US embassy cable - 05KUWAIT128

UNCLAS KUWAIT 000128 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EAID, AEMR, PGOV, PREL, KU 
SUBJECT: TENFOLD INCREASE IN KUWAIT'S TSUNAMI ASSISTANCE 
PLEDGE 
 
REF: A. KUWAIT 73 
 
     B. KUWAIT 109 
     C. STATE 959 
 
1.  On January 9, the Government of Kuwait announced that "in 
light of the tragic catastrophe and reflecting the feeling of 
Kuwaitis toward the victims in those countries," it would 
increase its aid pledge for tsunami-affected nations from $10 
million to $100 million.  With this pledge, Kuwait has become 
the biggest donor within the GCC.  Kuwait and other Gulf Arab 
states have come under sharp criticism both domestically and 
internationally for their relatively paltry initial pledges, 
especially since the 2004 spike in oil price has left these 
states flush with surplus revenues (ref A).  Some observers 
found the stinginess displayed by Gulf countries particularly 
galling, since GCC economies depend highly on expatriate 
labor from Sri Lanka, Indonesia, India and Thailand. 
 
2.  Kuwait's new pledge includes $30 million in cash and $70 
for infrastructure projects, the latter to be administered by 
the Kuwait Fund for Arab Economic Development.  Kuwait will 
also suspend repayment of the more than $760 million in loans 
owed to Kuwait by the affected countries.  Finally, there are 
a number of non-governmental fundraising efforts underway, 
and a national charity campaign (similar to Saudi Arabia's 
telethon) is planned. 
 
LEBARON