US embassy cable - 90KUWAIT4364

C O N F I D E N T I A L SECTION 01 OF 02 KUWAIT 04364 
 
ALSO FOR POLAD 
LONDON FOR MILLIKAN 
 
E.O. 12356:  DECL:OADR 
TAGS:  PGOV, PREL, KU, IZ 
SUBJECT:  KUWAITI CABINET REJECTS "ARM-TWISTING" AS 
          TALKS WITH IRAQ BEGIN JULY 31 
 
REFS:  A) FBIS LD2907132990 
-      B) FBIS LD2907140990 
-      C) FBIS LD2907143190 
-      D) FBIS LD3007173490 
-      E) FBIS LD2907150590 
-      F) FBIS LD2907171890 
-      G) FBIS JN2907075290 
-      H) FBIS JN2907074290 
 
1.  (U)  SUMMARY.  KUWAIT'S CABINET JULY 29 WELCOMED 
TALKS WITH IRAQ -- NOW SET TO BEGIN IN JEDDAH JULY 31, 
CALLED FOR A "FAIR AND CONCLUSIVE SETTLEMENT," AND 
REJECTED "ALL FORMS OF ARM-TWISTING, INTIMIDATION, AND 
THE USE OF FORCE."  THE CABINET ALSO VOICED ITS APPROVAL 
OF DECISIONS TAKEN BY OPEC TO RAISE OIL PRICES AND WAS 
BRIEFED ON VISITS BY ARAB LEADERS, INCLUDING YASSER 
ARAFAT.  END SUMMARY. 
 
2.  (U)  STATE MINISTER FOR CABINET AFFAIRS DR. 
ABDULRAHMAN AL-AWADI JULY 29 SAID THE CABINET WELCOMED 
PROPOSED TALKS BETWEEN KUWAIT AND IRAQ, NOW SCHEDULED TO 
BEGIN IN JEDDAH JULY 31.  THE CABINET EXPRESSED ITS 
"SINCERE DESIRE" FOR A SUCCESSFUL MEETING WHICH WOULD 
HELP PRODUCE A "FAIR AND CONCLUSIVE SETTLEMENT OF ALL 
OUTSTANDING DIFFERENCES."  THE MINISTERS EXPRESSED 
APPRECIATION FOR ARAB LEADERS' EFFORTS, ESPECIALLY THOSE 
OF PRESIDENT MUBARAK AND KING FAHD, AND REITERATED 
KUWAIT'S REJECTION OF "ALL FORMS OF ARM-TWISTING, 
INTIMIDATION, AND THE USE OF FORCE IN SETTLEMENT OF 
DISPUTES AMONG BROTHERS."  (REF A AND B FBIS REPORTS) 
 
3.  (C)  THE CABINET ALSO EXPRESSED SATISFACTION WITH 
RESULTS OF THE RECENT OPEC MINISTERIAL AND HOPED ALL 
MEMBER STATES WOULD ABIDE BY THEIR QUOTAS.  AL-AWADI 
ADDED THAT KUWAIT "ASPIRES" TO RAISE OIL PRICES, BUT 
ONLY WITHIN THE FRAMEWORK OF A COLLECTIVE AND BINDING 
OPEC AGREEMENT.  HE NOTED THAT INCREASED OIL REVENUES 
WOULD RAISE THE STANDARD OF LIVING IN THE GULF STATES, 
BUT SAID THAT "THE PROCESS OF RAISING PRICES DOES NOT 
TAKE PLACE UNTIL THE EXPERTS SO RECOMMEND."  (COMMENT: 
I.E., UNTIL MARKET CONDITIONS ALLOW IT.  END COMMENT) 
(REF C FBIS REPORT) 
 
4.  (U)  CROWN PRINCE/PRIME MINISTER SHAIKH SAAD 
AL-ABDULLAH BRIEFED THE CABINET ON RECENT VISITS BY ARAB 
LEADERS TO DISCUSS THE KUWAIT-IRAQ DISPUTE, INCLUDING 
ARAB LEAGUE SECRETARY GENERAL KLIBI (JULY 26), EGYPTIAN 
PRESIDENTIAL ADVISOR OSAMA AL-BAZ (JULY 26), SAUDI 
FOREIGN MINISTER SAUD AL-FAISAL (JULY 28), AND PLO 
LEADER YASSER ARAFAT (JULY 29).  THE CROWN PRINCE WILL 
LEAD KUWAIT'S DELEGATION TO THE JEDDAH TALKS.  THE 
DELEGATION WHICH DEPARTED FOR JEDDAH AT 1000 JULY 31, 
INCLUDES MINSTATE FOR FOREIGN AFFAIRS SHAIKH NASSER 
MOHAMMED AL-AHMED, MFA U/S SULAIMAN MAJID AL-SHAHEEN, 
OIL MINISTER DR. RASHEED AL-AMIRI, JUSTICE MINISTER 
DHARI AL-OTHMAN, AS WELL AS OTHER OFFICIALS FROM THE 
CROWN PRINCE'S DIWAN, FOREIGN AFFAIRS AND OIL.  (REF D 
FBIS REPORT) 
 
5.  (U) DURING THE CABINET MEETING READOUT, AL-AWADI 
SAID THE AGENDA FOR THE JEDDAH MEETINGS WAS KNOWN BY 
BOTH SIDES BUT DIDN'T EXPAND ON THE SUBJECT.  IN 
RESPONSE TO A QUESTION ON WHETHER THE DISPUTE WOULD BE 
RAISED AT THE UPCOMING OIC MINISTERIAL, HE STRESSED THAT 
KUWAIT WANTS TO SEE THE PROBLEM SOLVED WITHIN AN ARAB 
FRAMEWORK.  (REF E FBIS REPORT) 
 
6.  (U)  BEFORE DEPARTING KUWAIT MIDDAY JULY 29, ARAFAT 
TOLD REPORTERS HIS MEETINGS WITH THE AMIR AND THE CROWN 
PRINCE HAD BEEN "POSITIVE AND CONSTRUCTIVE."  ISSUES 
DISCUSSED INCLUDED SOVIET JEWISH EMIGRATION TO THE 
OCCUPIED TERRITORIES AND THE UPCOMING JEDDAH TALKS. 
ARAFAT EXPRESSED HOPE THAT THE JEDDAH TALKS WOULD PUT AN 
END TO THE CRISIS THAT "HAS TARNISHED RELATIONS BETWEEN 
ARAB BROTHERS."  (REF F FBIS REPORT) 
 
7.  (U)  IN OTHER BUSINESS, FINANCE MINISTER SHAIKH ALI 
KHALIFA AL-ATHBI REPORTED ON HIS RECENT TALKS IN MUSCAT 
WITH OTHER MEMBERS OF THE GCC TRIPARTITE COMMITTEE 
CHARGED WITH STUDYING THE IMPACT OF RECENT INTERNATIONAL 
CHANGES IN THE GULF STATE. 
 
8.  (C)  COMMENT.  THE CABINET'S "ARM-TWISTING" 
STATEMENT WAS LIKELY A RESPONSE TO EDITORIALS OUT OF 
BAGHDAD WHICH CONTINUE TO PRESS IRAQ'S CASE PUBLICLY AND 
WHICH, KUWAITIS FEEL, DEMAND THAT KUWAIT ACT LIKE A 
DOORMAT IN ITS TALKS WITH IRAQ (REF G AND H FBIS 
REPORTS).  THE CABINET STATEMENTS ARE A SIGNAL TO 
BAGHDAD THAT THE KUWAITIS WILL NOT BE EASILY ROLLED.  WE 
NOTE THAT THE DPM/FM SHAIKH SABAH AL-AHMED AND FINANCE 
MINISTER SHAIKH ALI KHALIFA AL-ATHBI WILL NOT ATTENT THE 
TALKS.  AS FORMER OIL MINISTER AND THE ARCHITECT OF 
KUWAIT'S OIL POLICY, SHAIKH ALI KHALIFA IS NOT 
WELL-LIKED BY THE IRAQIS AND SO HIS ABSENCE IS POLITIC. 
THE ABSENCE OF ANY FINANCE OFFICIALS AT ALL, HOWEVER, IS 
PROBABLY MEANT AS A SIGNAL THAT THE GOK INTENDS THESE 
TALKS TO BE MORE THAN A NEGOTIATION ON HOW MUCH 
PROTECTION MONEY IT WILL TAKE TO PAY OFF IRAQ FOR THE 
TIME BEING.  END COMMENT. 
 
 
HOWELL