US embassy cable - 05KUWAIT1900

C O N F I D E N T I A L SECTION 01 OF 02 KUWAIT 001900 
 
SIPDIS 
 
FOR NEA/ARPI 
 
E.O. 12958: DECL: 05/07/2015 
TAGS: PREL, PGOV, KU, IZ, KUWAIT-IRAQ RELATIONS 
SUBJECT: KUWAIT WILL CONTINUE TO PUBLICLY SUPPORT ITG AND 
CONSIDER TRANSFER OF DFI ASSETS 
 
REF: A. STATE 81769 
     B. KUWAIT 1860 
     C. KUWAIT 1791 
     D. STATE 79107 
     E. KUWAIT 1560 
     F. KUWAIT 1557 
     G. 04 KUWAIT 3897 
 
Classified By: Ambassador Richard LeBaron for reasons 1.4 (b) and (d). 
 
1.  (C)  Summary:  During a May 7 call on Ministry of Foreign 
Affairs Under Secretary Khaled Al-Jarallah, the Ambassador 
noted progress in Iraq since the formation of the Iraqi 
Transitional Government (ITG) and encouraged Kuwait to 
continue to make public statements of support.  He stressed 
the need to assist the ITG in drafting its constitution and 
emphasized that such assistance should be practical and 
focused on Iraq.  He reviewed with Al-Jarallah U.S. plans for 
strengthening the capacity of provincial governing councils 
and recommended the GOK develop means for regular interaction 
with the ITG.  He also restated U.S. views that there were no 
outstanding Kuwaiti claims against DFI monies held by Kuwait 
and encouraged their immediate transfer.  Al-Jarallah said 
the GOK would continue to publicly support the ITG, 
investigate transferring at least a major part of the DFI 
frozen assets, and actively seek to normalize relations with 
Iraq.  End summary. 
 
2.  (C)  The Ambassador opened his May 7 meeting with MFA 
Under Secretary Khaled Al-Jarallah by expressing U.S. 
appreciation for Prime Minister Shaykh Sabah Al-Ahmed 
Al-Jaber Al-Sabah's positive comments on the April 28 
formation of the Iraqi Transitional Government (ITG) (ref c). 
 He said there was steady progress in Iraq and it was 
important for friends and allies to publicly encourage the 
ITG.  Drawing from ref d, he said the ITG would benefit from 
continued supportive statements and references to UN Security 
Council resolution 1456 as well as the need for an inclusive 
constitutional process.  In addition to such statements, the 
Ambassador told Al-Jarallah that Iraq needed assistance as it 
began drafting its constitution.  The aid, whether financial 
support or technical assistance, should be focused on and 
take place in Iraq.  He also outlined for Al-Jarallah U.S. 
plans for strengthening Iraq's provincial governing councils 
and encouraged Kuwait to develop a more structured mechanism 
for dealing with the ITG.  He stressed the importance of an 
active Kuwaiti-Iraqi dialogue and recommended GOK ministers 
consult regularly with their counterparts in the ministries 
of oil, defense, interior, finance, and foreign affairs. 
 
3.  (C)  Al-Jarallah responded the GOK was concerned about 
the ongoing violence in Iraq and wondered how long the Iraqi 
people could withstand the situation.  He agreed with the 
Ambassador that the recent spike in violence should not 
impede democratic progress.  Despite the attacks and civilian 
deaths, Al-Jarallah saw a "bright" side to the picture:  a 
new government and the beginning of the drafting process for 
the constitution.  It was also encouraging and important that 
Sunnis were participating in the political process, (the new 
Defense Minister was announced just before the meeting).  He 
agreed on the need for talks with the ITG and said FM Shaykh 
Dr. Mohammed Al-Sabah Al-Salem Al-Sabah had excellent 
relations with Iraqi FM Zebari.  He also spoke highly of new 
Oil Minister Ibrahim Bahr Al-Uloum and new Defense Minister 
Saadoun Al-Duleimi.  He added that the GOK was ready to 
receive an Iraqi ambassador and commented the GOK understood 
that Faeq Al Shaykh Ali was Zebari's candidate, but had yet 
to receive a formal agrement request from Baghdad (ref e). 
 
 
4.  (C)  The Ambassador again raised the Development Fund for 
Iraq (DFI), emphasizing that the funds were necessary for 
continued progress in Iraq and restating the U.S. position 
that there were no pending Kuwaiti claims against them. 
Al-Jarallah said he would press the MFA legal department for 
a determination on the claim issue and proffered that a large 
portion of the $78 or $80 million could be released pending a 
decision on claims (ref b).  Al-Jarallah informed the 
Ambassador that the GOK and ITG had reached, in the past 
week, agreement on Kuwait's pledge of $60 million for 
hospital and school construction in southern Iraq (ref g). 
The grant will be administered by the Kuwait Fund for Arab 
Economic Development and the parties are in the process of 
selecting consultants. 
 
5.  (U)  Baghdad:  Minimize considered. 
 
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LEBARON