BAHRAIN SUPPORTS BMENA INSTITUTE

UNCLAS MANAMA 001391 SIPDIS DEPT FOR NEA/ARPI DEPT PASS USTR JBUNTIN, CMILLER, WCLATANOFF COMMERCE FOR CLOUSTAUNAU TREASURY FOR DEMOPULOS E.O. 12958: N/A TAGS: ECON EFIN ETRD PREL BA SUBJECT: BAHRAIN SUPPORTS BMENA INSTITUTE REF: A. STATE 190772 ¶B. STATE 186398 ¶1. (U) The Ambassador met with Bahraini Minister of Finance and National Economy Abdullah Saif September 7 to discuss the October 1 meeting of finance ministers on the G8 Broader Middle East and North Africa (BMENA) initiative (Ref A),the IFC's Private Enterprise Partnership for the Middle East and North Africa (IFC Facility) (Ref B) and the upcoming signing of the U.S.-Bahrain Free Trade Agreement (FTA) (septel). Saif confirmed that he would attend the October 1 meeting chaired by Treasury Secretary Snow and passed a copy of his letter to Secretary Snow confirming his attendance. (We will fax it to NEA/ARPI.) Regarding the proposed agenda, Saif said Arab ministers were now considering the draft and would provide a joint response. ¶2. (U) Saif also confirmed Bahrain remains interested in hosting the entrepreneurship center in Bahrain. A diplomatic note sent to the Embassy dated September 8 affirms Bahrain's desire to host "an Institute for Entrepreneurship Training and Development along the lines of the preliminary proposal (Bahrain) prepared in May 2004 for the Sea Island discussion," and that the center would be subject to "adequate funding for the initiative." The letter further clarifies that Bahrain would provide the space for the facility but that it would be "a separate Institute, not part of the existing Institute of Banking and Finance, but parallel to it and building on" BFIF's experience. ¶3. (U) In a follow-on conversation, Saif's financial advisor Vivian Brown told EconOff that Bahrain wanted to limit its participation to providing space for the Institute, and that Bahrain was unlikely to be able to contribute funds to support its activities, particularly in the payment of instructors. He added that he expected the Minister would be prepared to discuss this further at the October 1 meeting. ¶4. (U) On the subject of the IFC facility, Saif said Bahrain would limit its participation to a contribution "in kind". He reviewed his recent conversation with Treasury U/S Taylor on this subject, noting he believed there was no lack of resources in the region and discussed with Taylor how to "network those funds." Saif is now waiting for a concept paper from U/S Taylor on this issue. MONROE