BAHRAIN: MAY 6 GCC HEADS OF STATE CONSULTATIVE

S E C R E T MANAMA 000797 SIPDIS SIPDIS E.O. 12958: DECL: 05/06/2016 TAGS: PREL PGOV PTER MOPS BA REGION BILAT OFFICIALS SUBJECT: BAHRAIN: MAY 6 GCC HEADS OF STATE CONSULTATIVE MEETING REF: A. WHITE HOUSE DTG 051219Z MAY 06 ¶B. STATE 68574 Classified by Ambassador William T. Monroe for reasons 1.4 (b) and (d). ¶1. (S) In a meeting covering several subjects (septels),the Ambassador May 6 delivered Ref A letter from the President and Ref B demarche on the GCC heads of state Consultative Meeting to Foreign Minister Shaikh Khalid bin Ahmed Al Khalifa a few hours before the Minister and King Hamad departed for the meeting. Shaikh Khalid was pleased to receive the letter and demarche and pledged to pass the package to the King. Delivering Ref B oral points, the Ambassador stressed that Bahrain should take concrete, tangible steps to support the new Iraqi government. It should issue positive statements, invite the Iraqi Foreign Minister to visit Bahrain, Shaikh Khalid could visit Baghdad, there could be reciprocal visits of business leaders, and Bahrain could send an Ambassador to its embassy in Baghdad. ¶2. (S) Shaikh Khalid said that Bahrain welcomed developments in the political system in Iraq, especially the choosing of a prime minister. The GOB will issue a positive public statement when a government is formed. At the Consultative Meeting, the heads of state will discuss development of a GCC statement welcoming the government, to be issued following government formation. Bahrain wants the GCC to offer support for and contact with all Iraqis, Sunni, Shia, and Kurd. The GCC should not leave the field open for Iran to interfere. ¶3. (S) On Iran, Shaikh Khalid said the primary outcome of the Consultative Meeting would be a common GCC position on Iran. He said the GCC needs to be firm on the nuclear issue. If there is a confrontation, Iran should know that the GCC holds it responsible for the consequences. Iran did not consult with the GCC when it launched its nuclear program, with a reactor on the shores of the Gulf. The Foreign Minister said Bahrain is concerned and worried, and the GCC states need to show that they are in full agreement with each other on Iran. He continued that Bahrain is working hard internally to prepare itself for the worst - a major regional confrontation or Iranian attack. ¶4. (S) The Ambassador stated that the U.S. was pursuing the diplomatic channel to address the nuclear issue. At some point, it is very possible that we will be looking at ways to increase the pressure on Iran, through targeted sanctions or travel restrictions imposed by the UN or the international community. Iran has launched a campaign of engagement with countries in the region, sending senior officials on visits and talking publicly about the possibility of deals on natural gas. The countries in the region will have decide what to do if/when there are sanctions. ¶5. (S) Shaikh Khalid replied that Bahrain would apply sanctions against Iran if they are the result of UN Security Council resolutions, and therefore have "international legitimacy." If necessary, the GOB will close Iranian banks in Bahrain. Bahrain has no problem with applying sanctions, he said. Shaikh Khalid cautioned, however, that the U.S. should be careful about Dubai. He said the Dubai - Iran sea passage would be a busy thoroughfare, "like Route 66," for smuggled goods. MONROE