US embassy cable - 04MANAMA1899

C O N F I D E N T I A L MANAMA 001899 
 
SIPDIS 
 
DEPT FOR NEA DAS DIBBLE, NEA/ARPI 
DEPT PASS USTR JBUNTIN 
COMMERCE FOR CLOUSTAUNAU 
 
E.O. 12958: DECL: 12/14/2014 
TAGS: ECON, ECIN, PREL, BA 
SUBJECT: NEA DAS DIBBLE DISCUSSES FTA, FORUM FOR THE 
FUTURE, AND MEPI WITH MINISTER OF FINANCE 
 
Classified By: AMBASSADOR WILLIAM T. MONROE REASONS 1.4 (B) AND (D) 
 
1.  (C) Summary.  On a December 12-13 visit to Manama, NEA 
DAS Dibble paid a call on Bahraini Minister of National 
Economy (MOFNE) Abdulla Saif.  They discussed the 
U.S.-Bahrain Free Trade Agreement (FTA), the recent Forum for 
the Future meeting in Rabat, and plans for the establishment 
of the Entrepreneurship Center.  Saif stated that despite 
pressure from the Saudis, Bahrain is committed to moving 
forward with the FTA, and that the dispute over FTAs would be 
resolved by the GCC summit.  He was also positive about the 
recent meetings in Rabat and indicated Bahrain would host the 
next round in November 2005.  Concerning the MEPI initiative 
to create and staff an entrepreneurship center, Saif 
mentioned that the GOB is committed to this project, but 
needs to clarify funding issues.  End Summary. 
 
FTA Going Forward 
----------------- 
 
2.  (C) NEA DAS Dibble opened his December 13 meeting with 
MOFNE Saif by asking about Saudi Arabia's recent negative 
reaction to Bahrain's FTA.  Saif stressed GOB commitment to 
the agreement and expressed optimism that a formula will be 
reached to resolve the issue at the GCC Finance Minister's 
meeting in Manama December 18 in advance of the December 20 
GCC summit.  When asked about Bahrain's ratification plans, 
Saif said the Cabinet had passed the file to the Council of 
Representatives, and it is well on the way to ratification. 
He revealed tentative plans for another FTA roadshow in 
Chicago next April.  He stated that while Bahrain's 
"fast-track" approach to FTA negotiations is a model for 
other GCC nations, he recognized that the GCC countries are 
at different stages of readiness for FTA.  He is hopeful that 
the U.S. will be able to have an agreement with all GCC 
members in the future. 
 
Forum for the Future 
-------------------- 
 
3.  (C) Minister Saif declared the Forum for the Future in 
Rabat a success.  He indicated that Bahrain submitted several 
papers including one on the Entrepreneurship Center and 
another on the Network of Funds.  He also had a productive 
meeting with Treasury Secretary Snow in which they discussed 
terrorism financing.  He stated Bahrain is taking a lead on 
this issue and will host the MENA FATF.  He also mentioned 
that the Forum accepted Bahrain's offer to host the next 
Forum for the Future meeting in November 2005. 
 
Entrepreneurship Center 
---------------------- 
 
4.  (C) Minister Saif indicated that Bahrain is willing to 
move forward on the MEPI-initiated Entrepreneurship Center, 
however questions still remain regarding payment for the 
building and staff salaries.  In the short-term the Bahrain 
Institute for Banking and Finance can house the Center, but 
there must be a permanent facility developed. In the 
meantime, the consultants for the center (Beyster Institute) 
will return in January and expect to launch their first 
training program by April 2005. 
 
MONROE