UAE DEPUTY PRIME MINISTER AND MINSTATE FOR

C O N F I D E N T I A L SECTION 01 OF 02 ABU DHABI 001439

SIPDIS

STATE FOR NEA/ARP, NEA/PPR
STATE PASS USTR - JBUNTIN
USDOC FOR USPTO
USDOC FOR 4250/DOC/MAC/ONE/CLOUSTAUNAU
GENEVA PASS USTR

E.O. 12958: DECL: 05/05/09
TAGS: PREL ETRD PGOV TC
SUBJECT: UAE DEPUTY PRIME MINISTER AND MINSTATE FOR
FOREIGN AFFAIRS LEADS HIGH-LEVEL DELEGATION TO ASIA
AND EUROPE


Classified by Charge D'Affaires Richard A. Albright,
reasons 1.5 (b) and (d).

Ref: Abu Dhabi 1197


1. (C) Summary: UAE Deputy Prime Minister and Minister
of State for Foreign Affairs Shaykh Hamdan bin Zayed
Al-Nahyan's (HbZ) official travel to South Korea,
Japan, China and Germany from April 10-29 was designed
to cement political and economic ties with the UAE's
key trading partners. He met with Prime Minister
Koizumi in Japan and Chancellor Schroeder in Germany.
The Emiratis returned to the UAE with cooperation
agreements in the fields of higher education, judicial
assistance, and industry, but also with commitments to
provide humanitarian assistance to the Palestinians,
reinvigorating the Middle East Roadmap, and rebuilding
Iraq. End summary.


2. (C) HbZ was accompanied to Asia and Europe by
Minister of Higher Education and Scientific Research
Shaykh Nahyan bin Mubarak Al-Nahyan, Minister of
Economy and Commerce Shaykh Fahim bin Sultan Al-
Qassimi, Minister of Communication Ahmed Humaid Al-
Tayer, Minister of Justice and Islamic Affairs
Mohammed bin Nakhira Al-Dhahiri, Interior Ministry
Under Secretary Shaykh Saif bin Zayed Al-Nahyan, and
Chairman of the Abu Dhabi Economic Department Shaykh
Hamed bin Zayed Al-Nahyan. The delegation also
consisted of UAE businessmen.


3. (U) In each of the countries he visited, HbZ urged
his hosts to help revive the peace process in the
Middle East and appealed to them to provide
humanitarian assistance to the Palestinians. He also
exchanged views with his hosts about the situation in
Iraq, and discussed ways Asia and Europe could help
diplomatically and financially in rebuilding Iraq.

South Korea
--------------


4. (U) In Seoul, HbZ met with Foreign Minister Ban Ki-
moon and with Defense Minister Cho Young-kil. South
Korea committed to give $5 million in humanitarian aid
to the Palestinians. Discussions centered on Korea's
commitment to dispatching troops to Iraq, and ways of
bolstering power relations, space research, and
information technology. UAE-Korean trade has reached
$7.9 billion, making Korea the UAE's second largest
Asian trade partner after Japan. There are 44 Korean
companies in the UAE. Korean airlines recently
started offering three flights a week to Dubai.

Japan
--------------


5. (U) In Japan, HbZ met with Prime Minister Koizumi
and Foreign Minister Yariko Kawaguchi. HbZ told his
Japanese hosts that the UAE was committed to meet
Japan's oil and gas needs, and he encouraged
investment in other non-oil sectors, including human
resource development, trade, investment, and exchange
of expertise. The UAE and Japan signed a memorandum
on cooperation in the field of higher education and
scientific research that will encourage exchanges of
researchers and students. UAE-Japan trade exceeds $15
billion. The UAE exports 60 percent of its oil to
Japan, making it the UAE's most important trading
partner. The UAE also wants to increase Emirates
Airlines flights to Japan and attract new Abu Dhabi-
based carrier Al-Ettihad Airlines. Approximately
1,400 Japanese live in the UAE, representing the
largest Japanese community in the Middle East.

China
--------------


6. (U) In China, HbZ met with Prime Minister Wen
Jiabao and discussed bilateral trade, terrorism, and
China's role in Iraq. The UAE and China signed an
agreement on judicial assistance in civil and business
fields. The two countries also discussed ways to
enhance cooperation in information technology. UAE-
China trade reached $5.8 billion in 2003. The UAE has
become the largest importer of Chinese products in the
Arab world. The number of Chinese companies working
in the UAE has reached 500, and the Chinese labor
force here is estimated at 50,000.

Germany
--------------


7. (C) Received at the head-of-government level (the
German DCM here told us that Berlin responded to our
having received HbZ at such a high level in
Washington),HbZ met with German Chancellor Gerhard
Schroeder, who also attended the inaugeration of the
new UAE Embassy in Berlin. HbZ also discussed with
Chancellor Schroeder the possibility of German
companies initiating development plans for Saadiyat
Island. (Note: Presidential son and head of the
intelligence service Shaykh Hazza bin Zayed Al-Nahyan
launched an ambitious plan in the late 1990s to
establish an offshore banking and commodities trading
free zone on Saadiyat Island, but the project never
came to fruition. End note.) HbZ also held
discussions with the German Minister of Economy
Wolfgang Clement and Minister-President of Lower
Saxony Christian Wuff. The trip culminated with an
agreement between the emirate of Abu Dhabi and auto
giant Volkswagen to acquire a major stake in the
German car manufacturer and move some production to
the UAE.


8. (U) Although not a major customer of UAE oil,
Germany's non-oil trade with the UAE is substantial.
Figures collected from the Dubai and Abu Dhabi
Chambers of Commerce indicate that non-oil trade with
Germany topped $2.5 billion in 2002. Germany is the
second largest source (after the United States) of
imports into the UAE, and German goods -- mostly
luxury products, machinery and spare parts --
constitute nearly 8 percent of all imports.

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Comment
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9. (C) HbZ has told the Ambassador that he is likely
to remain as Deputy Prime Minister and become Foreign
Minister under a series of ministerial changes under
consideration (reftel). He has grown in influence in
recent years in his position as Minister of State for
Foreign Affairs, and has gained a reputation as an
able and committed statesman. These successful visits
have added to HbZ's luster.

Albright