US embassy cable - 04ABUDHABI933

C O N F I D E N T I A L SECTION 01 OF 03 ABU DHABI 000933 
 
SIPDIS 
 
STATE FOR NEA AND NP/ECC/KCROUCH 
USDOC FOR BIS U/S KJUSTER 
USDOC FOR ITA/FCS/OIO/ANESA FOR BORR 
 
E.E. 12958:  DECL: 03/30/14 
TAGS: ETTC, BEXP, PARM, PREL, PTER, TC 
SUBJECT: UAEG TO BIS U/S JUSTER: EXPORT CONTROL 
COOPERATION WILL CONTINUE 
 
1. (U) Classified by DCM Richard Albright for reasons 
1.5(b) and (c) 
 
2. (U) Summary:  From February 28 through March 1, Under 
Secretary Kenneth Juster led a delegation from the 
 
SIPDIS 
Departments of Commerce and State to the UAE to discuss 
US-UAE export control cooperative efforts and to 
emphasize the need for the UAE to adopt a comprehensive 
export control system. U/S Juster met with Deputy Prime 
Minister of the UAE and Minister of State for Foreign 
Affairs Shaykh Hamdan bin Zayed al Nahyan; Crown Prince 
of Sharjah Shaykh Sultan Al Qassimi; and Crown Prince of 
Dubai and UAE Minister of Defense Shaykh Mohammed bin 
Rashid al Maktoum, as well as other high-ranking UAE 
officials.  U/S Juster explained the importance of the 
trade and security relationship and how an effective 
export control program enhances trade by ensuring the 
security of the supply chain and preventing the unlawful 
diversion of goods. The Under Secretary's message was 
timely in light of recent revelations that proliferators 
had taken advantage of Dubai's dynamic trade environment 
to transfer nuclear components to Pakistan, Libya, North 
Korea, and Iran.  The overall reaction to his comments 
was very positive and all UAE officials look forward to 
future opportunities to cooperate on establishing an 
effective export control system in the UAE and to prevent 
proliferation through the UAE.  UAEG officials proposed 
holding a regional conference on export controls in the 
UAE in the future once they have a good system in place. 
End Summary. 
 
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MEETINGS WITH FEDERAL OFFICIALS IN ABU DHABI 
-------------------------------------------- 
3. (C) On February 28, Shaykh Hamdan bin Zayed told U/S 
Juster and the Ambassador  that the UAE is committed to 
fighting terrorism.  The UAE is an open country and there 
have been some diversions through the UAE reported 
recently, but the UAEG has and will continue to cooperate 
with the United States on such matters.  He recognizes 
the need to tighten security at airports, ports and 
borders through the enactment of laws and regulations and 
welcomes the assistance of the United States on this 
matter.  He also said the UAE is anxious to address 
diversion and proliferation issues because the UAE faces 
a direct threat from Iran and other countries.  He is 
committed to making sure that export control legislation 
proceeds and is passed. 
 
4. (C) U/S Juster also told HbZ that the United States is 
committed to working with the UAE to establish an 
effective export control system.  He also indicated that 
the USG is seeking the UAE's adherence to the 
International Code of Conduct (ICOC), a supplement to the 
Missile Technology Control Regime. HbZ responded that the 
ICOC is being considered by the UAE Armed Forces Chief 
and he hopes they will come to a decision soon.  He also 
cautioned, however, that the UAE wants to advance its own 
military capabilities so as to rely less on others in 
facing threats in the region. 
 
5. (U) On February 28, U/S Juster also met with UAE 
Minister of State for Finance and Industry Dr. Khalfan 
Kharbash and Assistant Under Secretary for Political 
Affairs Abdullah Rashid Al-Nuaimi.  Al-Nuaimi indicated 
that an effective export control system is vital to the 
strategic interests of the UAE and that the UAEG is eager 
to receive the additional training outlined in the agreed 
action plan of export control training activities.  He 
pointed out that all appropriate UAEG officials are 
actively engaged in the effort to establish an export 
control system and there is a need to increase technical 
cooperation between our two countries.  (NOTE:  The 
request for additional intelligence- and information- 
sharing was a recurring theme throughout the meetings in 
Abu Dhabi and Dubai.)  Dr. Kharbash said that after 9/11, 
there were so many issues of concern that the UAE focused 
on those that were most strategically important.  He 
agreed that the time is now right for the UAE to pursue 
cooperation with the United States on export controls. 
 
6. (U) U/S Juster then met with Yaqub Al Hosani, 
Director, Office of International Cooperation, Ministry 
of Foreign Affairs, who stated that the UAE had received 
the draft export control legislation template forwarded 
by the US.  The draft has been circulated to the members 
of the December 2003 Legal Technical Exchange for their 
review and comment.  Al Hosani stated that the year-old 
UAE Federal Customs Authority seems the logical point of 
contact within the UAEG for export control authority 
7. (U) Later that day, U/S Juster met with Director 
General of the UAE Federal Customs Authority, Mohamed Al- 
Mehairi.  In order for the UAE to develop an export 
control system, this Authority must be able to coordinate 
various customs authorities of the seven emirates.  The 
DG's office also provides guidance on implementation of 
and compliance with the GCC Customs Union that came into 
effect in January 2003.  According to Al-Mehairi, 80% of 
all customs activity in the UAE occurs in Dubai.  Al- 
Mehairi was very supportive of export control cooperation 
with the USG, having sent the Authority's Legal Advisor 
to the December 2003 Legal Technical Seminar. 
 
8. (U) On February 28, U/S Juster also met with Minister 
of Economy and Commerce Shaykh Fahim al Qassimi who 
stated that we should be concerned about security but 
that we should not let it destroy our lives. He expressed 
support for U.S.-UAE cooperation on terrorist financing 
and export control matters. 
 
----------------- 
DUBAI AND SHARJAH 
----------------- 
9. (C) During a March 1 meeting in Dubai, U/S Juster, 
accompanied by the Consul General, commented to Crown 
Prince of Dubai Shaykh Mohammed bin Rashid al Maktoum on 
how much he appreciated the extent of cooperation from 
the UAEG.  MbR was very well informed of the recent USG- 
sponsored training event and commented on the usefulness 
of the program to Dubai Customs.  MbR also advised that 
Dubai ports all have cargo inspection systems installed. 
(NOTE:  MbR and the Dubai enforcement community strongly 
believe in using technology such as detection and other 
high-tech equipment to address export control 
deficiencies.)  MbR said he wants the United States and 
the UAE to continue to work together because he does not 
want "bad people to come to Dubai to do bad things."  MbR 
remarked that if Dubai were to suffer an incident, the 
damage to Dubai's reputation would be far worse than the 
implementation of any possible security measures. 
 
10. (C) MbR also stressed the importance of ongoing 
intelligence- and information-sharing between the two 
countries.  U/S Juster indicated the United States 
welcomes input from Dubai regarding their experiences in 
international trade and how things work in this region. 
The Consul General said that the United States would be 
looking for Dubai's and MbR's support for federal level 
export control legislation that was currently in the 
drafting stage.  In response, MbR said such legislation 
will take time, but that unlike some of the other 
emirates, Dubai understands the importance of trade 
security.  This will be important when it comes time for 
the various Emirates to ratify the legislation 
 
11. (U) In recognition of the need to elicit support for 
export control legislation from as many emirates as 
possible, U/S Juster met with Crown Prince of Sharjah, 
Sultan Al Qassimi, on February 29.  Al Qassimi told the 
U/S that the UAE, as an important transshipment hub in 
the region, has the infrastructure to be a leader on the 
issue of trade security and that it is in everyone's best 
interest to ensure trade security.  He said he believed 
export controls would be most effective if handled at the 
federal level where such measures would be implemented 
faster and more efficiently. 
 
12. (U) On February 29 the U/S also met with Senior Vice 
President, Emirates Group Security Dr. Abdullah Al- 
Hashemi.  Emirates Group is the parent company of 
Emirates Airlines and DNATA (Dubai National Aviation and 
Tourism Authority), which processes and clears all cargo 
received at Dubai International Airport. Dr. Al-Hashemi 
assured the U/S that the Emirates Group would cooperate 
with the relevant authorities on issues involving trade 
security, offering his group's assistance to the United 
States mission in taking necessary action in these 
matters.  He pointed out that the Dubai government is 
working on the recent case of diversion of nuclear 
components through Dubai en route to Libya. 
 
13. (C) The U/S then met with Shaykh Ahmed bin Saeed Al 
Maktoum, President of the Civil Aviation Department of 
Dubai and Chairman of Emirates Group.  Shaykh Ahmed 
highlighted the importance he and Emirates attached to 
their close relationship with the embassy and the USG. 
He indicated that the good relationship allowed actions 
to be taken more quickly when time is of the essence.  He 
pointed out that Emirates Group chairs a committee 
overseeing airport security (a group that includes 
Director of Dubai Airport security Colonel Ahmed bin 
Thani, an attendee at the December 2003 Legal Technical 
Seminar).  He said trade security, as well as other 
airport security measures, is essential in Dubai because 
the ongoing airport expansion will significantly increase 
the number of passengers and the amount of cargo passing 
through Dubai International Airport. 
 
14. (U) On February 29, U/S Juster was the keynote 
speaker at a luncheon hosted by the American Business 
Council of Dubai and the American Business Group of Abu 
Dhabi.  The luncheon was attended by approximately 80 
people.  The attendees asked questions concerning 
possible future relaxation of U.S. sanctions on Libya; 
the export of aircraft parts to Iran; the imposition of 
sanctions on Syria; and next steps in the export control 
cooperation between the United States and the UAE. 
 
15. (U) On March 1, U/S Juster and the Consul General met 
with Chairman of the Dubai Ports Authority Sultan bin 
Sulayem.  Sultan bin Sulayem told the U/S that there have 
been many changes and improvements at Dubai's ports.  He 
pointed to extensive training, the installation of cargo 
inspection equipment, and sophisticated information 
management.  He reported that the participants in 
December's WMD Identification and Awareness Training had 
learned a lot and were looking forward to more training. 
He pointed to the need for good information management 
systems as a way to handle the sheer volume of traffic, 
as well as to control and inspect goods when necessary. 
He acknowledged that Dubai has much to lose if there is a 
major incident at one of their ports or if something that 
causes an incident has been cleared through Dubai.  The 
U/S told bin Sulayem that we look to Dubai on how best to 
implement security procedures and processes and believe 
that Dubai and the UAE can be leaders in this regard for 
the Gulf region. 
 
16. (U) This cable has been coordinated with Amconsul 
Dubai, and cleared by U/S Juster's office, and State/NEA 
and NP. 
 
Wahba