Kuwaiti long-term 
relations.  End Summary. 
 
Funds Will Flow Once Abu Mazen is in Office 
------------------------------------------- 
 
2.  (C)  Shaykh Sabah Al-Khaled opened the meeting by 
reporting on his trip to Bahrain and meeting with Deputy 
National Security Advisor and National Security 
Advisor-designate Stephen Hadley.  As reported ref A, he said 
he and Hadley had a useful discussion on the need for full 
participation in Iraqi elections; new opportunities presented 
by the change in Palestinian leadership; and the strength of 
U.S.-Kuwaiti relations, particularly in trade, intelligence 
sharing, and military and political cooperation. 
 
3.  (C)  Expounding on Palestinian issues, he described Abu 
Mazen's December 12 - 14 visit to Kuwait as a success and 
reported the two sides made progress on several long-standing 
issues.  Abu Mazen raised the need for financial assistance 
and broached establishing a diplomatic mission in Kuwait. 
Shaykh Sabah Al-Khaled said despite criticism from the 
National Assembly and some media outlets, the GOK was ready 
to rebuild its relationship with the PA and ready to assist 
the Palestinian people.  The GOK has confidence that PA 
Finance Minister Salam Fayyad will make appropriate use of 
the funds previously pledged at the Arab League Beirut 
meeting, yet Kuwait prefers to address the details of its 
assistance after elections.  It wants to deal with Abu Mazen 
as President of the Palestinian Authority and not as PLO 
Chairman.  Shaykh Sabah Al-Khaled emphasized the need for 
improving the quality of life for Palestinians so that the 
situations in the West Bank and Gaza do not further 
deteriorate, creating a welcome environment for terrorists. 
He expressed concern about the growth of Hamas and Hezbollah 
should the PA not receive ample support from the 
international community and called on the U.S., the UN, 
western nations, and Arab states to play a supporting role. 
 
4.  (C)  The Ambassador agreed on the importance of 
supporting the PA's new leadership and thanked Kuwait for 
responding quickly and publicly.  He added that while 
humanitarian assistance is critical, it is also necessary to 
focus on trade, noting the close relationship between 
assuring security and facilitating trade flows.  He said the 
U.S. was actively engaging the Israelis and reported progress 
on the transfer of tax revenues to the PA. 
 
GOK Welcomes Polling in Iraq, Wary about Voting in Iran 
--------------------------------------------- ---------- 
 
5.  (C)  The Ambassador also raised Iraq's debt to Kuwait and 
the positive impact of its resolution for Iraq.  Shaykh Sabah 
Al-Khaled said Foreign Minister Shaykh Dr. Mohammed Al Sabah 
Al Salim Al Sabah had publicly announced that the Paris Club 
agreement would guide discussions with Iraq.  The GOK is 
prepared to address debt reduction bilaterally with the Iraqi 
government after the January elections. 
 
6.  (C)  Shaykh Sabah Al-Khaled mentioned the GOK was keenly 
following the run-up to May elections in Iran.  With 
President Khatami unable to seek another term of office, the 
GOK was afraid conservatives would gain ground.  He reported 
that Intelligence Minister Yunesi, former President 
Rasfanjani, and former Foreign Minister Velayati were all 
possible successors to Khatami.  The GOK, not convinced of 
the sincerity of recent GOI promises, is also keeping watch 
on Iran's nuclear aspirations. 
 
Kuwait and ICI:  Setting an Example for the Region 
--------------------------------------------- ----- 
 
7.  (C)  The Ambassador applauded the GOK's decision to seek 
membership in the Istanbul Cooperation Initiative (ICI). 
Shaykh Sabah Al-Khaled reviewed his November meetings with 
NATO and USNATO representatives and said the GOK viewed the 
ICI as a means to enhance regional security and stability. 
They are seeking cooperation on crisis management, terrorism, 
WMD, border control, and training.  He added that the GOK was 
the first country NATO Deputy Secretary General Minuto Rizzo 
visited to discuss the ICI and by being the first country to 
join, Kuwait hoped to set an example for the other Gulf 
states.  He also sees NSB leadership in the ICI process as an 
opportunity to strengthen the NSB's coordination abilities 
within the GOK. 
 
The U.S. and Kuwait After Iraq 
------------------------------ 
 
8.  (C)  The Ambassador further engaged Al-Khaled on 
long-term bilateral relations, noting that the ongoing Kuwait 
strategic review being carried out with U.S. assistance 
presented an opportunity to look beyond the issues of the 
day.  He encouraged the Shaykh to use the weight of his 
office to promote the participation of all appropriate 
Kuwaiti ministries and agencies in the process.   Shaykh 
Sabah Al-Khaled said he had met with members of the U.S. 
review team and promised to enlist, in addition to the 
Ministries of Defense and Interior, the involvement of the 
Ministries of Health, Education, Information, Foreign 
Affairs, and others.  He said he would be meeting with Chief 
of General Staff for the Kuwait Armed Forces LTG Fahed Ahmed 
Al Amir next week to further define the NSC role. 
 
9.  (U)  Baghdad:  Minimize considered. 
 
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LEBARON