US embassy cable - 05AMMAN4549

C O N F I D E N T I A L AMMAN 004549 
 
SIPDIS 
 
STATE PASS TO USTR 
STATE FOR EB, NEA FRONT OFFICE, NEA/ELA 
NSC FOR ABRAMS 
 
E.O. 12958: DECL: 06/01/2015 
TAGS: ETRD, ENRG, BEXP, ECON, JO 
SUBJECT: ASSISTANT SECRETARY WAYNE'S MAY 18 MEETING WITH 
QATARI MINISTER OF ECONOMY AL-THANI 
 
 
Classified By: A/DCM CHRIS HENZEL FOR REASONS 1.4 (B) AND (D). 
 
1. (C)  SUMMARY:  On the margins of the BMENA Trade and 
Investment conference in Amman on May 18, Qatar's Sheikh 
Mohamed Ahmed Al-Thani, Minister of Economy and Commerce, 
told Assistant Secretary E. Anthony Wayne that while 
substantially increased investment was flowing to Qatar from 
the U.S., USG requests to change Qatar's investment laws as 
part of an FTA agreement was a serious obstacle.  Qatar 
wanted a bilateral Free Trade Agreement (FTA), but it would 
have to be "controllable", he said.  A/S Wayne pledged that 
the USG would continue to work with Qatar on the FTA but 
would not be able to make special exceptions on important 
principles.  Al-Thani outlined Qatar's success with liquefied 
natural gas.  A/S Wayne urged Al-Thani to consider very 
seriously Boeing for new aircraft purchases. END SUMMARY. 
 
FTA "Overhelming" but Qatar "Very Keen" 
--------------------------------------- 
 
2.  (C)  In a brief meeting hosted by the Sheikh at his Four 
Seasons hotel suite, Al-Thani noted that Qatar had been 
engaging A/USTR Catherine Novelli on a bilateral FTA.  Since 
the last exchange, the government had hired Bain & Company to 
conduct a study of the Qatari private sector and assess the 
impact of an FTA.  The study, which would be concluded by the 
end of June, would be quantitative and was designed 
especially for the Emir.  The Qatari teams had been 
"overwhelmed" by the scope and breadth of the proposed FTA, 
said Al-Thani, especially in terms of how to manage its 
effects.  However, at the end of the day Qatar wanted an FTA 
and was "very keen" about it. 
 
3.   (C)  The FTA was a strategic consideration for Qatar, he 
continued.  However, while expecting the same treatment as 
Bahrain, Qatar also wanted to tailor certain parts of the 
FTA, instead of opening everything.  He gave as an example 
the proposal to change Qatar's investment law.  As his 
government understood it, the proposal called for opening up 
investment "totally for everyone, including China."  It would 
be best if such changes to the investment law were on a 
bilateral basis only, he stated.  For Qatar it would be "us 
and you" only.  Qatar was keen to have an FTA, but it had to 
be "controllable," he noted.  The GOQ was worried about 
changing laws that "let others in," he noted.  He said 
Qatar's business leaders were very concerned about this. 
 
4.  (C)  A/S Wayne urged Qatar to maintain its interest in 
the FTA.  The USG would work with the GOQ on its issues, he 
said.  While it was true that newer FTAs were held to 
demanding standards in the U.S., both sides should continue 
to work on it.  The U.S., however, needed to adhere to its 
key standards. 
 
LNG:  Qatar Positioned as a World Competitor 
-------------------------------------------- 
 
5.  (C) Sheikh Al-Thani proudly pointed to Qatar's newly 
developed LNG facilities as state-of-the-art, an 
accomplishment that could be partially credited to U.S. 
investments.  Foreign direct investment had jumped to over $2 
billion in 2004, representing a 1537% increase over the prior 
year.  Most of that investment came from the U.S., he noted, 
for which Qatar was very grateful.  He also expressed great 
appreciation for the U.S. military presence. 
 
6.  (C) With these considerable changes and with the stock 
market growing at an annual rate of 25 percent, Qatar's 
economy would be ready to make a full transformation in 2-3 
years, he believed. 
 
Boeing 
------ 
 
7.  (C)  In closing, A/S Wayne urged Qatar to consider 
seriously Boeing as an excellent supplier for its aircraft 
needs.  The Sheikh replied that he favored a purchase of 
Boeing aircraft, but the decision was not his to make. 
HALE