US embassy cable - 05KUWAIT702

C O N F I D E N T I A L KUWAIT 000702 
 
SIPDIS 
 
E.O. 12958: DECL: 01/14/2010 
TAGS: EAID, KPAL, KWBG, ECON, EFIN 
SUBJECT: KUWAIT: DEMARCHE ON FINANCIAL ASSISTANCE TO THE PA 
 
REF: (A) SECSTATE 26150 (B) KUWAIT 669 (C) KUWAIT 539 
 
Classified By: Ambassador Richard LeBaron for 
reason 1.5 (b) and (d) 
 
1. (C) On February 15 DCM delivered ref demarche to MFA 
Director for Western Affairs Ambassador Khalid Babtain, 
stressing USG confidence in Salam Fayed's commitment to 
ensuring accountability and transparancy,  Babtain affirmed 
GOK desire to assist the Palestinian Authority but repeated 
cautious statements made in earlier discussions the 
Ambassador had with the Foreign Minister and Finance Minister 
i.e. the GOK wishes to see a Palestinian government in place 
and solid controls before committing assistance funds. 
Babtain said he was not privy to discussions Fayyad had held 
with Cabinet members thus far in his visit, but took on board 
our appeal for generous Kuwaiti assistance and said he would 
convey our demarche to his superiors. 
 
2.  (C) Ambassador brought demarche points to the attention 
of the Prime Minister,s Adviser Youssef al-Ebraheem on 
February 15, urging support to maintain the political 
momentum, and requesting that the points be transmitted to 
the Prime Minister.   Al-Ebraheem said that Kuwaiti aid for 
the Palestinians had never stopped, but that more recent aid 
had gone through the Islamic Development Bank.   He said that 
other commitments of bilateral aid (through the Arab League) 
had been held up for the same reasons that other donors had 
been cautious--the money was not going to the right people. 
He noted that it might not be good tactics to have the U.S. 
out front on this issue, noting the counter-productive 
criticism of Kuwait and other Gulf states on the Hill last 
week, and suggested that upcoming Arab League meetings will 
address it. 
 
3.  (C) Previous to receipt of demarche request, 
Undersecretary of Treasury Taylor raised the need for support 
for the Palestinians with the Kuwaiti Finance Minister on 
February 9, (see reftel b).    Ambassador also made the pitch 
to the Foreign Minister during a meeting on February 7 (see 
reftel c). 
LEBARON