US embassy cable - 03KUWAIT3044

S E C R E T KUWAIT 003044 
 
SIPDIS 
 
STATE FOR EB/ESC/ESP (GLASS) 
STATE FOR S/CT (FOX) 
STATE FOR IO/PHO (PEREZ) 
STATE FOR NEA/ARP AND NEA/RA 
TREASURY FOR GENERAL COUNSEL AUFHAUSER 
TREASURY FOR OFAC DIRECTOR NEWCOMB 
TREASURY FOR DASS FOR TERRORISM AND VIOLENT CRIMES (ZARATE) 
TREASURY FOR TASK FORCE ON TERRORIST FINANCING 
 
E.O. 12958: DECL: 07/08/2013 
TAGS: EFIN, ETTC, PTER, PREL, PGOV, KU 
SUBJECT: TERRORIST FINANCING: POST IN-HOUSE VIEWS ON 
POTENTIAL HAMAS-LINKED TARGETS FOR ASSET FREEZE DESIGNATION 
 
REF: A. A. STATE 194837 
     B. B. STATE 193410 
     C. C. KUWAIT 1221 
     D. D. STATE 79970 
 
Classified By: PER REFTEL B DTG 030106Z JUL 03 
 
1. (S) Summary: Post-election Kuwait's somewhat defused 
political environment offers greater latitude than before for 
USG action.  Post confirms Ref C recommendation that absent 
substantive evidence linking certain Islamic charities to 
terrorist activity, USG interests might best be served via 
collaboration with GOK oversight authorities and perhaps 
select officials of the concerned charities as well.  Should 
such efforts fail, E.O. 13224 designation immediately would 
be appropriate.  End Summary. 
 
2. (S/NF) In response to Ref B request for update, Post 
confirms Ref C core recommendations regarding the Social 
Reform Society (Jamiyat al-Islah al-Ijtima 'Ikuwait) (SRS). 
Absent substantive evidence of SRS key management witting 
support for terrorism, USG might consider a direct approach 
to SRS leadership.  This would follow consultation with the 
GOK's new Office of Charity Oversight and Supervision (OCOS) 
within the Ministry of Social Affairs and Labor.  A 
collaborative review of our concerns, first with the GOK and 
then, if appropriate, with responsible SRS leadership is the 
preferred approach in our view. Concerns about the activities 
of satellite offices, e.g., Amman, Jordan, could be addressed 
simultaneously. 
 
3. (S/NF) Post suggests a similar approach regarding the 
International Islamic Charity Organization (IICO) (aka: 
International Islamic Charitable Society) and its various 
subsidiaries and associated entities.  IICO appears to have a 
good reputation locally.  Absent substantive information 
suggesting it inappropriate, a direct approach offers us 
opportunity to test the feasibility of bringing on board 
responsible elements within the OCOS and perhaps the 
charities themselves. 
 
4. (S/NF) The post-election environment in Kuwait provides 
USG greater latitude than earlier.  SRS's political arm, the 
Islamic Constitutional Movement, lost four of its six 
National Assembly seats on 5 July.  That cut in the charity's 
political popularity and the onset of the summer vacation 
doldrums present a more stable political environment than 
that described in Ref C. 
 
5. (S) Should low-key pursuit of responsible action by the 
charities' leadership and the GOK oversight authorities fail, 
immediate public designation under E.O. 13224 would become 
Post's preference.  It is unclear to us now, however, what 
special benefit could be gained by going public first without 
at least having tried the collaborative and consultative 
route that remains our preferred first option. 
JONES