IRAN OPENS TRADE OFFICE IN MUSCAT

C O N F I D E N T I A L MUSCAT 000083

SIPDIS

E.O. 12958: DECL: 2020/02/09
TAGS: PREL ETTC MU IR
SUBJECT: IRAN OPENS TRADE OFFICE IN MUSCAT

CLASSIFIED BY: Richard J Schmierer, Ambassador, STATE, EXEC; REASON:
1.4(B),(D)


1. (SBU) Recent press reporting from Iran noted the imminent
opening of an Iranian "trade center" in Oman by January 26, 2010.
The reports cite Iranian economic officials as saying that the
Iranian government has allocated one billion dollars in loans to
set up 20 trade centers worldwide. They note also that the centers
are either built or will be built in Shanghai, Sudan, and
Azerbaijan.


2. (C) In the course of a routine diplomatic exchange with his
Japanese counterpart February 6, the DCM asked whether the Japanese
Embassy had followed up this report with the Iranian Embassy in
Muscat. The Japanese DCM explained that he had in fact personally
approached the Iranian Commercial Counselor recently about the
stories.


3. (C) According to the Japanese DCM, the Iranian confirmed the
center had been open two or three weeks ago in the Seeb
neighborhood (near Muscat International Airport). The center had a
staff of five or six who were not Iranian Embassy direct hire
employees. Rather, they were hired somewhat like contractors from
funds generated by a tax or fee levied on Iranian companies'
international trade. Further, the Iranian reported that there are
similar centers in the UAE and Qatar. The center operated under
the supervision of the Iranian Commercial Counselor and would focus
on generating trade in the areas of energy, joint commercial
ventures, and Iranian industrial products.


4. (C) COMMENT: The information generated in this meeting differs
significantly from the press report, but may not be mutually
exclusive. Oman continues to view Iran as the region's primary
strategic threat, but chooses to manage the threat through
carefully attenuated bilateral relations overseen personally by
Sultan Qaboos. The entry of Iranians into Oman is highly
controlled, and Oman-Iran bilateral commerce is surprisingly
insignificant given the proximity of the two countries. The
presence of a trade office is unlikely to rebalance this equation.
Aside from the question of a need for natural gas for domestic
development, Oman looks beyond Iran to foster world-class trade
relations, e.g., the U.S.-Oman, and Singapore-Oman FTAs. In its
current state, Iran isn't in the game. END COMMENT.
Schmierer