US embassy cable - 05KUWAIT3947

C O N F I D E N T I A L SECTION 01 OF 02 KUWAIT 003947 
 
SIPDIS 
 
STATE FOR TASK FORCE 1, NEA, EB 
LONDON FOR TSOU 
STATE PLEASE PASS TO USAID/OFDA 
 
E.O. 12958: DECL: 09/06/2015 
TAGS: AEMR, EAID, PREL, ENRG, KU, US, KATRINA AID 
SUBJECT: TFUS01: GOK OFFERS $500 MILLION IN HURRICANE 
KATRINA RELIEF 
 
REF: A. STATE 163405 
     B. STATE 163366 
     C. 09/04/2005 TASK FORCE-1 DIRECTOR - AMBASSADOR 
        LEBARON EMAIL 
 
Classified By: Ambassador Richard LeBaron for reason 1.4 (b) 
 
1.  (U) This is an action request.  Please see Embassy 
recommendation in para 6 and action request in para 7. 
 
2.  (C) The Government of Kuwait (GOK) has decided to provide 
$500 million in aid to the victims of Hurricane Katrina, 
through a $100 million cash grant and $400 million in oil 
products.  The Council of Ministers made this decision during 
its weekly meeting on September 4, and this was confirmed to 
the Ambassador in a telephone call with Foreign Minister 
Shaykh Dr. Mohammed Al-Sabah the evening of September 4.  Dr. 
Mohammed said that the $400 million in "bulk oil products" 
would be organized by the Ministry of Energy, and that the 
$100 million cash grant would be organized through Kuwait's 
Embassy in Washington.  Dr. Mohammad said that the Kuwaiti 
aid is subject to approval by the National Assembly, which is 
currently not in session (it returns in October), but that 
the GOK had already consulted with the Assembly leadership 
and "did not expect any resistance."  Dr. Mohammed opened and 
closed the conversation with expressions of sympathy and 
solidarity with the American people. 
 
3.  (C) Ambassador spoke by telephone the afternoon of 
September 5 with Energy Minister Shaykh Ahmad Fahd Al-Ahmad 
Al-Sabah to get a better idea of modalities for the Kuwaiti 
assistance.  Shaykh Ahmed said that he had spoken to the 
Prime Minister earlier in the day, and provided the current 
Kuwaiti thinking.  He said that the initial $100 million is 
already in the GOK budget so that they can go ahead and move 
it without further National Assembly approval.  Contrary to 
what we are hearing from the Task Force, Shaykh Ahmad 
indicated that the GOK is considering doing half of the 
initial $100 million in petroleum products - he said through 
buying refined product already on ships or at European 
refineries.  He said that he thought the other half of the 
initial $100 million would go to humanitarian aid, such as to 
the Red Cross.  He encouraged us to engage the Foreign 
Ministry on the initial $100 million tranche, as this would 
be that Ministry's responsibility, and said it would be 
useful to meet with Foreign Minister Shaykh Dr. Mohammad 
Al-Sabah when he is in the U.S. for UN meetings.  (The 
Foreign Minister is off to GCC and Arab League meetings 
starting tomorrow.  Ambassador is scheduled to see the Acting 
Undersecretary on Wednesday.  The Energy Minister is 
traveling today to China and on to New York for UN meetings.) 
 
4.  (C) Regarding the other $400 million in petroleum 
products, the Energy Minister indicated that this would 
require Assembly approval in October before firm plans could 
be made.  He indicated that the GOK had not yet considered 
how this part of the package would work.  He noted that part 
of the support could be a year's free supply of the increment 
of additional fuel requested by OSD recently for operations 
in Iraq.  (Note: OSD A/S Peter Rodman made this request to 
Amb. Salim, before Hurricane Katrina.  The GOK has been a 
major supplier of free and heavily discounted jet fuel that 
U.S. forces use for both ground and air operations in Iraq 
and Kuwait.)  He said KPC is going to try to figure out where 
they can find additional fuel, because at this time, they do 
not have any available uncommitted jet fuel. 
 
5.  (U) Embassy point of contact for follow up on the oil 
products donation is Deputy Chief Of Mission Matthew Tueller. 
 Unclass Email: tuellermh@state.gov / Class Email: 
tuellermh@state.sgov.gov / Phone: 965-259-1362.  On any 
communications regarding the oil products donation, please 
also CC: Ambassador Richard Lebaron (lebaronrb@state.gov / 
lebaronrb@state.sgov.gov) and Economic Counselor Stephen 
Carrig (carrigsj@state.gov / carrigsj@state.sgov.gov). 
 
6.  (SBU) Embassy Recommendation:  Ambassador recommends that 
Washington coordinate closely with Kuwaiti Ambassador and KPC 
rep in Washington.  Washington should confirm with them what 
the Energy Minister told us today.  At this time, contact by 
working level USG offices in Washington with officials in 
Kuwait would not be productive and add to existing confusion 
about the details of the Kuwaiti donations.  Working with the 
Ambassador and KPC in Washington will reveal whether it will 
be useful or necessary to engage the Foreign Minister when he 
comes to New York.  The Energy Minister will also be with the 
Prime Minister in New York for the UN High Level Meeting. 
 
7.  (U) Per Ref C, it appears that someone in the GOK has 
been in contact with the Task Force or elsewhere in the 
Department regarding the specifics of the $100 million cash 
donation.  Per the Ref C Email, Department advised that the 
GOK would make its cash donation to the USG versus a donation 
to a U.S. assistance organization.  Please let us know who 
has been in contact on this and the details of arrangements 
discussed. 
 
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Visit Embassy Kuwait's Classified Website: 
http://www.state.sgov.gov/p/nea/kuwait/ 
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LEBARON