CHARGE DISCUSSES LIFTING OF SUBSIDIES, CABINET

S E C R E T SECTION 01 OF 02 SANAA 002023 SIPDIS E.O. 12958: DECL: 07/24/2015 TAGS: PREL PGOV OVIP ECON ENRG SOCI EAID KMCA KMPI YM KWAC COUNTER TERRORISM SUBJECT: CHARGE DISCUSSES LIFTING OF SUBSIDIES, CABINET RESHUFFLE WITH FOREIGN MINISTER REF: A. SANAA 1976 ¶B. SANAA 1570 Classified By: CDA Nabeel Khoury for reasons 1.4 b and d. ¶1. (C) As riots were beginning to break out across the capital on July 19, CDA discussed pressing current issues with Deputy Foreign Minister Mustafa Noman, followed by a brief unscheduled meeting with Foreign Minister Abubakr Qirbi. Noman was critical of ROYG handling of the lifting of oil and gas subsidies, a key element of the economic reform package. DFM Noman and CDA discussed several bilateral issues likely to be addressed during President Saleh's November Washington visit, including small arms and light weapons (SALW) proliferation, Yemeni detainees at GTMO, and Somalia - an issue senior ROYG officials are raising of late. End Summary. -------------- DFM Noman Critical of ROYG Decisions -------------- ¶2. (C) Less than two hours before rioting broke out in Sanaa, DFM Noman criticized ROYG handling of the announced reforms with CDA (ref A). Noman suggested that rather than just springing the midnight price hike in gas and diesel on the Yemeni public, the ROYG's dramatic lifting of oil subsidies should have been accompanied by administrative reforms aimed at reducing corruption. CDA agreed, explaining current Mission efforts to ensure that the ROYG MCC team is not allowed to water down the anti-corruption measures in its business plan proposal (presumably to make it more palatable to ROYG stakeholders). Noman commented that he hoped that would be possible, but indictated that PM BaJammal's leadership of the ROYG's overall anti-corruption efforts remains a sign that the government is not serious about fighting corruption. -------------- Somalia...Again -------------- ¶3. (C) In what is becoming a common theme among ROYG officials in the lead-up to Saleh's November meeting with President Bush, Noman asked CDA about U.S. policy on lifting the embargo on Somalia. "We think you are not focusing on Somalia, continued Noman, "we in Yemen are really hurt by this situation." CDA responded that sending troops and more weapons into Somalia would not lead to a stable Mogadishu. The USG is focused, rather, on the political process. -------------- GTMO Detainees: "If You Don't Want Them... -------------- ¶4. (C) Judging from recent press statements, DFM Noman has been charged as the public face of ROYG policy on Yemenis at GTMO. Noman told the local media that a "high-profile security delegation" is visiting the U.S. to discuss Yemeni detainees at GTMO and that "50 out of 107 Yemenis in the base are expected to be released." Oddly, Senior Deputy FM Dhabbi contradicted Noman's statement. Dhabbi denied that there was a delegation. "First of all," Dhabbi told the press, "we need to correctly identify detainees who are Yemenis because there are detainees who say they are Yemeni but are not." -------------- ...We Don't Want Them! -------------- ¶5. (C) CDA repeated requests for ROYG assurances needed to facilitate the repatriation of seven Yemeni detainees (ref B). Noman replied that he did not anticipate major problems regarding individuals who are not designated as enemy combatants. As for the others types of potential returnees, "if you don't want them, why should we?" Noman pointed to previous instances of ROYG-USG tension over the release of security detainees over U.S. objections. "If we hold them upon arrival, and then our investigations reveal they have not violated Yemeni law," said the DFM, "you will not be happy when we have no choice but to let them go." -------------- A Mixed Report on SA/LW -------------- ¶6. (S) CDA told Noman that we continue to be concerned about breaches in Saleh's new policy not to issue EUCs to third party arms dealers. The U.S. has seen attempts to implement Saleh's instructions, CDA told the DFM, but there have also been some worrisome exceptions. Noman took this information on board. -------------- Quick Meeting with Qirbi -------------- ¶7. (C) Following his meeting with Noman, CDA was ushered upstairs to meet with FM Qirbi. Qirbi shared his rationale for postponing his July 28-29 visit to Washington, explaining that it was inappropriate for him to leave the country during a time of potential crisis. Qirbi did not seem convinced of an imminent cabinet reshuffle, telling CDA it did not figure into his decision to delay travel. (Note: The previous evening the ROYG issued instructions that Ministers were not to leave the country. The first wave of riots in Sanaa were just beginning to break out at the time of this meeting. Shortly after arriving in Qirbi's office, CDA was ushered out of the MFA by his security detail, anxious to return him safely to the Embassy compound. End Note). Khoury