US embassy cable - 04ABUDHABI1439

C O N F I D E N T I A L SECTION 01 OF 02 ABU DHABI 001439 
 
SIPDIS 
 
STATE FOR NEA/ARP, NEA/PPR 
STATE PASS USTR - JBUNTIN 
USDOC FOR USPTO 
USDOC FOR 4250/DOC/MAC/ONE/CLOUSTAUNAU 
GENEVA PASS USTR 
 
E.O. 12958: DECL: 05/05/09 
TAGS: PREL, ETRD, PGOV, TC 
SUBJECT: UAE DEPUTY PRIME MINISTER AND MINSTATE FOR 
FOREIGN AFFAIRS LEADS HIGH-LEVEL DELEGATION TO ASIA 
AND EUROPE 
 
 
Classified by Charge D'Affaires Richard A. Albright, 
reasons 1.5 (b) and (d). 
 
Ref: Abu Dhabi 1197 
 
1. (C) Summary: UAE Deputy Prime Minister and Minister 
of State for Foreign Affairs Shaykh Hamdan bin Zayed 
Al-Nahyan's (HbZ) official travel to South Korea, 
Japan, China and Germany from April 10-29 was designed 
to cement political and economic ties with the UAE's 
key trading partners.  He met with Prime Minister 
Koizumi in Japan and Chancellor Schroeder in Germany. 
The Emiratis returned to the UAE with cooperation 
agreements in the fields of higher education, judicial 
assistance, and industry, but also with commitments to 
provide humanitarian assistance to the Palestinians, 
reinvigorating the Middle East Roadmap, and rebuilding 
Iraq.  End summary. 
 
2. (C) HbZ was accompanied to Asia and Europe by 
Minister of Higher Education and Scientific Research 
Shaykh Nahyan bin Mubarak Al-Nahyan, Minister of 
Economy and Commerce Shaykh Fahim bin Sultan Al- 
Qassimi, Minister of Communication Ahmed Humaid Al- 
Tayer, Minister of Justice and Islamic Affairs 
Mohammed bin Nakhira Al-Dhahiri, Interior Ministry 
Under Secretary Shaykh Saif bin Zayed Al-Nahyan, and 
Chairman of the Abu Dhabi Economic Department Shaykh 
Hamed bin Zayed Al-Nahyan.  The delegation also 
consisted of UAE businessmen. 
 
3. (U) In each of the countries he visited, HbZ urged 
his hosts to help revive the peace process in the 
Middle East and appealed to them to provide 
humanitarian assistance to the Palestinians.  He also 
exchanged views with his hosts about the situation in 
Iraq, and discussed ways Asia and Europe could help 
diplomatically and financially in rebuilding Iraq. 
 
South Korea 
----------- 
 
4. (U) In Seoul, HbZ met with Foreign Minister Ban Ki- 
moon and with Defense Minister Cho Young-kil.  South 
Korea committed to give $5 million in humanitarian aid 
to the Palestinians.  Discussions centered on Korea's 
commitment to dispatching troops to Iraq, and ways of 
bolstering power relations, space research, and 
information technology.  UAE-Korean trade has reached 
$7.9 billion, making Korea the UAE's second largest 
Asian trade partner after Japan.  There are 44 Korean 
companies in the UAE.  Korean airlines recently 
started offering three flights a week to Dubai. 
 
Japan 
----- 
 
5. (U) In Japan, HbZ met with Prime Minister Koizumi 
and Foreign Minister Yariko Kawaguchi.  HbZ told his 
Japanese hosts that the UAE was committed to meet 
Japan's oil and gas needs, and he encouraged 
investment in other non-oil sectors, including human 
resource development, trade, investment, and exchange 
of expertise.  The UAE and Japan signed a memorandum 
on cooperation in the field of higher education and 
scientific research that will encourage exchanges of 
researchers and students.  UAE-Japan trade exceeds $15 
billion.  The UAE exports 60 percent of its oil to 
Japan, making it the UAE's most important trading 
partner.  The UAE also wants to increase Emirates 
Airlines flights to Japan and attract new Abu Dhabi- 
based carrier Al-Ettihad Airlines.  Approximately 
1,400 Japanese live in the UAE, representing the 
largest Japanese community in the Middle East. 
 
China 
----- 
 
6. (U) In China, HbZ met with Prime Minister Wen 
Jiabao and discussed bilateral trade, terrorism, and 
China's role in Iraq.  The UAE and China signed an 
agreement on judicial assistance in civil and business 
fields.  The two countries also discussed ways to 
enhance cooperation in information technology.  UAE- 
China trade reached $5.8 billion in 2003.  The UAE has 
become the largest importer of Chinese products in the 
Arab world.  The number of Chinese companies working 
in the UAE has reached 500, and the Chinese labor 
force here is estimated at 50,000. 
 
Germany 
------- 
 
7.  (C) Received at the head-of-government level (the 
German DCM here told us that Berlin responded to our 
having received HbZ at such a high level in 
Washington), HbZ met with German Chancellor Gerhard 
Schroeder, who also attended the inaugeration of the 
new UAE Embassy in Berlin.  HbZ also discussed with 
Chancellor Schroeder the possibility of German 
companies initiating development plans for Saadiyat 
Island.  (Note:  Presidential son and head of the 
intelligence service Shaykh Hazza bin Zayed Al-Nahyan 
launched an ambitious plan in the late 1990s to 
establish an offshore banking and commodities trading 
free zone on Saadiyat Island, but the project never 
came to fruition.  End note.)  HbZ also held 
discussions with the German Minister of Economy 
Wolfgang Clement and Minister-President of Lower 
Saxony Christian Wuff.  The trip culminated with an 
agreement between the emirate of Abu Dhabi and auto 
giant Volkswagen to acquire a major stake in the 
German car manufacturer and move some production to 
the UAE. 
 
8.  (U) Although not a major customer of UAE oil, 
Germany's non-oil trade with the UAE is substantial. 
Figures collected from the Dubai and Abu Dhabi 
Chambers of Commerce indicate that non-oil trade with 
Germany topped $2.5 billion in 2002.  Germany is the 
second largest source (after the United States) of 
imports into the UAE, and German goods -- mostly 
luxury products, machinery and spare parts -- 
constitute nearly 8 percent of all imports. 
 
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Comment 
------- 
 
9.  (C) HbZ has told the Ambassador that he is likely 
to remain as Deputy Prime Minister and become Foreign 
Minister under a series of ministerial changes under 
consideration (reftel).  He has grown in influence in 
recent years in his position as Minister of State for 
Foreign Affairs, and has gained a reputation as an 
able and committed statesman.  These successful visits 
have added to HbZ's luster. 
 
Albright