C O N F I D E N T I A L ABU DHABI 002329

SIPDIS

STATE FOR NEA/ARP AND NEA/IPA

E.O. 12958: DECL 05/12/08
TAGS: PREL KPAO KPAL IS TC
SUBJECT: UAEG WELCOMES PRESIDENT'S SPEECH ON THE MIDDLE
EAST

REF: STATE 122033


1. (U) Classified by Charge D'Affaires Richard A.
Albright, for reasons 1.5 (B) and (D).


2. (C) Charge drew from reftel points and provided a copy
of the President's speech to MFA Assistant U/S Abdullah
Rashid Al-Nuaimi, May 12. Al-Nuaimi said that President's
speech was welcome and timely. It was particularly useful
that Secretary Powell was out in the region to follow-up on
the speech, the MFA official observed. Both the
Palestinians and the Israelis "need to get their act
together," and both Arafat and Sharon need to do a lot of
work internally. The important thing is to achieve
results. Abu Mazen is "capable, pragmatic and we trust his
vision." There is also some sign of hope from Sharon's
side. But Al-Nuaimi stressed repeatedly that the process
could not be permitted to derail because of terrorist
attacks -- "these will happen, but should not be allowed to
hijack the process." Continued U.S. engagement would be
key to alleviate the tensions between the two sides and to
allow for on the ground disengagement between Israeli
security forces and the Palestinian population.


3. (C) Turning to the President's call for a free trade
agreement with the Middle East in ten years, the MFA
official said this was a commendable step. It would be
important to ensure that this essentially economic matter
did not get placed into a political framework, but he noted
"we all favor free trade." Al-Nuaimi observed that the
unstated goal of the U.S.-GCC Economic Dialogue is free
trade between the U.S. and the GCC, but that "for some
reason we have tended to get bogged down in the minutiae of
our economic relationship and have lost sight of the real
goal." In that context, he suggested that an FTA with the
GCC might usefully top the agenda for the Dialogue.

ALBRIGHT