AMBASSADOR AND PM HAIL RECORD TRADE LEVEL IN 2006

C O N F I D E N T I A L MANAMA 000152 SIPDIS SIPDIS E.O. 12958: DECL: 02/15/2017 TAGS: PREL PGOV ECON ETRD BA BILAT ECTRD SUBJECT: AMBASSADOR AND PM HAIL RECORD TRADE LEVEL IN 2006 Classified By: Ambassador William T. Monroe for reasons 1.4 (b) and (d) . -------------- Trade At Record High -------------- ¶1. (U) The Ambassador told Prime Minister Shaikh Khalifa bin Salman Al Khalifa February 14 that 2006 full-year statistics for bilateral trade between the United States and Bahrain had just been posted, and total trade volume reached over $1.1 billion, an increase of more than 45 percent over 2005. The PM was very happy to learn of these results and said commercial relations would help bring the two countries even closer together. ¶2. (U) The Ambassador stated that there was greater interest in the United States in doing business with Bahrain, and noted that the American Chamber of Commerce in Bahrain would bring a trade delegation to the U.S. in early March. He added that Bahrain would participate in a U.S.-organized conference on Middle East trade in London in late March, and there would be a session on the Middle East Free Trade Area on the margins of the Dead Sea World Economic Forum in May. The PM said these activities would assist in strengthening Bahrain's economy, a key for future stability. The Ambassador noted he would issue a press release the next day to highlight these positive developments, and the PM instructed one of his staff to have Minister of Industry and Commerce Fakhro do the same. (Both releases were prominently featured in February 15 newspapers.) ¶3. (C) Noting his surprise at the visit of Russian President Putin to Saudi Arabia, Shaikh Khalifa said the world is getting smaller and "we need to talk to each other, see what's going on, and not take things for granted." He stated that he would like to see more senior American officials visit Bahrain. The Ambassador responded that there had been a steady stream of bilateral senior contacts, noting Secretaries Rice, Gutierrez, and Gates had visited in the SIPDIS past 18 months, and that Foreign Minister Shaikh Khalid bin Ahmed Al Khalifa was an active participant in the GCC Plus Two process. -------------- Investment Key to Economic Growth -------------- ¶4. (SBU) Shaikh Khalifa said Bahrain was experiencing strong economic growth and there were large-scale development projects underway, but the leadership needs to think about how to fill all the new buildings. He noted that he had presided over a graduation one day earlier, and the only way to generate enough jobs to employ all the new graduates was to open the economy and attract investment. He said that Bahrain has always welcomed and benefited from experts and know-how from abroad. ¶5. (SBU) The PM said the region has tremendous wealth, but that wealth could be used in ways to do much more for the people of the Gulf countries. Bahrain exports a lot of aluminum, but there are not many allied or downstream industries in the country. Investment in this area, for example, would lead to more jobs for Bahrainis. The government, he said, needs to encourage people to take these steps. One way to do this is for the media to highlight the accomplishments of entrepreneurs, who could explain how they achieved their success. The Ambassador responded that the U.S. and Bahrain were supporting the Center for Entrepreneurial Excellence in Bahrain, which has been very successful in reaching out to young entrepreneurs in Bahrain and the region to assist them in growing their businesses. The PM said this kind of information should be disseminated widely, with a focus on young women, who are very active in starting and running small businesses in Bahrain. ********************************************* ******** Visit Embassy Manama's Classified Website: http://www.state.sgov.gov/p/nea/manama/ ********************************************* ******** MONROE