Identifier
Created
Classification
Origin
09RIYADH575
2009-04-15 15:45:00
UNCLASSIFIED
Embassy Riyadh
Cable title:  

COMMERCE MINISTER ALIREZA ENTHUSIASTIC ABOUT

Tags:  PREL EAGR ETRD ECON KIPR TSPL SA OVIP ALIREZA 
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VZCZCXRO0627
PP RUEHDE RUEHDH RUEHDIR
DE RUEHRH #0575/01 1051545
ZNR UUUUU ZZH
P 151545Z APR 09
FM AMEMBASSY RIYADH
TO RUEHC/SECSTATE WASHDC PRIORITY 0662
INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE
RUEHRC/DEPT OF AGRICULTURE WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
UNCLAS SECTION 01 OF 02 RIYADH 000575 

SIPDIS

STATE FOR NEA/ARP AND EEB
PLEASE PASS TO USTR FOR JASON BUNTIN
PLEASE PASS TO USDOC FOR STEVEN GARRETT

E.O. 12958: N/A
TAGS: PREL EAGR ETRD ECON KIPR TSPL SA OVIP ALIREZA
SUBJECT: COMMERCE MINISTER ALIREZA ENTHUSIASTIC ABOUT
UPCOMING TRIP TO WASHINGTON

REF: A. RIYADH 537

B. RIYADH 451

C. RIYADH 311

D. RIYADH 226

E. 08 RIYADH 775

F. SCHWEDT-BUNTIN 3/22 EMAILS

UNCLAS SECTION 01 OF 02 RIYADH 000575

SIPDIS

STATE FOR NEA/ARP AND EEB
PLEASE PASS TO USTR FOR JASON BUNTIN
PLEASE PASS TO USDOC FOR STEVEN GARRETT

E.O. 12958: N/A
TAGS: PREL EAGR ETRD ECON KIPR TSPL SA OVIP ALIREZA
SUBJECT: COMMERCE MINISTER ALIREZA ENTHUSIASTIC ABOUT
UPCOMING TRIP TO WASHINGTON

REF: A. RIYADH 537

B. RIYADH 451

C. RIYADH 311

D. RIYADH 226

E. 08 RIYADH 775

F. SCHWEDT-BUNTIN 3/22 EMAILS


1. (SBU) Key points:

-- Minister of Commerce and Industry Abdullah Zainal Alireza
confirmed he will be in Washington, DC, April 21-30 to
deliver remarks at a conference at the New America Foundation
and to meet with U.S. officials. He stressed the need to
emphasize business and trade as the future of the U.S.-Saudi
relationship, not just oil and security, and he underlined
his hopes for working with the new administration. Alireza
commented briefly on the need to bring more U.S. visitors to
the Kingdom to increase knowledge of Saudi Arabia in general.

--Alireza specifically requested meetings with the
Secretaries of State and Commerce as well as the USTR.

-- (SBU) The Minister briefly addressed allowing a
third-party audit of SAG computers for pirated software,
assigning a point of contact in his Ministry to work with us
directly.


-- (SBU) The Minister said he is certain that, despite a
recent drop in inflation, prices on basic commodities will
rise again within a year, and he is taking steps to counter
this eventuality (including possible price controls).


2. (SBU) Comment: Alireza is the cabinet member who
represents both the liberal Hijaz and the economic reform
oriented business community. He was an active member of the
Saudi WTO negotiating team. Post strongly supports his
requests for cabinet level meetings in Washington.

Washington itinerary: program and priorities
--------------


3. (SBU) Charge d'Affaires met Saudi Minister of Commerce and
Industry Abdullah Zainal Alireza April 14 to discuss the
Minister's upcoming travel to Washington, DC, as well as the
Minister's commitment to allow a third-party audit of
government software use. The Minister confirmed he will
travel to Washington from April 21- 30 with a delegation that

includes three of four deputy ministers: Abdullah
al-Hamoudi, Deputy Minister for Foreign Trade, Hasan Al-Akeel
Deputy Minister for Internal Trade, and Khalid al-Suleiman,
Deputy Minister for Industry. Although he is visiting the
United States to deliver remarks at a conference held by the
New America Foundation (NAF),the Minister expressed a desire
to use the trip as an opportunity to meet senior USG
officials about his consumer protection agenda (ref D). He
was delighted when the Charge presented him a white paper
listing USG agencies that are prepared to meet, and said he
would like to meet with as many as possible from April 22 to
24, with his deputies meeting any that he cannot. He cited
meetings at the Small Business Administration and the Federal
Trade Commission as his top priorities. In addition to the
NAF Conference and agency meetings, the Minister plans to
meet with the U.S.-Saudi Business Council and spend
substantial time on Capitol Hill meeting with members of
Congress. He said he plans to have dinner with Steven
Clemons, Director of the American Strategy Program at the NAF
on Sunday evening.


4. (SBU) The Minister said he looks forward to this visit,
particularly his meetings on the Hill, as an opportunity to
educate Americans about the Kingdom. He spoke positively
about meeting new administration officials, predicting a more
favorable experience with now interlocutors. He outlined an
ambitious schedule and repeatedly said he'd like as many
meetings as possible. The Minister also repeatedly said he
felt that the U.S.-Saudi relationship had grown beyond oil
and defense and should focus more heavily on trade and
business (Note: Alireza comes from a prominent old Jeddawi
mercantile clan) He said, "Business is the cement foundation
of our relationship."

Minister receives USG software audit proposal
--------------


5. (SBU) The Charge addressed the Minister's commitment

RIYADH 00000575 002 OF 002


during their last meeting to allow a third-party to audit SAG
computers for illegally installed software (ref b) and gave
him a written letter with a proposed action plan and an offer
of USG technical assistance. Alireza pointed out he'd heard
rumors USG officials at the recent Trade and Investment
Framework Agreement (TIFA) meetings in Washington were very
pleased with progress the SAG has made on IPR enforcement.
Econcouns responded that the TIFA was a huge success, and to
best capitalize on the momentum, an audit of this type would
send a strong signal to U.S. about the commitment the SAG has
made to IPR compliance, which many companies use to gauge the
business climate. Alireza handed the letter to an aide and
said that Deputy Minister Hamoudi would be the lead on this
issue, and he hoped a plan could be in place before the
delegation travels.

Projections for the coming year:
inflation will rise again?
--------------


6. (SBU) The Minister asserted that his greatest challenge
over the coming year would be a resurgence of inflation,
particularly of prices of staples like wheat and rice. He
said that when he took office in 2007, "all the ills in the
Kingdom were blamed on the Commerce Ministry." He described
his efforts to ameliorate what he sees as an inevitable rise
in prices by streamlining the supply chain, working with the
Agriculture Ministry to ensure supplies are adequate, the
lines of distribution are free from corruption, and said, if
necessary, that the Ministry would impose price controls on
commodities.
RUNDELL