C O N F I D E N T I A L ABU DHABI 001939

SIPDIS

STATE FOR IRAQ TASK FORCE, ALSO NEA/ARP, NEA/RA,
PRM/ANE, AND IO/UNP
KUWAIT FOR HOC AND ORHA

E.O. 12958: DECL 04/22/08
TAGS: EAID ECON EPET PREL IZ TC
SUBJECT: TFIZ01: UAEG CONSIDERS REQUEST TO DONATE
REFINED PETROLEUM PRODUCTS TO IRAQ

REFS: A) STATE 93779
B) ABU DHABI 1830 AND PREVIOUS


1. (U) Classified by Ambassador Marcelle M. Wahba for
reasons 1.5 (B) and (D).


2. (C) Ambassador delivered 4/18 DoD Undersecretary
Dov Zakheim's letter to UAE Minister of State for
Foreign Affairs Shaykh Hamdan bin Zayid Al-Nahyan,
requesting the UAEG to donate petroleum products to
Iraq. The letter listed the quantities of petroleum
products in ref A demarche. Shaykh Hamdan indicated
that the UAE would consider providing refined
petroleum products to Iraq, but said the UAEG would
want to be compensated out of future Iraqi production.
We understand that Washington agencies are looking
into the legality and modality of swap options, and
would appreciate guidance we can share with the UAEG.


3. (C) The Ambassador further raised ref A points
with UAE Armed Forces Chief of Staff Shaykh Mohammed
bin Zayid Al-Nahyan. MbZ was aware of the demarche
and admitted that he had been somewhat taken aback by
the sheer volume of what was being requested, as well
as the number of items on the laundry list of needed
supplies. Were we asking the UAEG to provide all of
the items or were certain items higher priorities than
others? This should be specified. MbZ also suggested
that the requests for oil or oil products should
follow the 80-10-10 formula based on national oil
output -- that is, we ask Saudi Arabia to provide 80
percent of the required oil, and approach Kuwait and
the UAE to each provide 10 percent of the
requirements. Post notes that previous requests for
oil assistance to Jordan, for example, followed this
formula.

Wahba