US embassy cable - 04ABUDHABI1939

C O N F I D E N T I A L ABU DHABI 001939 
 
SIPDIS 
 
STATE FOR NEA/NGA AND NEA/ARP 
 
E.O. 12958: DECL: 06/08/09 
TAGS: PREL, TC 
SUBJECT: AMBASSADOR'S FAREWELL CALL ON ABU DHABI CROWN 
PRINCE SHAYKH KHALIFA BIN ZAYED 
 
 
Classified by Ambassador Marcelle M. Wahba, reasons 
1.5 (b) and (d). 
 
1. (C) Summary: During her farewell call on Abu Dhabi 
Crown Prince Shaykh Khalifa bin Zayed Al-Nahyan on 
June 8, the Ambassador and the heir apparent to 
President Shaykh Zayed reviewed the accomplishments in 
the bilateral relationship over the past three years. 
They also discussed Iraq, the Palestinian issue, and 
oil prices.  End Summary. 
 
2. (C) Shaykh Khalifa praised the state of U.S.-UAE 
ties, saying the two countries have enjoyed a long and 
stable relationship.  He expressed satisfaction at the 
extensive accomplishments despite the difficult period 
after September 11.  The Ambassador, in response, 
credited the support she received from the UAE's 
rulers and leaders, and cited the two Strategic 
Partnership dialogue rounds, the signing of a Trade 
and Investment Framework Agreement, and robust 
counter-terrorism cooperation as key bilateral 
achievements.  The Crown Prince, who holds the title 
of Deputy Supreme Commander of the Armed Forces, said 
military cooperation also should be highlighted as a 
major accomplishment. 
 
3. (C) The Ambassador reminded Shaykh Khalifa that he 
had not visited the United States during the past 
three years and suggested that he consider making a 
trip in 2005 after our national elections. 
 
4. (C) On Iraq, the Ambassador thanked Shaykh Khalifa 
and the UAEG for being the first in the region to 
endorse the interim Iraqi authority.  The Crown Prince 
responded by saying that whatever happens in Iraq will 
have a huge impact on all its neighboring states, 
including the UAE.  Only when the violence ceases will 
the Iraqi people feel a sense of stability, he added. 
The UAE wanted to see the Iraqi Interim Authority 
succeed and bring about a more stable situation that 
would allow business and trade to flourish. 
 
5. (C) The Crown Prince also said it was important to 
not forget the Palestinian issue, but confided that he 
was less optimistic about the overall situation.  He 
asked the Ambassador if there was any movement in the 
peace process.  The Ambassador responded by saying 
that there had been a recent step forward with the 
agreement between Egypt and Israel over security of 
the border with Gaza that may open new opportunities, 
and she underscored that President Bush remained 
committed to a two-state solution.  Shaykh Khalifa 
said the Palestinian issue remains the fundamental 
problem in the region, which fuels the extremists in 
Saudi Arabia and elsewhere. 
 
6. (C) The Ambassador thanked the Crown Prince for 
playing a leadership role in the decision to increase 
the UAE's oil production even before the OPEC meeting 
in Beirut.  Shaykh Khalifa said the price of oil was 
too high, but noted that it was not only  affected by 
supply and demand, but by other factors, such as taxes 
and speculation.  He criticized  European consuming 
countries that levy taxes constituting 70% of the 
price at the gas pump and noted that they could reduce 
consumer prices by cutting those taxes. 
 
7. (C) In closing, Crown Prince Khalifa commended the 
the Ambassador's service during a difficult time in 
the region for having  successfully promoted the two 
countries' many mutual interests. 
WAHBA