US embassy cable - 05KUWAIT112

C O N F I D E N T I A L KUWAIT 000112 
 
SIPDIS 
 
STATE FOR PM A/S BLOOMFIELD AND NEA/ARPI 
SECDEF FOR ISA A/S RODMAN AND PDAS FLORY 
 
E.O. 12958: DECL: 01/07/2015 
TAGS: PREL, PARM, KU, IZ 
SUBJECT: PRIME MINISTER SAYS NO CHANCE OF CONTINUED FREE 
FUEL 
 
REF: SECSTATE 4762 
 
Classified By: Ambassador Richard LeBaron for reasons 1.5 (b) and (d) 
 
1. (C)  The Ambassador delivered reftel points on continued 
provision of free fuel to OIF forces to Kuwaiti Prime 
Minister Shaykh Sabah Al-Ahmad on January 8.  Shaykh Sabah 
said that Kuwait was now spending USD 20-23 million a month 
on fuel for OIF and had been providing that support for 
almost two years, including for planes coming to and from 
Afghanistan.  That arrangement was over as of January 1 and 
there was no possibility of extending the free fuel into 
2005.  He said that based on confidence in the letter 
received on December 30 from A/S Rodman, the fuel was 
continuing to flow, but "now we have an agreement" and it 
will continue "with money" from the first of the year. 
 
2. (C) Shaykh Sabah made additional references to the 
difficulty of dealing with the Kuwaiti National Assembly 
which he claimed has little inkling of the extent of fuel and 
other financial support the GOK is giving to the U.S.  He 
suggested that the only option available to him to extend the 
free fuel further would require dissolving the government and 
parliament and calling new elections. 
 
3. (C)  Ambassador referred the PM to the element in the 
Rodman letter containing the "hope that Kuwait would agree to 
this extension," (through March).  Shaykh Sabah reiterated 
that the arrangement had ended on December 31.  The 
Ambassador said he was disappointed by PM's analysis that the 
Kuwaiti National Assembly would reject further fuel 
assistance. 
 
4. (C) Comment:  The Prime Minister was categoric.  Whatever 
nuance the Kuwaiti Ambassador may have conveyed about the 
possibility of extending the terms of free fuel was nowhere 
to be found in the the position Shaykh Sabah staked out. 
Post recommends moving quickly to establish a price for the 
fuel with KPC.  There is nothing in what we have heard from 
the Kuwaitis that would indicate they are thinking about a 
concessional price.  To the contrary, in their end-of-year 
communications to us on the issue they have placed an 
emphasis on "commercial terms" for fuel supply as of January 
1. 
LEBARON