VZCZCXRO2491
PP RUEHBC RUEHDA RUEHDE RUEHDIR RUEHIHL RUEHKUK
DE RUEHKU #0129 0301347
ZNR UUUUU ZZH
P 301347Z JAN 07
FM AMEMBASSY KUWAIT
TO RUEHC/SECSTATE WASHDC PRIORITY 8162
INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE PRIORITY
RUCNRAQ/IRAQ COLLECTIVE PRIORITY
RUEHGB/AMEMBASSY BAGHDAD PRIORITY 0794
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY

UNCLAS KUWAIT 000129 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
STATE PASS TO USAID, NEA/ARP FOR JACKSON 
 
E.O. 12958: N/A 
TAGS: EAID ECON EFIN IZ KU
SUBJECT: IRAQ:  KUWAITI PARLIAMENT REAFFIRMS OPPOSITION TO 
DEBT RELIEF 
 
REF: A. 06 KUWAIT 4119 
 
     ¶B. 06 KUWAIT 4311 
     ¶C. 06 KUWAIT 4438 
     ¶D. 06 KUWAIT 4682 
 
¶1.  (U) On January 28, the Kuwaiti state news agency KUNA 
reported that 100 members of Iraq's parliament sent a letter 
to the GOK requesting that Kuwait write off Iraqi debt 
(comment:  pre-Gulf War Iraqi debt is about USD 11 billion). 
The letter, reportedly sent January 27, asked for a dialogue 
on the debt issue and argued that the current Iraqi 
government should not be saddled with debt from the previous 
regime.  The KUNA report noted that Shaykh Jaber Al-Mubarak, 
who serves as both the Minister of Defense and Minister of 
Interior, responded that the GOK will forward the request to 
Kuwait's Parliament.  Al-Mubarak added that while some Iraqi 
MPs may be calling for Iraqi debt relief, numerous Kuwaiti 
MPs have called for relieving the debts of Kuwaiti citizens 
first, implying that forgiving Iraqi debt would be a 
non-starter with Parliament. 
 
¶2.  (U) Kuwaiti Parliamentary reaction was blunt.  Islamist 
MP Jamal Al-Kandari said that Kuwait's money is for its 
future generations, and that "Kuwait has done enough for Iraq 
in helping to bring down Saddam."  Another Islamist MP Mizel 
Al-Namran, said the Parliament was "bored of this repetitive 
request" and "Iraq is a rich country and is able to settle 
its debts."  Al-Namran's view of Iraq's wealth was shared by 
MP Sadoun Al-Otaibi, who claimed that "Iraq is a rich 
country, even more than Kuwait.  Kuwait's money is for 
Kuwait's people." 
 
¶3.  (U) Although still rejecting debt relief, a more measured 
response came from liberal MP Ahmad Al-Mulaifi, who said that 
while Kuwait supports the Iraqi government, debt forgiveness 
is a line the Assembly will not cross.  MP Faisal Al-Shaye 
similarly rejected any debt relief, saying that Iraq has the 
right to make the request, but Kuwaiti MPs have the right to 
refuse.  "This will be a lesson," he said, "that one country 
should not invade others." 
 
¶4.  (SBU) Comment:  Iraqi debt relief continues to be a very 
sensitive subject in Kuwait, and virtually all Kuwaiti 
interlocutors have told Post that the chances of a relief 
measure passing through Parliament are very small (refs A, B 
and C).  There appears to be almost no popular support in 
Kuwait for such a step.  Although Parliament rejected the 
proposal to write off Kuwaiti citizens' debts (ref D), many 
MPs continue to advocate relieving private consumer debt 
ahead of any move to assist Iraq.  While opposed to forgiving 
debt, the GOK notes consistently that it is making no effort 
to collect it. 
 
********************************************* * 
For more reporting from Embassy Kuwait, visit: 
http://www.state.sgov.gov/p/nea/kuwait/?cable s 
 
Visit Kuwait's Classified Website: 
http://www.state.sgov.gov/p/nea/kuwait/ 
********************************************* 
TUELLER