DFM DISCUSSES SALEH VISIT WITH AMBASSADOR

C O N F I D E N T I A L SECTION 01 OF 02 SANAA 002377

SIPDIS

E.O. 12958: DECL: 08/14/2015
TAGS: PREL PGOV PTER ECON KAWC YM COUNTER TERRORISM ECON COM
SUBJECT: DFM DISCUSSES SALEH VISIT WITH AMBASSADOR

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


1. (C) Summary. On August 14, Deputy Foreign Minister
Mohiedeen Al-Dhabi and Ambassador discussed cooperation ahead
of President Saleh's scheduled visit to Washington in
November and current ROYG efforts to combat corruption. End
Summary.

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Saleh's Visit: What Can We Do?
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2. (C) Dhabi expressed the ROYG's commitment to cooperating
closely with the Embassy in advance of Saleh's visit to
Washington. By working together to address issues of
concern, Al-Dhabi hoped that the visit would generate real
proposals that would strengthen the bi-lateral relationship.
Ambassador thanked the DFM for the high level of commitment
and looked forward to working closely with him in the months
ahead. He stressed the importance of both sides
understanding each other's expectations, so that the meeting
between President Bush and President Saleh would result in
substantive commitments.

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Counter-terrorism: More Commitment Needed
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3. (C) In an effort to focus ROYG preparation, Al-Dhabi
inquired what the main USG goals for the meeting would be.
Ambassador replied that the most significant topics will be
counter-terrorism (CT) and security cooperation, economic
development, and democratic reform. On CT cooperation,
Ambassador stressed the need to transform the relationship,
especially in regards to intelligence sharing, from
situational cooperation on specific high profile issues into
one that involves constant and sustained interaction. The
USG is committed to raising the bi-lateral relationship to
the level of other close regional allies, he continued, but
the ROYG must first demonstrate a higher level of commitment
than currently seen.

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Economic and Democratic Reform: Anti-Corruption Efforts Key
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4. (C) While CT and strengthening the security relationship
remains paramount, the Ambassador added that economic
development and finalization of the MCC Threshold Plan would
also figure prominently. The ROYG must be serious about
curbing corruption, he stressed, before real economic
development can occur. The USG is prepared to publicly
support the ROYG's reform efforts, such as the recent
reduction in fuel subsidies (ref A),but will become vocal if
concrete action against corruption does not materialize.
Al-Dhabi added that the public is also concerned with the
lack of progress on corruption and their disappointment will
only increase after they learn the cabinet will not be
shuffled following the recent riots related to higher fuel
prices. (Comment: Reshuffling the cabinet would serve as a
signal that someone was held responsible for corruption and
thus, the lack of funds available to subsidize fuel. While
Al-Dhabi is a knowledgeable interlocutor, post has received
no confirmation from other sources that Saleh has decided
against a reshuffle. End Comment).


5. (C) Reshuffling aside, Al-Dhabi replied that Saleh is
getting tough on corruption. He described a recent meeting
with Saleh and high-level government officials responsible
for everything related to the investment climate, in which he
berated the various agencies for their corrupt practices that
were enumerated in detail to the surprised audience. His
comments were so strong, according to Al-Dhabi, that the
meeting could not be shown on television. Ambassador
applauded the tough comments, but stressed the need for the
ROYG to start taking action to halt well-known corrupt
practices throughout the bureaucracy.

6. (C) Democratic reform will also be discussed, said the
Ambassador, as Yemen's role as an example for the region is
even more important with the USG's increased focus on
democratic development in the Middle East.


7. (C) Comment: Saleh designated Al-Dhabi as the official
responsible for visit preparations and developing ROYG policy
statements. Al-Dhabi appears to be genuinely interested in a
full and frank discussion of the issues. He also understands
the difficult decisions the ROYG must make if Yemen wants to
enjoy the same level of cooperation as Jordan or Pakistan,
for example. Post will work closely with Al-Dhabi and other
key officials and interlocuters in the coming months to
ensure the ROYG clearly understands USG priorities and
expectations in advance of Saleh's White House visit. End
Comment.



Krajeski