US embassy cable - 05MANAMA1373

C O N F I D E N T I A L MANAMA 001373 
 
SIPDIS 
 
E.O. 12958: DECL: 09/13/2015 
TAGS: PGOV, PREL, ETRD, KDEM, KJUS, BA 
SUBJECT: PM THANKS AMBASSADOR FOR U.S. ROLE IN POLITICAL 
AND ECONOMIC REFORM 
 
 
Classified By: Ambassador William T. Monroe for reasons 1.4 (b) and (d) 
. 
 
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Summary 
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1.  (C) Prime Minister Shaikh Khalifa bin Salman Al Khalifa 
told the Ambassador September 13 that over the last four 
years Bahrain had sacrificed economic reform for political 
reform; he said he hoped in the future there would be a more 
balanced focus on both.  He noted that increased cooperation 
with Bahrain's neighbors was a top priority.  The PM thanked 
the Ambassador for the U.S. role in Bahrain's economic and 
political development and noted in particular the 
U.S.-Bahrain Free Trade Agreement (FTA) and MEPI-funded 
judicial reform programs administered by the American Bar 
Association (ABA) and the Commercial Law Development Program 
(CLDP).  End Summary. 
 
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Political Reform at the Expense of Economic Reform 
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2.  (C) Prime Minister Shaikh Khalifa bin Salman Al Khalifa 
opened a September 13 meeting with the Ambassador by 
expressing his condolences for the catastrophe brought on by 
Hurricane Katrina and said it was a shock that touched 
people's hearts all over the world.  The Ambassador thanked 
the PM for Bahrain's $5 million donation to relief efforts. 
The PM said that increased economic development in Bahrain is 
a positive development, but the recent construction boom 
highlights the need to improve urban planning to cope with 
growing traffic.  He lamented that Bahrain does not benefit 
from major oil reserves like its neighbors, and emphasized 
the government must do a better job of promoting investment. 
Over the last four years, he stated, the government had 
focused on political reform at the expense of economic 
reform.  In the future there must be more balanced focus on 
both.  Providing job training to Bahrainis was key, he said. 
 
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Increased Regional Cooperation Needed 
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3.  (C) The PM stressed that the six countries of the Gulf 
Cooperation Council (GCC) should increase coordination in all 
areas.  He said one summit meeting per year was not enough, 
and he noted wryly that there was no special forum for prime 
ministers.  Although most GCC countries are so wealthy that 
they do not need to cooperate with anyone, they would all 
benefit from a common currency, electrical system, and 
railway. 
 
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U.S.-Backed Reforms Appreciated 
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4.  (C) The PM said that the U.S.-Bahrain FTA was a positive 
step and that those who criticized Bahrain for signing it 
were out of line.  He thanked the Ambassador for promoting 
increased investment between the two countries and for U.S. 
support of Bahrain's political and economic development.  He 
noted in particular his appreciation for the work that the 
MEPI-sponsored American Bar Association (ABA) and Commercial 
Law Development Program (CLDP) projects were doing to improve 
the judicial system. 
 
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Bio Note 
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5.  (C)  Although the PM's powers have been somewhat clipped 
by recent Cabinet changes and another is expected by the end 
of the month, he was animated, in good spirits, and sharp 
throughout the 45-minute meeting.  He mentioned that he 
continues to exercise regularly.  The PM was eager to discuss 
television programs and spent approximately 15 minutes 
talking about his favorite U.S. television shows. 
 
MONROE