US embassy cable - 05ABUDHABI1550

UNCLAS ABU DHABI 001550 
 
SIPDIS 
 
SENSITIVE 
 
STATE PASS USTR FOR DOUGLAS BELL 
MANAMA FOR JBEAL 
 
E.O. 12958: DECL: N/A 
TAGS: ECON, ETRD, EFIN, KIDE 
SUBJECT: ARBIFT $116 MILLION UNFROZEN...FINALLY 
 
 
1. (SBU) On April 2, Abu Dhabi EconChief and Manama OFAC attach 
met with Ibrahim Lootah, the Managing Director of the Arab Bank 
for Investment and Foreign Trade (ARBIFT).  They met to discuss 
whether J.P. Morgan Chase Bank had released ARBIFT's assets 
frozen pursuant to the lifting of U.S. sanctions on Libya - 
Lootah reported that after six months of delay, Chase finally 
released the $116 million in frozen assets (Note. the Libyan 
sanctions were lifted in September 20, 2004.  Endnote.).  Lootah 
said that Chase never gave any reason for holding the assets 
after the U.S. had lifted ILSA sanctions on Libya, and he added 
that Chase required ARBIFT to sign a form permitting Chase to re- 
freeze the assets, should it become necessary.  According to 
Lootah Chase is still in the process of transferring a small 
portion of the $116 million from the Chase accounts back to 
ARBIFT, but he was satisfied that the money was no longer being 
frozen.  Also the two banks are discussing approximately $50,000 
that ARBIFT claims it should receive in interest for January and 
February, but Lootah did not see this as a major impediment and 
expected it to be resolved. 
 
2.   (SBU) Comment: Resolution of this issue is good news.  The 
continued freezing of the assets six months after the lifting of 
sanctions has been a sore spot with the Emiratis.  The UAEG cited 
the issue often during the recent FTA negotiations and raised it 
several times with Embassy officials.  End comment. 
 
Albright