SECRETARY OF ENERGY BODMAN'S MEETING WITH AMIR OF

C O N F I D E N T I A L SECTION 01 OF 02 DOHA 002038

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E.O. 12958: DECL: 12/27/2015
TAGS: ENRG EPET EINV PREL IR QA
SUBJECT: SECRETARY OF ENERGY BODMAN'S MEETING WITH AMIR OF
QATAR

Classified By: CDA Scott McGehee for reasons 1.4 (b) and (d).


1. (U) U.S. Energy Secretary Samuel W. Bodman met with the
Amir of Qatar, Sheikh Hamad bin Khalifa Al Thani, on November
15, 2005, in the course of a two-day visit to Qatar.
Secretary Bodman also visited energy installations and met

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with resident U.S. business executives. The meeting with the
Amir took place at the Wajbah Palace in Doha.
Present were Sec. Bodman and his party, including Mrs Diane
Bodman; Ambassador Chase & Mrs Diana Untermeyer; Minister of
Energy Abdullah al-Attiyah; Sheikh Abdulrahman bin Saud
al-Thani, President of the Amiri Diwan; and Abdullah al-Jaber
of the European & Americas Division of MFA.

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QATARI-AMERICAN RELATIONS
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2. (C) Sec Bodman began by telling the Amir, "I came first
and foremost to thank you for what you have done for our
country and in particular for your contribution to relieve
the suffering of our citizens after Hurricane Katrina and
what you have done for our troops." The Amir thanked him,
commenting that the troops "seem to be enjoying
themselves."


3. (C) At the meeting's close, the Amir said he wants to
cooperate with the US and turned to Minister al-Attiyah to
say, "Abdullah, we need more cooperation with them,
especially in heavy, medium, and light industry."

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ENERGY
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4. (C) The Secretary said recent storms demonstrated the
vulnerability of the US energy infrastructure. He said close
to one million barrels of oil and 5 billion cubic feet of gas
a day is still "shut in" the Gulf of Mexico. He talked about
the new US energy law, which he said aims to rebuild this
infrastructure, especially for electricity. "Our president
has a vision of an energy strategy that relies on oil and gas
for many years but diversifies into coal and nuclear
(power)," Bodman said.


5. (C) The Amir said that increasing demand for energy in
China, India, and possibly Brazil will put upward pressure on
the price of oil. These countries need to explore for energy
resources within their own borders. "Otherwise," he said,
"the price will go up and up."


6. (C) Bodman said, "This is the first time in my life that
the price of oil is set by traders, not the producers. In the
old days I could call the Minister and complain. I can't do
that anymore." He thanked the Amir for Qatar's efforts in
OPEC "to keep our markets well supplied."


7. (C) The Secretary said that as a former chemical engineer
he was very impressed with Ras Laffan Industrial City, which
he toured the day before. He praised the Amir and Minister
al-Attiyah for taking the risk to develop Qatar's gas
resources "back when the price of gas was a tenth of what it
is today." The Amir recalled heated Cabinet debates 20 years
ago over whether to build Ras Laffan, sparked by ministers
who had personal investments in what was then the country's
main oil port, Umm Said. "Now, anyone who visits Ras Laffan
wants to buy (our gas),
because the facilities are all there."


8. (C) Secretary Bodman also noted favorably the close
working relationship between Qatar's ministers of energy and
finance. "Usually (in other countries) they fight," he said.
Looking at al-Attiyah, the Amir said, "The problem here is
that our energy minister almost dominates our finance
minister. But they are both in the same boat. Each
one realizes that if you are to have the money, they must
cooperate. In Kuwait, everything is jammed." (Note: This was
said jocularly, because Minister al-Attiyah is famously
voluble, and the more taciturn finance minister, Yusuf Kamal,
is another strong man of the government who serves
concurrently as chairman of Qatar Petroleum.)

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QATAR
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9. (C) The Secretary asked the Amir about his vision for
Qatar "and what role we could aspire to have in a continuing
close relationship." In his reply, The Amir emphasized
Qatar's aim to promote better education for the entire Middle
East. He cited the American campuses in Education City and
noted the establishment of two huge endowments to support
future spending on health and welfare. The Amir said Qatar
will have its first
parliamentary elections "next year." (Note: Post continues to
believe these elections will not be held until early 2007, if
only because so much national effort in 2006 will be put into
hosting the Asian Games, to be held at year's end.)

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IRAQ/IRAN
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10. (C) Bodman sought the Amir's views on both Iraq and Iran,
especially the latter's nuclear ambitions. The Amir said, "I
believe Iran is winning the situation (sic) in Iraq and in
Palestine. I believe Iran will build nuclear weapons; I don't
know who can stop them. Iraq will continue to be an unstable
place for the Americans and the Iraqis
themselves. I don't know how to manage the situation; I don't
know how the Arab League can help Iraq. The situation will
continue like this. I can't see the future for Iraq in the
short- and middle term. The Iranians are causing the Shias to
make things unstable for the Americans."


11. (C) Bodman replied by saying the US is "doing our best"
to constrain Iran. "They need technology. We have reasonably
good intelligence on what they're doing, and they're not
there yet. We believe we are having some success in
convincing other countries what (the Iranians') intentions
are. I don't have to convince you, but we have trouble with
our European partners. We need a united front. But if (the
Iranians) are willing to spend the money, they'll eventually
get (nuclear weapons)."


12. (C) The Amir offered a wisp of hope for peace, saying,
"The Iranians are an old culture. I don't think they will
make the same mistakes as Saddam."

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RUSSIA
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13. (C) Minister al-Attiyah asked Sec Bodman's view of
Russia. "I feel better about Russia," the Secretary replied.
He said the head of Rosatom, the Russian nuclear agency (name
not gotten),is a senior officer. "Our first concern is
proliferation. We shared what we have learned about physical
security. They haven't been very trusting of
us; they are concerned we have military intentions, which we
don't. They are reticent to accept help but are increasingly
receptive(. There are some worrisome pieces of information
about what they are doing behind the scenes, but they seem to
be responding. We have a group working with five different
committees of theirs on accident response and other things we
worry about. It's been going pretty well for about two years.
People get along; they have the same objective. I feel better
about that than I do Iraq and Iran."


14. (C) Bodman said that after President Bush and President
Putin met in Bratislava in February, he (Bodman) got two
assignments: To work on non-proliferation and to develop
close commercial relations with the Russians. The latter has
been hard, he said: "They don't want to have it with anyone."

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CHINA
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15. (C) Secretary Bodman said North Korea "is a real
problem." The Amir agreed and said China seems in no hurry to
do anything about it. Bodman said, "China doesn't seem in an
hurry to do anything." The Amir laughed and said, "I agree
totally."

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INDIA
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16. (C) Secretary Bodman said, pursuant to a pledge from the
President to the Prime Minister of India, that his department
is working with India to help develop a civilian nuclear
reactor technology, which that country "desperately" needs.
There are some political issues arising in the US Congress,
due to the fact India has not signed the world
non-proliferation treaty. "But our president has said in
effect that it's time to recognize reality and work more
closely together."


17. (C) The meeting was highly cordial, characteristic of the
Secretary's entire visit to Qatar. Minister al-Attiyah was

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particularly attentive throughout the Secretary and Mrs
Bodman's three-day visit to Qatar, hosting them (and the
Untermeyers) at several meals, including one with his family
at their home, a rare and signal honor.
MCGEHEE