UPDATE ON CRITICAL ENERGY COOPERATION WITH SAUDI

S E C R E T RIYADH 000446 SIPDIS SENSITIVE SIPDIS NEA FOR DAS GGRAY DEPT OF ENERGY PASS TO A/S KKOLEVAR, A/S KHARBERT, AND MWILLIAMSON S/CT FOR GFEIERSTEIN AND BAVERILL DS/ATA FOR KMALOY TREASURY PASS TO A/S CLOWERY DHS PASS TO TWARRICK AND DGRANT CIA PASS TO TCOYNE E.O. 12958: DECL: 03/15/2018 TAGS: KCIP EPET ENERG PTER ASEC SAO SUBJECT: UPDATE ON CRITICAL ENERGY COOPERATION WITH SAUDI ARABIA REF: 3/10/2008 E-MAIL SROSS-JFEIERSTEIN KKOLEVAR... "MOI DRAFT AGREEMENT" Classified By: Ambassador Ford Fraker for reasons 1.4 (b) (c) and (d). ¶1. (S) Ambassador Fraker and ADCM Rundell met with HRH Assistant Minister of Interior for Security Affairs Prince Mohammed bin Nayif on 11 March to discuss funding Critical Infrastructure Protection (CIP) activities of the Joint Working Group (JWG),in light of the Vice President's upcoming visit to Riyadh, and pending plans for CIP projects. Prince Mohammed spoke of his keen desire to move forward with Saudi-US cooperation in this area, and stated he "did not want bureaucracy to stand in the way" of this important project. ¶2. (S) Nonetheless, the unexpected 10 March Saudi proposal to utilize a contracting mechanism (Ref A) to carry out JWG-CIP financial transfers in lieu of the previously circulated financial memorandum has temporarily complicated our path forward. Ambassador Fraker indicated to Prince Mohammed that we understood that the MOI did not want to delay implementation of a financial cooperation mechanism to clear it through multiple Saudi ministries. (Note: The MOI has indicated the Ministry of Finance and other ministries would have to approve any "memorandum" - which constitutes an international agreement - substantially slowing its signature and implementation. End note.) Ambassador Fraker told Prince Mohammed we could consider signing a short-term contractual mechanism now, but as a way-station towards signing an international agreement which lays out the long-term financial and administrative architecture for the JWG-CIP program. He cautioned that a contract, particularly one renewed on a yearly basis, could easily fall through the cracks or be substantially delayed during a change in U.S. administration. ¶3. (S) Ambassador Fraker emphasized our responsibility to secure the long-term future of the CIP program. He encouraged Prince Mohammed to consider that by signing a memorandum - an international agreement to finance the JWG - we will put institutionalize the JWG financial and administrative mechanism in an international agreement. He expressed his hopes that this issue could be further discussed during Vice President Cheney's March 21-22 visit to Riyadh. FRAKER