NEA DAS DIBBLE DISCUSSES FTA, FORUM FOR THE

C O N F I D E N T I A L MANAMA 001899

SIPDIS

DEPT FOR NEA DAS DIBBLE, NEA/ARPI
DEPT PASS USTR JBUNTIN
COMMERCE FOR CLOUSTAUNAU

E.O. 12958: DECL: 12/14/2014
TAGS: ECON ECIN PREL BA
SUBJECT: NEA DAS DIBBLE DISCUSSES FTA, FORUM FOR THE
FUTURE, AND MEPI WITH MINISTER OF FINANCE

Classified By: AMBASSADOR WILLIAM T. MONROE REASONS 1.4 (B) AND (D)


1. (C) Summary. On a December 12-13 visit to Manama, NEA
DAS Dibble paid a call on Bahraini Minister of National
Economy (MOFNE) Abdulla Saif. They discussed the
U.S.-Bahrain Free Trade Agreement (FTA),the recent Forum for
the Future meeting in Rabat, and plans for the establishment
of the Entrepreneurship Center. Saif stated that despite
pressure from the Saudis, Bahrain is committed to moving
forward with the FTA, and that the dispute over FTAs would be
resolved by the GCC summit. He was also positive about the
recent meetings in Rabat and indicated Bahrain would host the
next round in November 2005. Concerning the MEPI initiative
to create and staff an entrepreneurship center, Saif
mentioned that the GOB is committed to this project, but
needs to clarify funding issues. End Summary.

FTA Going Forward
--------------


2. (C) NEA DAS Dibble opened his December 13 meeting with
MOFNE Saif by asking about Saudi Arabia's recent negative
reaction to Bahrain's FTA. Saif stressed GOB commitment to
the agreement and expressed optimism that a formula will be
reached to resolve the issue at the GCC Finance Minister's
meeting in Manama December 18 in advance of the December 20
GCC summit. When asked about Bahrain's ratification plans,
Saif said the Cabinet had passed the file to the Council of
Representatives, and it is well on the way to ratification.
He revealed tentative plans for another FTA roadshow in
Chicago next April. He stated that while Bahrain's
"fast-track" approach to FTA negotiations is a model for
other GCC nations, he recognized that the GCC countries are
at different stages of readiness for FTA. He is hopeful that
the U.S. will be able to have an agreement with all GCC
members in the future.

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


3. (C) Minister Saif declared the Forum for the Future in
Rabat a success. He indicated that Bahrain submitted several
papers including one on the Entrepreneurship Center and
another on the Network of Funds. He also had a productive
meeting with Treasury Secretary Snow in which they discussed
terrorism financing. He stated Bahrain is taking a lead on
this issue and will host the MENA FATF. He also mentioned
that the Forum accepted Bahrain's offer to host the next
Forum for the Future meeting in November 2005.

Entrepreneurship Center
--------------


4. (C) Minister Saif indicated that Bahrain is willing to
move forward on the MEPI-initiated Entrepreneurship Center,
however questions still remain regarding payment for the
building and staff salaries. In the short-term the Bahrain
Institute for Banking and Finance can house the Center, but
there must be a permanent facility developed. In the
meantime, the consultants for the center (Beyster Institute)
will return in January and expect to launch their first
training program by April 2005.

MONROE