US embassy cable - 03KUWAIT753

C O N F I D E N T I A L SECTION 01 OF 02 KUWAIT 000753 
 
SIPDIS 
 
STATE FOR NEA/FO, NEA/ARP, AND PRM 
STATE PASS USAID FOR DCHA/OFDA 
 
E.O. 12958: DECL: 1.6X6 
TAGS: EAID, PREL, KU, IZ 
SUBJECT: KUWAIT WANTS TO PLAY ROLE IN RECONSTRUCTION OF IRAQ 
 
Classified By: Ambassador Richard H. Jones for reasons 1.5 (B) and (D) 
 
1.(U) This is an action message:  see paragraph 8. 
 
2. (C) Summary: Shaykh Nasser Sabah Al-Ahmed Al-Sabah, Senior 
Advisor to Crown Prince Shaykh Saad Al-Abdullah Al-Salem 
Al-Sabah and son of Foreign Minister Shaykh Sabah Al-Ahmed 
Al-Jaber Al-Sabah, recently told Ambassador that Kuwait wants 
to play an active and positive role in the long-term 
reconstruction of Iraq.  In addition to the security benefits 
of building a prosperous and stable state on its northern 
border, Kuwait believes there are significant economic 
rewards to be reaped as well.  He pointed out that creative 
thinking about debts and compensation payments could 
contribute to economic development for all.  Shaykh Nasser 
said he envisioned an Iraq that becomes a model for democracy 
and development to other states in the region, including 
Kuwait.  He requested Embassy assistance in arranging the 
right contacts in the USG to discuss Kuwait's vision for the 
region and to coordinate Kuwait's role.  End summary. 
 
3. (C)  On February 22 and February 28, Ambassador and 
EconChief met with Shaykh Nasser Sabah al-Ahmed Al-Sabah. 
Shaykh Nasser spoke at great length about the current and 
future situation in Iraq; he shared his assessment that a 
functioning democracy in Iraq is eminently possible, pointing 
back in history to the "good period" Iraq enjoyed in the 
1920's.  He also said the US should not worry extensively 
about Shia's striving for independence, and outlined the 
possibilities of a federal system consisting of three states 
(North, Central and South) or 18 Provinces.  However, he 
opined that the first two years will be the most critical 
part of the reconstruction; in any case the basic 
requirements for success would be democracy, development, and 
tolerance. 
 
4. (C) In the 2/22 meeting, Shaykh Nasser told the Ambassador 
that Kuwait wanted to play a significant role in the 
reconstruction of Iraq, and the Ambassador briefed Shaykh 
Nasser on USG deployments of humanitarian relief personnel 
who represent the first wave in our efforts to begin the 
process.  The Ambassador invited Shaykh Nasser to identify a 
GOK representative for our teams to meet with, and Nasser 
agreed to consult with Shaykh Sabah Al-Ahmad to identify the 
appropriate interlocutor.  A few days later Nasser called the 
Ambassador to say that Minister of Commerce and Industry 
Salah Al-Khorsheed had been designated, and the Ambassador 
agreed to set up meetings for the appropriate USG personnel 
to meet Khorsheed once they had arrived in Kuwait.  (NOTE: 
Khorsheed is expected to resign his post in the next few 
months in preparation for elections to the National Assembly 
expected later this year. END NOTE.) 
 
5. (C) On 2/28 Shaykh Nasser expanded on his earlier 
thoughts, and reminded Ambassador of their discussions in 
mid-2002 about his "vision" for a rail, sea, and air 
transportation hub (and extending across the Iraqi and Saudi 
deserts all the way to Jordan, as well as across the Shatt 
al-Arab into Iran) where raw materials and labor from China 
and the Far East, Central Asia, and Africa could be combined 
with the capital and energy resources of the Persian Gulf to 
produce intermediate and finished products for Asian and 
European markets.  Nasser said that the reconstruction of 
Iraq could be an excellent opportunity to advance his ideas, 
which he continues to refine and develop.  He again 
reiterated his desire to meet with the appropriate USG 
officials to share his ideas and to see how they could be 
coordinated with USG plans for Iraq's reconstruction. 
 
6. (C) Shaykh Nasser noted that Kuwait has about USD 178 
billion of compensation claims still before the UN 
Compensation Committee; about USD 115 billion of those 
represented claims of the Kuwaiti Government.  Nasser said 
the government expects to receive about USD 35-40 billion of 
the claimed amount.  He said that the GOK should be inventive 
about collecting the claims, suggesting that Iraqi 
investments in infrastructure development and joint projects 
of interest to the GOK -- building gas, oil and or water 
pipelines, for example -- might be credited against its 
compensation debt to the GOK. 
 
7. (C) Ambassador encouraged Shaykh Nasser to ensure the GOK 
interest in this regard was made public; this could help to 
begin rebuilding goodwill between the Iraqi and Kuwaiti 
peoples, and would facilitate international coordination. 
Nasser agreed with the Ambassador and said he'd consult with 
the Foreign Minister and the Crown Prince on this point.  The 
Ambassador suggested that it might be desirable to create 
some type of international forum to advance long-term 
projects; EconChief added that such a committee could call 
upon the expertise of IFI's and others to flesh out the 
technical details of proposals and projects.  Nasser agreed a 
joint team would be a good idea, but rejected significant IFI 
involvement initially, saying he wanted to work directly with 
the USG (as the "custodian" of Iraq in the aftermath of a 
military strike) to define the scope and outline of 
development plans. 
 
8. (C) ACTION REQUEST:  Post understands LTG (ret.) Jay 
Garner, head of OSD's new Office for Reconstruction and 
Humanitarian Affairs, along with Ambassador George Ward 
(Humanitarian Assistance), USAID officer Lew Lucke 
(Reconstruction), and Michael Mobbs (Civil Administration) 
will soon be setting up shop in the region.  We intend to 
introduce these officials to Al-Khorsheed and to Shaykh 
Nasser at their earliest convenience.  Post requests guidance 
on any more appropriate interlocutors, and on any parameters 
that should guide our discussions with the GOK on Iraqi 
reconstruction.  One caveat: so far, Sheikh Nasser is the 
only official who has been eager to engage on this topic. 
The extent to which his views represent the GOK's is unknown. 
JONES