EU VIEWS ON NORTH AFRICA AND THE GULF: NEA DAS

C O N F I D E N T I A L SECTION 01 OF 02 BRUSSELS 004418

SIPDIS

DEPT FOR NEA - P. DIBBLE AND EUR/ERA

E.O. 12958: DECL: 10/14/2009
TAGS: PREL PTER PGOV XF EUN USEU BRUSSELS
SUBJECT: EU VIEWS ON NORTH AFRICA AND THE GULF: NEA DAS
DIBBLE VISIT


Classified By: USEU POLOFF LEE LITZENBERGER; REASONS 1.4 (B,D)


1. (C) Summary. In US-EU discussions on the Maghreb and
Gulf on October 5-6, EU officials said that in lifting the
arms embargo on Libya they would urge Tripoli to resolve the
Bulgarian medics issue. Discussion of the Western Sahara
focused on the hardening of Moroccan and, to a lesser extent,
Algerian positions. On promoting reform in the Arab world,
the EU noted that Egypt was critical of the recent Forum for
the Future meeting in New York, and wants a G8-Arab forum.
The EU is trying to deepen its engagement in the Gulf through
a regional Free Trade Agreement with the GCC, and hopes to
promote reform by working with enlightened leaders in Kuwait
and Qatar. Strong Hamas ties to the UAE worry the EU, which
has learned that Hamas chief Khalid Mishal plans to relocate
in Dubai from Damascus. The EU sees Saudi Arabia as a "drag"
on reform in the peninsula, but is pleased with cooperation
to halt Saudi government funding of radical mosques in
Europe. End Summary.

Libya
--------------

2. (C) At October 6 U.S.-EU Troika discussions on Maghreb
and Gulf issues, NEA DAS Philo Dibble outlined current status
of U.S.-Libyan relations, noting outstanding concerns that
must be resolved prior to removal of Libya from the list of
state sponsors of terrorism. Dutch Presidency Middle East
Director Micheil den Hond noted the overlap between EU and US
approaches to Libya, but added that the issue of illegal
emigration was an immediate concern for Italy and Malta. The
EU planned to lift its arms embargo on October 11 in
recognition of Libya's strategic choice to dismantle its
nuclear weapons infrastructure but, in doing so, would note
continued EU concern about the Bulgarian medics held in
Libya. (Note: As forecast, EU Ministers approved the lift
and issued a statement mentioning ongoing concerns on October
11.) Den Hond said the EU hoped to bring Libya into its
Barcelona process -- dependent on Libyan acceptance of
attending meetings with Israel -- where the EU thought it
could best manage relations with Tripoli.

Western Sahara
--------------

3. (C) The EU side detailed ongoing efforts to encourage
Morocco and Algeria to resolve this issue. The EU is
currently using ongoing negotiations for Neighborhood "Action
Plans" with Rabat and Algiers as the vehicle. Both sides
agreed to include general references to the conflict in their
Action Plans, but both -- in particular Morocco -- have
resisted making any specific political commitments. The EU
continues to provide humanitarian assistance to refugees and
POWs, but sees the Western Sahara as primarily a bilateral
issue between Morocco and Algeria. Den Hoon said he thought
a major effort was needed in the UN on this. In a separate
meeting, Council Secretariat Policy Planning chief for the
Middle East Pascal Charlat said that peace in the Western
Sahara was a prerequisite for stability in Algerian-Moroccan
affairs. Charlat said the EU was also concerned by the
presence of up to 800 "Afghans" in Morocco.

Engaging the Arab World on Reform
--------------

4. (C) Den Hoon said the greatest challenge in the region
for the US and the EU was to find a way to engage the Arab
World in a way that can bring development and prosperity to
people. The EU has ten years experience with the Barcelona
process, an integrated approach to regional development.
Yet, den Hoon said, earlier this year when senior U.S.
policymakers were proposing the Broader Middle East reform
agenda, they asked, "What is Barcelona?" Since the Sea
Island G8 summit, den Hoon said, there has been more
convergence of US and EU approaches. US and EU coordination
to promote reform in the region was key, den Hoon said. NEA
DAS Dibble agreed, noting that our efforts must respond to
local initiatives and not be seen as imposing an a priori
plan from outside.

Forum for the Future
--------------

5. (C) Den Hoon added that he attended the recent Forum for
the Future meeting in New York, where he noted there remained
some "suspicion" among Arab countries' statements regarding
the initiative but was pleased to see these remarks were not
shared with the press. He said that Egypt had been
particularly difficult regarding the presence of Afghanistan
and Pakistan at the meeting and want to hold a G8-Arab Group
forum. Den Hoon said the geographic scope of the U.S.
approach -- going beyond the Arab world to include other
Muslim countries -- is an issue in the region. It makes it
appear that religion is the defining element, and an obstacle
to reform. Den Hoon said that Egypt had also raised the
concern that the Middle East Peace Process, which it sees as
related to the issue of regional reform, was not on the Forum
agenda.

EU Engagement in the Gulf
--------------

6. (C) As part of a regional strategy, Den Hoon said the EU
seeks to deepen its superficial relations with the Gulf. The
EU hopes to finalize a Free Trade Agreement with the GCC
countries this year, despite Saudi foot-dragging. The
Commission noted that the EU and US have different approaches
on FTAs. The EU has promoted a GCC customs union as a first
step to a regional FTA; there is concern that the U.S. focus
on bilateral FTA's could undermine the GCC customs union.


7. (C) The EU has also been pursuing a parallel political
dialogue with GCC countries, raising issues such as human
rights, but discussion has usually been stilted. The EU also
plans to pursue bilateral relations with GCC members, with a
focus on reform. Money was not the issue; the key is to
build on the desire for change in the Gulf, den Hoond said,
which he found to be greater than one might expect. He cited
the Sultan of Oman and the Emir of Kuwait as examples of
leaders pushing reform on their conservative societies --
"the reverse of what we see in the Mediterranean."

Gulf links to Hamas
--------------

8. (C) Council Secretariat official Charlat said the EU was
concerned about the strong Hamas links to the UAE, and said
the EU is urging Dubai to cut these ties. Charlat said the
EU understood that Hamas leader Khalid Mishal planned to
relocate from Damascus to Dubai. (Note: According to
Embassy Abu Dhabi, there is no sign on Mishal in the UAE.
End note.)

Saudi Arabia
--------------

9. (C) Den Hoon said Saudi Arabia was a concern to the EU;
it was reluctant to engage and has dragged down EU efforts
with the GCC. On the positive side, the Saudi government has
ended funding of radical mosques in Europe, and the Dutch
have intensified bilateral cooperation with the Saudis on
this issue. DAS Dibble remarked that the Saudi government
has been very cooperative, but concerns remain about private
funding to charities that support radical and terrorist
groups.


10. (U) NEA DAS Dibble has cleared this telegram.

McKinley