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

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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

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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