AMBASSADOR DISCUSSES ANTI-CORRUPTION EFFORTS,

C O N F I D E N T I A L SECTION 01 OF 02 SANAA 002129

SIPDIS

E.O. 12958: DECL: 08/03/2015
TAGS: PREL PGOV PTER OVIP KMPI YM KMCC KWAC ECON COM COUNTER TERRORISM
SUBJECT: AMBASSADOR DISCUSSES ANTI-CORRUPTION EFFORTS,
SALEH VISIT WITH FM QIRBI

REF: A. SANAA 1919

B. SANAA 93

C. SANAA 37

D. SANAA 2095

E. SANAA 2123

Classified By: Ambassador Thomas C. Krajeski for reasons 1.4 b and d.


1. (C) Summary. On August 3 Ambassador discussed the
aftermath of the oil price hikes and next steps for ROYG
economic reform and anti-corruption with Foreign Minister
Qirbi. Discussions also focused on the return of Yemeni
detainees from GTMO and Saleh's November meeting with
President Bush. End Summary.

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Riots are Over...But What's Next?
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2. (C) Qirbi said the violent reaction to price hikes in oil
products following partial lifting of subsidies in July was
"all over, hopefully." Ambassador reiterated U.S. support
for the ROYG in implementing of IMF-WB recommended economic
reforms, but suggested that the reaction might have been more
measured if the ROYG had explained to the public the reasons
for and the benefits of reforms, and had introduced the
anti-corruption measures Parliament called for when it passed
the reform package in January (refs A and B). The FM replied
that once Saleh had reached an agreement with leading
businessmen on the General Sales Tax (GST),PM Bajammal did
in fact meet with Parliament and opposition parties to
explain the reforms (ref C). Strong negative reaction from
the public was expected, continued Qirbi, but the eruption of
uncontrolled violence was worrisome and counter productive.
"We are in the process of investigating the instigators,"
added the FM.

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Fighting Corruption
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3. (C) Ambassador suggested to the FM that ROYG failure to
formulate a program to seriously take on corruption
contributed to last month's internal discontent. (Note: DFM
Noman said as much to DCM on August 2, commenting that public
distrust of the government led the public to question how an
increase in public revenues would benefit them (ref D). End
Note). Ambassador said he hoped the ROYG would take
advantage of the MCC Threshold program to make concrete
progress, pointing to the draft plan's focus on fighting
corruption through building an independent judiciary and
creating a national land registry. Qirbi agreed on the
central importance of fighting corruption, adding that a
credible judiciary was of "paramount importance."


4. (C) The only way Yemen can succeed against corruption,
Qirbi told Ambassador, is through an implementation process
that includes the government, NGOs, and opposition parties
working together without the influence of political agendas.
"It will take an effort of national unity," said the FM.

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Yemeni GTMO Returnees
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5. (C) Ambassador raised ROYG reluctance to accept the return
of Yemeni GTMO detainees unless they are designated non-enemy
combatants. Ambassador assured the FM that the U.S.
considered the decision of whether or not these individuals
are ultimately freed or prosecuted entirely a ROYG one. He
suggested, however, that if the security services shared the
results of their investigations and the Attorney General's
Office their reasons for releasing or prosecuting with the
USG, it would lessen the likelihood of a negative USG
reaction to potential releases. Qirbi replied that as the
returnees' cases would be handled according to Yemen laws and
Constitution, he saw no obstacles to sharing this
information.

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Saleh Visit
--------------


6. (C) Ambassador and Foreign Minister discussed beginning
preparations for President Saleh's November meeting with
President Bush. Qirbi said he hoped to reschedule his
meeting with the Secretary before Saleh's trip, and mentioned
that he routinely travels during Ramadan. Ambassador agreed
it would be important for him to visit Washington in advance
of Saleh's trip, focusing on the key issues of CT and
security cooperation and economic and democratic reforms.
Pointing to Saleh's intention to pass a list of his
priorities in the next week or so (ref D),Ambassador
highlighted that if the U.S.-Yemen relationship is to move to
the next level, both sides need to understand what that
entails. A major part of this equation, continued
Ambassador, is a genuine relationship of trust in
intelligence cooperation and sharing.

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Comment: GTMO
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7. (C) Qirbi did not raise the same objections to accepting
the return of seven GTMO detainees as Noman had the previous
day (ref E). On August 2 Vice President Abd Rabbu Mansour
stated "The U.S. must hand over Guantanamo prisoners to their
countries where they can be tried under local laws. We will
try them just as we did those we caught in Yemen." It is not
rare for ROYG officials to make conflicting policy
statements, it appears, however, that the ROYG may be close
to arranging for the return of prisoners from GTMO. End
Comment.
Krajeski