P 281413Z APR 08
FM AMEMBASSY ABU DHABI
TO SECSTATE WASHDC PRIORITY 0892
INFO GULF COOPRATION COUNCIL COLLECTIVE
AMEMBASSY ALGIES 
AMEMBASSY BAGHDAD 
AMMBASSY BEIRUT 0625
AMEMBASSY ISLAMABAD 168
AMEMBASSY KABUL 
AMEMBASSYSANAA 
AMEMBASSY TEL AVIV 
AMCONSUL JERUSALEM 
USMISSION UNVI VIENNA S E C R E T ABU DHABI 000528 
 
SIPDIS 
 
 
SIPDIS 
 
E.O. 12958: DECL: 04/28201 
TAGS:                    
SUBJECT: A/S WELCH WITH UAE FOREIGNMINISTER ABDULLAH 
 
Classified by CDA Martin Quin, reasons 1.4 (b) and (d). 
 
 1.  (C) Summary:  Ina private lunch conversation on April 20 
in Abu Dabi, Assistant Secretary for NEA David Welch covered 
a broad range of issues with UAE Foreign Minister Abdullah 
bin Zayed (AbZ).  Notes follow on Iraq, Afghanistan, Lebanon, 
nuclear power, IAEA, Iran, Palestine, Pakistan, Algeria, and 
Yemen.  End summary. 
 
 2.  (C) IRAQ:  The UAE is willing to send an Ambassador to 
Baghdad, but many issues must be worked out to accomplish 
this goal.  AbZ anticipated authorization the following day 
for a survey team to visit potential Embassy sites in the 
International Zone.  He noted a recent Iraqi Parliament 
statement in Irbil as an irritant in the relationship. 
(Note:  The statement suggested Iraqi support for Iran's 
claims to three disputed islands in the Gulf.  The UAE often 
cites an Arab consensus of 35 years standing supporting the 
UAE's claim to the islands of Abu Musa and the Greater and 
Lesser Tunbs.  The statement was perceived as Iraq breaking 
ranks with that Arab consensus at a time when deeper Arab 
engagement should be the goal.  End note.) 
 
 3.  (S) AFGHANISTAN:  Welch commended AbZ for the UAE's troop 
deployment in Afghanistan, including combat action more 
aggressive than many European states present there.  AbZ said 
that a new Italian Foreign Minister with defense experience 
was a positive sign (and viewed Berlusconi's victory as 
generally positive). 
 
 4.  (C) LEBANON:  The UAE planned to join the Lebanon 
discussion in Kuwait on April 22.  AbZ said Lebanese PM 
Siniora was "not too excited" about the meetings and did not 
want to seek an invitation if he might be refused.  On 
another topic, AbZ said Saudi Arabia's commitment of $1 
billion in budget support to Lebanon had not yet been 
deposited. 
 
 5.  (C) NUCLEAR POWER:  AbZ said the UAE seeks a 123 
agreement with the U.S. quickly.  Asked about UAE interest in 
a U.S. nuclear reactor, AbZ said he did not think the U.S. 
could supply one fast enough to meet the UAE timeline.  The 
UAE seeks ultra-safe "third generation" technology to meet an 
anticipated 40,000 megawatt electricity demand projected for 
 2020.  Time is of the essence.  France, said AbZ, feels it 
can provide a reactor in eight years; he assumed the U.S. 
would take considerably longer. 
 
 6.  (C) IAEA BOARD OF GOVERNORS:  AbZ said the UAEG was not 
inclined to accept the invitation of U.S. Ambassador to the 
IAEA Greg Schulte to seek a seat on the IAEA Board of 
Governors.  Arab support had been promised to Syria for that 
seat, he noted. 
 
 7.  (S) IRAN:  Acknowledging U.S. Congressional pressure to 
scrutinize and limit Iran-related financing, AbZ said it was 
difficult to distinguish between official and private flows 
of money from the UAE, which is home to 400,000 Iranians. 
The two nations have extensive trade relations.  He said it 
is also difficult to control Hawalla (informal cash couriers) 
and that joint efforts in that arena had not been very 
successful.  Welch said the UAEG might want to consider a 
"bottom up" study of what action it might feasibly take 
vis-a-vis Iran. 
 
 8.  (C) PALESTINIAN AUTHORITY:  Regarding support for the 
Palestinian Authority, AbZ said the UAE had paid its budget 
commitments through March of 2009.  Additionally, the UAEG 
had offered tens of millions in added funding and extensive 
support for development projects.  AbZ said Quartet Envoy 
Tony Blair had suggested the UAE send a delegation to visit 
Jerusalem to explore project opportunities; the UAE had 
declined the offer but was willing to study projects 
presented to it.  One high-cost project for Jordan, near 
Aqaba, had been completed in 24 hours, said AbZ, stressing 
UAE flexibility and generosity when conditions were right. 
 
 9.  (S) PAKISTAN:  The UAE has no choice but to back 
President Musharraf, said AbZ, cognizant that the resident 
Pakistani population in the UAE is about the same size as the 
UAE citizenry.  He said $10 billion had been moved 
(presumably by private individuals) from Pakistan to UAE 
financial institutions when the political situation in 
Islamabad looked shaky. 
 
 10.  (S) YEMEN:  AbZ noted sensitivities about inviting Yemen 
to join the GCC, including Yemen's border issues with Saudi 
Arabia.  He said Kuwait and the UAE were particularly opposed 
to Yemen's inclusion, with Kuwait having stated flatly it 
would not participate in a GCC which included Yemen.  AbZ saw 
President Ali Abdullah Saleh as a mercurial figure and 
relayed a rumor expressed by former president of South Yemen 
Ali Nasser that President Saleh may have had a role in the 
Cole bombing.  AbZ said the UAE had some difficulty trusting 
Yemen on counter-terror issues. 
 
 11.  (C) ALGERIA:  AbZ was also unsure of Algeria's 
credibility on the counter-terror front.  He lamented that it 
had taken the UAE two years to negotiate access to a hunting 
reserve which spanned the Algerian-Moroccan border in spite 
of good relations with President Bouteflika (who had lived in 
the UAE for some time).  (Note:  Hunting reserves where UAE 
royals can test their falcons against the hobara bustard -- 
whose numbers are augmented through careful breeding programs 
-- are a UAEG priority.  End note.) 
 
 12.  (C) LIBYA:  Abu Dhabi Crown Prince Mohammed bin Zayed 
(MbZ) had enjoyed a good trip to Libya, said AbZ, and 
relations with Libya were warming up.  Economic investments 
were increasing.  The UAE works primarily through Saif 
Qaddafi, according to AbZ.  AbZ did not see Libya as a 
particular security problem. 
 
 13.  (U) A/S Welch did not have an opportunity to clear this 
message. 
 
QUINN