US embassy cable - 04ABUDHABI3783

C O N F I D E N T I A L SECTION 01 OF 02 ABU DHABI 003783 
 
SIPDIS 
 
STATE FOR NEA/ARP, NEA/RA, EB 
STATE PASS USTR 
 
E.O. 12958: DECL: 10/23/14 
TAGS: ECON, ETRD, EFIN, PREL, PTER, IZ, TC 
SUBJECT: HBZ AND MBZ DISCUSS IRAQ, IRAN, SAUDI ARABIA WITH 
USTR ZOELLICK 
 
Classified by Charge d'Affaires a.i. Richard Albright for 
reasons 1.4 (b and d) 
 
1. (C) Summary:  Septel covers the trade and investment 
aspects of USTR Zoellick's October 13 visit to the UAE. 
During their meetings, UAEG leaders also discussed the 
political/security challenges facing the region.  Sheikh 
Hamdan bin Zayed stressed his concerns about Iraqi 
instability and the threat of Iran.  Sheikh Mohammed bin 
Zayed discussed Saudi instability and the need for 
educational reform in the Arab world.  Ambassador Zoellick 
used the opportunity to explain the broader goals of an 
FTA, including supporting reform in the region.  End 
Summary. 
 
2. (C) On October 13, Ambassador Zoellick met with Deputy 
Prime Minister/Minister of State for Foreign Affairs Sheikh 
Hamdan bin Zayed Al-Nahyan and Abu Dhabi Deputy Crown 
Prince and Armed Forces Chief of Staff, Sheikh Mohammed bin 
Zayed Al-Nahyan.  They discussed improving trade relations 
between the two countries and the prospects for moving 
forward with an FTA (septel).  Ambassador Zoellick also 
took the opportunity to thank his hosts for their broader 
political/security cooperation with the USG and to get 
their sense of the challenges facing the region.  The UAE 
hosts raised Iraq, Iran, terrorism, Saudi instability, and 
the urgent need for educational reform. 
 
Iraq 
---- 
 
3. (C) Sheikh Hamdan explained that the UAE Embassy in 
Baghdad followed Iraqi matters closely and that the UAEG 
was seeing efforts by Iran and various power groups in Iraq 
to destabilize the country.  These elements were likely to 
step up their efforts to destabilize Iraq in the run up to 
the elections.  He added however, that he hoped that the 
elections would give the IIG additional legitimacy and that 
this would help reduce the violence.  Ambassador Zoellick 
noted that he had met with the IIG's Minster of Finance and 
the Central Bank Governor and had been impressed with their 
commitment.   He stressed that the USG appreciated all of 
the UAEG's assistance to Iraq.  Sheikh Hamdan noted that 
the UAE had strong relations with the power blocks in Iraq 
and that relations with PM Alawi were close and personal. 
The UAE was fully supportive of Iraq and would remain so. 
 
Iran 
---- 
 
4. (C) Sheikh Hamdan turned to the Iranian threat to 
regional stability.  He explained that Iran's "children of 
the revolution and extremists" had not "given the reformers 
or President Khatami the opportunity to move in the right 
direction."  Sheikh Hamdan emphasized that Iran's strategic 
agenda was to acquire a WMD capacity.  He implored the USG 
to prevent this, adding that the Iranians were interfering 
in Iraq and that the USG should not allow this either. 
 
Terrorism 
--------- 
 
5. (C) Ambassador Zoellick's second meeting of the day was 
with Sheikh Mohammed bin Zayed.  Sheikh Mohammed explained 
that terrorism was a major threat for the UAE.  It was 
important to face it preemptively and not to wait for a 
major incident.  He stressed that, thus far, the UAE had 
been successful, detaining close to 30 Al-Qaida operatives, 
many of whom were transiting the UAE.  He noted that the 
UAE had excellent cooperation with its (non-national) 
residents and with its allies.  He observed, however, that 
sometimes it appeared that Al-Qaida's activities appeared 
more effective and coordinated than those of some of the 
governments attempting to confront them. (Note:  MBZ 
appeared to have Saudi Arabia in mind.) 
 
Regional Instability - Saudi Arabia 
----------------------------------- 
 
6. (C) Sheikh Mohammed termed Saudi Arabia as "very 
unstable," saying this should be a source of concern for 
the region and the world.  He noted that "few observers 
liked the way" the Saudis were running their country, but 
added that the current leadership was "the best we have." 
 
7. (C) Sheikh Mohammed voiced strong concern that if the 
Saudi government fell, whoever followed would take the path 
of extremist Islam.  If religious extremists took control 
over the holy sites they could issue fatwas saying that the 
leaders of tolerant countries such as the UAE (i.e. 
tolerant) were apostates or unbelievers and subject to 
attack.  Sheikh Mohammed explained that the Saudis needed 
help, but that the USG should not "push them over the 
edge."  He noted that the cultures of the UAE and KSA were 
very close.  The big difference, he noted, was that the 
Saudis had not been able to get out of their "closed 
circle."  They did not want to engage the world, whereas 
the Emiratis did.  Ambassador Zoellick used the opportunity 
to stress how the USG viewed free trade and an FTA as a way 
to try and help people and countries that were reforming 
their societies.  Trade could support economic development, 
which could provide some hope for a future to Arab 
societies. 
 
Education Reform 
---------------- 
 
8. (C) Sheikh Mohammed also stressed the need for education 
reform in the Middle East.  He noted that Arabs needed to 
resolve the problem with the Islamic studies curriculum 
themselves.  At the same time, it was important to improve 
the overall quality of the educational system, especially 
in math and the sciences.  He explained that the Saudi 
educational system was managed with the "ideas of the 
Wahabis."  He noted that the UAE educational curriculum had 
been written by Egyptians, many influenced by the Muslim 
Brotherhood, and that the UAE was in the process of 
reforming it. 
 
9. (C) Ambassador Zoellick used this opportunity to quote 
Prime Minister Lee Hsien Loong of Singapore, who had said 
that the battle for the soul of Islam was one that would 
need to be won by Muslims themselves.  The way that the 
U.S. could help, was by using trade to support economic 
development and economic reform.  The UAE, as an open, 
tolerant society could serve as a model for the region. 
 
Ambassador Zoellick's party cleared this cable. 
 
Albright