INTERIOR RESIDENTS EXPRESS VIEWS ON U.S. FINANCIAL

C O N F I D E N T I A L MUSCAT 000709

SIPDIS

E.O. 12958: DECL: 10/06/2018
TAGS: PGOV PHUM PREL SOCI ECON EFIN KPAO MU
SUBJECT: INTERIOR RESIDENTS EXPRESS VIEWS ON U.S. FINANCIAL
CRISIS, PRESIDENTIAL ELECTION AND OMANI POLICIES

Classified By: Ambassador Gary A. Grappo per 1.4 (B and D).


1. (C) Summary: In his 'Eid al Fitr calls on senior
sheikhs and majlis members in Oman's interior Sharqia
governorate, the Ambassador heard diverse and sometimes
surprising views about the U.S. and on Omani government
policies. Omanis expressed considerable interest in the
ongoing financial crisis in the U.S., holding the U.S.
responsible for the crisis but also anticipating eventual
action to stave off a more severe global crisis. Most seemed
to be following the U.S. presidential election, many offering
their views on their preferred candidate but all expressing
amazement at the apparent success of "the Black American,"
seeing his success as proof of America's foundation values of
equality, fairness and reward for hard work. While nothing
but praise was heard for Sultan Qaboos -) "the strongest
Omani leader since Sa'id the Great" (of the early nineteenth
century) )- one senior sheikh suggested that the
government's claimed policy of equality and fair treatment in
economic development and education was simply "propaganda."
End Summary.


2. (C) Over a two and half-day period of the Muslim 'Eid al
Fitr holiday, the Ambassador called on tribal sheikhs and
"tamima" (paramount) sheikhs and Majlis al Doula and Majlis
al Shura members in 'Ibra, Mudharib, Badiya, Al Qabil, Al
Kamil, Ja'alan Bani bu Hassan and Ja'alan Bani bu Ali, all
located in Oman's Sharqia Governorate extending just south of
Muscat to Masirah Island. The area is home to some of Oman's
largest and most influential tribes, including the Al Harthy
(both awlad (sons of) 'Issa and awlad Humaid),Al Maskeri, Al
Hijri, Al Hashmi, Al Masrouri, Al Sunaidi, and Al Mu'tani.
Several of these tribes were among the last to pledge loyalty
to the Sultan when he came to power in 1970 and had resisted
for many years many of his reforms. The sheikhs hosted the
Ambassador for traditional holiday meals of platters of
roasted goat on rice among groups of 20-80 individuals seated
on the floor. Omani sheikhs traditionally welcome and
preside over these gatherings, which occur repeatedly
throughout the first two days of 'eid holidays. Government
officials, even ministers, typically take a back seat at such
gatherings unless they also hold a tribal rank, which in Oman
occurs very rarely. Lively discussions can often take place
but customarily only before or after the meal. Other
sessions the Ambassador attended included only family members
but still numbered as many as 20. Women are not included in
these traditionally all-male, holiday majlises but males of
all ages, from as young as four or five, are welcomed.

U.S. Economic Crisis: How Could It Happen?
--------------

3. (C) While lacking an in-depth understanding of the
current U.S. financial crisis, most were aware of the impact
the crisis was having on the U.S. and global equity and
credit markets. They expressed dismay that such a "scandal"
could have occurred in the most advanced country in the world
and proffered predictable theories about corruption on Wall
Street as well as reckless oversight by the USG of the
financial institutions. They wondered how as sophisticated a
financial system as America's could have allowed such a
crisis in the first place and then been so slow to react once
the full dimension was apparent.


4. (C) Younger, better educated Omanis displayed greater
understanding of the crisis and were more likely to view USG
actions or inaction more critically. Many of these placed
blame for the crisis at the foot of the U.S., arguing, "You
made this mess and you have to clean it up." The visit came
just after the House voted against the financial rescue
package, and all expressed shock at the apparent refusal of
the USG to "shoulder your responsibility." All seemed to
agree that inaction in the U.S. would lead to a global crisis
"affecting even Oman." Several expressed sympathy for the
view that "responsible Americans" should not have to pay for
irresponsibility and recklessness on Wall Street and grave
mistakes of unscrupulous bankers and borrowers. However, a
surprising number voiced confidence in Americans and our
ability to find a way out of the problem and avoid a more
serious global crisis.

Who Will Be the Next U.S. President?
--------------

5. (C) Second to the unfolding financial crisis was the
keen interest in the U.S. presidential election. While some
wondered whether a new president might usher in a new U.S.
foreign policy in the Middle East, most seemed resigned to
"minor tweaks" or changes in style to our current policy in
the region. Unlike discussions one year ago, few Omanis
seemed concerned about our Iraq policy, acknowledging things

"seemed to be improving," but many more communicated alarm
about U.S. policy toward Iran. One elder tamima sheikh
wondered if we were "again favoring the Persians over the
Arabs" in an effort to offset the surging power of each in
order to maintain our own influence in the region. Many
stated their hope that the next president would finally
"seriously consider" and settle the Palestinian-Israeli
conflict. However, several voiced their doubts on this
subject.


6. (C) All seemed to have a view on which of the two
principal candidates would be better for the Middle East.
All seemed to wonder whether an African American really stood
a chance of winning. Younger Omanis with computer savvy
shared their observations on the latest polls reported on the
internet suggesting the Democratic candidate had the edge,
which generated spirited discussion. When one Omani
suggested that Senator Obama's chances would be harmed due to
his alleged connection to Islam, an elder sheikh piped up,
"It doesn't matter because Americans don't care about their
president's religion any more." One U.S.-educated Omani, in
a session in Ja'alan Bani bu Hassan, impressively argued that
regardless of who won, the election and Senator Obama's
candidacy were evidence that racism had been overcome in the
U.S. and that America was living up to its values of
equality, fairness and reward for hard work. An older sheikh
seated at the head of the group, nodded his approval,
asserting "That kind of thing can probably only happen in
America."

A Rare Dissenter on Omani Progress
--------------

7. (C) Praise for the Sultan and his "wise policies" was
almost universal and appeared genuine. Many individuals of
lesser stature came up to the Ambassador to privately
communicate their affection for the Sultan and praise for his
successful leadership of the country and concern for all
Omanis. However, one tamima sheikh expressed a contrary
view. Offering an impressive and detailed knowledge of both
Omani history and tribal politics, he argued that the current
central government was in the ascendancy largely because of
the acknowledged abilities of one man. That had happened
only one other time in Omani history: in the first half of
the nineteenth century under the rule of Sultan Sa'id bin
Sultan 'The Great'. Otherwise, Oman had been a nation
largely governed by dominant tribes.


8. (C) Despite the many accomplishments of Qaboos, said the
senior sheikh, it was not certain that Oman would remain a
nation under a strong central government. He pointed out
some of the government's "unfair" practices in areas of
education and development, alleging that not all regions were
treated equally or fairly. This contradicted the
government's propaganda touting an image of fairness and
determination to set aside tribal biases, he concluded, and
should be recognized by outsiders.

Comment
--------------

9. (C) The tribes of the Sharqia region were the last to
submit to Qaboos' rule; and the tribes of Ja'alan Bani bu
Hassan, which are Ibadhi, and of Ja'alan Bani bu Ali, which
are Sunni, resisted Qaboos' reforms well into the late 1970s.
The powerful Al Harthy sheikhs were the last to recognize
Qaboos, and their patriarch, the tamima sheikh, was jailed in
1970 and remained under house arrest well into the
mid-seventies. A resistant strain remains among several of
the tribes of the region and is an area of considerable
attention of the government in its tribal management program.



10. (C) The visit provided interesting and sometimes
reassuring or illuminating insights about Omani attitudes
toward the U.S., their understanding of international issues,
and views of their own government. Two issues surprisingly
absent from the Omani interactions with the Ambassador were
Iraq (despite the Ambassador's prompting) and the recent
tension in U.S.-Oman relations over the Department's
trafficking-in-persons report. Sheikhs in particular
preferred concentrating on the historically strong
relationship between us. That generally still favorable
assessment seemed to carry over into the Omanis' faith in
Americans and in the U.S. system eventually to deal with the
financial crisis. The comment about an African American
becoming president was probably more intended as criticism of
tribalism in Oman, where individual Omanis are first
identified and often judged by their tribal affiliation, than
as praise of the U.S.
GRAPPO