VZCZCXRO9630
PP RUEHDE
DE RUEHKU #0890 0741346
ZNR UUUUU ZZH
P 151346Z MAR 06
FM AMEMBASSY KUWAIT
TO RUEHC/SECSTATE WASHDC PRIORITY 3477
INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE PRIORITY
RUEHBUL/AMEMBASSY KABUL PRIORITY 0232
RUEHLO/AMEMBASSY LONDON PRIORITY 1193
RUEHFR/AMEMBASSY PARIS PRIORITY 0954

UNCLAS KUWAIT 000890 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR NEA/ARP, LONDON FOR TSOU, PARIS FOR ZEYA, KABUL 
FOR DOUG CLIMAN 
 
E.O. 12958: N/A 
TAGS: EAID PGOV PREL AF KU
SUBJECT: KUWAIT FUND AWAITING AFGHAN GOVT RESPONSE ON NEW 
TERMS FOR RESCHEDULING ARREARS 
 
REF: A. KUWAIT 185 
 
     ¶B. 05 KUWAIT 5063 
     ¶C. 05 KUWAIT 4624 
 
¶1.  (SBU) On March 8, Econoff met with Abdul Kareem 
Al-Mutawa, Regional Manager for South Asia at the Kuwait Fund 
for Arab Economic Development (KFAED) to discuss the recent 
Afghanistan Compact conference held in London.  (Note: 
Al-Mutawa attended as part of the GOK delegation headed by 
KFAED Director General Abdulwahab Al-Bader.  End note.) 
Al-Mutawa praised the organizers of the conference for its 
efficiency and substantive discussions, exclaiming that it 
was "one of the most successful conferences" he had attended. 
 
 
¶2.  (SBU) Although the GOK did not make any new pledges at 
the conference, Al-Mutawa noted that KFAED officials and GOA 
ministers (Foreign Affairs and Finance) held productive side 
meetings to discuss Afghanistan's arrears, the possibility of 
renewed bilateral dialogue on priority reconstruction 
projects, and visits to Kuwait by senior GOA officials, 
including President Karzai, whose January visit was postponed 
following the death of Amir Shaykh Jaber Al-Sabah. 
 
¶3.  (SBU) According to Al-Mutawa, KFAED has offered to extend 
the proposed repayment timeline of Afghanistan's arrears by 
granting the GOA a five-year repayment grace period in 
addition to the 20-year repayment timeline at 0% interest. 
(see ref C for an overview of GOK arrears with KFAED). 
Al-Mutawa explained that the KFAED offer was pending the 
review and approval of the GOA's Finance Ministry.  He 
expressed renewed hope in resolving the arrears in an effort 
to resume KFAED bilateral assistance to Afghanistan. 
 
¶4.  (SBU) Al-Mutawa also pointed out that any decision to 
cancel the GOA's KFAED arrears would have to made by the 
Foreign Minister (chairman of KFAED) with the approval of the 
Council of Ministers (cabinet) and the Amir.  He added that 
President Karzai had called Shaykh Sabah Al-Ahmed Al-Jaber 
Al-Sabah on March 7 to congratulate him on his appointment as 
Amir and the possibility of rescheduling Karzai's visit to 
Kuwait. 
 
********************************************* 
Visit Embassy Kuwait's Classified Website: 
http://www.state.sgov.gov/p/nea/kuwait/ 
 
You can also access this site through the 
State Department's Classified SIPRNET website 
********************************************* 
LEBARON