NO IRAQI GOVERNMENT ASSETS IN YEMEN

S E C R E T SANAA 001675

SIPDIS

E.O. 12958: DECL: 07/09/2013
TAGS: ECON EFIN IZ PREL PTER YM UNSC
SUBJECT: NO IRAQI GOVERNMENT ASSETS IN YEMEN

REF: SECSTATE 186972

Classified By: Classified by A/DCM S. Alexander for reasons 1.5 (b) and
(d).


1. (C) Deputy Minister of Finance Ahmed Ghaleb and External
Relations Director Ibrahim al-Nahari told Pol/econoff on July
7 that there were no/no Iraqi government assets in Yemen in
response to reftel demarche. Al-Nahari explained that the
only Iraqi Government assets in Yemen were several cargo
boats moored in Aden harbor during the 1991 Gulf War.
However, al-Nahari said that these boats became a liability
to the people of Yemen, and a Yemeni court case awarded 8
million USD from Iraq to the ROYG to compensate for their
upkeep. Having gained possession through the court case, the
ROYG sold the boats to Jordan at a two million dollar loss.
Therefore, the ROYG believes that the Iraqis owe the people
of Yemen the two million dollars.


2. (SN/F) Turning to non-government Iraqi assets, Al-Nahari
stated that the one Iraqi owned bank in Yemen, the Raffadin
bank, only holds private citizens' funds. Referring to U/S
Taylor's April 1 call to Central Bank Sub-Governor for
Control Mr. Abdullah Ulafi, al-Nahari said that the ROYG had
already told the Treasury Department that only private funds
are held at the Raffadin bank. Ghaleb added that he believed
that Raffadin only holds about 20 million Riyals (about
110,00 USD at the 07/09/03 exchange rate) in its reserves.


3. (U) Al-Nahari said that an official response would be
sent by fax to Treasury Secretary Snow shortly.
HULL