Cablegate: Ambassador Presses Again for Dfi Disbursement

This record is a partial extract of the original cable. The full text of the original cable is not available.

181125Z Sep 05

UNCLAS KUWAIT 004084

SIPDIS

SENSITIVE

TREASURY FOR OFAC; STATE FOR EB, NEA

E.O. 12958: N/A
TAGS: EFIN EAID IZ KU
SUBJECT: AMBASSADOR PRESSES AGAIN FOR DFI DISBURSEMENT

REF: A. KUWAIT 2624

B. KUWAIT 1900
C. KUWAIT 1777
D. KUWAIT 1733
E. KUWAIT 1557

Sensitive but unclassified; protect accordingly.

1. (SBU) On September 14, Ambassador asked Ministry of
Foreign Affairs Acting Under Secretary Khalid Al-Babtain for
an update on GOK consideration of release of frozen funds to
the Development Fund for Iraq. Al-Babtain promised to check
and got back to the Ambassador on the 18th. He said that the
question of how to deal with the single claim by a Kuwaiti
company was being presented by the legal office of the
Foreign Ministry to the Legal Advice and Legislative
Department of the Council of Ministers. Al-Babtain mentioned
in passing that the company is an Al-Ghanim company, but not
the major Al-Ghanim conglomerate that has the GM concession
among other things. Rather it is a smaller company that had
a business related to doors and shutters. Al-Babtain did not
know the amount of the claim but agreed that it was unlikely
to approach anything near the 77 million dollar plus
currently being held. He repeated the idea we had heard
previously from the Foreign Ministry that perhaps an amount
equivalent to the claim could be held back and the rest of
the money released. He said he had asked for an answer from
the MFA's Legal Department on the overall matter in no more
than a week's time.

2. (SBU) Comment: We have raised this issue numerous times
and received numerous promises that it would be acted upon
promptly. Although the Kuwaitis have never drawn the
connection, the GOK slowness may be related to their
continuing concern that the UN Compensation Commission funds
will be further eroded and that their outstanding claims
related to the first Gulf War will not be honored. If there
are opportunities during UNGA meetings, USUN or Department
officials may wish to remind the Foreign Minister of his
government's commitment to resolve the DFI matter.

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LEBARON

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