GCC SUMMIT: BAHRAIN MFA GIVES UPBEAT READOUT

C O N F I D E N T I A L SECTION 01 OF 02 MANAMA 001925

SIPDIS

E.O. 12958: DECL: 12/22/2014
TAGS: PREL ETRD BA GCC
SUBJECT: GCC SUMMIT: BAHRAIN MFA GIVES UPBEAT READOUT

REF: MANAMA 1912

Classified By: Ambassador William T. Monroe. Reason: 1.4 (B)(D)


1. (C) Summary. Bahrain MFA Minister of State Abdel Ghaffar
termed the 25th GCC Summit a "very good and successful
event," citing the conclusion several economic agreements
aimed at mobility and integration within the GCC as well as
the Summit's success in sidestepping Saudi concerns over
FTAs. He confirmed that the FTA issue was deferred to the
ministerial-level economic and finance committee. All GCC
countries (except Saudi Arabia) reaffirmed their
determination to press forward with FTAs. The Summit also
produced a "Manama Declaration," a Bahrain initiative aimed
at highlighting GCC support for continued reform (referencing
the Forum for the Future). The GCC established a new
secretariat position to help coordinate counterterrorism

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efforts. Abdel Ghaffar highlighted the GCC's support for the
upcoming elections in Iraq, and a desire to be helpful in
pushing Palestinians and Israelis to the negotiating table.
End summary.


2. (C) Minister of State for Foreign Affairs Mohammed Abdel
Ghaffar, in a December 22 briefing to non-Arab Ambassadors
and separately to the Ambassador, gave an upbeat assessment
of the just concluded 25th GCC Summit, calling it a "very
good and successful" event. Noting that observers had feared
that the Bahrain FTA disagreement with Saudi Arabia would
topple the Summit, he called the overcoming of that hurdle a
success in itself. In terms of practical accomplishments, he
cited 11 economic-related agreements, pointing out that at
one point there were indications the Saudis would defer
discussion on all economic issues because of the FTA dispute.


3. (C) On the FTA, Abdel Ghaffar confirmed that, in the end,
the Summit neatly sidestepped the issue by referring it to
the ministerial-level economic and finance committee without
giving a timetable. He said that the Saudis had continued to
press on the issue during the December 18 Finance Ministers
meeting, but by the Foreign Ministers meeting the next day
they seemed to have stepped back, agreeing that if there was
no consensus it could be referred to the committee for
further study and discussion. Abdel Ghaffar said that the
other four GCC countries made perfectly clear their intention
to proceed with plans to pursue FTAs with the U.S. He was
not expecting the committee to take any measure that would
block this.


4. (C) Abdel Ghaffar acknowledged that the Bahrainis were
bothered and puzzled by the Saudi tactics on the FTA. Why,
they wondered, did Prince Saud raise it publicly at an
international forum (the December 5-6 IISS conference) rather
than wait two weeks and raise it privately at the GCC Finance
Ministers meeting on December 18? Bahrain's conclusion: the
Saudi message was aimed primarily at the U.S. If true, he
said, this is in a way a positive message. Saudi Arabia,
watching its GCC neighbors move forward on FTAs, wants U.S.
help in speeding up its WTO accession. He said that he did
not think Bahrain's relationship with Saudi Arabia, which he
called close, deep, and historically interconnected, would be
harmed by the dispute over the FTA. "The Saudis want to get
into the WTO," he added, "and we hope they will."


5. (U) Among the economic-related agreements reached at the
Summit, Abdel Ghaffar cited the following:

-- a social insurance scheme that allows GCC citizens working
in other countries to continue to receive their insurance
coverage from their own country. In his press conference
following the Summit, Foreign Minister Shaikh Mohammed called
this "one of the most important achievements of the Summit"
as it would further facilitate movement of GCC citizens
within the GCC. Previously, GCC citizens who moved to
another country lost the right to receive social insurance
from their own country, a disincentive for labor mobility.

-- a unified ID card (called "smart card") for all CC
citizens, also designed to ease the movement of citizens
within the GCC. Under this scheme, data such as drivers
license, passport, health information, and ID information
will be retrievable electronically from the card in any GCC
state.

-- a GCC railway network to strengthen transport ties between
GCC countries.

-- a unified industrial law designed to increase cooperation,
joint ventures, and productivity in industry.

-- a decision to draft a joint study on the issue of
expatriate labor.


6. (U) Abdel Ghaffar also highlighted the "Manama
Declaration," issued separately from the Summit communique
and described by Abdel Ghaffar as the first declaration
issued by the GCC on the question of reform and
modernization. He said that this was a Bahraini initiative,
designed to show the world that the GCC gives great
importance to reform. In the short, four-paragraph document,
the GCC countries highlight their determination to continue
their work on modernization; reiterate that true democracy
cannot be imported but stems from within the history and
heritage of the GCC countries; and welcome Bahrain's
invitation to host the next meeting of the Forum of the
Future in the context of reinforcing concepts of
modernization and reform.


7. (C) On international issues, Abdel Ghaffar said that the
GCC leaders hoped that the U.S. and Europe would become more
active on the Middle East peace process. He said the GCC was
keen to contribute in any way to help pave the way for new
negotiations between the Israelis and Palestinians. "It is a
time when hope is rising," he said, "although continuing
violence saddens us." On Iraq, he said the GCC wanted to
convey a message of support for the upcoming elections. He
said that while the communique did not specifically mention
holding the elections as scheduled on January 30, the leaders
did believe that it important to keep to that date. There is
no guarantee, he said, that slipping the date three or six
months will create a better result.


8. (C) Abdul Ghaffar also highlighted the Summit's decision
to create a new position at the GCC Secretariat -- assistant
secretary for security. The aim is to help the GCC secretary

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general coordinate GCC counterterrorism efforts. Terrorism
was one of the most important issues discussed at the Summit,
he said, and GCC countries are "very serious about fighting
terrorism." Citing the recent attack on the U.S. consulate
in Jeddah, he said that GCC countries have been the targets
of terrorism and need to work together on this issue.
MONROE