ASSISTANT SECRETARY WAYNE'S MAY 18 MEETING WITH

C O N F I D E N T I A L AMMAN 004549

SIPDIS

STATE PASS TO USTR
STATE FOR EB, NEA FRONT OFFICE, NEA/ELA
NSC FOR ABRAMS

E.O. 12958: DECL: 06/01/2015
TAGS: ETRD ENRG BEXP ECON JO
SUBJECT: ASSISTANT SECRETARY WAYNE'S MAY 18 MEETING WITH
QATARI MINISTER OF ECONOMY AL-THANI


Classified By: A/DCM CHRIS HENZEL FOR REASONS 1.4 (B) AND (D).


1. (C) SUMMARY: On the margins of the BMENA Trade and
Investment conference in Amman on May 18, Qatar's Sheikh
Mohamed Ahmed Al-Thani, Minister of Economy and Commerce,
told Assistant Secretary E. Anthony Wayne that while
substantially increased investment was flowing to Qatar from
the U.S., USG requests to change Qatar's investment laws as
part of an FTA agreement was a serious obstacle. Qatar
wanted a bilateral Free Trade Agreement (FTA),but it would
have to be "controllable", he said. A/S Wayne pledged that
the USG would continue to work with Qatar on the FTA but
would not be able to make special exceptions on important
principles. Al-Thani outlined Qatar's success with liquefied
natural gas. A/S Wayne urged Al-Thani to consider very
seriously Boeing for new aircraft purchases. END SUMMARY.

FTA "Overhelming" but Qatar "Very Keen"
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2. (C) In a brief meeting hosted by the Sheikh at his Four
Seasons hotel suite, Al-Thani noted that Qatar had been
engaging A/USTR Catherine Novelli on a bilateral FTA. Since
the last exchange, the government had hired Bain & Company to
conduct a study of the Qatari private sector and assess the
impact of an FTA. The study, which would be concluded by the
end of June, would be quantitative and was designed
especially for the Emir. The Qatari teams had been
"overwhelmed" by the scope and breadth of the proposed FTA,
said Al-Thani, especially in terms of how to manage its
effects. However, at the end of the day Qatar wanted an FTA
and was "very keen" about it.


3. (C) The FTA was a strategic consideration for Qatar, he
continued. However, while expecting the same treatment as
Bahrain, Qatar also wanted to tailor certain parts of the
FTA, instead of opening everything. He gave as an example
the proposal to change Qatar's investment law. As his
government understood it, the proposal called for opening up
investment "totally for everyone, including China." It would
be best if such changes to the investment law were on a
bilateral basis only, he stated. For Qatar it would be "us
and you" only. Qatar was keen to have an FTA, but it had to
be "controllable," he noted. The GOQ was worried about
changing laws that "let others in," he noted. He said
Qatar's business leaders were very concerned about this.


4. (C) A/S Wayne urged Qatar to maintain its interest in
the FTA. The USG would work with the GOQ on its issues, he
said. While it was true that newer FTAs were held to
demanding standards in the U.S., both sides should continue
to work on it. The U.S., however, needed to adhere to its
key standards.

LNG: Qatar Positioned as a World Competitor
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5. (C) Sheikh Al-Thani proudly pointed to Qatar's newly
developed LNG facilities as state-of-the-art, an
accomplishment that could be partially credited to U.S.
investments. Foreign direct investment had jumped to over $2
billion in 2004, representing a 1537% increase over the prior
year. Most of that investment came from the U.S., he noted,
for which Qatar was very grateful. He also expressed great
appreciation for the U.S. military presence.


6. (C) With these considerable changes and with the stock
market growing at an annual rate of 25 percent, Qatar's
economy would be ready to make a full transformation in 2-3
years, he believed.

Boeing
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7. (C) In closing, A/S Wayne urged Qatar to consider
seriously Boeing as an excellent supplier for its aircraft
needs. The Sheikh replied that he favored a purchase of
Boeing aircraft, but the decision was not his to make.
HALE