Identifier
Created
Classification
Origin
07MANAMA79
2007-01-26 11:48:00
CONFIDENTIAL
Embassy Manama
Cable title:  

KING AND DEPUTY DEFENSE SECRETARY ENGLAND CONFER

Tags:  PREL MARR ECON PGOV KDEM BA REGION BILAT 
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O 261148Z JAN 07
FM AMEMBASSY MANAMA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6345
INFO RUCNIRA/IRAN COLLECTIVE PRIORITY
RUEKJCS/SECDEF WASHDC PRIORITY
RUEKJCS/OSD WASHDC PRIORITY
RHMFISS/HQ USCENTCOM MACDILL AFB FL PRIORITY
RHBVAKS/COMUSNAVCENT PRIORITY
C O N F I D E N T I A L SECTION 01 OF 03 MANAMA 000079 

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E.O. 12958: DECL: 01/23/2017
TAGS: PREL MARR ECON PGOV KDEM BA REGION BILAT
OFFICIALS
SUBJECT: KING AND DEPUTY DEFENSE SECRETARY ENGLAND CONFER
ON REGIONAL CHALLENGES, BAHRAINI AFFAIRS

Classified By: CDA Susan L. Ziadeh for reasons 1.4 (b) and (d).

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Summary
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C O N F I D E N T I A L SECTION 01 OF 03 MANAMA 000079

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E.O. 12958: DECL: 01/23/2017
TAGS: PREL MARR ECON PGOV KDEM BA REGION BILAT
OFFICIALS
SUBJECT: KING AND DEPUTY DEFENSE SECRETARY ENGLAND CONFER
ON REGIONAL CHALLENGES, BAHRAINI AFFAIRS

Classified By: CDA Susan L. Ziadeh for reasons 1.4 (b) and (d).

--------------
Summary
--------------


1. (C) King Hamad and Deputy Defense Secretary England
discussed bilateral relations, Iran, Iraq, Syria, U.S. policy
in the region and Bahraini domestic affairs during a January
22 lunch meeting. The King declared that Bahrain is proud of
its relationship with the United States and pledged that
Bahrain would remain a leader among the GCC countries in
support of U.S. objectives. He noted that Crown Prince
Salman would visit Washington in early March to discuss a
"total strategy" to address regional challenges as part of
the Gulf Security Dialogue. Iran, the King said, is
unpredictable and uses rhetoric that makes everyone cautious.
This is a sign of weakness, in his view. The King praised
new U.S. steps to apply pressure to Iran in Iraq. On
Bahraini affairs, the King said the recent elections had gone
well but there was room for fine-tuning. Bahrain's neighbors
did not like the political reform program, but the King had
argued that government was doing what is right for Bahrain,
not for other countries. He is proud of the free trade
agreement and noted that members of parliament representing
Sunni, Shia, and Islamist trends had all supported
ratification. End Summary.

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"Proud of Relationship with U.S."
--------------


2. (C) King Hamad bin Isa Al Khalifa hosted Deputy Secretary
of Defense England for lunch January 22 and they discussed
bilateral relations, Iran, Iraq, Syria, U.S. policy in the
region, and Bahraini domestic affairs, among other issues.
The King declared, "We are proud of our wonderful
relationship with the United States and we thank you for your
support and presence in the Gulf, which has become a model
for growth and stability." He credited U.S. military
assistance to the Bahrain Defense Force (BDF) for enabling

the BDF to be a leader in the region for efficiency. He said
Bahrain was always willing to take the lead, citing Bahrain's
2005 deployment of a special forces unit to Afghanistan and
current participation in Gulf combined naval task forces. To
counter the coming threat, Bahrain will focus on improving
its sea and air defenses. The Deputy Secretary said the
United States appreciates Bahrain's leadership and its
outspoken friendship.


3. (C) The King noted that Crown Prince Shaikh Salman bin
Hamad Al Khalifa would visit Washington in the beginning of
March and would lead the Bahraini delegation for a Gulf
Security Dialogue (GSD) session, among other activities. He
said the CP will be prepared to discuss a "total strategy"
for addressing regional challenges. (The King implied that
the CP would be responding to the paper presented by the U.S.
GSD team in October 2006.) The goal is to bring the two
sides closer on a technical basis. Bahrain looks forward to
this exchange of information and ideas, the King said.

--------------
Iran Unpredictable, Syrian Link to Hizballah
--------------


4. (C) Asked about Iran's aggressive behavior, the King
commented, "Good always asks evil, why?" He said that
Ahmadi-Nejad's actions had even caused the Iranian parliament
and former president Khatemi to complain. He stated that
Iran is unpredictable and unwise, and the language Iran uses
makes everyone cautious. This behavior is not in Iran's own
interests and is a sign of weakness. The Deputy Secretary
suggested Iran's actions could be a means to divert attention
from internal problems. The King recalled that former Deputy
Prime Minister Shaikh Abdullah bin Khalid had attended a
conference in Iran on Shia Islam in Bahrain, and the Iranians
had arranged for a Sunni Baluchi Iranian to publicly pledge
his loyalty to the regime. The Bahrainis interpreted this to
mean that Supreme Leader Khamenei is worried about Baluchis
and their potential to cause problems internally. He said
there is no one now who can check the power of the mullahs
who run the country.


5. (C) The King stated that Iran wants to dominate the
region. To solve the problem in Iraq, we need to solve Iran.
Iraq would be in a much better position without Iranian
infiltration and meddling. The Deputy Secretary said the

MANAMA 00000079 002 OF 003


U.S. had begun applying pressure to Iran in Iraq, and the
King replied that everyone appreciates this move. He noted
there had been talk, including in the Bahraini press, that
the U.S. had been supporting Iranians against Arabs in Iraq.
The recent U.S. moves show this is not the case.


6. (C) The King noted that he had met with Syrian president
Bashar Al Asad some time ago and urged Asad to break the link
between Iran and Hizballah and disengage entirely from
Lebanon. In response to Asad's claim that he needed a
presence in Lebanon to protect Syria, the King recommended
that Syria consult with the U.S. and France on dealing with
possible future threats from Lebanon. The King also told
Asad that he had proof of Hizballah links to Bahrain. He
subsequently dispatched Interior Minister Shaikh Rashed bin
Abdullah Al Khalifa to Damascus to present this information,
but during the visit the Israel-Hizballah conflict started,
making it impossible for Shaikh Rashed to press the issue.
The Deputy Secretary replied that Syria was still allowing
weapons shipments to Hizballah.

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U.S. Should Continue Regional Policies
--------------


7. (C) The King said that U.S. policy in the region had
generated a lot of criticism, but it was important that the
United States continue its policies. The Middle East, he
said, had followed bad practices for a long time, resulting
in conflict, weak economies, and bad management. For the
U.S. to come and help is a great opportunity. If countries
benefit, that is good. If they do not, it is the fault of
the regional countries, not the U.S. (Comment: An apparent
reference to Iraq.) Bahrain supports what the United States
is doing in Iraq and the region, and is trying to get other
GCC countries to join the U.S. and Bahrain in protecting the
Gulf. The Deputy Secretary said that the U.S. has the right
objectives and is implementing policies to achieve these
objectives.

--------------
Elections Bring Critics Into System
--------------


8. (C) In response to the Deputy Secretary's question, the
King said the November/December parliamentary elections had
gone well but there was always room for fine-tuning. He
noted that a former "street leader" was now a member of
parliament, and he was able to express his views inside the
system. "If he has a better idea for Bahrain, why shouldn't
we listen?" The King said he does not feel too much weight
on his shoulders because the responsibility for governing is
shared with the people and the people's representatives. He
noted that Arabic daily newspaper Al Wasat editor-in-chief
Mansour Al Jamry had appeared on Al Jazeera a few days
earlier. Al Jamry, a prominent Shia who had been in exile in
London before the King instituted his reform program, had
said the Shia in Bahrain were different than those in Iran
and Iraq. Al Jamry said the Shia support Bahrain's National
Charter and that there was great opportunity for all in
Bahrain. The King indicated that he was happy to hear Al
Jamry's comments.


9. (C) The King said Bahrain had some "rough times" with its
neighbors (in the GCC) over its democracy program. "They
thought it was like a revolution against them," he said. The
King had argued that when Bahrain is stable, Saudi's Eastern
Province, site of the oil deposits, and Qatar are also more
stable. Bahrain, he said, is not a model for other regional
countries; the government is doing what is right for Bahrain
and Bahrain only. The King said that he urged government
ministers to clarify for the parliament and people how a
democratic system should work. Of critical importance is
that no one is above the law, including members of
parliament. He noted that Bahrain is one of only two Arab
countries that has a constitution court charged with ruling
on constitutional matters. "We are managing well so far," he
said.

--------------
Modernizing Legal System
--------------


10. (C) The King continued that the British had left behind
a good civil service system and structure in the early 1970s.
However, when Bahraini youth had returned from Arab
countries such as Lebanon, Iraq, Syria, and Egypt, where they

MANAMA 00000079 003 OF 003


had been educated, they brought with them ideas about the
Soviet and old Turkish systems, where "employees did
nothing." On the one hand, Bahrain was with the U.S. in the
fields of oil, military, automobiles, and aviation, but its
rules and laws were from the Soviet Union. People realized
this mistake and Bahrain made a successful effort to
modernize and update laws on trade, economy, and freedoms.
"We're working hard and fast to recover," the King commented.

--------------
Economic Reform and FTA
--------------


11. (C) The Bahraini economy is working well because of the
high level of education of the citizens, the King said,
citing nine percent economic growth. (Note: The IMF
published a figure of 7.1 percent growth for 2006.) The goal
is to ensure there is a good distribution of wealth so
everyone benefits. Unemployment had declined from 20 percent
to four percent in four years. (Comment: The King based
this claim on the results of the Ministry of Labor's National
Employment Program. Many economists argue that this is not a
true measure of unemployment in the country.) The Crown
Prince, he said, was working hard to change the system.
There is some tension between government ministries, which
are used to doing business the old way, and the Economic
Development Board (EDB),which is run by young people who
know how to work with the world. The two sides are now
trying to coordinate on economic policy. When the CP took
the chairmanship of the EDB, corruption at some government
institutions declined, which the King attributed to EDB and
parliamentary oversight.


12. (C) When Bahrain began reforming its economy, the King
said, Saudi Arabia did not like what it was doing. But Saudi
Arabia understands now and it is also moving in the right
direction. In response to the Deputy Secretary's question
about the impact of the U.S.-Bahrain free trade agreement
(FTA),the King stated that business people from other Gulf
countries were watching Bahrain closely. At first, there was
pressure on Bahrain "out of jealousy," but Bahrain took the
necessary steps to improve its economy and commercial laws.
The UAE, he said, thought an FTA was easy, but now it had
stopped its negotiations with the U.S. because the required
changes are too difficult. The Deputy Secretary noted that
the FTA was seen as the seal of approval for Bahrain's
economy. The King said he was proud of the agreement and
that all members of parliament - Sunni, Shia, Islamists - had
supported FTA ratification.

--------------
Education Exchanges
--------------


13. (C) The Deputy Secretary asked about the interest of
Bahrainis to study in the United States. The King said his
own son and daughter had been studying in the U.S. at the
time of 9/11 and they had remained in the country and felt
very comfortable. The Ambassador noted that interest and
participation in the Fulbright program and other education
exchange programs had increased greatly. The Deputy
Secretary said the exchange of students was an important way

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to build friendships and cultural bonds.


14. (U) Deputy Secretary England cleared this cable.


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