US embassy cable - 05SANAA2095

C O N F I D E N T I A L SECTION 01 OF 02 SANAA 002095 
 
SIPDIS 
 
E.O. 12958: DECL: 08/01/2015 
TAGS: PREL, PGOV, EAID, PTER, KDEM, KMCA, KMPI, KPAL, IZ, YM, DEMARCHE 
SUBJECT: SALEH ON TERRORISM, IRAQ, PEACE PROCESS, AND REFORM 
 
REF: A. STATE 141247 
     B. SANAA 1696 
 
Classified By: DCM Nabeel Khoury for reasons 1.4 b and d. 
 
1. (C) Summary.  Ambassador met with President Saleh on 
August 1 to deliver ref A demarche for Arab League Capitals 
and discuss his November meeting with President Bush. 
Discussions focused on combating terrorism, the situation in 
Iraq, economic and democratic reforms, and Saleh's trip. 
News of King Fahd's death and postponement of the Arab League 
(AL) Summit reached Ambassador on his way into the meeting. 
End Summary. 
 
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"We Don't Need a Summit to Condemn Terrorism" 
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2. (C) Assuming the Sharm al-Sheikh Summit would be 
postponed, Saleh commented that Fahd's death was a way for 
Arab leaders to "get out of it."  The meeting was not well 
arranged, said the President, "It's purpose was to 
rehabilitate Sharm al-Sheikh after the attack, and most 
countries were sending only their Vice Presidents."  (Note: 
Our understanding heading into the meeting was that Saleh 
would leave August 2 for Sharm to represent Yemen at the 
meeting.  End Note).  Ambassador replied that, in fact, it 
was an important Summit with regional issues on the agenda 
such as condemnation of terrorism, support for Iraqi 
political transition and the peace process. 
 
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"As For Iraq...I Repeat that You are Stuck" 
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3. (C) "We condemn terrorism everyday without a summit," said 
Saleh, implying an official AL condemnation was perfunctory. 
"As for Iraq," the President continued, "I repeat, you are 
stuck and should disengage."  Ambassador told Saleh that we 
share the same goal -- an independent and democratic Iraq 
free of foreign forces.  A sudden U.S. withdrawal, however, 
would destabilize Iraq further and harm the political 
process.  Pointing to pentagon plans to scale down the U.S. 
presence in Iraq during 2006, Saleh suggested that perhaps 
the U.S. was heeding his advice to withdraw to bases outside 
of cities and let Iraqis resolve their problems among 
themselves (ref B).  "I'm not suggesting you withdraw 
completely," he explained, "just get out of the cities and 
stop fighting Iraqis and making more enemies." 
 
4. (C) Ambassador underscored the U.S. commitment to helping 
Iraqis succeed, adding that a failure in Iraq would be a 
disaster not only for the U.S., but also for Yemen and the 
region.  He pressed Saleh to respond to the ITG's appeal to 
Arab governments to halt the flow of foreign insurgents and 
terrorists to Iraq, asking him to step up ROYG efforts and 
cooperation with the USG in order to cut off the flow of 
foreign fighters from Yemen to Iraq. 
 
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Peace Process: "I Don't Want to Talk About it" 
--------------------------------------------- - 
 
5. (C) Having shared his comprehensive ideals for the peace 
process with Ambassador on June 16 (ref B),  Saleh opted for 
brevity.  "I have two points on the Palestinian-Israeli 
conflict," he said, "complete peace, complete withdrawal. 
Other than that, I don't want to talk about it in detail." 
Ambassador responded that Yemen's leadership should support 
the peace talks, pointing out that the Israeli withdrawal 
from Gaza is underway. 
 
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Washington Trip 
--------------- 
 
6. (C) Turning to his November meeting with President Bush, 
Saleh said he wanted the trip to be a success.  He said he 
would present Ambassador with a detailed paper outlining 
Yemen's goals for the meeting in the next ten days. 
Ambassador agreed that both sides should be clear on agenda 
items for visit.  He told Saleh that the U.S. focus would be 
on CT and security cooperation, as well as political and 
economic reforms.  As for reforms, Ambassador continued, the 
stress will be the need for a serious and sustained ROYG 
attack on corruption. 
 
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"The Government Will Reform or it Will Go!" 
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7. (C) Saleh thanked Ambassador for CDA's statement of 
support for ROYG economic reforms, issued during an outbreak 
of nationwide rioting in protest of the lifting of oil and 
gas subsidies (ref ).  Saleh said oil subsidies had 
contributed to corruption and encouraged smuggling, citing 
examples of private companies making excess profits on oil 
products and large-scale diesel smuggling to Saudi Arabia and 
Somalia.  "I expect the government to take effective measures 
to end this," said Saleh, if they don't I will dismiss the 
Cabinet by the end of the month!" 
 
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Comment 
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8. (C)  Slimmer than in June, and sporting a new haircut and 
impeccably tailored suit, Saleh appears to have had a 
makeover.  He was also more focused and relaxed that usual. 
Saleh is speaking more openly with us about corruption of 
late, admitting the negative effect of petty corruption on 
government revenues and public welfare.  He has yet to shift 
his attention from "petty" corruption to the real problem -- 
the grand scale corruption practiced by his senior officials. 
 End Comment. 
Krajeski