US embassy cable - 05KUWAIT651

C O N F I D E N T I A L KUWAIT 000651 
 
SIPDIS 
 
STATE FOR NEA/ARPI 
 
E.O. 12958: DECL: 02/15/2005 
TAGS: EAID, ECON, KU, IZ, KUWAIT-IRAQ RELATIONS, NATIONAL ASSEMBLY 
SUBJECT: KUWAIT NATIONAL ASSEMBLY MEMBERS AGREE WITH GOK ON 
IRAQI DEBT RELIEF 
 
REF: A. KUWAIT 0326 
     B. 2004 KUWAIT 4081 
 
Classified By: Ambassador Richard LeBaron for reason 1.4 (d) 
 
1.  (C) Summary and Comment: During January and February, 
Ambassador met with five prominent MPs and discussed Iraqi 
debt relief.  Most of the MPs were supportive of the GOK's 
efforts to offer comparable treatment to the Paris Club 
decision to forgive 80% of Iraqi debts, but voiced a need to 
show their constituents that any debt relief was in line with 
international efforts.  They, and other post contacts, have 
made clear though that UNCC payments are not up for 
discussion and that Kuwait would only consider forgiving 
pre-Gulf War Iraqi debt.  Comment:   The GOK is waiting for 
formation of the Iraqi government in order to engage in debt 
discussions.  Forgiveness of Iraqi debt is not popular here, 
thus the expressed need to wrap Kuwait's efforts into an 
international context -- the Paris Cub terms.  End Summary 
and Comment. 
 
Iraqi Debt Relief: MPs Agree - But Stay Away from UNCC! 
--------------------------------------------- ---------- 
 
2.  (C)  The MPs were all in agreement that providing 
comparable treatment to the Paris Club's planned 80% debt 
reduction for Iraq was the right thing to do, as long as it 
was in line with international agreements.  At the same time, 
some of them placed specific conditions on the debt, and post 
has heard loud and clear from these MPs and others that any 
debt forgiveness for Iraq would only involve pre-Gulf War 
debt and that a reduction or forgiveness of United Nations 
Compensation Committee payments from Iraq's invasion of 
Kuwait was not up for discussion (Ref B).  The Ambassador 
explained to each MP that the USG was forgiving 100% of its 
Iraqi debt and asked the MPs to support the GOK's plan to go 
along with the 80% Paris Club reduction.  MP Al-Haroun said 
"at the end of the day, we will support the government."  MP 
Al-Roumi said it was "not a problem," but wanted to "link 
forgiving debts to a legitimacy of (Kuwait's) borders."  "How 
can we forgive the debt," he asked, "when we still have 
border problems?"  MP Al-Zalzalah said that Kuwait would not 
forgive Iraq debt independently, but that Kuwait would not 
"single ourselves out of it" if it is an international 
decision.  "Iraq does need our help," he admitted, but added 
that the MPs needed to "convince the average Kuwaiti because 
some want the benefits for themselves." 
 
3.  (C) Al-Sane also did not oppose debt relief if it was in 
line with Paris Club reductions and pointed out that he had 
made a public statement on Al-Jazeera in support of reducing 
Iraq's debt.  Al-Sane also suggested that the GOK consider 
reducing Kuwaitis' personal debts if it is going to reduce 
Iraq's debts but admitted that the government's failure to 
offer Kuwaitis debt leniency would not be a deal-breaker (Ref 
A).  MP Al-Saadoun said that he did not think Kuwait would 
"depart from agreements made in the international community" 
concerning debt relief, but was adamantly against any 
reduction or elimination of the UNCC reparation payments. 
"There is a unified Kuwaiti position" on those payments, and 
he said that he and other MPs would "stress to the GOK to 
adopt a firm position to keep these compensations."  "They 
are not meant to be against the Iraqi people," he added, "but 
Kuwait has borne much.  We hope the international community 
will support this."  The Ambassador said that the U.S. has 
always been the strongest supporter for the compensation 
issues but that forgiveness of debt is key to helping the 
Iraqi economy and he hoped the MPs would be supportive. 
 
******************************************** 
Visit Embassy Kuwait's Classified Website: 
http://www.state.sgov.gov/p/nea/kuwait/ 
******************************************** 
LEBARON