Diana T Fritz 03/15/2007 10:51:27 AM From DB/Inbox: Diana T Fritz
C O N F I D E N T I A L ABU DHABI 00421
INFO: AMB DCM MEPI P/M ECON RSO
RR RUEHC RUEHDE RHEHNSC RUCPDOC RUEATRS RHEFDIA
DE RUEHAD #0421/01 0721302
ZNY CCCCC ZZH
R 131302Z MAR 07
FM AMEMBASSY ABU DHABI
TO RUEHC/SECSTATE WASHDC 8522
INFO RUEHDE/AMCONSUL DUBAI 6920
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RHEFDIA/DIA WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC C O N F I D E N T I A L SECTION 01 OF 02 ABU DHABI 000421
NSC FOR D.STEPHENS;
STATE FOR ISN/FO J.ROOD, ISN/CPI T.FOLEY, C.RUSSELL, R.PAN;
TREASURY FOR B.HAMMERLE;
COMMERCE FOR C.PADILLA AND M.BORMAN
E.O. 12958: DECL: 03/13/2017
SUBJECT: MINSTER OF ECONOMY SEEKS U.S. ASSISTANCE TO
EDUCATE UAE COMPANIES ON EXPORT CONTROLS
Classified By: Charge d'Affaires Martin R. Quinn, for reasons 1.4 b and
1.(C) Summary: NSC Acting Senior Director for
Counterproliferation Strategy David Stephens and USDOC/BIS
DAS Matt Borman met with UAE Minister of Economy Sheikha
Lubna Al Qassimi on March 1 to discuss export control issues.
ASD Stephens explained the necessity of having a law with
broad authority while educating industry to be effective.
Sheikha Lubna requested a Department of Commerce "road show"
to help educate government and industry in the UAE,
particularly with regard to control of dual-use items. She
said a new committee under the MFA will issue export licenses
in coordination with security forces, customs and free zones.
ASD Stephens discussed the implications of UNSCR 1718 and
UNSCR 1737, as well as the new Commerce export control
category, Country Group C. Sheikha Lubna asked for opinions
on Iranian and GCC civil nuclear issues and spoke about her
upcoming official travel to Washington D.C. End Summary
2.(U) NSC Acting Senior Director for Counterproliferation
Strategy David Stephens met with UAE Minister of Economy
Sheikha Lubna Al Qassimi on March 1 to discuss export control
issues on the margins of the US-UAE Counterproliferation Task
Force. The meeting was also attended by: the Ambassador;
Matt Borman, Deputy Assistant Secretary for Export
Administration, Bureau of Industry and Security, Department
of Commerce; Barbara Hammerle, Deputy Director, Office of
Foreign Assets Control, Department of the Treasury; Caroline
Russell, Deputy Director, Office of Counterproliferation
Initiatives, Bureau of International Security and
Nonproliferation, Department of State; and PolEconoff
Export Control Law and a Commerce "Road Show"
3.(C) Sheikha Lubna opened the meeting by predicting the UAE
export control law would likely be passed by the UAE Cabinet
on March 4 (and subsequently informed us it was indeed passed
on for Federal National Council review on that date). She
indicated that the UAE will provide the U.S. with a copy of
the law once it has been completed.
4.(C) Sheikha Lubna turned to Mayrow General Trading and used
it as an example of the difficulty in regulating dual-use
products. ASD Stephens emphasized that an export control law
and effective regulations and enforcement mechanisms were
necessary predicates for addressing the challenge . With an
extensive list of controlled items and wide educational
outreach to industry, it is possible to target the small
amount of illegal activity among the large amount of
legitimate trade. DAS Borman noted that legitimate
businesses generally welcome controls once they understand
that they can help to promote legitimate trade. Sheikha Lubna
expressed interest in having a Department of Commerce "road
show" come and talk about this with government and industry
in the UAE, which DAS Borman thought would be possible.
5.(C) Sheikha Lubna said "sensitive enforcement" of the UAE's
export controls would lie with the Ministry of Foreign
Affairs, but the Ministry of Economy would be responsible for
private sector education, as well as coordination with ports,
free zones and chambers of commerce. The MoE would provide
"strategic guidance" and meet with industry so there is no
confusion about what is appropriate activity. A new
committee under the MFA will issue export licenses in
coordination with security forces, customs and free zones.
Sheikha Lubna was open to the suggestion of having visitors
from the U.S. come to share best practices with this
license-issuing committee once it is established.
U.S. Export Licensing Actions
6.(C) ASD Stephens told Sheikha Lubna two UAE entities,
Bazaar Trading and Elmstone Trading, would be added to the
Commerce Entity List. She stressed the commitment the UAE
had made even prior to the creation of their
Counterproliferation Task Force to ensure the UAE and its
economy remained secure. ASD Stephens noted the significance
of UNSCR 1718 and UNSCR 1737, which are legally binding
Chapter VII resolutions, and observed that the resolutions
create affirmative obligations on all states to ensure that
their territories, nationals, and businesses are not used to
support Iranian and North Korean proliferation trade. He
urged the UAE to consider how its policies and approaches to
counterproliferation should be modified in response to the
requirements of 1718 and 1737.Sheikha Lubna said she would
discuss the matter with the Foreign Minister.
7.(C) ASD Stephens and DAS Borman briefly explained the
creation of Country Group C, for "Countries of Diversion
Concern," and said the UAE Embassy in Washington had been
briefed earlier in the week. ASD Stephens expressed hope
that the passage of the UAE export control law and continued
efforts by the UAE to enforce the law and cooperate on
counterproliferation requests would end the need for this
conversation to be taken farther in the future.
8. (C) Sheikha Lubna asked about the license the USG recently
issued to allow certain GE aircraft parts to be exported to
third countries for installation on civilian Iran Air
passenger aircraft. DAS Borman and Deputy Director Hammerle
explained that FAA had identified the potential for
unanticipated and serious engine failure problems with
respect to the engines at issue and that the repairs and
exports that were authorized were consistent with the USG,s
civilian air safety policy.
Iran and GCC Nuclear issues
9.(C) Sheikha Lubna asked for an update on the London P5 1
meeting that week. ASD Stephens said the latest IAEA report
indicates Iran continues to defy the international community
and has not changed its attitude. He thought the P5 1 is
likely to seek another UNSCR for additional sanctions. ASD
Stephens stressed the need to use levers outside UN sanctions
to prevent a "business as normal" attitude in any dealing
with Iran, particularly financial measures. Sheikha Lubna
said Iranians largely use their own banks and are only
isolating themselves more.
10.(C) Sheikha Lubna asked what the response would be to GCC
efforts seeking civil nuclear power. ASD Stephens said the
President is an advocate of civil nuclear power, pointing to
recent efforts encouraging civil nuclear programs in China
and India. He recalled the President,s speech in February
2004 calling for reliable access to nuclear fuel for
countries that forgo enrichment and reprocessing
technologies. Stephens said the Administration had noted the
GCC statement on pursuing civil nuclear programs, and the
U.S. would be willing to engage in further bilateral
discussions on this topic with the UAE, based on the
principles articulated by the President.
Washington D.C. Travel
11.(U) Sheikha Lubna noted that she was finalizing plans for
official travel to Washington D.C. March 12-17. She is
looking forward to meeting Commerce Deputy Secretary Sampson
and AUSTR Shaun Donnelly and is seeking meetings with
Representative Pelosi and other members of Congress through
the UAE Embassy there.
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