This record is a partial extract of the original cable. The full text of the original cable is not available.
231317Z Nov 04
UNCLAS KUWAIT 004016
SIPDIS
E.O. 12958: N/A
TAGS: ECON EFIN PREL IZ KU
SUBJECT: GOK MOVES CLOSER TO DEBT REDUCTION FOR IRAQ, NO
PUBLIC STATEMENT YET ON AMOUNT OR TIMING
REF: A. STATE 248796
B. KUWAIT 3984
1. (U) 22 November newspapers reported that "diplomatic
sources asserted that Kuwait will write off 80 percent and
more of the Iraqi debts, if there was an international
consensus in the Club of Paris." The newspapers did not
identify the diplomatic sources, and no one from the GOK has
been quoted on record yet as saying that Kuwait would
definitely provide comparable treatment to the Paris Club
agreement. Diplomatic contacts tell us that the Foreign
Minister was the unnamed GOK source. Other 22 November
newspapers reported that Kuwait would write off between $6
and $6.5 billion of Iraqi debt. Prior to departing for the
Sharm El-Sheikh conference, Foreign Minister Dr. Mohammed
told Ambassador that the GOK favored substantial debt
reduction and that Parliament would have to ratify any
write-down of debt (Ref B.)
2. (U) Comment: While we appear to have a public commitment
from the GOK to substantial debt reduction in principle, the
actual method, amount, and timing of implementing the
write-down is not clear. The GOK has already made statements
similar to the proposed draft announcement (Ref A), but Post
will continue to press for a clear statement by the GOK on
Iraqi debt relief. End Comment.
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Tueller