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Viewing cable 09KUWAIT860, GOK TO FULFILL PALESTINE AID PLEDGES BUT HESITANT

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Reference ID Created Released Classification Origin
09KUWAIT860 2009-09-01 12:13 2011-08-24 01:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Kuwait
VZCZCXRO6007
PP RUEHDE RUEHDH RUEHDIR
DE RUEHKU #0860 2441213
ZNR UUUUU ZZH
P 011213Z SEP 09
FM AMEMBASSY KUWAIT
TO RUEHC/SECSTATE WASHDC PRIORITY 3878
INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE PRIORITY
RUEHTV/AMEMBASSY TEL AVIV PRIORITY 1714
RUEHJI/AMCONSUL JEDDAH PRIORITY 0813
RUEHJM/AMCONSUL JERUSALEM PRIORITY 1393
RHEHNSC/NSC WASHDC PRIORITY
UNCLAS KUWAIT 000860 
 
SENSITIVE 
SIPDIS 
 
NEA/ARP; JEDDAH PLEASE PASS TO AMB HALE 
 
E.O. 12958: N/A 
TAGS: PGOV KPAL EAID ECIN ECON EFIN EG IS KU
SUBJECT: GOK TO FULFILL PALESTINE AID PLEDGES BUT HESITANT 
TO GIVE BUDGET SUPPORT 
 
REF: A. STATE 88787 
     B. KUWAIT 401 
 
1. (SBU) On August 27 Embassy forwarded to FM Mohammad 
Al-Sabah the Secretary's letter requesting PA aid (ref A). On 
August 31, DCM brought a copy of the letter to Arab World 
Department Director Ambassador Jassem Al-Mubaraki, who said 
the GOK will fulfill its Palestinian aid funding pledges but 
noted that the FM is still reluctant to provide budgetary 
support to the Palestinian Authority. Mubaraki indicated he 
would be traveling with the FM to Cairo next week and hoped 
to use the trip to try to persuade the FM in favor of the 
budget support option. He observed that since the GOK had 
received a similar overture from the Quartet's Tony Blair and 
Egypt's President Mubarak, it appeared clear that the 
Palestinians wanted support more for budget than for project 
assistance and if that were the case, perhaps Kuwait should 
reconsider its position.  The MFA official added that Kuwait 
would deliver $80 million in aid this year -- out of $300 
million committed to Palestine at the 2006 Paris Donors 
Conference -- with $90 million next year, which would leave 
$50 million of that pledge in balance (Kuwait previously 
fulfilled part of its Paris pledge by providing $80 million 
to the World Bank Trust Fund). No final determination had yet 
been made with regard to the division of the funds, which 
would likely be split between the Arab Fund, the Islamic 
Development Fund, and possibly the World Bank. Mubaraki noted 
the foregoing assistance was in addition to Kuwait's $200 
million pledge for Gaza reconstruction. 
 
2. (SBU) Comment:  Mubaraki's positive approach 
notwithstanding, the GOK typically has deemed budgetary 
support undesirable on policy grounds (in general, not only 
vis-a-vis the Palestinians) or determined it would be 
difficult if not impossible to wrest such funds from an 
obstructionist parliament both far more inclined to project 
assistance and unsympathetic to the Palestinian Authority. 
End comment. 
 
********************************************* ********* 
For more reporting from Embassy Kuwait, visit: 
visit Kuwait's Classified Website at: 
 
http://www.intelink.sgov.gov/wiki/Portal:Kuwa it 
********************************************* ********* 
JONES