Identifier
Created
Classification
Origin
05MANAMA240
2005-02-22 15:18:00
CONFIDENTIAL
Embassy Manama
Cable title:  

AMBASSADOR'S MEETING WITH NEW FINANCE MINISTER

Tags:  ECON EFIN EPET BA ENGR 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
C O N F I D E N T I A L MANAMA 000240 

SIPDIS

STATE FOR NEA/ARPI DBERNS
STATE PASS USTR JBUNTIN

E.O. 12958: DECL: 02/19/2015
TAGS: ECON EFIN EPET BA ENGR
SUBJECT: AMBASSADOR'S MEETING WITH NEW FINANCE MINISTER

Classified By: AMBASSADOR WILLIAM T. MONROE FOR REASONS
1.4 (B) AND (D).

C O N F I D E N T I A L MANAMA 000240

SIPDIS

STATE FOR NEA/ARPI DBERNS
STATE PASS USTR JBUNTIN

E.O. 12958: DECL: 02/19/2015
TAGS: ECON EFIN EPET BA ENGR
SUBJECT: AMBASSADOR'S MEETING WITH NEW FINANCE MINISTER

Classified By: AMBASSADOR WILLIAM T. MONROE FOR REASONS
1.4 (B) AND (D).


1. (C) Summary. The new Bahraini Finance Minister Sheikh
Ahmed bin Mohammed Al Khalifa told the Ambassador February 9
that new anti-money laundering legislation is being prepared
for presentation to parliament. He noted that he and
Treasury Under Secretary Taylor had discussed the development
and coordination among regional and G8 countries on the BMENA
Network of Funds initiative during a recent phone call. The
Ambassador and the Minister discussed ways to promote the
free trade agreement in the two countries. Finance Under
Secretary Sheikh Ibrahim Al Khalifa mentioned that Bahrain is

SIPDIS
considering purchasing natural gas from Iran. The Ambassador
strongly urged the MOF to reconsider such a deal. End
Summary.

--------------
Legislation
--------------


2. (C) The Ambassador paid an introductory call February 9
on Bahraini Finance Minister Sheikh Ahmed bin Mohammed Al
Khalifa to congratulate him and review U.S.-Bahrain economic
issues. In response to the Ambassador's question on
anti-money laundering legislation, Sheikh Ahmed said new
legislation had been passed from the prime ministry legal
affairs department to the Cabinet along with a penal code
amendment on terrorism financing. The "two-package deal"
would send a clear message about Bahrain's commitment to
combating terrorism. He expected that both pieces of
legislation would be sent to the parliament within weeks.

--------------
Network of Funds
--------------


3. (C) The Minister said he had a productive phone call
with Treasury U/S Taylor in early January on developing links
between G8 and BMENA countries on the BMENA Network of Funds,
which seeks to promote cooperation and improve effectiveness
of the region's official financing. The GOB will hold an
inter-ministerial meeting on the initiative in preparation
for additional G8/BMENA consultations on the issue.

--------------
FTA Promotion
--------------


4. (C) Sheikh Ahmed and the Ambassador exchanged updates on
where FTA ratification stands in their respective countries.
They are optimistic about movement in the near future. The
Ambassador noted he would be doing an interview with Fox News
and CNBC as well as additional public affairs opportunities
to promote the FTA. He pledged to work with the American
Chamber of Commerce in Bahrain and the Bahrain Chamber of
Commerce and Industry as they seek to utilize the FTA as a
promotional tool. The Minister said the MOF is considering a
trade mission to Chicago, but noted it might take place after
ratification.

--------------
Natural Gas
--------------


5. (C) In response to the Ambassador's question on a
Bahraini-Qatari natural gas deal, U/S Sheikh Ibrahim replied
that Bahrain and Qatar were considering a memorandum of
agreement for construction of a 90-km gas pipeline. However,
he downplayed the urgency for an agreement with Qatar,
suggesting that Bahrain's natural gas reserves are larger
than reported and indicating that gas purchases from Iran
remain a possibility. The Ambassador reminded Ibrahim of our
legal and political objections to a deal with Iran. Comment:
Ibrahim's suggestion that Bahrain has sufficient natural gas
reserves for the time being runs counter to all we have
heard. Our guess is that any talk of larger domestic
reserves and possible deals with Iran are aimed at lessening
the sense that Bahrain urgently needs a deal with Qatar.
MONROE