AA/S MCNERNEY'S MEETINGS WITH MAJOR GENERAL MOHAMMED AL

S E C R E T SECTION 01 OF 02 DUBAI 000442

NEA/ARP FOR BMASILKO; ISN FOR PMCNERNEY; DOE FOR WTOBEY; SIPDIS

E.O. 12958: DECL: 11/19/2018
TAGS: PREL IR ENRG ETTC ECON KNNP KCEM KOMC AE
SUBJECT: AA/S MCNERNEY'S MEETINGS WITH MAJOR GENERAL MOHAMMED AL
QEMZI AND MINISTER OF STATE REEM AL HASHIMY

DUBAI 00000442 001.2 OF 002


CLASSIFIED BY: Paul Sutphin, U.S. Consul General Dubai, Exec,
Department of State.
REASON: 1.4 (b),(d)

_____




1. (S) Summary: On October 16, Acting Assistant Secretary of
State for International Security and Nonproliferation Patricia
McNerney visited Dubai to discuss export control issues related
to Iran with government officials and the private sector (see
septel for other meetings). McNerney met with Major General
Mohammed Al Qemzi, Chairman of the UAE Counterproliferation Task
Force and Director of Dubai's General Department of State
Security; their discussion touched on the upcoming
Counterproliferation Task Force (CTF) meeting in December, and
reviewed progress on counterproliferation cooperation, the
disposition of seized equipment, and enforcement of the UAE's
recently passed export control law. McNerney also met with
Minister of State Reem Al Hashimy and touched on a variety of
issues including nuclear energy security and Iran. End Summary.


2. (S) McNerney, accompanied by Department of Energy's National
Nuclear Security Administration Deputy Administrator Will Tobey
and the Consul General, met with Major General Al Qemzi and
several of his staff officers. The meeting touched on the
upcoming CTF, with both sides agreeing to work on an agenda that
met the concerns of both sides. The discussion turned to the
disposition of controlled items bound for Iran seized by the UAE
government over the past several years in coordination or at the
behest of the USG. McNerney noted to Al Qemzi the USG may be
able to provide funding for the removal of goods languishing in
Jebel Ali Port. She also discussed the possibility of either
the USG taking and redistributing the equipment or auctioning
it. Al Qemzi thought this would be a positive step and
requested additional information.


3. (S) Al Qemzi noted the 2007 passage of the export control law
as a major step forward in the UAE's efforts to secure its
borders and prevent movement of sensitive materials to Iran. He
admitted, however, that significant work remains to be done to
effectively enforce it. Nonetheless, there are positive steps
forward. Al Qemzi described, for example, a computer system
currently utilized by Dubai Customs in which alarms are set off
by key words (NFI). This system successfully identified five
shipments of interest during September 2008. These shipments
included titanium sheets, equipment used to freeze chemicals,
and valves.


4. (S) McNerney pressed Al Qemzi to publish the names of
companies against whom the UAE has taken action for export
control violations. Clearly reflecting UAEG policy, Al Qemzi
expressed his preference for not publicizing these names as this
sort of publicity could impact negatively on Dubai's economy, of
which trade with Iran is a significant component. He emphasized
that the focus should be on enforcing UN sanctions and that as
long as the UAE prevents sensitive materials from reaching Iran,
publicizing the names of these companies is unnecessary. With
regard to the Mayrow case, Al Qemzi denied recent press reports
(note: presumably the recent story in the UK's "Daily
Telegraph") that Mayrow continues to operate in the UAE. He
said the UAE continues to monitor individuals associated with
Mayrow, but confirmed that the company itself remains closed.
Despite Al Qemzi's preference for quiet actions, he expressed
some concern that the UAE's cooperation with the U.S. on export
control issues has not been sufficiently acknowledged.


5. (S) McNerney also met with Minister of State Reem Al Hashimy
and touched on a variety of issues including the UAE's
contribution to the Nuclear Threat Initiative (NTI) Fuel Bank,
nuclear energy, and Iran. Again, McNerney pressed for the UAE
to publicize the names of companies that the UAE has taken
actions against for violations of their export control law. Al
Hashimy noted the UAE's preference for discretion in these
matters. McNerney further noted that the letter Yousef
Al-Otaiba had sent to UAE industry about U.S.-UAE cooperation in
this area had been very helpful. McNerney thanked Al Hashimy for
UAE's $10 million commitment to the NTI/IAEA Fuel Bank and for
the UAE's leadership in showing the region the importance of
pursuing nuclear power safely by securing international fuel
sources.


6. (S) Turning to civil nuclear cooperation, McNerney solicited
Al Hashimy's views. Al Hashimy noted that while at first she
could not understand why the UAE would need nuclear energy, she
noted that in order to keep up with development the UAE would
need to find additional energy sources, Al Hashimy commented
that the UAE is showing a transparent way of obtaining nuclear

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energy. McNerney suggested that the UAE could play a pioneering
role in the development of a regional energy grid.


7. (S) McNerney and Al Hashimy's discussion transitioned to the
UAE's relationship with Iran. Regarding proliferation finance,
McNerney suggested that the UAE should take more aggressive
action against Iranian banking in the UAE. While Al Hashimy
cautioned that the UAE needed the cover of United Nations
Security Council Resolutions, McNerney noted that the UAE should
read the UNSCRs more broadly. McNerney suggested that in the
area of additional UN sanctions on Iran, progress is slow and
Iran is trying to wait out this administration. Al Hashimy
noted that the UAE approaches the topic of Iran with a measure
of caution as there needs to be a balance. On one hand, Iran is
a major trading partner, so it is not in the UAE's interest to
jeopardize this relationship. In addition, the UAE is neighbors
with Iran and Dubai is also home to many Iranians. On the other
hand, a nuclear-armed Iran is a cause for concern for the UAE.
Al Hashimy emphasized that the UAE supports the UN resolutions,
but that the UAE cannot stick its head out on it.
SUTPHIN