POINTS FOR A/USTR NOVELLI'S FTA BILATS

C O N F I D E N T I A L SECTION 01 OF 03 ABU DHABI 001006

SIPDIS

STATE FOR EB/TPP/BTA, NEA, NEA/ARPI, NEA/PI
STATE PASS USTR FOR DOUG BELL

E.O. 12958: DECL: 03/02/2015
TAGS: ETRD EINV ELAB ECON PREL USTR NEA PI
SUBJECT: POINTS FOR A/USTR NOVELLI'S FTA BILATS

REF: ABU DHABI 992

Classified By: Classified by Ambassador Michele Sison for reasons 1.4 (
b and d)


1. (U) Summary. During your March 7-11th visit to the United
Arab Emirates for the first round of Free Trade Agreement
negotiations, you will have a number of bilateral meetings
with senior UAEG officials. We are providing short bios of
your interlocutors and an overview of probable points of
discussion during the meetings. End summary.

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Bilateral Meetings - Subjects and Sensitivities
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2. (C) Sheikh Mohammed bin Zayed Al-Nahyan(MbZ): MBZ, the 43
year old Crown Prince of Abu Dhabi and Deputy Supreme
Commander of the UAE Armed Forces, is an articulate, forceful
interlocutor. Your meeting with him will be a broad,
strategic discussion that will likely move beyond trade
issues into a discussion on regional stability. New UAE
President Sheikh Khalifa appears to have delegated much of
the management of the Emirate of Abu Dhabi (the wealthiest of
the seven emirates) to MbZ. He is seen as a dynamic leader
and a modernizer, and throughout the Emirates there are high
expectations for change from his influence in Abu Dhabi and
by extension the federation of seven emirates. MbZ is
pro-U.S. and has been fully supportive of our effort in Iraq.
His visible strengths are his ability to always see the
bigger picture and his clear vision for the future. He has a
sense of humor, and always likes to get to know his guests on
a personal basis. Address him as "Your Highness." MbZ
speaks fluent English.

3. (C) Minister of State for Foreign Affairs Sheikh Hamdan
bin Zayed al-Nahyan: Sheikh Hamdan -- an articulate
spokesman for UAE foreign policies -- has managed the US
portfolio since joining the Foreign Ministry in 1986. Sheikh
Hamdan, Chairman of the federal Camel Racing Association, is
personally involved in trying to address the problem of the
use of underage South Asian boys as camel jockeys, and
although he is sensitive to criticism on the issue, it should
be raised with him. This is not an easy task given the heavy
hitters involved within the ruling families and the large
sums of money generated in the camel racing business. During
your meeting with Sheikh Hamdan, he will likely raise the
issue of Saudi Arabia's stability, and he may bring up the
companies and agencies law. Hamdan relishes being consulted
by senior U.S. officials and is a close contact of the
Embassy. He has a straightforward communication style. He
speaks some English, but prefers to use an interpreter.
Address him as "Your Highness."

4. (C) Minister of Information Sheikh Abdullah bin Zayed
al-Nahyan: Sheikh Abdullah has been a moderating influence on
UAE media and has expanded freedom of press in the UAE since
taking office in 1997. Abdullah has asked U.S. officials to
identify training opportunities for broadcast media. His
portfolio includes copyright protection and he has strongly
supported IPR protection, urging US officials to bring IPR
problems to him. In recent years he has taken a more active
role in foreign affairs often attending Arab League summits.
Like many Emiratis, he owns a number of private businesses
and acts as a sponsor for foreign firms, thus he is sensitive
to the agency laws issue. Abdullah is a candid and engaging
official, and generally couches his criticism of U.S.
policies in the Middle East in terms of "friendly advice."
Abdullah is thoughtful and weighs his responses carefully. He
is extremely well-read, a news-junkie, very bright, and known
for thinking outside the box. Although Sheikh Abdullah's
portfolio is the Minister of Information, he has become an
increasingly active player in the running of Abu Dhabi, and
he is trusted and relied upon by his elder brother, MBZ.
Your meeting with Sheikh Abdullah may be combined with the
MBZ meeting. He speaks fluent English and is addressed as
"Your Highness."

5. (C) Minister of Labor Dr. Ali bin Abdullah al-Ka'abi: Upon
his appointment in late 2004 as Minister of Labor, Dr. Ali
bin Abdullah al-Ka'abi stressed that his priority would be to
address the UAE,s demographic challenges and organize the
labor force so that ¤t nagging problems are
resolved.8 His key challenge will be to pass and implement
new labor laws. He has told us that the UAE is committed to
moving forward on developing labor unions, but that the UAEG
is concerned about balancing its commitment to improving
workers' rights with the security and social challenges of
having a 98 percent foreign worker population in the private
sector. He recognizes that inclusion of expatriates in the
new laws is a key issue for the United States, and he
emphasized that he was not interested in having Emirati-only
labor unions. He has announced the formation of a committee
within the Ministry to help manage the labor market, by
addressing issues of transparency and clientele service. He
has previously worked in Defense Attache Office of UAE
Embassy in Washington. Address him as "Your Excellency."

6. (C) Dubai Crown Prince Mohammed bin Rashid Al Maktoum
(MBR): MBR is dynamic and capable. Although he holds the
title of UAE Defense Minister, he has no role in the
decisions, staffing, or funding of the UAE Armed Forces. He
prefers commercial ventures and is largely responsible for
Dubai,s economic growth and diversification. At a meeting
of the Dubai Economic Council last week, MBR emphasized that
all sectors should be ready for trade agreements in order to
"benefit from the gains." MBR is well disposed toward the
United States -- Dubai hosts nearly 600 U.S. Navy ship visits
annually, more than any other port outside the US -- and he
believes the U.S. military presence in the Gulf is mutually
beneficial, maintaining balance in the region. MBR is a big
picture thinker, and your meeting is likely to cover a broad
range of subjects, but you should raise labor and camel
jockeys with him. MBR has expressed shock at the abuse of
underage camel jockeys as documented by HBO, and has pledged
to eliminate the problem; his actions have lagged behind the
rhetoric, however. (Note: MBR and his elder brother, Sheikh
Maktoum bin Rashid Al Maktoum, Ruler of Dubai, are both in
favor of solving the problem with underage camel jockeys.
The third brother, Sheikh Hamdan bin Rashid Al Maktoum does
not. End note) He speaks fluent English and is addressed
as "Your Highness."

7. (C) In title, Minister of Finance Sheikh Hamdan bin Rashid
Al Maktoum is the UAE's senior official for economic, fiscal,
and trade policy, but he delegates the task of running the
Ministry to the Minister of State for Finance and Industrial
Affairs (Dr. Khirbash). Sheikh Hamdan bin Rashid performs
the protocol duties of his ministerial position, such as
approving projects, issuing internal documents and public
statements, and meeting with foreign officials in the UAE.
Although he is disengaged from his federal-level Ministerial
portfolio, he actively attends to Dubai's emirate-level
municipal and financial affairs such as social services,
utilities, infrastructure, and municipal regulations. He has
served as the Minister of Finance and Industry since 1973 and
has been Deputy Ruler of Dubai since 1995. HbR is one of the
principal obstacles to a succesful resolution of the camel
jockey problem. He reportedly enjoys the sport racing of
young camels, which can only support the weight of very young
boys. Sheikh Hamdan bin Rashid supports increased trade with
the United States. He speaks English, although in his
October 2004 meeting with USTR Zoellick he used MinState
Khirbash as an interpreter. Address him as "Your Highness."

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UAE Delegation Leaders
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8. (C) The UAE FTA Negotiations will be headed by Minister of
State for Financial and Industrial Affairs, Dr. Mohammed
Khalfan bin Khirbash and Minister of Economy and Planning
Sheikha Lubna Al-Qasimi.

-- Dr. Mohammed Khalfan bin Khirbash serves as de facto
Minister of Finance. He is a well-regarded reformer who
appears to have the support of both the Abu Dhabi and the
Dubai ruling families. His interest in expanding the UAE,s
trade relations abroad are based on economic, rather than
political considerations, and he is regarded by Emiratis as a
level-headed businessman and savvy diplomat. Khirbash wields
considerable influence in both governmental and business
circles. He is particularly adept at refereeing and settling
bureaucratic turf battles inherent to the loose, confederal
structure of the UAE. He completed a BA at Boston University
and a Ph.D. in Economics from Exeter University. Khirbash,
who speaks fluent English, is addressed as "Your Excellency."


-- Sheikha Lubna Al-Qasimi is the first female minister. An
excellent contact of the U.S. Embassy and Consulate General,
Sheikha Lubna is a warm, dynamic and highly intelligent
leader who has cultivated close ties with many U.S. officials
and business leaders. Sheikha Lubna is a true believer in
open economies and free trade. While other UAE interlocutors
have expressed concern about the dislocating effects that an
FTA might have on Dubai families who rely on mandatory
&agency8 relationships with U.S. firms, Lubna has little
patience for that view. (Note: that comment was made before
she herself became a full-time bureaucrat; she has been
noticeably more circumspect since then!) Embassy contacts at
the Ministry of Finance and Ministry of Economy have both
expressed support for her appointment, saying that "she will
shake up the place" by reforming a generally backward leaning
bureaucracy and pushing forward economic reform. Sheikha
Lubna holds a Bachelor of Science degree from California
State University at Chico and an Executive MBA from the
American University of Sharjah. She appreciates being
addressed as "Your Highness."

SISON