PARLIAMENT BLASTS GOB FOR LIFTING BOYCOTT

C O N F I D E N T I A L SECTION 01 OF 02 MANAMA 001485

SIPDIS

NEA/ARPI
USTR FOR J. BUNTIN

E.O. 12958: DECL: 10/12/2015
TAGS: PGOV ETRD ETTC ECIN ECON BA
SUBJECT: PARLIAMENT BLASTS GOB FOR LIFTING BOYCOTT

REF: MANAMA 1434

Classified By: Ambassador William T. Monroe, reasons 1.4 (b) and (d)

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SUMMARY
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1. (C) In a nearly unanimous vote October 11, the parliament
issued a strong rebuke to the GOB for lifting the ban on
Israeli goods and closing the boycott office. The parliament
expressed its displeasure by issuing a "proposal" to
reinstate the Israeli Goods Boycott and reopen the boycott
office. Foreign Minister Shaikh Khalid bin Ahmed Al Khalifa
and Minister of Finance Shaikh Ahmed bin Mohammed Al Khalifa
appeared before parliament in a session Shaikh Ahmed later
described to the Ambassador as "a bit ugly." He reaffirmed
that the government has no intention of drafting a law in
response to the parliament's proposal, stating that the
government's position on this is clear. He said he hoped to
manage the issue in committee and that the coming days will
indicate how much staying power the political
outrage/opposition has. End Summary.

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STORMY SESSION
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2. (U) Foreign Minister Shaikh Khalid bin Ahmed Al Khalifa
and Minister of Finance Shaikh Ahmed bin Mohammed Al Khalifa
appeared before parliament October 11 following a demand
issued by fifteen Members of parliament (MPs) for the
government to explain the closure of the Israeli Boycott
Office.


3. (U) During the session, Al Menbar presented proposed
legislation containing four recommendations for the Cabinet:
First, that the government decision to lift the Israeli
Boycott be withdrawn; second, that the boycott Office be
reopened; third, that Law 5 of 1963, which established the
Boycott Office be reactivated; and fourth, that the
government refrain from taking any such actions in the future
without parliamentary consultation. All but one of the
thirty MPs present during the session voted in favor of the
proposal, an unusual display of Sunni and Shia unity. The
proposal does not have force of law; it is a proposal for the
government to consider, somewhat akin to a "Sense of the
Congress" resolution. (Note: Parliament cannot draft laws;
only the government can do that. End Note.)

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GOVERNMENT MOUNTS DEFENSE
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4. (C) Shaikh Ahmed described the session to the Ambassador
October 12 as "a bit ugly" The Gulf Daily News, a widely
read English-language daily, quoted MP Al Menbar Bloc member
Hassan Bukhammas as shouting "Death to America and Israel."
Shaikh Ahmed was quoted as saying, "The world is changing and
we need to compete. This will not be possible if we don't
stick to the World Trade Organization agreements, of which we
are a founding member."


5. (C) Shaikh Khalid addressed widely-circulated rumors
originating from the notion that the closure of the boycott
office was expressly required by the FTA and that the GOB was
moving to normalize ties with Israel. He pointed out that
the FTA had been discussed and reviewed by the parliament and
that the FTA did not contain any boycott provisions. He said
the decision to lift the boycott did not entail any economic,
cultural, political or diplomatic normalization. (Note:
National Democratic Institute (NDI) Director Fawzi Guleid
told Poloff October 12 that this issue has sparked a climate
of mistrust between the government and parliamentarians. He
said MPs feel tricked and that the government is hiding
secret provisions of the FTA. End Note.)

SIPDIS

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GOB ASSESSMENT
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6. (C) Shaikh Ahmed told the Ambassador that the government
has no intention of responding to the Parliament's resolution
by drafting a law. He said he hoped to manage the issue in
committee, and that political opposition/outrage would
gradually subside. The coming days, he added, will indicate
how strongly and lasting this opposition will be. (Note:
Two small demonstrations were staged following Friday prayers
October 7. Al Menbar Vice President Dr. Ali Ahmed said Al
Menbar would continue to organize events against
normalization with Israel. End Note.)


7. (C) Bahrain Customs, Ports and Free Zones President Dr.
Eid Abdulla Yusuf called Econoff October 12 to say that
despite the current activity in the parliament, he did not
expect the Boycott Office to be reopened. "It's like a gale,
with strong blustering winds at first, but then it dies down
and becomes quiet," he said. Dr. Eid opined that the
forceful objections voiced by MPs were merely designed to
garner support from their constituencies ahead of upcoming
elections.

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COMMENT
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8. (C) While we don't anticipate any backsliding on the
boycott decision, we shouldn't underestimate the strength of
the anger and backlash from the boycott decision, at least
among the politicians. The rhetoric was nasty and heated,
and has added a sour note to what had heretofore been a very
positive attitude toward the FTA. The parliamentary backlash
may also complicate government efforts to rush through
required IPR implementing legislation for the FTA.
MONROE