US embassy cable - 05SANAA1377

C O N F I D E N T I A L SECTION 01 OF 02 SANAA 001377 
 
SIPDIS 
 
E.O. 12958: DECL: 05/23/2015 
TAGS: PREL, PGOV, PTER, MARR, PARM, ECON, YM, ECON/COM, ENERGY, MARITIME SECURITY, COUNTER TERRORISM 
SUBJECT: AMBASSADOR DISCUSSES SALIF PORT YCG STATION WITH 
GOVERNOR OF HODEIDAH 
 
Classified By: Ambassador Thomas C. Krajeski for reasons 1.4 b and d. 
 
1. (C) Summary.  After touring Yemen Hunt's Safir oil 
platform and the Yemen Coast Guard Command at nearby Salif 
Port and hearing briefings from Hunt security and the YCG 
Salif Port Commander, Ambassador raised the issue of maritime 
security and the vulnerability of the Safir with the Governor 
of Hodeidah.  Ambassador pressed Governor Shamlan not to 
interfere with the construction of the Salif YCG station at 
Salif Port, currently stalled due to a commercial dispute. 
Governor Shamlan, however, was insistent that this particular 
site could not go to the YCG, offering instead other 
locations at Salif considered non-viable by the Coast Guard. 
Ambassador and the Governor also discussed Hodeidah's plans 
for developing ports, fisheries and tourism in the 
governorate.  End Summary. 
 
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Controversy Over New YCG Station 
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2. (C) The Yemen Coast Guard (YCG), in consultation with USCG 
Advisor Captain Robert Innes, selected a site in 2004 to 
build a new YCG station at the Salif Port, in part to protect 
the vulnerable Yemen Hunt Safir oil platform, probably the 
most vulnerable high profile American target in the country. 
Five months ago construction of the Salif YCG station was 
voluntarily halted by the YCG due to a commercial dispute 
between a powerful wheat importer and the Municipal Port 
Authority. 
 
3. (C) Wheat importer and prominent Hodeidah businessman 
Fathi Fahim operates a flour mill and wheat storage facility 
on the Salif Port adjacent to the area where the YCG began 
construction.  Fahim has a 25-year lease from the Port 
Municipal Authority for the land where both his facilities 
and the unfinished coast guard station are located. The 
contract allows for the government to break the lease with 
"proper and adequate" compensation.  It appears Fahim 
appealed to his old school friend Governor Shamlan to force a 
halt to the YCG construction.  According to the YCG Chief at 
Salif, a financial arrangement had already been worked out in 
the courts.  According to Fahim, he has never received any 
compensation from the government. 
 
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Safir Oil Platform 
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4. (C) Ambassador toured the Yemen Hunt Safer oil platform 
with Hunt's Security Chief.  The Safer is a stationary tanker 
located 9 kilometers offshore and approximately 35 kilometers 
north-northwest from Hodeidah Port. Built in 1976, the tanker 
has not moved from its current spot in 18 years.  A former 
crude oil tanker, the Safir contains 600,000 barrels of crude 
oil daily in a stationary single-hull, making it an 
attractive and vulnerable target for terrorists.  The nearest 
Coast Guard station is currently located at Hodeidah port, 
several hours away.  The planned YCG station at Salif Port is 
within 13 kilometers of the Safir. 
 
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Salif Port: Why This Location? 
------------------------------ 
 
5. (C) Ambassador toured the disputed plot of land, measuring 
7 meters by 12 meters and edged by a protective cove on the 
southwestern point of the Salif port area.  All told, the 
entire station footprint is approximately the size of a 
moderately priced residential home.  According to Captain 
Innes and the YCG, this site is the only location within 50 
nautical miles of the Safer that meets all three of the 
following criteria: access to water, electricity and roads; 
year-round protections from heavy monsoon weather; and, 
within 20 minutes response time of the high value asset. 
 
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The Governor Has a 'Master Plan' 
-------------------------------- 
 
6. (C) Ambassador met for the first time with Hodeidah 
Governor Mohammed Saleh Shamlan, a member of President 
Saleh's Sanhan Tribe.  In addition to discussing a range of 
development projects in the governorate, Ambassador raised 
the issue of the disputed Salif YCG station's construction. 
Ambassador stressed that the USG wanted to see Hodeidah 
Governorate develop its ports, tourism and fishing 
industries, and that the region's economic prosperity 
ultimately depended on port security and the safety of the 
Safir platform, through which 30 percent of Yemen's oil 
wealth flows each year.  Ambassador explained that the focus 
of his visit was on the security of the Safir and Salif Port 
and asked the Governor for his thoughts on how to move 
forward with the YCG station. 
 
7. (C) Shamlan thanked Ambassador for USG cooperation with 
the YCG, saying he had noticed the forces' increased presence 
and capabilities due to U.S. assistance.  The Governor said 
he understood the importance of building a Coast Guard 
station in the area near the Safir, either on the Island of 
Ras Issa or at Salif Port, but was insistent that the chosen 
spot conflicted with "our master plan."  According to the 
Governor, there is a master plan for developing Salif Port 
that includes construction of an airport, port enhancements, 
and security and customs facilities.  (Note: On May 24 Fahim 
himself gave the Ambassador a different reason, saying that 
he could not give up his claim to the disputed plot as he had 
plans to build a sugar silo there.  End Note). 
8. (C) "We have no objection to a YCG station at Salif," said 
the Governor, but was adamant that the current location was a 
non-starter.  Shamlan invited Ambassador to return to the 
area, master plan in hand, and choose any other location for 
the YCG.  Ambassador pressed that the YCG and MOI had 
determined there was no viable alternative, but the Governor 
would not budge.  (Note:  According to USCG Advisor the 
Governor has actually offered the YCG a piece of land some 3 
kilometers inland.  The YCG believes that no master plan 
exists, even on paper.  End Note).  "It is not my intention 
to make things inconvenient for the YCG," continued Shamlan, 
reiterating that he supported the YCG's efforts to enhance 
maritime security in the area.  Ambassador replied that an 
attack on the port would be "more inconvenient," and urged 
that the YCG mission deserved to have the first choice for 
its location. 
 
9. (C) Comment.  It is clear that the Governor has no 
intention of backing down on the YCG's selected site for its 
station at Salif, and in fact has little incentive to do so. 
Shamlan in known to be close to powerful Hodeidah business 
interests, such as Fahim, and likely significantly 
supplements his income through these relationships.  In 
addition, the Governor is not likely to pave the way for an 
expansion of the central government's power by handing the 
Ministry of Interior's YCG a prime spot in his own backyard. 
Although he may be sincere in his offer of another location 
at Salif, YCG sources believe that due to income from the 
extensive smuggling of consumer goods into Salif Port, the 
Governor has no intention of allowing the YCG to set up camp 
anywhere near the port facilities.  End Comment. 
Krajeski