CODEL SHAYS MEETS MINISTER OF ECONOMY, DISCUSSES

C O N F I D E N T I A L SECTION 01 OF 02 DUBAI 002297 SIPDIS SIPDIS E.O. 12958: DECL: 4/22/2016 TAGS: ECON PREL PGOV IR IZ AE SUBJECT: CODEL SHAYS MEETS MINISTER OF ECONOMY, DISCUSSES RADICALIZATION, INVESTMENT DUBAI 00002297 001.2 OF 002 CLASSIFIED BY: Jason L. Davis, Consul General, Dubai, UAE. REASON: 1.4 (d),(e) 1.(C) SUMMARY: On April 19, U.S. Representative Christopher Shays (R-CT) visited Dubai to learn more about moderate Arab states, and to discuss regional radicalization, Iraq, and port security. Sheikha Lubna Al Qasimi, Minister of Economy, told Shays the UAE is the model moderate Arab state, and conveyed the importance of the Doncasters Group deal to UAE investors. Sultan bin Sulayem, Executive Chairman of the Ports, Customs and Free Zone Corporation outlined how the UAE prevents radicalism from taking root and advised that Iraq and Iran be handled very differently. The CODEL visited DHS's Container Security Initiative operation at Port Rashid and were given a demonstration of its capabilities. On the margins of the CODEL meetings, Dubai Customs agreed to participate in the Tactical Cash Courier Operation plan in May 2006, targeting couriers who knowingly evade UAE currency reporting requirements. END SUMMARY. 2.(U) On April 19, U.S. Representative Christopher Shays (R-CT) visited Dubai to learn more about moderate Arab states, discuss regional radicalization, Iraq, and port security. He was accompanied by two congressional staff members, Dr. Nicholas Palarino, Senior Policy Analyst, Subcommittee on National Security, Emerging Threats and International Relations, Michael McCarthy, Minority Counsel, Committee on Government Reform. Ambassador, Consul General, DHS Immigration and Customs Enforcement Attache, and PolEconoff (notetaker) joined his meetings with UAE officials. UAE "Model" Moderate Arab States -------------- 3.(C) Over lunch, Representative Shays asked Sheikha Lubna Al Qasimi, Minister of Economy, what a moderate Arab state looks like. Sheikha Lubna replied "The UAE." When the Congressman expressed concern about numerous high-profile issues -- ranging from the November 2005 hotel bombing in Jordan and violence resulting from the Prophet Mohammad cartoons, to the recent case of the Christian convert prosecuted in Afghanistan -- Sheikha Lubna responded that these places are not the UAE and these types of activities do not take place here. Sheikha Lubna said she and the UAE government were appalled by these kinds of events and work to prevent them in the UAE. 4.(C) In a separate meeting, Sultan bin Sulayem (SBS),Executive Chairman of the Ports, Customs and Free Zone Corporation -- the holding entity of Dubai Ports World -- also stressed that the UAE had remained above the cartoon fray. SBS, who has close contact with Sheikh Mohammad bin Rashid -- UAE Vice President and Prime Minister and Ruler of Dubai -- as well as other cabinet officials, said the governments in certain countries had been behind the large protests and violence. "All you saw were illiterate people motivated by politicians," he observed. In the UAE, however, there were no riots, and the country maintained its moderate stance, because government officials promote dialogue with residents and "convince them using logic rather than religion." SBS said security in the UAE is achieved by keeping a close eye on troublemakers and those who would pollute the minds of the people. He stated that the UAE does not allow religion to be used as a method to radicalize or control the populace. Iraq and Iran -------------- 5.(C) SBS told the CODEL the worst action the US could take in Iraq would be to pull out its forces any time soon. He believes establishing a strong, permanent military base in Iraq would help convince insurgents they cannot win by waiting the US out; it would also reassure Gulf States concerned about Iran's spreading influence. Equality and fairness in dealing with all Sunni and Shia in Iraq -- including former Baathists -- is the only way to ensure success, but a strong leader is needed. He claimed Iraq is an excellent example that change cannot be forced from outside, but must come from within. Right now there is "total freedom," which the Iraqi people are not capable of handling. Even the focus on rule of law, which sounds good in principle, is a problem in Iraq, because people take advantage of the fact that they are unlikely to be made to pay for their DUBAI 00002297 002.2 OF 002 crimes. "Even in the U.S., with 200 years of experience in democracy, there are people who take advantage -- imagine how it is in Iraq," he exclaimed. 6.(C) SBS said Iran, with a population that lacks a catalyzing hatred towards a brutal leader like Saddam Hussein, would be much more difficult for the U.S. to deal with by military force. SBS said the Iranian people had been divided between the very rich and the very poor under the Shah; now they have equality in that "they are all poor." Despite this, there are no beggars, and "everyone is working hard -- sometimes at two or three jobs." SBS said Iranians believe in their democracy, particularly after having just elected a President who had been a "nobody" until he won an election by vowing a fight against corruption. Doncasters Deal Important to UAE Investors -------------- 7.(C) Sheikha Lubna told the CODEL the most important issue facing her at this time is the ongoing CFIUS review of Dubai International Capital's purchase of Doncasters Group. She believes better communication with both Congress and the American people about what this purchase entails is necessary. Sheikha Lubna, who traveled to the US in March to discuss this and other issues with US officials, stressed that UAE businesses are still seeking to invest in the US, but need to know they will not be met with undue resistance. She assured the CODEL that Dubai International Capital will protect the patent and intellectual property rights of Doncasters Group. CODEL Visits Port Rashid -------------- 8.(U) At Dubai's Port Rashid, the CODEL met with Hamad Al Mazroui, Director General of Dubai Customs International and Mohammed al Marri, Dubai Customs Executive Director of Operations. Mazroui said Dubai historically had had a poor security reputation, but the present reality is quite different. He spoke about international coordination, the Container Security Initiative, a joint cash courier interdiction program soon to be undertaken with DHS, and the importance of good security in terms of protecting investment in Dubai. Al Marri added that in managing the port facility in Djibouti, Dubai Ports World and Dubai Customs coordinators have increased customs receipts there by 40 percent, merely by eliminating corruption. The CODEL visited the Container Security Initiative office, which is located at Dubai Customs headquarters at Port Rashid, and learned how all containers bound for the U.S. are scrutinized and selected for scanning. Dubai Customs gave the CODEL a demonstration of its mobile scanning equipment and the fixed scanning station at Port Rashid. Dubai Customs Agrees to Operation Targeting Cash Couriers -------------- -------------- 9.(C) On the margins of the meeting with SBS, Ambassador and ICE Attachi presented to him the Tactical Cash Courier Operation plan. SBS immediately agreed and at his request, the plan was discussed with Al Marri at Dubai Customs who also gave his approval. The primary goal of the operation is to target cash couriers destined for Dubai who knowingly evade UAE currency reporting requirements. DHS will work side by side with Dubai Customs to target three high-risk flights daily, for approximately one week in May 2006, after which the operation will be re-evaluated. DAVIS