UAE CREATES "COMMODITY CONTROL COMMITTEE"

C O N F I D E N T I A L SECTION 01 OF 04 ABU DHABI 000275

SIPDIS

SIPDIS

DEPT FOR ISN A/S ROOD, PMCNERNEY, RPAN, CRUSSELL
COMMERCE FOR WWYSONG

E.O. 12958: DECL: 02/15/2017
TAGS: PREL PGOV ETTC IR AE
SUBJECT: UAE CREATES "COMMODITY CONTROL COMMITTEE"

Classified by Ambassador Michele J. Sison for reasons 1.4
(b and d).


1. (C) SUMMARY: On 14 February, the UAE provided a letter
outlining the creation of a federal "Executive Committee
on Commodity Control Procedures" to manage and oversee
UAE export controls. The committee shares most of its
objectives and many of its members with the existing
Counterproliferation Task Force (CTF). Post intends to
deliver the draft response para 6 below. (NOTE: ISN A/S
Rood will co-chair the next CTF on March 1 in Abu Dhabi.)
END SUMMARY.

Establishing a New "Commodity Control Committee"
-------------- ---


2. (C) On 14 February, Yousef Al Otaiba, Director of
International Affairs for the Office of the Crown Prince
of Abu Dhabi, sent a letter -- copied below -- to the
Ambassador announcing the creation of a new "Executive
Committee on Commodity Control Procedures" to strengthen
export control laws, procedures and enforcement.
According to the letter, "the new committee will have
clear oversight and management responsibility of the
United Arab Emirates' export control procedures."


3. (C) The letter lays out nine objectives for which the
committee will have oversight. The objectives are
strikingly similar to those provided by the UAEG in the
first Counterproliferation Task Force (CTF) Meeting. The
objectives can be collectively grouped into several
areas: preventing the exploitation of UAE territory for
illegal shipping purposes, federal and local
coordination, ensuring proper training and resources, and
following international standards.


4. (C) The letter includes a list of committee members --
many of them already CTF members, including the same
chairman and deputy. Notably absent are representatives
from the Ministry of Foreign Affairs and Ministry of
Economy. Significantly, the letter also includes Abu
Dhabi-based State Security and the Abu Dhabi Crown Prince
representatives.


5. UAE Export Controls Letter

BEGIN TEXT:

13 February 2007

Saqr Ghobash
UAE Ambassador
United States
Washington, D.C.

Michele J. Sison
USA Ambassador
American Embassy
Abu Dhabi

Subject: Export Controls

Dear Ambassadors:

As you know, the UAE is committed to stopping the
transshipment of sensitive and controlled goods and
technologies through our seaports and airports.
Consistent with that obligation, I wanted to make you
aware of the UAE government's enhanced initiatives to
strengthen export control laws, procedures, and
enforcement.

With the region's largest seaport and airport, we
acknowledge the difficult challenge and accept the
critical responsibility to deter illegal transshipment.
It is a challenge not unfamiliar to the United States as
it works to enhance its own export control procedures and
enforcement. As we have in the past, both nations will
benefit from close cooperation and joint initiatives in
this area. Together, we both recognize that preventing
the flow of illegal and sensitive goods is essential to
the security and stability of the region and to each of
our nations.

The most important element of the enhanced initiative is
the creation of a new Executive Committee on Commodity
Control Procedures. The new Committee will have clear
oversight and management responsibility of the United
Arab Emirates' export control procedures. Attached is a

ABU DHABI 00000275 002 OF 004


full list of the Committee members.

Specifically, the Committee will assure that the
standards and resources are in place to:

1.QCheck that inspection procedures are properly
maintained.
2.QAssess inspection procedures of incoming, outgoing,
transit and stocked goods and propose such envisioned
development as to avoid loopholes.
3.QEstablish field teams for control, follow up and
reporting on inspection procedures at harbors and duty-
free zones.
4.QEstablish a data base with direct access to security
apparatuses nation-wide in order to check data on
company, individuals and items imported, exported or
re-exported. This will ensure easy and quick access of
information and support decision-making process.
5.QStrengthen coordination among such bodies as Customs
and involved organizations.
6.QStreamline procedures and ensure that any outstanding
or future ones will not undermine UAE commercial and
economic privileges considered part and parcel of
national security.
7.QFollow up pertinent international standards and
experiences to shortlist suggestions suitable to UAE
conditions without undermining state security and solid
UAE international commercial position.
8.QSolicit such technical help as to secure outlined
objectives.
9.QReceive and follow up pertinent subjects and requests.

Whilst the committee's responsibilities are relevant to
all trading partners Q and fall within the context of a
comprehensive UAE Federal export control law in its final
stages of drafting Q the committee's role has particular
relevance to the United States in light of earlier
specific cooperative efforts between our two countries to
strengthen export controls including:

Dubai Port joining the U.S. Container Security Initiative
(CSI) Dubai Port joining the Department of Energy's
Megaports Initiative The UAE Cabinet's approval in June
2005 of the country's adhesion to the International
Convention on the Suppression of Terrorism and
International Convention on the Suppression of Acts of
Nuclear Terrorism Dubai Ports World joining a federal
pilot program to test the methods used to screen U.S.-
bound cargo for radiation (December 2006)

As always, we value the close cooperation and support of
the United States in deterring the shipment of sensitive
goods. With this in mind, we do have some concerns about
U.S. intelligence and enforcement procedures;
specifically relating to a need for the relaying of more
timely and accurate information. We have a shared goal
and I am sure you will agree that this can only be
achieved with the right intelligence received at the
right time.

The representation of the UAE's Executive Committee on
Commodity Control Procedures is reflective of the
Federal, cooperative and comprehensive approach that is
being taken by the UAE in relation to enhanced export
control.

I would welcome the opportunity to discuss our
initiatives and concerns with you directly.

Yours sincerely,

/s/
Yousef M. Al Otaiba
Director of International Affairs

cc:
H.E. Khaldoun Khalifa Al Mubarak,
Chairman of the Executive Affairs Authority
Ministry of Interior
Federal Customs Authority
Ports Customs & Free Zone Corporation
Ministry of Justice
General Headquarters of Dubai Police
Chief of Staff Office,
UAE Armed Forces General Headquarters

Committee Members

Brigadier Mohammed Ahmed Da'en El-Qumzy, General

ABU DHABI 00000275 003 OF 004


Headquarters of Dubai Police, as Chairman.

Brigadier Abdul Aziz Maktoum El-Sharify, Director,
Preventive Security, Ministry of Interior, as Vice-
Chairman.

Yousef Manai Al Otaiba, Director of International
Affairs, Abu Dhabi Crown Prince Court, as Member.

Director/Acting Director of Customs Organization, as
Member.

Director/Acting Director of Dubai Customs, as Member.

Counselor Dr. Mohammed Abdul Rahim El-Awady, Assistant
Undersecretary for International Cooperation and
Planning, Ministry of Justice, as Legal Adviser.

Colonel Hamad El-Shamsy, State Security, as Member.

Lieutenant Colonel Dr. Riyadh Mohammed Khalfan Balhoul,
General Headquarters, Dubai Police, as Rapporteur.

Major Mansoor Abdullah Mohammed El-Bastaky, General
Headquarters, Dubai Police, as Member.

Representative for the Armed Forces (Border Guards),as
Member.

END TEXT.

Draft Response to UAEG
--------------


6. (C) Post believes this new committee duplicates much
of the work of the UAE CTF Team and excludes several
important ministries with roles in UAE export control
regulations. Post proposes to respond to Al Otaiba with
a letter asking for clarification on several issues. We
will also suggest including the members from the new
committee in the March 1 CTF meeting to avoid duplicate
efforts.

Begin text of draft response:

"The US Government appreciates the desire of the UAE
Government to strengthen its export controls and
enforcement and greatly appreciates the opportunity to
discuss the initiatives laid out in your February 13
letter. The news of the UAE export control law Qbeing in
its final stages of draftingQ is encouraging and we look
forward to its enactment.

The US applauds UAE initiatives to prevent the flow of
illegal and sensitive goods but is unclear about how the
creation of the new Executive Committee on Commodity
Control Procedures will interact with the UAE's existing
Counterproliferation Task Force (CTF) team. However, it
appears that the two entities have the same goals and
largely the same members. We are also concerned about
how the US will interact with the new committee because
the US Department of State's counterpart -- the Ministry
of Foreign Affairs -- and the US Department of Commerce's
counterpart -- the UAE Ministry of Economy -- are both
absent from membership on the new Committee. In the U.S.
Government system, both the Departments of State and
Commerce play significant roles in the export controls
area.

In the interest of expanding this important dialogue, the
US suggests that those members of the Executive Committee
on Commodity Control Procedures who are not
Counterproliferation Task Force members -- such as
Ministry of Justice, Dubai Customs, State Security, an
Armed Forces representative, and yourself -- be included
in the existing CTF and that these individuals/agencies
also attend the scheduled March 1 CTF meeting.

We value the continuing dialogue on this matter of
importance and look forward to working together towards
our common security and nonproliferation goals."

End draft response.


7. COMMENT: Given upcoming CTF, Post would welcome any
additional feedback from ISN on this latest development.
Al Otaiba telephoned Ambassador February 12 on the eve of
his departure on a private trip to the United States to
report that Abu Dhabi Crown Prince Mohammed bin Zayed had

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made the decision to create a "new export controls
committee" to meet U.S. export controls concern.
Ambassador responded that although the US appreciated the
Crown Prince's continuing attention to export controls
issues, we needed clarification on the role of the new
committee vis-`-vis the existing CTF. She also noted
that actions such as the passage of a UAE export controls
law, shutdown of Mayrow and affiliated companies and
action on the 2/13 arrival of the MSC Joanna (U.S. origin
test equipment destined for Syria) would also do much to
address U.S. concerns. Nonetheless, Embassy welcomes the
inclusion of stronger Abu Dhabi participation in the
export controls/counterproliferation dialog. END
COMMENT.

SISON