SAUDI ARABIA NOT IMPOSING SECONDARY OR TERTIARY

UNCLAS RIYADH 001551 SENSITIVE SIPDIS STATE FOR NEA/ARP, NEA/RA STATE PASS TO USTR E.O. 12958: N/A TAGS: ECON ETRD KBCT PREL SA IS SUBJECT: SAUDI ARABIA NOT IMPOSING SECONDARY OR TERTIARY ARAB LEAGUE BOYCOTT REF: A. SECSTATE 120272 ¶B. RIYADH 1301 ¶C. RIYADH 1382 ¶D. GILLESPIE EMAILS OCTOBER ¶1. (SBU) In response to ref A on foreign government applications of the Arab League Boycott (ALB),the Saudi government (SAG) is not imposing secondary or tertiary aspects of the ALB. Ambassador Smith and visiting AUSTR Chris Wilson discussed the ALB with Minister of Commerce and Industry Alireza, who categorically denied that Saudi Arabia was doing so, explaining that, in Saudi Arabia's WTO Working Party Report, the Saudi Government reiterated that it had eliminated these two parts of the boycott. Alireza stressed at the time that he wanted to be kept personally informed of any allegations that any entity in Saudi Arabia was seeking to enforce these aspects of the boycott (ref C). Moreover, in numerous discussions with private sector contacts on this issue, all have reported that the Kingdom had taken no action towards reinstating (or otherwise implementing) a secondary or tertiary boycott of Israel (ref B). ¶2. (SBU) Post thanks Commerce for sending detailed information regarding four companies alleged to have issued prohibited or permissible boycott-related requests in Saudi Arabia (ref D). In addition to recent high-level engagement, Post is formally sending information regarding the four companies to the Ministry of Commerce and Industry and has requested a meeting with the Ministry's Boycott office once the SAG returns from the Hajj and Eid holiday December 5. ¶3. (SBU) In the interim, Post offers the following response to ref A questions: -- The SAG does not require U.S. firms to comply with the secondary or tertiary aspects of the ALB. -- Legally, Saudi Arabia ended its secondary and tertiary boycotts of Israel through Council of Ministers Decision No. 5 of June 13, 1995. -- The SAG does not, as a matter of policy, request that U.S. firms comply with secondary and tertiary boycott requirements. -- The SAG's boycott practices have not, as previously reported, had an impact on U.S. businesses (ref B). -- The SAG maintains an ALB office in the Ministry of Commerce and Industry. Post will inquire about the offices' duties and representation at the Arab League Central Boycott Office meetings in Damascus once the requested meeting is scheduled. -- The SAG at the highest levels addresses all instances of attempted boycott enforcement and takes this responsibility seriously. The Minister of Commerce and Industry has asked to be personally informed of any infringements and committed to take corrective steps to address any issues. -- Ambassador Smith and Emboffs have reached out to high- and working-level SAG officials in the past year and have received positive responses across the board. SMITH