Identifier
Created
Classification
Origin
08ABUDHABI793
2008-07-08 09:36:00
SECRET
Embassy Abu Dhabi
Cable title:  

VISIT OF COMMERCE UNDER SECRETARY MARIO MANCUSO JUNE 22-24,

Tags:  ECON ETRD OTRA IR BEXB ETTC AE 
pdf how-to read a cable
VZCZCXRO1744
PP RUEHBC RUEHDE RUEHDIR RUEHKUK
DE RUEHAD #0793/01 1900936
ZNY SSSSS ZZH
P 080936Z JUL 08
FM AMEMBASSY ABU DHABI
TO RUEHC/SECSTATE WASHDC PRIORITY 1179
RUCPDOC/USDOC WASHDC PRIORITY
INFO RUEHDE/AMCONSUL DUBAI PRIORITY 7828
RUEHDE/IRAN RPO DUBAI PRIORITY
RUCNIRA/IRAN COLLECTIVE PRIORITY
S E C R E T SECTION 01 OF 03 ABU DHABI 000793 

SIPDIS

DEPARTMENT FOR NEA/ARP, T, ISN AND ISN/CPI CHERRINGTON
COMMERCE FOR BIS U/S MANCUSO, DELLI-COLLI, LEE

E.O. 12958: DECL: 07/08/2018
TAGS: ECON ETRD OTRA IR BEXB ETTC AE
SUBJECT: VISIT OF COMMERCE UNDER SECRETARY MARIO MANCUSO JUNE 22-24,
2008

REF: A. ABU DHABI 00729

B. DUBAI 167

ABU DHABI 00000793 001.2 OF 003


Classified by Charge d'Affaires Martin Quinn, reasons 1.4 (b,d).

Summary
-------

S E C R E T SECTION 01 OF 03 ABU DHABI 000793

SIPDIS

DEPARTMENT FOR NEA/ARP, T, ISN AND ISN/CPI CHERRINGTON
COMMERCE FOR BIS U/S MANCUSO, DELLI-COLLI, LEE

E.O. 12958: DECL: 07/08/2018
TAGS: ECON ETRD OTRA IR BEXB ETTC AE
SUBJECT: VISIT OF COMMERCE UNDER SECRETARY MARIO MANCUSO JUNE 22-24,
2008

REF: A. ABU DHABI 00729

B. DUBAI 167

ABU DHABI 00000793 001.2 OF 003


Classified by Charge d'Affaires Martin Quinn, reasons 1.4 (b,d).

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


1. (SBU) Under Secretary of Commerce for Industry and Security Mario
Mancuso visited the UAE from June 22-24, 2008 and met with key UAE
government and commercial interlocuters to discuss export control,
counterproliferation and foreign direct investment issues. During
this visit U/S Mancuso met with the following officials: Sheikha
Lubna Al Qasimi, Minister for Foreign Trade; Brigadier General
Mohammad Al Qemzi, UAE Chair of the Counterproliferation Task Force;
Oliver Owcza, Deputy Chief of Mission at the German Embassy; Hisham
Al Sherawi, Vice Chairman at the Dubai Chamber and Dubai Chamber
Director General Hamad Buamim.


2. (S) During visits with UAE officials, the UAE government
emphasized the need for transparency and follow-up on information
relating to interdiction cases in particular. They highlighted their
strong preference to act multilaterally in counterproliferation
efforts. They also expressed their concern as to why the U.S. did not
try to stop shipments of concern prior to their arriving in the UAE,
i.e. items originating in the U.S. itself or transiting other
transshipment hubs. Regarding foreign direct investment in the United
States, UAE officials counseled that it was important for the U.S.
and global economy to guard against "protectionism."
End summary.

Undersecretary Mancuso's Message
--------------


3. (S) U/S Mancuso commended the UAE for its progress in passing an
export control law and on its cooperation on sensitive enforcement
efforts. At the same time, U/S Mancuso strongly urged his
government counterparts to promptly develop an empowered body within
the Ministry of Foreign Affairs to coordinate export control issues
and harmonize the UAE control lists with International/European Union
standards. U/S Mancuso highlighted understandable congressional

interest in Iran and the role of the UAE in transshipments/blocking
transshipments to Iran. He informed UAE officials on developments in
Congress regarding proposed legislation by influential members that
could negatively highlight the UAE as a destination of concern for
U.S. exports. U/S Mancuso emphasized the Administration's opposition
to such proposed legislation which could place additional licensing
restrictions on the UAE due to the perception that the UAE may not be
serious in following through with its export control development.
Regarding foreign direct investment in the United States, he stressed
that the U.S. government policy is clear in that the USG welcomes
"appropriate, commercially driven" foreign investment in the United
States. U/S Mancuso explained that the CFIUS process and the new
CFIUS law are more transparent and now more tightly focused on
national security.(Note: U/S Mancuso repeated these messages during
all the meetings hereinafter discussed. End Note.)

Foreign Trade and Export Controls
--------------

4.(C) U/S Mancuso met with Sheikha Lubna Al Qasimi, Minister of
Foreign Trade to discuss the US-UAE bilateral trade, investment and
export control relationship. Regarding foreign direct investment in
the United States, Sheikh Lubna counseled that it was important for
the U.S. and global economy to guard against "protectionism." Sheikha
Lubna expressed her appreciation for U.S. assistance in export
control development. She explained that UAE work in the area of
export controls was done to protect the UAE's reputation first and
foremost as well as to honor the UAE's commitment to its
international obligations. Lubna thanked U/S Mancuso for his
appraisal of the situation in the U.S. Congress relative to potential
legislative efforts to mandate a "country group C" designation. Lubna
explained that it was in the UAE interest to do a better job in close
coordination with the administration to educate the Congress on the
breadth and full scope of the U.S.-UAE relationship. Lubna stated
that in the newly appointed UAE Ambassador to the United States,
Yousef Al-Otaiba, the UAE has the ideal advocate to deliver this
message to Congress.


5. (S) Sheikha Lubna highlighted the UAE's strong preference to act
multilaterally in counterproliferation efforts. She stated that the
UAE does not want to be branded as the place where unilateral
interdictions/inspections are conducted at the behest of the U.S.
Government. She also expressed the UAE's concerns as to why the U.S.
did not try and stop shipments of concern prior to their arriving in
the UAE, i.e. items originating in the U.S. itself or transiting

ABU DHABI 00000793 002.2 OF 003


other transshipment hubs where the U.S. has influence. Lubna
explained that ships that are transiting or refueling in UAE ports do
not enter UAE jurisdiction and as such they are not subject to
inspection. In such cases, if inspections/interdictions are requested
the U.S. should engage with the country of origin to handle any such
inspection.

German View of UAE Export Controls
--------------


6. (S) U/S Mancuso met with the outgoing German DCM Oliver Owcza to
discuss the German perspective on UAE export controls. Owcza
explained that he sees two main issues that affect the UAE's ability
to implement its export control law: (1) institutional capacity and
lack of credible human resources; and (2) uncertain political will
among all the Emirates to export controls. Owcza stated that
institutional issues include the inability of the government to
dedicate the credible human resources necessary to undertake the
complicated task of formulating a body dedicated to export controls.
Owcza went on to state that the UAE has treated the issue as somewhat
of a "hot potato", where no one agency has stepped up to take the
lead on the implementation of the law. He also stated that it is not
clear how committed other Emirates (aside from Abu Dhabi) are to
export controls or the implementation of the new law. Finally, Owcza
stated that cooperation with the UAE on German interdictions and
investigations of shipments of proliferation concern has been good.

Counterproliferation Cooperation
--------------

7.(S) U/S Mancuso met with Brigadier General Mohammed Al Qemzi, Chair
of the UAE Counter-Proliferation Task Force. Al Qemzi thanked U/S
Mancuso for US assistance and asserted that UAE police and
intelligence services were working hard to implement the provisions
of the recently-enacted export control law. Even before the export
law was formally passed, though, Al Qemzi stated the UAE was one of
the first countries to join the Proliferation Security Initiative
(PSI) and has historically been very active in stemming the flow of
illegal goods and closing companies with questionable business
practices.

8.(S) Al Qemzi remarked that he was unsure why members of Congress
continued to harbor unfavorable views of the UAE, especially since
President Bush and other members of Congress have made high-profile
trips to the region and have affirmed the strength of the bilateral
relationship. He stressed that the UAE was fully committed to
enforcing export controls within the bounds of international
obligations and noted that such enforcement was not just in the
interest of the international community but is conducted for the
UAE's own national interests.

Improving Information Exchange
--------------

9.(S) A member of Al Qemzi's staff interjected that the timeliness
of shared intelligence in interdiction cases should be improved,
noting that it often takes time to activate the requisite
police/intelligence forces necessary to respond to specific,
actionable intelligence. An updated listing of the prohibited
companies and clarity on restricted materials would also improve the
efficiency of counterproliferation efforts.


10. (S) Al Qemzi took the opportunity to raise the issue of Mayrow,
complaining that the U.S. had not adequately responded to a number of
questions raised by UAE authorities. (Note: Mayrow was a trading firm
in Dubai that was involved in supplying electronic components that
were being used to develop IEDs in Iraq. End note.) He also
repeatedly emphasized that the Counterproliferation Task Force (CTF)
was not the appropriate forum to discuss Mayrow issues since it has
nothing to do with counterproliferation. Al Qemzi pointed to the
repeated inquiries in which the UAE asked the USG for clarification
but did not receive any response. Al Qemzi explained that the
government can be held liable under UAE law for closing Mayrow
related companies without any justifiable legal cause and that is why
they were asking for answers to additional questions. He explained
they wanted to protect themselves from a suit by the closed
companies. Al Qemzi concluded by stating that cooperation is a
two-way street and that he considers the Mayrow issue to be closed, a
comment he also made at the most recent Counterproliferation Task
Force meeting. U/S Mancuso stated that the U.S. had responded to the
UAE's request for more information as fully as practicable. While he
agreed that improvements in communication should be made, he urged
the UAE to not rely exclusively on the U.S. for 3rd party
information/tips.



ABU DHABI 00000793 003.2 OF 003


Industry Outreach - The Dubai Chamber
--------------


11. (C) U/S Mancuso met with Hisham Al Sherawi, the Dubai Chamber's
Second Vice Chairman and Dubai Chamber Director General Hamad Buamim.
Both officials commented that they were heavily consulted by the UAE
Ministry of Economy during the drafting of the export control law and
they felt that the law provides sufficient legal authority to combat
illicit activity. An issue brought up by Dubai Chamber officials was
their perception of dual-use items. They felt that dual use is a
vague concept and noted that many items considered to be dual-use are
very difficult to control. They remarked that better guidance on
what specifically constitutes a controlled item would improve the
UAE's ability to deal with dual use controls. Al Sherawi stated that
the UAE export law was operational and that coordination between the
UAE customs, the intelligence services, and the Dubai Chamber has
been excellent. They explained that a special intelligence unit has
been established within the Chamber to address companies of concern.
Specifically addressing Iranian activity, Buamim explained that all
transactions involving Iranian companies and citizens are flagged and
must be cleared with appropriate UAE intelligence agencies through
this unit. Buamim added that Iranian companies and citizens also face
many additional restrictions in the UAE, including supplementary
banking requirements, restrictive business licensing, and additional
immigration scrutiny. Al Sherawi added that the UAE is always ready
to cooperate within the bounds of UAE law. (Comment: Buamim and Al
Sherawi's remarks are consistent with earlier conversations with USG
officials, see reftel B. End Comment).
QUINN