US embassy cable - 03SANAA2203

C O N F I D E N T I A L SECTION 01 OF 02 SANAA 002203 
 
SIPDIS 
 
E.O. 12958: DECL: 09/03/2013 
TAGS: PREL, PTER, MARR, ECON, EFIN, EINV, PINR, YM, ECON/COM, MARITIME SECURITY 
SUBJECT: HADRAMAUT: ECONOMIC DEVELOPMENT, MARITIME SECURITY 
AND FISHING 
 
Classified By: Charge Alan Misenheimer for reasons 1.5(b,d). 
 
1. (c) Begin summary:  During an August 7-11 trip to the 
Hadramaut, Embassy officials met with Governor Hilal, Deputy 
Governor Ulufi, political figures, and members of the Civil 
Democratic Forum -- a Yemeni NGO -- to discuss the region's 
future.  In Mukalla, Governor Hilal and members of Yemen's 
three major political parties -- the General People's 
Congress (GPC), Islah, and Yemeni Socialist Party (YSP) -- 
highlighted the importance of maritime security, ongoing 
efforts to convince Yemeni expats to return, and attempts to 
rehabilitate Hadramaut,s economic sector.  In Seiyun, Deputy 
Governor Ulufi and YSP representative Mahboob Faraj Aman 
discussed ROYG's objectives in the inner Hadramaut.  The 
delegation's visit to the oil company Canadian Nexen's 
shipping terminal and Central Pumping Facility is reported 
septel.  The regional visit received positive media coverage 
in Al-Ayyam, a widely-read independent based in Aden, and the 
ROYG daily Al-Thawra.  End summary. 
 
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Maritime Security and Other Assistance: 
Don't Forget About the Hadramaut 
--------------------------------------- 
 
2. (c) Governor Abdul Qader Hilal, Deputy Governor Ulufi, and 
members of Yemen's three major political parties -- GPC, 
Islah, and YSP -- agreed on the importance of security and a 
strong economy.  Although "a strategically important 
governorate that is more stable and less disposed to violence 
than the north," Hilal said that to ensure maritime security 
the Hadramaut needs more resources.  Citing U.S. efforts to 
help Yemen establish a maritime security force, GPC Chief 
Awadh Abdullah Hatem invited U.S. advisors to Mukalla, but 
stressed that any training should include local trainees. 
(Note: ROYG routinely deploys its Sanaa-based security forces 
around the country instead of recruiting from the local 
population.  End note.) 
 
3. (c) Hatem recognized ongoing Yemen-U.S. military 
cooperation, including support for the Yemen Coast Guard and 
the Navy, but emphasized that assistance needs to go directly 
to the people.  Ulufi later suggested assistance include 
drinking water, education, and health projects, including 
family planning.  Long considered taboo, Ulufi believes 
people are beginning to realize the benefits of smaller 
families and would welcome family planning.  Islah (an 
Islamist oriented party) representative Muhsen Basurrah also 
noted that Yemen needs U.S. support in the areas of job 
creation and garnering international support for subsidies. 
(Note: the latter is strongly at odds with World Bank and IMF 
recommendations.  End note.) 
 
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Economic Rehabilitation 
----------------------- 
 
4. (c) According to Governor Hilal, benefits from the 
governorate's natural resources, location, and economic 
experience have been eroded by government mismanagement and 
poor political decision-making.  He said the government must 
focus on the needs of the people, and has begun to encourage 
fish wealth, mineral exploitation, agricultural development, 
and road construction. 
 
5. (c) Remittances are an important source of revenue for the 
Hadramaut, and Hilal hopes the return of wealthy expats will 
increase direct investment.  One example of the type of 
investor the Governor is trying to attract is Sheikh Bukchan, 
a Saudi businessman of Yemeni origin.  Bukchan is building a 
fish canning factory near As-Shahir that Hilal believes will 
create 10,000 new jobs.  (Note: ROYG is also preparing land 
along the coast near As-Shahir for a still unnamed project -- 
believed to be a textile plant -- and the World Bank, the EU, 
and Canadian Nexen are all working on new projects in the 
region. End note.) 
 
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Fishing Industry 
---------------- 
 
6. (c) Ongoing conflicts between commercial and traditional 
fishing, and the absence of a maritime security force to keep 
foreign fishing vessels out of Yemeni waters, remain areas of 
concern.  Efforts to resolve the conflict between commercial 
and traditional fishermen have gone all the way to President 
Saleh who, according to Hatem, spent four hours negotiating 
between the sides during his last visit to the region. 
However, Governor Hilal noted that the recent establishment 
of fishing associations has increased overall productivity. 
Before these associations there was no cooperation, no 
stockpiles, and no marketing culture.  Hilal said other 
proposals to support the fishing industry will include new 
roads, cold storage facilities, and programs to encourage 
graduates to enter the fishing industry. 
 
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Employment vis--vis Education 
------------------------------ 
 
7. (c) To lay the foundation for economic development, Hilal 
believes that work must be done away from the ministries in 
the private sector, particularly in oil refining and 
fisheries.  Unemployment among university graduates is a 
continuing concern, and Hatem noted that one of Mukalla,s 
private universities is trying to establish a program to 
partner with enterprise.  To ensure that foreign firms are 
hiring Yemeni nationals, Hatem said the Ministry of Oil and 
Industries has requested information on the nationality of 
employees.  Hilal also asked for greater transparency in the 
application process for U.S. educational exchanges and an 
increase in the frequency and funding of such exchanges.  The 
Islah representative Basurrah echoed Hilal,s concerns. 
 
---------------- 
Tribal Influence 
---------------- 
 
8. (c) According to Seiyun's YSP representative Mahboob Faraj 
Aman, tribal influence is considerably less in the inner 
Hadramaut than in other areas in Yemen.  He said local tribes 
are split between Islah and GPC, but their affiliation is 
based largely on "who pays more for their support." 
 
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Media Reaction 
-------------- 
 
9. (u) With the exception of the pro-Saddam Ba'th party 
newspaper "Al-Ehya Al-Arabi," media reaction to the Embassy's 
August 7-11 trip to the Hadramaut has been positive.  On 
August 8 the official daily "Al-Thawra" carried a short piece 
noting that Governor Hilal discussed economic, social, 
cultural and political activities with the American Embassy 
delegation.  The August 9 edition of the Aden-based 
independent "Al-Ayyam" ran a one-page exclusive on the visit, 
including a rough transcript of a working lunch between USG 
officials and representatives from the GPC, Islah, and YSP. 
 
10. (c) However, the August 14 edition of "Al-Ehya Al-Arabi" 
described the visit as a scandal "in continuation of U.S. 
violation in Yemen.  (Comment:  Embassy contacts have 
commented extensively on the "Al-Ayyam" piece, but few appear 
to have seen "Al-Ehya Al-Arabi's" coverage.  End comment.) 
 
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Bio Notes 
--------- 
 
11. (u) Governor Abdul Qader Ali Hilal was born in 1962.  He 
holds a BA in police sciences, a diploma in Sharia law, and a 
higher diploma in local administration.  He served as 
Director General in the Taiz and Ibb governorates, 
consecutively, from 1985 until 1994 when he became Deputy 
Governor of Ibb.  Hilal served as Governor of Ibb from 1995 
until he assumed his duties as Governor of Hadramaut in 2001. 
 A former marathoner, he is married with seven children. 
 
12. (u) Mukalla GPC Chief Awadh Abdullah Hatem was born in 
Mukallah in 1952 and is a graduate of Mukalla University.  He 
was a member of the Executive Committee of the Local Council 
before unification and was formerly the Director of Youth and 
Sports.  In addition to his duties as GPC Chief, Hatem is 
Undersecretary of the Hadramaut governorate.  He is married 
with three children. 
 
MISENHEIMER