Identifier
Created
Classification
Origin
07ABUDHABI1389
2007-08-19 13:01:00
SECRET//NOFORN
Embassy Abu Dhabi
Cable title:
(S//NF) IN TOUR OF THE HORIZON WITH U/S LEVEY, UAE
how-toVZCZCXRO4032 PP RUEHBC RUEHDE RUEHDIR RUEHKUK DE RUEHAD #1389/01 2311301 ZNY SSSSS ZZH P 191301Z AUG 07 FM AMEMBASSY ABU DHABI TO RUEHC/SECSTATE WASHDC PRIORITY 9562 INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY RHEHNSC/NSC WASHDC PRIORITY RUCNIRA/IRAN COLLECTIVE RUEHLB/AMEMBASSY BEIRUT 0600 RUEHTV/AMEMBASSY TEL AVIV 0572 RUEHJM/AMCONSUL JERUSALEM 0237
S E C R E T SECTION 01 OF 03 ABU DHABI 001389
SIPDIS
NOFORN
SIPDIS
STATE FOR NEA/IR, NEA/ARP
STATE FOR ISN/CPI, EEB/TFS
TREASURY FOR U/S LEVEY
NSC FOR DAVID STEVENS
E.O. 12958: DECL: 08/19/2019
TAGS: ECON KTFN PTER ETTC PREL PARM AE IR
SUBJECT: (S//NF) IN TOUR OF THE HORIZON WITH U/S LEVEY, UAE
FM ABDULLAH BIN ZAYED RECOMMENDS PRESSURE ON IRAN: "NOT
ENOUGH IS BEING DONE"
REF: ABU DHABI 1388
Classified By: CDA Martin Quinn for reasons 1 (b) and (d).
(1) (S//NF) Summary: In a wide-ranging discussion with
Treasury Under Secretary Stuart Levey, UAE Foreign Minister
Abdullah bin Zayed (AbZ) urged the U.S. to maintain pressure
on Iran, warning that the international community is not
moving fast enough. While cautioning on the limits of overt
UAE action due to its inherent vulnerability and regional
security concerns, AbZ offered to continue quiet outreach to
European and other banks doing business with Iran.
Furthermore, he welcomed U.S. legislation singling out
companies doing business with Iran as a mechanism to force
these enterprises in the UAE to choose between the U.S. and
Iran. AbZ also complained of substantial Qatari financial
support to Hamas, a protest recently echoed by Palestinian
Prime Minister Salem Fayyad, and urged massive Western
support for Palestinian President Abu Mazen. End Summary.
(2) (S//NF) Text: On 13 August 2007, Treasury Under
Secretary Stuart Levey met with UAE Foreign Minister Abdullah
SIPDIS
bin Zayed Al Nahyan(AbZ) to discuss current developments
regarding U.S. and international efforts to financially
isolate Iran. Levey was accompanied by Embassy CDA Martin
Quinn and Treasury Attach Matthew Epstein. AbZ was
accompanied by office director Rashed Al Hareb and MFA
official Saeed Al Muhairi. During the dinner meeting, AbZ
raised a number of regional issues, including: increasing
support for Palestinian Prime Minister Abu Mazen; the new
U.S. Executive Order targeting instability in Lebanon; and
recent U.S. and European attention to sovereign wealth funds.
-------------- --------------
(S//NF) IRGC Sanctions: &We Must Move Fast, as Iran Is
Moving Faster8
-------------- --------------
(3) (S//NF) Regarding U.S. and international efforts to
pressure Iran, AbZ expressed concern that the Iranians seemed
to be "moving much faster" than the measures to put them in
check. AbZ urged the USG to push forward with additional
financial measures, either within the UN, with key allies or
unilaterally if necessary. AbZ stressed the need to maintain
momentum with timely actions and questioned the ability of
the international community to force a change in Iranian
behavior so long as Iran generated significant cash flow from
oil sales.
(4) (S//NF) AbZ believes that Iran is feeling the squeeze
from the UN and U.S. actions. However, he opined that the gas
riots do not indicate broad hardship in Iran. ("Iran is
playing it smart -- essentially making money out of the
situation.") Alternatively, AbZ speculated that the gas
riots ultimately benefited the Iranian regime by increasing
reserves, reducing imports and demonstrating to the world
Iran,s need for non-hydrocarbon sources of energy (nuclear
power).
(5) (S//NF) U/S Levey advised that the U.S. would like to see
additional Iranian banks added to a possible future UNSCR as
a means of increasing financial pressure on Iran. In
particular, U/S Levey noted that Bank Melli could be at risk
of UN action due to its relationship with Iran,s Islamic
Revolutionary Guard Corps (IRGC),an organization whose
leadership was listed on UNSCR 1747, and he passed
information outlining this relationship. U/S Levey suggested
that the UAE clamp down on Melli and Saderat,s UAE branches
in any way possible. AbZ noted that a UN resolution would
provide the UAE with the necessary cover to act against the
banks.
-------------- --------------
(S//NF) AbZ Confirms Quiet Emirati Outreach to European Banks
on Iran
-------------- --------------
(6) (S//NF) Following up on a list of banks provided by the
USG, AbZ confirmed that Emirati investment managers had
ABU DHABI 00001389 002 OF 003
SUBJECT: (S//NF) IN TOUR OF THE HORIZON WITH U/S LEVEY, UAE
FM ABDULLAH BIN ZAYED RECOMMENDS PRESSURE ON IRAN: "NOT
ENOUGH IS BEING DONE"
quietly reached out to several of the listed banks.
Expressing curiosity about "which (international) banks had
reacted badly," he queried whether Treasury had monitored any
reaction. U/S Levey thanked AbZ for this important effort and
noted that at least three European banks on the list recently
announced the cutting of ties with Iran. AbZ requested from
U/S Levey an updated list of institutions of continuing
concern.
-------------- --------------
(S//NF) U/S Levey Warns of Possible Increased Iranian
Financial Activity in Dubai
-------------- --------------
(7) (S//NF) U/S Levey raised the concern that Iran may
increasingly turn to UAE-based banks for financial services
as major international banks wind down their business with
Iran. U/S Levey specifically raised Emirates Bank
International(EBI) as an institution that may be seeking to
exploit the void left by such displacement. U/S Levey
stressed the USG,s desire to work cooperatively on this
issue. Indicating he had been briefed by Central Bank
Governor Sultan Nasser Al Suwaidi and MbZ advisor Yousef Al
Otaiba on the day's earlier conversations (reftel),AbZ
welcomed U/S Levey,s message on EBI and encouraged
additional warnings and information exchanges. (Note: AbZ
also offered that UAE had received information from Swiss
banks that Iranian capital was moving to China, particularly
to China,s &Army Bank8 (NFI). End Note.)
(8) (S//NF) AbZ emphasized the UAE,s characteristic
preference to be &less visible8 and pledged to begin
quietly approaching UAE-based banks. AbZ offered that he
would warn the banks to be vigilant and cautious when dealing
with Iran, but that he could not tell them to cut off Iran
completely without UN cover. Talking tough, ABZ pledged that
no matter how much trade exists between Dubai and Iran, the
UAE will take "huge risks" quietly and close any loopholes
that Iran may attempt to exploit. "The last thing we want,"
declared AbZ, "is for Iran to move its money from Europe and
Switzerland to China and then to Dubai." U/S Levey reminded
AbZ that "nothing would shock Iran more than to have
difficulty moving its money into the UAE."
-------------- --------------
(S//NF) AbZ Welcomes USG Unilateral Secondary Sanctions
Legislation
-------------- --------------
(9) (S//NF) Demonstrating his commitment to maintaining
pressure on Iran, and consistent with his need for external
cover to act, AbZ suggested that Treasury encourage the U.S.
Congress to pass unilateral secondary sanctions on companies
dealing with Iran, including Emirati companies. Such
legislation would require Emirati companies to choose between
Iran and the United States, an action-forcing event that
would be more palatable to the government in Abu Dhabi.
(Comments: Such legislation would likely have a
disproportionate effect on Dubai-based businesses as Dubai
maintains closer commercial ties to Iran compared to Abu
Dhabi,s more limited exposure. AbZ appeared unconcerned
about Dubai,s commercial relations with Iran. End Comment.)
--------------
(S//NF) A Nuclear Iran: Unthinkable for UAE
--------------
(10) (S//NF) AbZ reiterated a familiar UAE leadership
declaration that a nuclear Iran presented a &life or death8
situation for the UAE that cannot be allowed: "We cannot live
with Iranian nuclear bombs." AbZ speculated that a nuclear
weapon would embolden Iran to further destabilize the region
directly by committing terrorist attacks and indirectly by
supporting terrorist proxies in Iraq, Lebanon and the
Palestinian territories. Continuing in this vein, AbZ
nevertheless remarked that if the situation were resolved
peacefully, &so be it.8 (Comment: AbZ's tough talk with
regard to Iran echoes familiar statements -- also in private
-- by his older brother MbZ, but should not be taken as UAEG
ABU DHABI 00001389 003 OF 003
SUBJECT: (S//NF) IN TOUR OF THE HORIZON WITH U/S LEVEY, UAE
FM ABDULLAH BIN ZAYED RECOMMENDS PRESSURE ON IRAN: "NOT
ENOUGH IS BEING DONE"
welcoming of a military resolution of the Iranian nuclear
issue. Being caught in the crossfire between larger powers is
a perennial Emirati concern and anxiety -- perceived as a
tangible threat to the UAE's stable, comfortable way of life.
End Comment.)
--------------
(S//NF) Qatar, Hamas, and Abu Mazen
--------------
(11) (S//NF) Changing the subject to Hamas and the
Palestinian territories, AbZ noted that Qatar was providing
substantial financial aid to Hamas, including a possible USD
$10 million payment to Hamas leader Khaled Mishal in
Damascus. AbZ said that funds are sent to Hamas from the
Government of Qatar itself, as well as Qatar-based charities.
Professing not to know "where the Qataris stand politically,"
AbZ invited the USG to &do something8 about this problem.
(Note: On 10 August 2007, Palestinian Prime Minister Salem
Fayyad similarly complained to U/S Levey of Qatari support
for Hamas and requested U.S. assistance in stopping this
activity. End Note.) AbZ opined that the Hamas take-over of
Gaza was in fact a positive short-to-medium-term development,
ridding the international community of the burden of dealing
with "the poverty and radicalism in Gaza" for a period, while
providing a &golden opportunity8 to engage the "more
rational" Palestinians in the West Bank.
(12) (S//NF) AbZ emphasized the urgent need for the Arab and
international community to continue encouraging the Israelis
and Palestinians in the West Bank to work together. AbZ
highlighted the centrality of the Saudis on this issue and
encouraged strong Saudi support for Abu Mazen: "their support
would give him courage to continue to engage the Israelis."
AbZ believes that for Abu Mazen to succeed, he needs either a
substantial security arrangement with the Israelis, or a
massive aid package (far greater than the USD $500 million
annually provided by Arab countries),preferably led by the
U.S. and Europe. AbZ: "If assistance is not substantial, it
will be meaningless. If it comes only from the Arabs, it
will not be enough. Nothing the Arabs do will seem
sufficient. More help and support must come from America and
Europe."
-------------- --------------
(S//NF) Success of Lebanon Stability Executive Order
-------------- --------------
(13) (S//NF) Turning north to the Levant, AbZ strongly
praised the USG on the recent Executive Order targeting the
forces of instability in Lebanon. AbZ noted that according to
his contacts, many Lebanese politicians and businessmen were
very worried by the actions, particularly as the order was
issued by the President of the United States and just before
the recent elections in Lebanon.
-------------- --------------
(S//NF) Sovereign Wealth Funds: Another Dubai Ports in the
Making?
-------------- --------------
(14) (S//NF) Concluding on an issue close to the heart of Abu
Dhabi, AbZ revealed that the increasing attention on
Sovereign Wealth Funds(SWF) in the U.S. and Europe is
creating concerns in the UAE that a protectionist backlash
could be on the horizon. AbZ emphasized the passive and
non-political nature of the investment activity of Abu
Dhabi,s largest SWF, the Abu Dhabi Investment
Authority(ADIA),and welcomed Treasury DAS Ahmed Saeed,s
upcoming visit to the UAE to discuss these issues in greater
detail.
15. (U) Treasury has cleared this message.
QUINN
SIPDIS
NOFORN
SIPDIS
STATE FOR NEA/IR, NEA/ARP
STATE FOR ISN/CPI, EEB/TFS
TREASURY FOR U/S LEVEY
NSC FOR DAVID STEVENS
E.O. 12958: DECL: 08/19/2019
TAGS: ECON KTFN PTER ETTC PREL PARM AE IR
SUBJECT: (S//NF) IN TOUR OF THE HORIZON WITH U/S LEVEY, UAE
FM ABDULLAH BIN ZAYED RECOMMENDS PRESSURE ON IRAN: "NOT
ENOUGH IS BEING DONE"
REF: ABU DHABI 1388
Classified By: CDA Martin Quinn for reasons 1 (b) and (d).
(1) (S//NF) Summary: In a wide-ranging discussion with
Treasury Under Secretary Stuart Levey, UAE Foreign Minister
Abdullah bin Zayed (AbZ) urged the U.S. to maintain pressure
on Iran, warning that the international community is not
moving fast enough. While cautioning on the limits of overt
UAE action due to its inherent vulnerability and regional
security concerns, AbZ offered to continue quiet outreach to
European and other banks doing business with Iran.
Furthermore, he welcomed U.S. legislation singling out
companies doing business with Iran as a mechanism to force
these enterprises in the UAE to choose between the U.S. and
Iran. AbZ also complained of substantial Qatari financial
support to Hamas, a protest recently echoed by Palestinian
Prime Minister Salem Fayyad, and urged massive Western
support for Palestinian President Abu Mazen. End Summary.
(2) (S//NF) Text: On 13 August 2007, Treasury Under
Secretary Stuart Levey met with UAE Foreign Minister Abdullah
SIPDIS
bin Zayed Al Nahyan(AbZ) to discuss current developments
regarding U.S. and international efforts to financially
isolate Iran. Levey was accompanied by Embassy CDA Martin
Quinn and Treasury Attach Matthew Epstein. AbZ was
accompanied by office director Rashed Al Hareb and MFA
official Saeed Al Muhairi. During the dinner meeting, AbZ
raised a number of regional issues, including: increasing
support for Palestinian Prime Minister Abu Mazen; the new
U.S. Executive Order targeting instability in Lebanon; and
recent U.S. and European attention to sovereign wealth funds.
-------------- --------------
(S//NF) IRGC Sanctions: &We Must Move Fast, as Iran Is
Moving Faster8
-------------- --------------
(3) (S//NF) Regarding U.S. and international efforts to
pressure Iran, AbZ expressed concern that the Iranians seemed
to be "moving much faster" than the measures to put them in
check. AbZ urged the USG to push forward with additional
financial measures, either within the UN, with key allies or
unilaterally if necessary. AbZ stressed the need to maintain
momentum with timely actions and questioned the ability of
the international community to force a change in Iranian
behavior so long as Iran generated significant cash flow from
oil sales.
(4) (S//NF) AbZ believes that Iran is feeling the squeeze
from the UN and U.S. actions. However, he opined that the gas
riots do not indicate broad hardship in Iran. ("Iran is
playing it smart -- essentially making money out of the
situation.") Alternatively, AbZ speculated that the gas
riots ultimately benefited the Iranian regime by increasing
reserves, reducing imports and demonstrating to the world
Iran,s need for non-hydrocarbon sources of energy (nuclear
power).
(5) (S//NF) U/S Levey advised that the U.S. would like to see
additional Iranian banks added to a possible future UNSCR as
a means of increasing financial pressure on Iran. In
particular, U/S Levey noted that Bank Melli could be at risk
of UN action due to its relationship with Iran,s Islamic
Revolutionary Guard Corps (IRGC),an organization whose
leadership was listed on UNSCR 1747, and he passed
information outlining this relationship. U/S Levey suggested
that the UAE clamp down on Melli and Saderat,s UAE branches
in any way possible. AbZ noted that a UN resolution would
provide the UAE with the necessary cover to act against the
banks.
-------------- --------------
(S//NF) AbZ Confirms Quiet Emirati Outreach to European Banks
on Iran
-------------- --------------
(6) (S//NF) Following up on a list of banks provided by the
USG, AbZ confirmed that Emirati investment managers had
ABU DHABI 00001389 002 OF 003
SUBJECT: (S//NF) IN TOUR OF THE HORIZON WITH U/S LEVEY, UAE
FM ABDULLAH BIN ZAYED RECOMMENDS PRESSURE ON IRAN: "NOT
ENOUGH IS BEING DONE"
quietly reached out to several of the listed banks.
Expressing curiosity about "which (international) banks had
reacted badly," he queried whether Treasury had monitored any
reaction. U/S Levey thanked AbZ for this important effort and
noted that at least three European banks on the list recently
announced the cutting of ties with Iran. AbZ requested from
U/S Levey an updated list of institutions of continuing
concern.
-------------- --------------
(S//NF) U/S Levey Warns of Possible Increased Iranian
Financial Activity in Dubai
-------------- --------------
(7) (S//NF) U/S Levey raised the concern that Iran may
increasingly turn to UAE-based banks for financial services
as major international banks wind down their business with
Iran. U/S Levey specifically raised Emirates Bank
International(EBI) as an institution that may be seeking to
exploit the void left by such displacement. U/S Levey
stressed the USG,s desire to work cooperatively on this
issue. Indicating he had been briefed by Central Bank
Governor Sultan Nasser Al Suwaidi and MbZ advisor Yousef Al
Otaiba on the day's earlier conversations (reftel),AbZ
welcomed U/S Levey,s message on EBI and encouraged
additional warnings and information exchanges. (Note: AbZ
also offered that UAE had received information from Swiss
banks that Iranian capital was moving to China, particularly
to China,s &Army Bank8 (NFI). End Note.)
(8) (S//NF) AbZ emphasized the UAE,s characteristic
preference to be &less visible8 and pledged to begin
quietly approaching UAE-based banks. AbZ offered that he
would warn the banks to be vigilant and cautious when dealing
with Iran, but that he could not tell them to cut off Iran
completely without UN cover. Talking tough, ABZ pledged that
no matter how much trade exists between Dubai and Iran, the
UAE will take "huge risks" quietly and close any loopholes
that Iran may attempt to exploit. "The last thing we want,"
declared AbZ, "is for Iran to move its money from Europe and
Switzerland to China and then to Dubai." U/S Levey reminded
AbZ that "nothing would shock Iran more than to have
difficulty moving its money into the UAE."
-------------- --------------
(S//NF) AbZ Welcomes USG Unilateral Secondary Sanctions
Legislation
-------------- --------------
(9) (S//NF) Demonstrating his commitment to maintaining
pressure on Iran, and consistent with his need for external
cover to act, AbZ suggested that Treasury encourage the U.S.
Congress to pass unilateral secondary sanctions on companies
dealing with Iran, including Emirati companies. Such
legislation would require Emirati companies to choose between
Iran and the United States, an action-forcing event that
would be more palatable to the government in Abu Dhabi.
(Comments: Such legislation would likely have a
disproportionate effect on Dubai-based businesses as Dubai
maintains closer commercial ties to Iran compared to Abu
Dhabi,s more limited exposure. AbZ appeared unconcerned
about Dubai,s commercial relations with Iran. End Comment.)
--------------
(S//NF) A Nuclear Iran: Unthinkable for UAE
--------------
(10) (S//NF) AbZ reiterated a familiar UAE leadership
declaration that a nuclear Iran presented a &life or death8
situation for the UAE that cannot be allowed: "We cannot live
with Iranian nuclear bombs." AbZ speculated that a nuclear
weapon would embolden Iran to further destabilize the region
directly by committing terrorist attacks and indirectly by
supporting terrorist proxies in Iraq, Lebanon and the
Palestinian territories. Continuing in this vein, AbZ
nevertheless remarked that if the situation were resolved
peacefully, &so be it.8 (Comment: AbZ's tough talk with
regard to Iran echoes familiar statements -- also in private
-- by his older brother MbZ, but should not be taken as UAEG
ABU DHABI 00001389 003 OF 003
SUBJECT: (S//NF) IN TOUR OF THE HORIZON WITH U/S LEVEY, UAE
FM ABDULLAH BIN ZAYED RECOMMENDS PRESSURE ON IRAN: "NOT
ENOUGH IS BEING DONE"
welcoming of a military resolution of the Iranian nuclear
issue. Being caught in the crossfire between larger powers is
a perennial Emirati concern and anxiety -- perceived as a
tangible threat to the UAE's stable, comfortable way of life.
End Comment.)
--------------
(S//NF) Qatar, Hamas, and Abu Mazen
--------------
(11) (S//NF) Changing the subject to Hamas and the
Palestinian territories, AbZ noted that Qatar was providing
substantial financial aid to Hamas, including a possible USD
$10 million payment to Hamas leader Khaled Mishal in
Damascus. AbZ said that funds are sent to Hamas from the
Government of Qatar itself, as well as Qatar-based charities.
Professing not to know "where the Qataris stand politically,"
AbZ invited the USG to &do something8 about this problem.
(Note: On 10 August 2007, Palestinian Prime Minister Salem
Fayyad similarly complained to U/S Levey of Qatari support
for Hamas and requested U.S. assistance in stopping this
activity. End Note.) AbZ opined that the Hamas take-over of
Gaza was in fact a positive short-to-medium-term development,
ridding the international community of the burden of dealing
with "the poverty and radicalism in Gaza" for a period, while
providing a &golden opportunity8 to engage the "more
rational" Palestinians in the West Bank.
(12) (S//NF) AbZ emphasized the urgent need for the Arab and
international community to continue encouraging the Israelis
and Palestinians in the West Bank to work together. AbZ
highlighted the centrality of the Saudis on this issue and
encouraged strong Saudi support for Abu Mazen: "their support
would give him courage to continue to engage the Israelis."
AbZ believes that for Abu Mazen to succeed, he needs either a
substantial security arrangement with the Israelis, or a
massive aid package (far greater than the USD $500 million
annually provided by Arab countries),preferably led by the
U.S. and Europe. AbZ: "If assistance is not substantial, it
will be meaningless. If it comes only from the Arabs, it
will not be enough. Nothing the Arabs do will seem
sufficient. More help and support must come from America and
Europe."
-------------- --------------
(S//NF) Success of Lebanon Stability Executive Order
-------------- --------------
(13) (S//NF) Turning north to the Levant, AbZ strongly
praised the USG on the recent Executive Order targeting the
forces of instability in Lebanon. AbZ noted that according to
his contacts, many Lebanese politicians and businessmen were
very worried by the actions, particularly as the order was
issued by the President of the United States and just before
the recent elections in Lebanon.
-------------- --------------
(S//NF) Sovereign Wealth Funds: Another Dubai Ports in the
Making?
-------------- --------------
(14) (S//NF) Concluding on an issue close to the heart of Abu
Dhabi, AbZ revealed that the increasing attention on
Sovereign Wealth Funds(SWF) in the U.S. and Europe is
creating concerns in the UAE that a protectionist backlash
could be on the horizon. AbZ emphasized the passive and
non-political nature of the investment activity of Abu
Dhabi,s largest SWF, the Abu Dhabi Investment
Authority(ADIA),and welcomed Treasury DAS Ahmed Saeed,s
upcoming visit to the UAE to discuss these issues in greater
detail.
15. (U) Treasury has cleared this message.
QUINN