SCENESETTER FOR VISIT OF COMMERCE UNDER SECRETARY MARIO

S E C R E T SECTION 01 OF 02 ABU DHABI 000729 SIPDIS DEPARTMENT FOR NEA/ARP, T, ISN AND ISN/CPI CHERRINGTON COMMERCE FOR BIS U/S MANCUSO E.O. 12958: DECL: 06/18/2018 TAGS: ECON ETRD OTRA ETRD BEXB ETTC AE SUBJECT: SCENESETTER FOR VISIT OF COMMERCE UNDER SECRETARY MARIO MANCUSO JUNE 23-24, 2008 REF: A. ABU DHABI 712 ¶B. ABU DHABI 727 Classified by Charge d'Affaires Martin Quinn, Reasons 1.4 (b,d). ¶1. (C) Embassy Abu Dhabi welcomes the June 23-24 visit of U.S. Department of Commerce, Bureau of Industry and Security, Under Secretary Mario Mancuso. We have scheduled meetings with both BG Mohammed Al-Qamzi, the head of Dubai's General Directorate of State Security and the UAE Chair of the Counterproliferation Task Force and with Minister of Foreign Trade heikha Lubna Al-Qasimi as well as other official and business representatives. ¶2. (C) The UAE i a central trade route for many proliferation-reated and financial transfers and has long been afocus of USG engagement in counter-proliferation matters. Dubai's port of Jebel Ali is the world's argest man-made port and handled almost 10 million TEUs in 2007, an increase of 25 percent over the year before. In October 2005, the State Department's Under Secretary for Arms Control proposed the establishment of a U.S.-UAE Counterproliferation Task Force (CTF) designed to promote greater cooperation and help the UAE identify and take steps necessary to address the proliferation problems it faces. We have continued to engage the UAE at all levels on export control and nonproliferation related issues. UAE Strongly Engaged on USG Initiatives -------------- ¶3. (S) The UAE has signed on to the Proliferation Security Initiative and Global Initiative to Combat Nuclear Terrorism. The Emirate of Dubai is a member of both the Container Security Initiative and the Megaports Program. Our cooperation with the UAE on interdicting transshipments to Iran has improved considerably with the passage of UNSCRs 1737, 1747, and 1803. The UAE is currently detaining containers from four separate interdictions made at USG request, and is prosecuting its first case under the 2007 strategic trade control law (ref b). The UAE is committed to ensuring that Iran does not obtain nuclear weapons, but Iran remains one of the UAE's largest non-oil export/re-export markets. ¶4. (S) Although the UAE has been cooperative in interdicting shipments, UAE officials have raised concerns about the timeliness of USG-provided information with regard to interdicting shipments to Iran. They have also raised concerns with the provision of follow-up information to help the UAE make a legal case for actions. UAE officials have expressed concern about potential U.S. Congressional interest in targeting the UAE as a transshipment point to Iran. ¶5. (S) With regard to proliferation finance issues, the UAEG quickly froze the accounts of Bank Sepah after it was designated in UNSCR ¶1737. The Central Bank Governor told Treasury Under Secretary Levey that the Central bank would issue guidance to financial institutions with regard to Iranian banks listed in UNSCR 1803. Post has not yet seen any guidance. According to the Central Bank Governor, the Deputy Governor of the Bank of Iran visited the UAE recently to complain about the strained relations between Iran and UAE banks. Al Suwaidi said that he refused to meet with the Iranian official, sending his Deputy with instructions that the UAE Central Bank would not interfere on behalf of Iran. UAE'S Export Control Law Positive Sign of Progress -------------- -------------- ¶6. (SBU) The UAE formally approved its federal export control law in August 2007. The law includes controls over most items on the four multilateral control regimes (WA, NSG, MTCR, and AG) but needs to be amended in order to be fully consistent with international standards. According to the UAE, it is working to update its controls lists. The law has four chapters and includes criminal penalties for the violation of the law. (NOTE: There is currently no provision for administrative penalties in the UAE. END NOTE). On March 13, 2008, UAE Arabic and English papers reported that the Dubai Public Prosecutors Office had referred a case to court regarding an attempt to import -- with the intent to re-export -- 250 kilograms of the corrosion-resistant metal Zirconium in violation of the UAE's 2007 export control law. Dubai's Attorney General Esam Al-Humaidan told the press that the accused was working with local brokers (Jordanian, Russian, UAE, and Indian nationals are purportedly part of the scheme). At a recent USG-sponsored counter-proliferation seminar, a UAE official confirmed that the case is still on-going and has, to date, resulted in two arrests. This is the first prosecution under the 2007 export control law and represents a welcome step. UAE Welcomes Training and Assistance -------------- ¶7. (SBU) As the USG works with the UAE to improve its export/border control system, we see some real progress, including passage of the ABU DHABI 00000729 002 OF 002 export control law but also enhanced training efforts. Under the EXBS program, on June 3-4 (at UAE's request) the U.S. Department of Justice's Office of Overseas Prosecutorial Development (DOJ/OPDAT) in collaboration with Embassy Abu Dhabi conducted a two-day workshop for UAE prosecutors and judges who handle proliferation related cases. On June 5, U.S. Immigration and Customs Enforcement conducted a half-day investigations training. In large measure due to DOJ's excellent work in leading the training team, both workshops were very well received. Prosecutors and judges have requested a visit to the U.S. to learn more about DOJ's role in prosecuting strategic trade control cases and said they would welcome a mutual legal assistance treaty (MLAT),which would be helpful on data and law enforcement information sharing. We are currently pursuing other training possibilities, including licensing workshops. The UAE has expressed interest in receiving training for customs officials. The USG stands ready to continue working with the UAE to strengthen its strategic trade control system. Under the EXBS program, we will continue to provide training and assistance aimed at helping the UAE develop responsible strategic trade control policies and practices consistent with international standards. Strengthening the Non-proliferation Relationship -------------- --- ¶8. (C) U/S Mancuso's visit, coming shortly after a very successful export control training session and four months after the Counter-Proliferation Task Force meeting, will keep up the high level engagement with the UAEG. Coming on the heels of Treasury Secretary Paulson's visit, it will likely also raise generate interest in Mancuso's thoughts on the CFIUS process. Quinn