US embassy cable - 04BRUSSELS4418

C O N F I D E N T I A L SECTION 01 OF 02 BRUSSELS 004418 
 
SIPDIS 
 
DEPT FOR NEA - P. DIBBLE AND EUR/ERA 
 
E.O. 12958: DECL: 10/14/2009 
TAGS: PREL, PTER, PGOV, XF, EUN, USEU BRUSSELS 
SUBJECT: EU VIEWS ON NORTH AFRICA AND THE GULF:  NEA DAS 
DIBBLE VISIT 
 
 
Classified By: USEU POLOFF LEE LITZENBERGER; REASONS 1.4 (B,D) 
 
 1.  (C)  Summary.  In US-EU discussions on the Maghreb and 
Gulf on October 5-6, EU officials said that in lifting the 
arms embargo on Libya they would urge Tripoli to resolve the 
Bulgarian medics issue.  Discussion of the Western Sahara 
focused on the hardening of Moroccan and, to a lesser extent, 
Algerian positions.  On promoting reform in the Arab world, 
the EU noted that Egypt was critical of the recent Forum for 
the Future meeting in New York, and wants a G8-Arab forum. 
The EU is trying to deepen its engagement in the Gulf through 
a regional Free Trade Agreement with the GCC, and hopes to 
promote reform by working with enlightened leaders in Kuwait 
and Qatar. Strong Hamas ties to the UAE worry the EU, which 
has learned that Hamas chief Khalid Mishal plans to relocate 
in Dubai from Damascus. The EU sees Saudi Arabia as a "drag" 
on reform in the peninsula, but is pleased with cooperation 
to halt Saudi government funding of radical mosques in 
Europe.  End Summary. 
 
Libya 
----- 
2.  (C) At October 6 U.S.-EU Troika discussions on Maghreb 
and Gulf issues, NEA DAS Philo Dibble outlined current status 
of U.S.-Libyan relations, noting outstanding concerns that 
must be resolved prior to removal of Libya from the list of 
state sponsors of terrorism.  Dutch Presidency Middle East 
Director Micheil den Hond noted the overlap between EU and US 
approaches to Libya, but added that the issue of illegal 
emigration was an immediate concern for Italy and Malta.  The 
EU planned to lift its arms embargo on October 11 in 
recognition of Libya's strategic choice to dismantle its 
nuclear weapons infrastructure but, in doing so, would note 
continued EU concern about the Bulgarian medics held in 
Libya.  (Note:  As forecast, EU Ministers approved the lift 
and issued a statement mentioning ongoing concerns on October 
11.)  Den Hond said the EU hoped to bring Libya into its 
Barcelona process -- dependent on Libyan acceptance of 
attending meetings with Israel -- where the EU thought it 
could best manage relations with Tripoli. 
 
Western Sahara 
-------------- 
3.  (C)  The EU side detailed ongoing efforts to encourage 
Morocco and Algeria to resolve this issue.  The EU is 
currently using ongoing negotiations for Neighborhood "Action 
Plans" with Rabat and Algiers as the vehicle.  Both sides 
agreed to include general references to the conflict in their 
Action Plans, but both -- in particular Morocco -- have 
resisted making any specific political commitments.  The EU 
continues to provide humanitarian assistance to refugees and 
POWs, but sees the Western Sahara as primarily a bilateral 
issue between Morocco and Algeria.  Den Hoon said he thought 
a major effort was needed in the UN on this.  In a separate 
meeting, Council Secretariat Policy Planning chief for the 
Middle East Pascal Charlat said that peace in the Western 
Sahara was a prerequisite for stability in Algerian-Moroccan 
affairs.  Charlat said the EU was also concerned by the 
presence of up to 800 "Afghans" in Morocco. 
 
Engaging the Arab World on Reform 
-------------------- 
4.  (C)  Den Hoon said the greatest challenge in the region 
for the US and the EU was to find a way to engage the Arab 
World in a way that can bring development and prosperity to 
people.  The EU has ten years experience with the Barcelona 
process, an integrated approach to regional development. 
Yet, den Hoon said, earlier this year when senior U.S. 
policymakers were proposing the Broader Middle East reform 
agenda, they asked, "What is Barcelona?"  Since the Sea 
Island G8 summit, den Hoon said, there has been more 
convergence of US and EU approaches.  US and EU coordination 
to promote reform in the region was key, den Hoon said.  NEA 
DAS Dibble agreed, noting that our efforts must respond to 
local initiatives and not be seen as imposing an a priori 
plan from outside. 
 
Forum for the Future 
------------ 
5.  (C)  Den Hoon added that he attended the recent Forum for 
the Future meeting in New York, where he noted there remained 
some "suspicion" among Arab countries' statements regarding 
the initiative but was pleased to see these remarks were not 
shared with the press.  He said that Egypt had been 
particularly difficult regarding the presence of Afghanistan 
and Pakistan at the meeting and want to hold a G8-Arab Group 
forum.  Den Hoon said the geographic scope of the U.S. 
approach -- going beyond the Arab world to include other 
Muslim countries -- is an issue in the region.  It makes it 
appear that religion is the defining element, and an obstacle 
to reform.  Den Hoon said that Egypt had also raised the 
concern that the Middle East Peace Process, which it sees as 
related to the issue of regional reform, was not on the Forum 
agenda. 
 
EU Engagement in the Gulf 
--------------------- 
6.  (C)  As part of a regional strategy, Den Hoon said the EU 
seeks to deepen its superficial relations with the Gulf.  The 
EU hopes to finalize a Free Trade Agreement with the GCC 
countries this year, despite Saudi foot-dragging.  The 
Commission noted that the EU and US have different approaches 
on FTAs. The EU has promoted a GCC customs union as a first 
step to a regional FTA; there is concern that the U.S. focus 
on bilateral FTA's could undermine the GCC customs union. 
 
7.  (C)  The EU has also been pursuing a parallel political 
dialogue with GCC countries, raising issues such as human 
rights, but discussion has usually been stilted.  The EU also 
plans to pursue bilateral relations with GCC members, with a 
focus on reform.  Money was not the issue; the key is to 
build on the desire for change in the Gulf, den Hoond said, 
which he found to be greater than one might expect.  He cited 
the Sultan of Oman and the Emir of Kuwait as examples of 
leaders pushing reform on their conservative societies -- 
"the reverse of what we see in the Mediterranean." 
 
Gulf links to Hamas 
--------------- 
8.  (C)  Council Secretariat official Charlat said the EU was 
concerned about the strong Hamas links to the UAE, and said 
the EU is urging Dubai to cut these ties.  Charlat said the 
EU understood that Hamas leader Khalid Mishal planned to 
relocate from Damascus to Dubai.  (Note:  According to 
Embassy Abu Dhabi, there is no sign on Mishal in the UAE. 
End note.) 
 
Saudi Arabia 
------------ 
9.  (C)  Den Hoon said Saudi Arabia was a concern to the EU; 
it was reluctant to engage and has dragged down EU efforts 
with the GCC.  On the positive side, the Saudi government has 
ended funding of radical mosques in Europe, and the Dutch 
have intensified bilateral cooperation with the Saudis on 
this issue.  DAS Dibble remarked that the Saudi government 
has been very cooperative, but concerns remain about private 
funding to charities that support radical and terrorist 
groups. 
 
10.  (U)  NEA DAS Dibble has cleared this telegram. 
 
McKinley