FRENCH SIGN MULTIPLE AGREEMENTS WITH ABU DHABI --

C O N F I D E N T I A L SECTION 01 OF 02 ABU DHABI 000065

SIPDIS

SIPDIS

E.O. 12958: DECL: 01/16/2018
TAGS: PREL MOPS MASS ENRG KNNP FR IR AE
SUBJECT: FRENCH SIGN MULTIPLE AGREEMENTS WITH ABU DHABI --
TWO INVOLVING A MILITARY PRESENCE AND NUCLEAR COOPERATION

REF: A) ABU DHABI 45, B) 06 ABU DHABI 3851

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Classified by DCM Martin Quinn, reasons 1.4 (b) and (d).


1. (C) Summary: During a brief visit to Abu Dhabi January
15, French President Sarkozy concluded a number of agreements
on security, nuclear, and cultural cooperation. Chief among
them was an anticipated agreement to assist Abu Dhabi's plans
for a civilian nuclear program (ref A),and an unexpected
announcement of a proposed French Naval presence in Abu
Dhabi. These agreements focus on Abu Dhabi in the first
instance, not necessarily the UAE as a whole. End summary.


2. (C) In preparation for President Sarkozy's five-hour stop
in Abu Dhabi on January 15, the French Ambassador told us
previously that his Embassy was busy preparing to sign a
number of agreements, particularly one on nuclear cooperation
which had also been much touted in the press. The French
Ambassador confirmed to PolChief January 16 that indeed five
government-to-government agreements had been signed during
the visit, and two in advance of the visit. Agreements
include those in the following fields:

-- Nuclear cooperation, signed between UAE Foreign Minister
Sheikh Abdullah bin Zayed and French Foreign and European
Affairs Minister Bernard Kouchner (presumably signed with the
two presidents looking on at the Mushref Palace);

-- Military cooperation agreement, signed between UAE Foreign
Minister Sheikh Abdullah bin Zayed and French Defense
Minister Herve Morin;

-- Intellectual property cooperation, signed between UAE
Minister of Economy Sheikha Lubna al-Qasimi and French
Economy Minister Christine Legarde;

-- MOU on transport (highway, railroad, and marine
transport),signed between UAE Minister of Government Sector
Development Sultan Saeed al-Mansoori and French Defense
Minister Herve Morin;

-- MOU on Educational Cooperation signed between Director
General of the Abu Dhabi Education Council and French
Minister of Education Xavier Darcos;

-- Two technical agreements, one on museum issues (Abu Dhabi
plans to open a branch of the Louvre by 2012) and the other
apparently commercial in nature, were signed in advance of
the visit;

-- also, a commercial agreement dealing with launching a
communications satellite was reportedly signed by private
sector representatives during the visit as well.


3. (C) Military and nuclear cooperation are the more
strategic elements of these agreements, and appear to
indicate Sarkozy's desire to show French support for Gulf
defense, aligning France more closely with Gulf Arab states,
as well as with the U.S., in countering Iran. The French are
also no doubt enamored with the lucrative potential of the
large commercial component of nuclear cooperation. The
French are long-standing suppliers of defense equipment (ref
B),with sales of Mirage jet fighters, LeClerc tanks, and the
Baynunah corvette program among their more prominent
engagements with the UAE. A defense agreement signed in 1995
helped facilitate arms deals and related support.


4. (C) The new military "presence" (the French Ambassador
said he prefers not to use the word "base"),which press
reports suggest could involve as many as 500 personnel, is
indeed a new level of engagement -- the U.S. is the only
foreign nation that has ad a significant military footprint
in the UAE i recent years. Press reports indicate a
potentilly significant surveillance and intelligence
caacity for the French presence, although French Embassy
contacts caution that planning is still in the conceptual
stage and one should not draw conclusions about the profile
of that presence just yet. The French Ambassador did tell us
that it would likely involve naval, land, and air force
components. Sarkozy reportedly called the military agreement
"a sign to all that France is participating in the stability
of this region of the world." The nearest French military
post has been Djibouti.


5. (SBU) Sheikh Abdullah referred publicly to the UAE's

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desire to cooperate with eight countries in the nuclear arena
(the nuclear suppliers group named ref A) to develop a
peaceful nuclear program through wide consultations,
"ensuring compliance with the highest standards of
non-proliferation, safety and security." Press reports
indicate that technical engagement with the French on the
nuclear front is imminent, an indication of UAE urgency about
moving ahead with the examination of a nuclear power option
and presumably the building of two reactors in the Emirate of
Abu Dhabi (at a cost estimated in the press at $6 billion).


6. (C) The French nuclear agreement establishes a structure
for government-to-government and commercial cooperation.
According to the Abu Dhabi Executive Affairs Authority's
Economic Affairs Director, the French commitment has given
French companies a significant advantage in development of a
civilian nuclear power program. He also reiterated the UAE's
interest in reaching out to the U.S. and other suppliers, in
spite of the French seeming to have one foot in the door.


7. (C) Comment: The agreements signed during the Sarkozy
visit appear distinctly Abu Dhabi-centric. The military
"presence" discussed is apparently Abu Dhabi based. The
nuclear reactors discussed will likely be built first in Abu
Dhabi (the Emirate appears to be funding the project and the
Abu Dhabi Executive Affairs office is playing a key
coordinating role in the nuclear power issue),although later
reactors would likely be located in other parts of the
country as well. The Louvre is planned for Saadiyat Island
in Abu Dhabi. Educational reform has a strong al-Nahyan
component (the al-Nahyan being Abu Dhabi's ruling family).
These agreements highlight yet again where the federal weight
lies in the UAE, with Abu Dhabi as the primary funding source
for the federal government and with the Abu Dhabi leadership
taking much of the initiative on security. End comment.
SISON