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Diana T Fritz  03/15/2007 10:51:27 AM  From  DB/Inbox:  Diana T Fritz

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C O N F I D E N T I A L        ABU DHABI 00421

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    INFO:   AMB DCM MEPI P/M ECON RSO

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RR RUEHC RUEHDE RHEHNSC RUCPDOC RUEATRS RHEFDIA
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DE RUEHAD #0421/01 0721302
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R 131302Z MAR 07
FM AMEMBASSY ABU DHABI
TO RUEHC/SECSTATE WASHDC 8522
INFO RUEHDE/AMCONSUL DUBAI 6920
RHEHNSC/NSC WASHDC
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 
 
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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 
TAGS:              
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 
 d. 
 
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 
(notetaker). 
 
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. 
 
 
QUINN