Identifier
Created
Classification
Origin
06JEDDAH625
2006-09-25 12:40:00
CONFIDENTIAL
Consulate Jeddah
Cable title:  

YOUNG PRESIDENTS SPEAK THEIR MINDS TO AMBASSADOR

Tags:  PGOV PREL PHUM PINR SA ECON KISL 
pdf how-to read a cable
VZCZCXRO8896
PP RUEHDE
DE RUEHJI #0625/01 2681240
ZNY CCCCC ZZH
P 251240Z SEP 06
FM AMCONSUL JEDDAH
TO RUEHC/SECSTATE WASHDC PRIORITY 9535
INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE PRIORITY
RUEHLO/AMEMBASSY LONDON PRIORITY 1538
RUEHFR/AMEMBASSY PARIS PRIORITY 1617
RUEHRH/AMEMBASSY RIYADH PRIORITY 6852
RHEHAAA/NSC WASHDC PRIORITY
RUEKJCS/DIA WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
C O N F I D E N T I A L SECTION 01 OF 03 JEDDAH 000625 

SIPDIS

SIPDIS

RIYADH, PLEASE PASS TO DHAHRAN; DEPARTMENT FOR NEA/ARP;
PARIS FOR WALLER; LONDON FOR TSOU

E.O. 12958: DECL: 09/25/2016
TAGS: PGOV PREL PHUM PINR SA ECON KISL
SUBJECT: YOUNG PRESIDENTS SPEAK THEIR MINDS TO AMBASSADOR


Classified By: Ambassador James C. Oberwetter, for
reasons 1.4 (b) and (d).

C O N F I D E N T I A L SECTION 01 OF 03 JEDDAH 000625

SIPDIS

SIPDIS

RIYADH, PLEASE PASS TO DHAHRAN; DEPARTMENT FOR NEA/ARP;
PARIS FOR WALLER; LONDON FOR TSOU

E.O. 12958: DECL: 09/25/2016
TAGS: PGOV PREL PHUM PINR SA ECON KISL
SUBJECT: YOUNG PRESIDENTS SPEAK THEIR MINDS TO AMBASSADOR


Classified By: Ambassador James C. Oberwetter, for
reasons 1.4 (b) and (d).


1. (C) SUMMARY: The Ambassador met with several members of
the Saudi chapter of the Young
President's Organization (YPO) on August 20. The group said
Israel,s actions in Lebanon were disproportionate, and
claimed there is growing anti-US sentiment in the Kingdom and
increasing fears
of Iran. They expressed concern about education, Shi,a
discrimination, and the economy,
particularly employment, reforms, modernization, taxes, and
education. The group believes that the
U.S. scholarship program is the single most important
development for the modernization of Saudi
Arabia. END SUMMARY.


2. (C) A group from the Saudi Arabian chapter of
the Young Presidents' Organization (YPO)
sponsored a luncheon for Ambassador Oberwetter on August 20.
Participants represented a diverse array of business
interests, including banking, bakeries and foodstuffs,
construction, auto parts, and diversified
industries. The immediate past president of the Saudi
chapter of the YPO, Hassan I. Alkabbani, hosted the
luncheon.

LEBANON CRISIS


3. (C) Lebanon was arguably the most heated
topic of discussion. All of the Saudis present
agreed that, from the Arab perspective, Israel,s actions in
Lebanon were disproportionate in the extreme and
strongly affected Arab public opinion. The YPO members
commented that U.S. inactivity in the
first weeks of the Lebanon incursion had damaged American
prestige in the Arab world and suggested that all
Arabs, even those with pro-American dispositions, found
America's behavior "deeply disappointing."

PERCEPTION OF HIZBALLAH IN THE KINGDOM


4. (C) One guest observed that, even though

Saudis are not in sympathy with Hizballah, all Arabs
feel a certain satisfaction or pride in Hizballah's
performance. Nevertheless, they expressed
concern that Hizballah was being very foolish by showing
tunnels hidden in private residences in the media.
They felt that those actions only served to support the
Israeli argument that houses had to be destroyed
because they concealed military targets.

PERSPECTIVE ON IRAN


5. (C) Very troubling to the YPO members was
growing publicity regarding Iran in the aftermath
of the Lebanon crisis. Although their remarks were
circumspect, it was clear that all of them
feel that Iran's prestige and power were enhanced by this
crisis and there was obvious fear that Ahmadinejad
would be emboldened to exert Iran's influence in other Middle
Eastern "hot spots."

SHI'A IN SAUDI ARABIA


6. (C) The members admitted the rampant
discrimination of Shi,a in the Kingdom. All agreed that
this behavior is dangerous for the future of the country.
Alkabbani related that, at a past meeting of
the Saudi chapter of the YPO, they had invited a Shi'a
scholar to speak about the differences between
Sunni and Shi'a. He admitted that they were surprised by how
little doctrinal difference actually
existed between the two sects -- despite deeply embedded
racial and social distinctions.

SAUDI ECONOMY


7. (C) Saudi Arabia's accession to the WTO was
an encouraging event, said participants, in that
it assures that Saudi Arabia will adhere to prevailing
international business standards. On the other
hand, they were openly contemptuous of the SAG,s Saudization

JEDDAH 00000625 002 OF 003


policy. They said that Saudis lack the education
and experience to fill most modern jobs. One asserted that
many of the foreign workers will work for
so little money that a Saudi simply can not compete. There
was also consensus that unemployment for youth
remains a big problem and is a potential threat to the
Kingdom,s stability. They empathized with the youths who
emerge with a degree which, even if it represents a
practical education, will afford few opportunities. The
Ambassador concurred and reminded them that,
historically, small and medium sized businesses are the prime
creator of employment, recommending that they
and the Government make every effort to promote such
enterprises.


8. (C) The members agreed that King Abdullah,s
reform agenda is positive, but cautioned that a
significant portion of the population will not accept large
reforms in the Kingdom. One criticism was
that King Abdullah,s economic reforms do not amount to a
coherent development plan for the Kingdom. The
Government has announced many large projects as part of a
major infrastructure development
program for the Kingdom. Large sums are being invested in
projects such as the multi-billion Saudi Riyal
(SR) Jeddah Redevelopment Plan, King Abdullah Economic
City, Jubail, Yanbu, and a number of new universities.
However, they said, it is not enough, "to
recreate Dubai" in various places in Arabia.

SAUDI EDUCATION


9. (C) The members criticized the textbooks and
curriculum in the Saudi education system. One
speaker referred to the widespread criticism by foreigners of
Saudi textbooks, noting that textbooks are
improving, but that most teachers know "absolutely nothing"
because they are educated in religion and little
else. As an example, he cited the history curriculum, which
is limited to Islamic history and the founding of
Saudi Arabia. "How," he protested, "can you
understand the world when all you have been taught is Islamic
history and the founding of Saudi Arabia?" For this
reason, they all commented that the U.S. scholarship program
is the single most important development for
the long-term modernization of the nation. Only through such
experience, they feel, can Saudis cultivate
the knowledge and tolerance to fully integrate into
the international community.


10. (C) The Saudis were all impressed when the
Ambassador told them the number of scholarship
students that had been processed in the past year for study
in the United States exceeded 13,000. They were
equally pleased to learn that the scholarship program is
being accelerated and that more students are
preparing for scholarships in the U.S., Europe, and Australia
this coming year.

JUDICIAL SYSTEM


11. (C) The Saudi judicial system, or rather
lack thereof, was clearly identified as a barrier
to progress and interaction with the rest of the world.
One businessman complained about the incompetence
of judges. "They are trained in religion, not law," he
contended. Additionally, they appeared to be
frustrated with the lack of formal procedures in the
courtroom. Another critic contended that a
major problem is that judges do not recognize the authority
of
Precedents, saying that they all revert back to
basic Islamic principles to make a decision.
Another suggested that cases were often decided on the
personal preference or whim of a judge, rather
than based on well-defined rules of law. He also insinuated
that gifts or influence could affect a ruling.

MUNICIPAL COUNCILS


12. (C) In response to the Ambassador's inquiry,
one of the businessmen said that the local
council, partially elected with much fanfare last year, was

JEDDAH 00000625 003 OF 003


meeting, but he dismissed its
success. "It doesn't do anything and has no power," he said.
Another of the participants observed that he
would like to see a free election for the mayor and that the
office should be reconstituted on the lines of
the "strong mayor" model employed in some American cities.


13. (C) One member also said that he would
willingly pay taxes to the municipality if it could
reliably provide municipal services, such as water, sewer,
traffic control, police, and fire protection.
(Note: At present, Saudis pay no taxes and most municipal
services that are not free are provided at
heavily subsidized rates. The director of the Jeddah
Governorate water agency recently said that
Saudi water was subsidized to the point that a tanker-truck
of potable water cost approximately SR 25, c. USD
6.67. End

(NOTE.) Another interjected that Saudi
businessmen, such as themselves, would support taxes for
those services they wanted but would not support general
taxes because "it isn't in our
interest."


14. (C) COMMENT: The Young Presidents represent
Saudi Arabia,s westernized business elite.
Most are scions of prominent merchant families - few are
self-made men and all speak English. Their
comments reflect what we have heard from other interlocutors,
as well as some of the criticisms that are
appearing in the Saudi press. This discussion is further
evidence of the desire among liberals for the
kinds of initiatives currently being undertaken or explored
by the SAG, i.e., the establishment of exchange
and scholarship programs, as well as judicial and
educational reform. Additionally, the comments made by this
group of young Saudis support the importance of
bilateral efforts such as the Strategic Dialogue, which are
aimed at these types of reforms. END COMMENT.

OBERWETTER
TONEY