US embassy cable - 05MANAMA671

C O N F I D E N T I A L MANAMA 000671 
 
SIPDIS 
 
STATE PASS USTR/NOVELLI 
 
E.O. 12958: DECL: 05/09/2015 
TAGS: ETRD, BA, GCC 
SUBJECT: GCC FINANCE MINISTERS GIVE OK TO FTAS WITH US 
 
Classified By: Ambassador William T. Monroe.  Reason: 1.4 (B)(D) 
 
 1. (U) The Bahrain press on May 9 published a report from 
the UAE Arabic daily Al-Khalij stating that Saudi Finance 
Minister Al-A'ssaf, during a GCC Finance Minsters' meeting in 
Bahrain May 7, gave Saudi concurrence for GCC countries to 
sign bilateral FTAs with the U.S.   This Saudi approval of an 
exception for bilateral FTAs with the U.S., the report said, 
came as a result of Saudi CP Abdulla's recent trip to the 
U.S. and meeting with President Bush. 
 
2. (C) The Ambassador, during a May 9 discussion with Bahrain 
Finance Minister Shaikh Ahmed Al-Khalifa, asked about this 
report.  Shaikh Ahmed said that the Finance Ministers did 
indeed concur in their May 7 meeting on an exception for 
bilaterals FTAs with the U.S.   He said that this decision 
was not announced publicly because it needs to be endorsed by 
the GCC Foreign Ministers and ultimately approved by the 
heads of state.  He fully expected full GCC endorsement. He 
said he knew that news of the decision would leak out, but 
did not want to be the source of the leak. 
 
3. (C) Comment: This GCC decision is consistent with the news 
we have been hearing here -- that the Saudis have put the FTA 
issue with Bahrain behind them.  There are also reports that 
a solution may soon be reached on a second Saudi-Bahrain 
irritant: the cessation of Saudi exports of sand for the 
construction industry.  Still to be resolved is the cut-off 
of the 50,000 b/d oil grant. 
MONROE