EGYPTIANS DISMISS IDEA TO OPEN IRANIAN-EGYPTIAN

C O N F I D E N T I A L CAIRO 001488 SIPDIS SIPDIS E.O. 12958: DECL: 05/20/2017 TAGS: PREL PGOV ECON ETRD EG IR SUBJECT: EGYPTIANS DISMISS IDEA TO OPEN IRANIAN-EGYPTIAN CHAMBER OF COMMERCE REF: A. IAP20070519950037 ¶B. CAIRO 1442 ¶C. 2006 CAIRO 7512 ¶D. 2006 CAIRO 7208 Classified by Minister Counselor for Economic and Political Affairs William Stewart for reasons 1.4 (b) and (d). ¶1. (C) Summary: Amid continuing press speculation about a warming in Iranian-Egyptian relations, Egyptian trade and diplomatic officials dismiss the likelihood of the establishment of an Iranian-Egyptian Chamber of Commerce. A senior MFA official told PolCons separately that the only person who hates the Iranians more than the Foreign Minister is the President. End Summary. ¶2. (U) The Iranian Students News Agency reported on May 19 that Iran's chamber of commerce announced its readiness to start commercial relations with Egypt and to establish an Iranian-Egyptian Chamber of Commerce. (Ref A, Open Source Center). The story quoted an Iranian chamber official stating that the Egyptians have shown a lot of interest in initiating a new chapter of commercial and economic relations with Iran. ¶3. (C) However, Abd El Rahman Fawzy, First Undersecretary in the Ministry of Trade and Industry, told econoff that there was no possibility of any significant trade developments between Egypt and Iran. Fawzy suggested that Egyptian security services prohibit Egyptian businessmen from dealing with Iran, although "not in writing." ¶4. (C) An MFA official has also downplayed the significance of recent public gestures of goodwill between the nations, arguing that Iran is not yet ready to address Egyptian concerns (ref B). Hesham El Nakib, head of the MFA's Public Affairs department, told Polcouns separately that there is no chance of rapprochement. "The only person who hates the Iranians more than (Foreign Minister) Aboul Gheit is (President) Mubarak," Nakib said. Mubarak has frequently voiced personal animus and suspicions about Iran with interlocutors (ref C and previous.) ¶5. (SBU) In addition, trade officials have maintained that Egyptian businessmen are risk-averse and know little about the murky Iranian market (ref D). At least one Egyptian company has found success in Iran, however. Iran is the biggest export market for Nakhla Tobacco Co., producer of flavored tobacco for water pipes, among the 85 countries that import its products, according to a Nakhla official in Cairo. RICCIARDONE