VZCZCXRO4485
PP RUEHBC RUEHDE RUEHIHL RUEHKUK
DE RUEHGV #0528 1930815
ZNY CCCCC ZZH
P 110815Z JUL 08
FM USMISSION GENEVA
TO RUEHKU/AMEMBASSY KUWAIT PRIORITY 0747
RUEHC/SECSTATE WASHDC PRIORITY 6705
INFO RUCNRAQ/IRAQ COLLECTIVE
RHEHNSC/NATIONAL SECURITY COUNCIL WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUCNDT/USMISSION USUN NEW YORK 2788

C O N F I D E N T I A L GENEVA 000528 
 
SIPDIS 
 
E.O. 12958: DECL: 07/11/2018 
TAGS: EFIN EAID PREL UNCC KU IZ
SUBJECT: UNCC Compensation Claims: Report on Kuwait Preparations for 
Bilateral Discussions with Iraq 
 
Classified by: Legal Adviser Jeffrey Kovar, for reasons 1.4 (b) and 
(d) 
 
¶1.  (C) Summary.  The Kuwaiti Prime Minister indicated this week to 
the Kuwaiti Mission in Geneva that the MFA is now seriously studying 
the issue of overall settlement with Iraq of the final segment of $24 
billion in UN Compensation Commission awards.  The focus seems to be 
on a settlement that would involve major investments in Iraq rather 
than a temporary reduction in payments.  The first major interagency 
meeting at the Kuwaiti MFA on this issue is scheduled for July 14. 
End Summary. 
 
¶2.  (C) Kuwait compensation office representative in Geneva, and 
long-time Mission contact on UNCC matters, Dr. Sabikah 
Al-Abdul-Razzaq, informed Mission Legal Adviser that she and the 
Kuwait Ambassador Dharar Abdul-Razzak Razzooqi met with the Kuwaiti 
Prime Minister (PM) this week during his visit to Geneva.  Dr. 
Sabikah has known the PM for many years and at first expected the 
meeting to be largely social.  However, after briefing the PM on the 
UNCC and preparations for bilateral meetings with Iraq on a possible 
settlement of the remaining $24 billion in oil sector awards, she 
said he became very engaged, showing clear interest in linking a 
settlement to "big" investments in Iraq - oil fields, airports, etc. 
When the Ambassador asked him about the possibility of reaching an 
early arrangement on slowing UNCC payments by reducing the 5% 
deduction from oil sales to 1%, the PM said that he could not support 
such a reduction, noting that Kuwait could not publicly agree to any 
reduction without fierce opposition from Parliament. 
 
¶3.  (C)  Dr. Sabikah commented to Mission Legal Adviser that she was 
surprised at the strength of the PM's opinions on these issues.  Her 
impression was that the issue of reaching an overall settlement with 
Iraq is reaching much higher levels of discussion in Kuwait, and that 
the MFA is taking charge of it.  Apparently, the PM indicated that 
only the MFA would speak publicly on these issues in the future. 
 
¶4.  (C)  Dr. Sabikah believes it is a good sign that serious thinking 
is taking place about what kind of investment could be made in Iraq, 
and how it might be tied to an overall settlement of the future UNCC 
payments.   She said that while the PM seemed very concerned about 
opposition in Parliament to any agreement to slow down payments, he 
was more confident that a settlement that included real investment in 
Iraq (e.g., returning the payments in the form of tangible 
investments) would be a different story. 
 
¶5.  (C)  In a subsequent call Dr. Sabikah informed Mission Legal 
Adviser that she has now been summoned to Kuwait on July 14 to meet 
with MFA and other officials to discuss strategy for the upcoming 
bilateral discussions with Iraq. 
STORELLA