US embassy cable - 03KUWAIT1082

C O N F I D E N T I A L KUWAIT 001082 
 
SIPDIS 
 
TASK FORCE 1 FOR EB ACTION OFFICER 
STATE FOR EB/ESC AND NEA 
 
E.O. 12958: DECL: 03/25/2013 
TAGS: ECON, EFIN, ETTC, PREL 
SUBJECT: TFIZ01: KUWAIT-CONCERNED ABOUT LEGAL ASPECTS OF 
UNFREEZING IRAQI ASSETS 
 
REF: STATE 74249 
 
Classified By: AMBASSADOR RICHARD JONES FOR REASONS 1.5 (B) and (D) 
 
1. (U) This is an action message -- see paragraph 4. 
 
2. (C) In a March 24 meeting with Kuwaiti Minister of State 
for Foreign Affairs (and Acting Finance Minister) Shaykh Dr. 
Mohammed Sabah Al-Salem Al-Sabah, Ambassador raised issue of 
unblocking frozen Iraqi government assets in Kuwait for use 
in humanitarian efforts, noting that the U.S. had already 
decided to do this.  The Minister asked what the lgal basis 
was for the U.S. move, since the funds had been frozen 
pursuant to a UN Secutity Council Resolution.  He also 
suggested that actions to unblock frozen assets could lead to 
lawsuits against governments by third parties seeking to 
collect on unpaid Iraqi debts.  What provisions had been made 
for this eventuality?  Ambassador presented the MinState a 
non-paper drawn from reftel talking points and promised to 
convey the Minister's questions to Washington for review. 
 
3.(C) On March 23, Ambassador met with Kuwaiti Central Bank 
Governor Shaykh Salem Al-Sabah and presented him with points 
in reftel.  Shaykh Salem said he knew Kuwait still held 
frozen Iraqi assets, and agreed to see if he could confirm 
the current value of those accounts. 
 
4. (C) Action Request:  Post would welcome guidance on legal 
aspects of the unfreezing actions raised by MinState Al-Sabah. 
JONES