COMMERCE MINISTER ALIREZA ENTHUSIASTIC ABOUT UPCOMING TRIP TO WASHINGTON

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