DEPSEC KIMMITT DISCUSSES IRAQ COMPACT, IRAN WITH

S E C R E T ABU DHABI 003619

SIPDIS

NOFORN
SIPDIS

STATE FOR EB A/S DSULLIVAN, NEA/FO, NEA/ARP, NEA/I, T, ISN
TREASURY FOR DEPSEC RKIMMITT, DAS ASAEED, U/S SLEVEY
NSC FOR DMCCORMICK, EABRAMS, NRAMCHAND

E.O. 12958: DECL: 09/12/2016
TAGS: PGOV PREL EAID ETTC MNUC PARM EINV IR IQ AE
SUBJECT: DEPSEC KIMMITT DISCUSSES IRAQ COMPACT, IRAN WITH
FOREIGN MINISTER ABDULLAH

REF: A. ABU DHABI 3565


B. ABU DHABI 1422

C. STATE 120913

D. ABU DHABI 2358

Classified By: Ambassador Michele J. Sison, reasons 1.4 b and d.


1. (S) BEGIN SUMMARY. Treasury Deputy Secretary Robert
Kimmitt met with Foreign Minister Abdullah bin Zayed al
Nahyan (AbZ) on September 10 to thank him for the UAE's
hosting of the Iraq Compact Preparatory Group meeting. AbZ,
who had just met with Iraqi Deputy PM Barham Salih,
emphasized the UAE's commitment to the Compact process.
After AbZ conveyed the UAEG's concerns over Iranian
intentions, DepSec Kimmitt briefed him on U.S. action against
Iran's Bank Saderat and discussed the export control and
transshipment challenges the UAE faces. Although AbZ
acknowledged the U.S. request for UAE participation in the
land-based component of the planned October Leading Edge PSI
exercise, he made no commitment. AbZ also raised Dubai Ports
World and DPW's efforts to sell P&O Ports North America. END
SUMMARY.


2. (S) On September 10, DepSec Kimmitt, EB A/S Dan Sullivan,
Treasury DAS Ahmed Saeed and Ambassador met with Foreign
Minister AbZ to review the progress made during that day's
Iraq Compact Preparatory meeting, hosted by the UAE. The
Compact was an Iraqi effort, he emphasized, and Deputy PM
Barham Salih had laid out an ambitious work plan focused on
political, security, and economic goals, including progress
on the fuel import, investment and hydrocarbon laws. The
goal of the Iraq Compact would now be to keep up with Iraq,
Kimmitt noted. AbZ emphasized that the UAE wished both to
help Iraq and to "help our American friends" help Iraq.


3. (S) However, it was important to counter the Iranian
threat, AbZ stressed. "Even without a bomb, Iran is a threat
to the region...they are manipulating the world," AbZ
exclaimed. It would be "smart to make Iran weaker by
chopping off its allies" in Lebanon, Central Asia, and
Afghanistan, he continued. The UAE and other Gulf states
"sit on top of a very source of life to the rest of the world
-- oil," AbZ noted. "We can't allow Iran to get hold of
this." DepSec Kimmitt described USG moves to cut off
Iran-based Bank Saderat from the U.S. financial system and
shared U.S. concerns that Iranian banks had facilitated
financial transactions related to procurement for Iran's
ballistic missile and nuclear programs. The discussion then
moved to the importance of an export control regime and the
challenges face by the UAE on Iran-related transshipment
cases. As he had in an April 2006 meeting with Under
Scretary for Arms Control and International Securit Robert
Joseph, AbZ asked that UAE be seen as "a last resort" in
dealing with such transshipment cses (ref B). Ambassador
took the opportunity toremind AbZ of the pending request for
UAE particpation in the U.S.-hosted Proliferation SecurityInitiative "Leading Edge" exercise (ref C). AbZ acknowledged
the request but made no commitment.

4. (S) The Foreign Minister then turned to the P- 1 Iran
incentives/disincentives package. He wa clearly still
rankled that the USG had been unale to provide detailed
information to the GCC over the inclusion a security element
in the package(ref D). The U.S. and the EU had "kept the
GCC in the dark," he complained, and it had in the end been
Iran which shared a copy of the package with the UAEG. "We
did not understand why our friends had gone and talked to our
enemy Iran, on regional security."


5. (S) AbZ then turned to the Dubai Ports World issue,
citing the August 31 letter that the company had written to
Members of Congress providing an update on the sale of P&O
Ports North America. AbZ noted that although the UAE was
looking at various other investment opportunities in the
United States, DPW "had made us hesitant."


6. (U) This message has been cleared by EB A/S Dan Sullivan
and DepSec Kimmitt.
SISON