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

C O N F I D E N T I A L KUWAIT 003867 
 
SIPDIS 
 
STATE FOR NEA/ARPI 
LONDON FOR TSOU 
 
E.O. 12958: DECL: 08/27/2015 
TAGS: PREL PGOV EAID EFIN WE GZ KU
SUBJECT: AID TO PALESTINIANS OPAQUE; QUESTIONS ON GAZA 
WITHDRAWAL 
 
REF: A. KUWAIT 3850 
     ¶B. KUWAIT 3775 
     ¶C. KUWAIT 3585 
 
Classified By: Ambassador Richard LeBaron for reason 1.4 (b) 
 
Aid to Palestinians 
-------------------- 
 
¶1.  (C) In an August 27 meeting with Foreign Minister Shaykh 
Dr. Mohammed Sabah Al-Salem Al-Sabah, the Ambassador followed 
up on his previous request to Prime Minister Shaykh Sabah 
Al-Ahmed Al-Jaber Al-Sabah (ref B) and asked for 
clarification on Kuwaiti aid to the Palestinian Authority, 
particularly the details of transfers.  The FM denied that 
Kuwait used cash transfers, saying instead that, per an Arab 
League decision in 2000, all project finance aid to the 
Palestinians was handled by the Islamic Development Bank 
(IDB).  Shaykh Dr. Mohammed said that Kuwait was current on 
all its aid commitments to the Palestinians; the last 
payment, in the amount of $21 million, was made to the IDB 
three weeks ago, he said.  (Note: Further details on GOK aid 
to the Palestinian Authority are included in reftels.  End 
note.) 
 
¶2.  (C) Separately, according to a spreadsheet given to the 
Ambassador during an August 24 meeting with Abdulwahab 
Al-Bader, the Director General of the Kuwait Fund for Arab 
Economic Development (KFAED), KFAED provided $25 million 
worth of grants, administered by the Arab Fund, for health 
and education sector projects in Palestinian territories (ref 
A).  (Note: All figures are in USD unless otherwise stated. 
End note.)  Of this amount, $16.5 million was allocated to 
health projects: surgery facilities at Ramallah and 
Dar-Al-Salam hospitals ($10 and $1.5 million, respectively), 
a rehabilitation unit at Abu Raya hospital ($2 million), a 
head injury treatment unit at Beit-Lahim hospital ($1 
million), and a handicapped rehabilitation facility in the 
Gaza Strip ($2 million).  The remaining $8.5 million was 
allocated to education sector projects including a 
kindergarten for orphans in Gaza ($1 million), schools in 
Beit-Sahour and Nablis ($1 million), a Coptic College 
facility in Jerusalem ($700,000), a "University Graduates 
League" in Khalil ($1.5 million), and a new library section 
at Beir-Zeit University ($1 million). 
 
Tough Questions on Gaza Withdrawal 
---------------------------------- 
 
¶3.  (C) During the meeting, Shaykh Dr. Mohammed asked the 
Ambassador for an update on the Israeli withdrawal from Gaza. 
 The Ambassador responded that the possibility of further 
terrorist activities by Hamas remained a concern and 
emphasized that the success of the withdrawal depended to a 
great extent on the ability of the Palestinian leadership, in 
cooperation with the international community, to create 
viable economic options for the Palestinian people in Gaza. 
Shaykh Dr. Mohammed asked if the Palestinian Authority (PA) 
would be allowed to import weapons if PA President Mahmoud 
Abbas wanted to confront Hamas.  The Ambassador said that the 
problem did not appear to be lack of weapons, but rather the 
way President Abbas wanted to deal with Hamas. 
 
¶4.  (C) How would the U.S. respond to Prime Minister Ariel 
Sharon's recent decision to expand Israeli settlements in the 
West Bank while international attention was focused on the 
Gaza withdrawal, Shaykh Dr. Mohammed asked.  The Ambassador 
stated long-standing U.S. opposition to an expansion of 
Israeli settlements in the West Bank and said that we had 
expressed our concerns regarding this issue to the Israeli 
government. 
 
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http://www.state.sgov.gov/p/nea/kuwait/ 
 
You can also access this site through the 
State Department's Classified SIPRNET website 
********************************************* 
LEBARON