APPROACHING UAEG ON FUNDS FOR ABORTED

S E C R E T ABU DHABI 002292 SIPDIS STATE FOR NEA/ARP, NEA/NGA AND L/LEI - LINDA JACOBSON TREASURY FOR OGC/AUFHAUSER, DAS ZARATE JUSTICE FOR DOJ/CRIM/OIA - MOLLY WARLOW NSC FOR JOSEPH MYERS E.O. 12958: DECL: 05/11/13 TAGS: ECON EFIN ETTC PREL PGOV IZ TC SUBJECT: APPROACHING UAEG ON FUNDS FOR ABORTED IRAQ ARMS DEAL ON HOLD IN DUBAI REF: STATE 122946 ¶1. (U) CLASSIFIED BY CHARGE RICHARD A. ALBRIGHT FOR REASONS 1.5 (B,D). ¶2. (S) The sensitivity of reftel demarche, particularly the involvement of the prominent Lootah family (whether knowingly or otherwise) in the matter, will require that we engage at the highest levels of the UAEG. Since this is primarily a government-to-government issue, we will seek an appointment with de facto Foreign Minister Hamdan bin Zayid (our primary federal contact on policy-level terrorist financing matters),but can anticipate that he will have several questions which we would like to be able to answer. We would note that a direct USG to Dubai Emirate communication on this matter would not/not be recommended absent prior notification to, and approval of, the federal authorities in Abu Dhabi. ¶3. (S) First and foremost, what are the intentions of the USG with regards to the funds? Will we seek their forfeiture to us and if so, will we be able to "vest" them to ensure that these monies are returned to the Iraqi people (as opposed to the general treasury of the USG)? What would be the modalities through which we would take this legal action and communicate it to the UAEG? Secondly, are we prepared to agree to hold blameless UAE actors or entities whose involvement in the matter may be confirmed by the records we are seeking to have turned over to us by the UAEG? (Note: This matter has arisen in the past in FBI investigations and we have been able to provide assurances to the Central Bank of the UAE that it was not our intention to pursue UAE financial institutions; if we found strong evidence of wrongdoing we would provide that information to the appropriate UAE authorities for their consideration. We advise that a similar undertaking be provided in this matter in order to facilitate provision of the documents we desire. End note.) ¶4. (S) Post would appreciate a quick response to the above questions so that we may approach MFA Minstate Hamdan at the earliest opportunity. ¶5. (U) This message coordinated with Amconsul Dubai. Albright