MBR LOOKING AT DIAMOND CONTROLS

S E C R E T ABU DHABI 001179 SIPDIS SIPDIS DEPT FOR NEA/ARP, EEB/ESC TREASURY FOR OFAC E.O. 12958: DECL: 07/13/2017 TAGS: EMIN ETRD ETTC AE SUBJECT: MBR LOOKING AT DIAMOND CONTROLS REF: SECSTATE 98129 Classified By: Ambassador Michele J. Sison for reasons 1.4 (b & d). ¶1. (S) During a July 15 meeting with UAE Vice President and Ruler of Dubai Sheikh Mohammed bin Rashid Al-Maktoum (MbR), Ambassador expressed appreciation for the UAE's and Dubai's early commitment to the Kimberly Process Certification Scheme (other topics reported septel). Ambassador asked MbR to clarify how the UAE intends to conduct government oversight over diamond industry operations in emirates other than Dubai. Ambassador also noted that the USG takes seriously recent reports of irregularities in the Kimberly Process. ¶2. (S) MbR was very cognizant of the reputational risk to Dubai of problems with the Kimberly Process, and asked for more details on the irregularities. He instructed BG Mohammed Al-Qamzi Director of Dubai's General Department for State Security to look into the issue, stressing that Dubai did not want "bad people" to misuse the system. Al-Qamzi noted that certain countries would try to game the system by either forging Kimberly Process Certificates or making deliberate errors in them in an effort to slip something through. Al-Qamzi said that he would consult with the UAE Central Bank about possible changes to the Kimberly Process Authority to reflect the growth in the UAE's diamond industry. ¶3. (C) On July 16, Ambassador also raised reftel demarche with Yousef Al-Otaiba, International Affairs Director for Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed Al-Nahyan. We will pass copies of UN reports to MbR's staff and Al-Otaiba, follow-up with UAE federal authorities, and report results. SISON