US embassy cable - 05KUWAIT4281

C O N F I D E N T I A L KUWAIT 004281 
 
SIPDIS 
 
FOR NEA/ARPI AND EB 
 
E.O. 12958: DECL: 10/01/2015 
TAGS: EAID, PREL, PGOV, ENRG, KU, AMER 
SUBJECT: FOREIGN MINISTER CLARIFIES (SORT OF) BREAKDOWN OF 
HURRICANE KATRINA ASSISTANCE 
 
REF: A. KUWAIT 4146 
     B. KUWAIT 4050 
     C. KUWAIT 3947 
     D. STATE 163405 
 
Classified By: Ambassador Richard LeBaron for reasons 1.4(b) and (d). 
 
1.  (C)  During an October 1 meeting, the Ambassador restated 
to Kuwaiti Foreign Minister Shaykh Dr. Mohammed Al-Sabah 
Al-Salem Al-Sabah U.S. appreciation for Kuwait's generosity 
to victims of Hurricane Katrina.  He noted the $500 million 
pledge from the GOK as well as the reported $1.7 million in 
contributions from private citizens and companies.  He said 
the American people were becoming increasingly aware of 
Kuwait's support, citing the hundreds of e-mails sent to 
Information Minister Dr. Anas Al-Reshaid following a notice 
placed in USA Today and the New York Times. 
 
2.  (C)  Referring to the $25 million check presented by 
Prime Minister Shaykh Sabah Al-Ahmed Al-Jaber Al-Sabah to 
former presidents Clinton and Bush on the margins of the 
UNGA, the Ambassador queried the FM on plans for disbursement 
of the remaining funds.  The FM explained that the GOK has 
authority to spend without parliamentary approval $100 
million, which will be divided between humanitarian 
assistance and petroleum products.  In addition to the $25 
million presented by the PM, the Kuwait Red Crescent Society 
will present to the Red Cross an additional $25 million.  The 
$50 million balance could be assistance-in-kind (AIK), fuel 
shipments to the U.S., or the proceeds of open market sales. 
The FM requested that the Ambassador be in touch with 
Minister of Energy Shaykh Ahmad Fahd Al-Ahmad Al-Sabah to 
discuss the details of the petroleum product distribution. 
Ambassador will reiterate the U.S. preference for the cash 
proceeds (ref a). 
 
3.  (C)  The remaining $400 million, which requires 
parliamentary approval, would be in petroleum product 
assistance (ref a).  Of this amount, $350 million would be 
AIK, including $100 million for OIF through a no-charge 
extension to the current contact.  The remaining $50 million 
would be in humanitarian aid.  (Note:  Parliament is 
scheduled to reconvene October 17.  End note.) 
 
4.  (C)  Comment:  Until this meeting, we had been advised 
that the entire $100 million initial tranche would be in 
humanitarian aid.  As noted above, the "other" $50 million 
now appears to be coming in the tranche requiring National 
Assembly approval.  End comment. 
 
********************************************* 
Visit Embassy Kuwait's Classified Website: 
http://www.state.sgov.gov/p/nea/kuwait/ 
 
You can also access this site through the 
State Department's Classified SIPRNET website 
********************************************* 
 
LEBARON