US embassy cable - 05SANAA2377

C O N F I D E N T I A L SECTION 01 OF 02 SANAA 002377 
 
SIPDIS 
 
E.O. 12958: DECL: 08/14/2015 
TAGS: PREL, PGOV, PTER, ECON, KAWC, YM, COUNTER TERRORISM, ECON/COM 
SUBJECT: DFM DISCUSSES SALEH VISIT WITH AMBASSADOR 
 
Classified By: Ambassador Thomas C. Krajeski for reasons 1.4 b and d. 
 
1.  (C) Summary.  On August 14, Deputy Foreign Minister 
Mohiedeen Al-Dhabi and Ambassador discussed cooperation ahead 
of President Saleh's scheduled visit to Washington in 
November and current ROYG efforts to combat corruption. End 
Summary. 
 
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Saleh's Visit: What Can We Do? 
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2.  (C) Dhabi expressed the ROYG's commitment to cooperating 
closely with the Embassy in advance of Saleh's visit to 
Washington.  By working together to address issues of 
concern, Al-Dhabi hoped that the visit would generate real 
proposals that would strengthen the bi-lateral relationship. 
Ambassador thanked the DFM for the high level of commitment 
and looked forward to working closely with him in the months 
ahead.  He stressed the importance of both sides 
understanding each other's expectations, so that the meeting 
between President Bush and President Saleh would result in 
substantive commitments. 
 
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Counter-terrorism: More Commitment Needed 
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3. (C) In an effort to focus ROYG preparation, Al-Dhabi 
inquired what the main USG goals for the meeting would be. 
Ambassador replied that the most significant topics will be 
counter-terrorism (CT) and security cooperation, economic 
development, and democratic reform.  On CT cooperation, 
Ambassador stressed the need to transform the relationship, 
especially in regards to intelligence sharing, from 
situational cooperation on specific high profile issues into 
one that involves constant and sustained interaction.  The 
USG is committed to raising the bi-lateral relationship to 
the level of other close regional allies, he continued, but 
the ROYG must first demonstrate a higher level of commitment 
than currently seen. 
 
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Economic and Democratic Reform: Anti-Corruption Efforts Key 
--------------------------------------------- --------------- 
 
4.  (C)  While CT and strengthening the security relationship 
remains paramount, the Ambassador added that economic 
development and finalization of the MCC Threshold Plan would 
also figure prominently.  The ROYG must be serious about 
curbing corruption, he stressed, before real economic 
development can occur.  The USG is prepared to publicly 
support the ROYG's reform efforts, such as the recent 
reduction in fuel subsidies (ref A), but will become vocal if 
concrete action against corruption does not materialize. 
Al-Dhabi added that the public is also concerned with the 
lack of progress on corruption and their disappointment will 
only increase after they learn the cabinet will not be 
shuffled following the recent riots related to higher fuel 
prices. (Comment:  Reshuffling the cabinet would serve as a 
signal that someone was held responsible for corruption and 
thus, the lack of funds available to subsidize fuel.  While 
Al-Dhabi is a knowledgeable interlocutor, post has received 
no confirmation from other sources that Saleh has decided 
against a reshuffle.  End Comment). 
 
5.  (C) Reshuffling aside, Al-Dhabi replied that Saleh is 
getting tough on corruption.  He described a recent meeting 
with Saleh and high-level government officials responsible 
for everything related to the investment climate, in which he 
berated the various agencies for their corrupt practices that 
were enumerated in detail to the surprised audience.  His 
comments were so strong, according to Al-Dhabi, that the 
meeting could not be shown on television.  Ambassador 
applauded the tough comments, but stressed the need for the 
ROYG to start taking action to halt well-known corrupt 
practices throughout the bureaucracy. 
6.  (C) Democratic reform will also be discussed, said the 
Ambassador, as Yemen's role as an example for the region is 
even more important with the USG's increased focus on 
democratic development in the Middle East. 
 
7.  (C) Comment: Saleh designated Al-Dhabi as the official 
responsible for visit preparations and developing ROYG policy 
statements.  Al-Dhabi appears to be genuinely interested in a 
full and frank discussion of the issues.  He also understands 
the difficult decisions the ROYG must make if Yemen wants to 
enjoy the same level of cooperation as Jordan or Pakistan, 
for example. Post will work closely with Al-Dhabi and other 
key officials and interlocuters in the coming months to 
ensure the ROYG clearly understands USG priorities and 
expectations in advance of Saleh's White House visit.  End 
Comment. 
 
 
 
Krajeski