US embassy cable - 05MANAMA1394

C O N F I D E N T I A L SECTION 01 OF 02 MANAMA 001394 
 
SIPDIS 
 
E.O. 12958: DECL: 09/27/2015 
TAGS: PGOV, PREL, BA 
SUBJECT: KING SHUFFLES CABINET; NEW FOREIGN MINISTER NAMED 
 
REF: MANAMA 1375 
 
Classified By: Ambassador William T. Monroe for reasons 1.4 (b) (d) 
 
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Summary 
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1.   (C)  A royal decree issued September 26 shuffled the 
Cabinet and, as expected, named Shaikh Khalid bin Ahmed Al 
Khalifa, Bahrain's current Ambassador to the U.K., the new 
Minister of Foreign Affairs.  Although there had been 
speculation that Minister of Information/Minister of State 
for Foreign Affairs Abdul Ghaffar would lose his MFA 
portfolio, he in fact continues to retain both jobs. 
Outgoing FM Shaikh Mohammed will retain his Deputy PM 
position, and an additional DPM slot has been created for the 
PM's son Shaikh Ali (who remains as Minister of 
Transportation).  The decree established a National Authority 
for Oil and Gas, which replaces the Ministry of Oil. 
Outgoing Minister of Oil Shaikh Isa, closely aligned to the 
PM, was bumped up to the PM's office as Advisor on Oil and 
Industry Affairs.  The new oil/gas authority will be headed 
by former Minister for Cabinet Affairs and Tender Board 
Chairman Dr. Abdul Hussain Ali Mirza.  The head of the 
Bahrain National Security Agency (BNSA) Shaikh Abdul Aziz Al 
Khalifa was shifted over to the PM's office as Advisor for 
Security Affairs.  He will be replaced by current BNSA Deputy 
and former Ambassador to the U.S. Shaikh Khalifa bin Ali Al 
Khalifa.  In line with the Cabinet shuffle last January, this 
latest move appears to be part of the King's gradual effort 
to move some of the old guard out (most notably Shaikh 
Mohammed and Shaikh Isa), and also chip away at the Prime 
Minister's control over ministries.  USG interests should be 
well served.  There is already talk of further Cabinet 
changes in 2006. 
 
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New Face at the Foreign Ministry 
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2.  (SBU) The King issued a decree September 26 that shuffled 
the cabinet and, as expected (reftel), named Shaikh Khalid 
bin Ahmed Al Khalifa, Bahrain's Ambassador to the U.K., the 
new Minister of Foreign Affairs.  Shaikh Khalid was expected 
to return to Bahrain September 27 and, with the other new 
Ministers, be sworn into his new position on September 28. 
Outgoing Foreign Minister Shaikh Mohammed bin Mubarak Al 
Khalifa will retain his Deputy Prime Minister position, which 
has now been redesignated as Deputy Prime Minister for 
Ministerial Committees.  Although there had been suggestions 
that Minister of State for Foreign Affairs Dr. Mohammed Abdul 
Ghaffar, overburdened since January when he picked up the 
additional portfolio of Minister of Information, would lose 
his MFA slot, that change did not occur and he apparently 
will remain dual-hatted. 
 
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Changes at Oil, Not at Transportation 
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3.  (SBU) Prior to the formal announcement, there had been 
speculation of changes at both Oil and Transportation in 
anticipation that their component parts would move towards 
more independent authorities.  A change did take place at 
Oil, where long-serving Minister Shaikh Isa was bumped up to 
the Prime Minister's Office as an advisor on oil and energy. 
The Ministry of Oil was converted into a National Authority 
for Oil and Gas, to be headed by current Minister for Cabinet 
Affairs and Tender Board Chairman Dr. Abdul Hussain Ali 
Mirza, a well respected technocrat who spent 22 years on the 
executive board at Bahrain's oil company BAPCO, and before 
that worked at Caltex.  The new Minister for Cabinet Affairs 
is Shaikh Ahmed bin Atiyatallah Al Khalifa, currently 
President of the Central Informatics Office.  At 
Transportation, Shaikh Ali bin Khalifa Al Khalifa, a son of 
the Prime Minister, retained his position as Minister and was 
given the additional title of Deputy Prime Minister (one of 
three, along with Shaikh Mohammed and Minister of Islamic 
Affairs Shaikh Abdulla). 
 
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New Face at National Security Agency 
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4. (SBU) An unexpected change, that only surfaced one day 
before the announcement, was the replacement of Bahrain 
National Security Agency head Shaikh Abdul Aziz bin 
Atiyatallah Al Khalifa with Shaikh Khalifa bin Ali Al 
Khalifa, former Ambassador to the U.S. who returned to 
Bahrain late last year to take up a position as Deputy at 
BNSA.  There had been speculation September 25 that BNSA 
would be merged into the Ministry of Interior, but the 
September 26 decree did not address that point.  Shaikh Abdul 
Aziz told us that he will move to his new position as Advisor 
to the PM on National Security October 1. 
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Comment: A Step Forward 
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5. (C) The Cabinet shuffle last January saw key cronies of 
the Prime Minister such as Abdulla Seif, Mohammed Mutawa, and 
Abdel Nabi Shoala moved out of the cabinet and into positions 
as advisors to the Prime Minister.  This was viewed as part 
of the King's effort to gradually ease out long-term members 
of the Cabinet loyal to the PM.  At the time, there had been 
speculation that Minister of Oil Shaikh Isa, a brother-in-law 
of the PM, would also be moved out.  That proved a bridge too 
far in January, but not this time, and Shaikh Isa now joins 
the growing crowd of advisors around the PM.  The elevation 
of the PM's son to a Deputy Prime Minister position may have 
been a part of the bargaining process.  Outgoing BNSA head 
Shaikh Abdul Aziz was also considered closer to the PM than 
the King or CP; he too is now an advsior to the PM.  Although 
one Embassy contact expressed concern that the Prime Minister 
was building a second seat of government around his office, 
in fact it does appear that his power is being chipped away 
as younger officials take charge of cabinet ministries 
(although it is still too early to discount the PM's power). 
 
6. (C) Regarding USG interests, we should be well served.  As 
reported reftel, the new Foreign Minister is a U.S. college 
graduate, served at the Bahrain Embassy in Washington, and is 
expected to bring a more "modern" outlook to the MFA.  The 
new head of BNSA served in Washington for close to 10 years, 
first as defense Attache and then as Ambassador.  On 
counterterrorism, he clearly understands the U.S. perspective 
and, whether or not BNSA eventually folds into the Ministry 
of Interior, he can be expected to work well and closely with 
Minister of Interior Shaikh Rashid.   And Ali Mirza at Oil 
and Gas seems a smart choice as Bahrain tries to move away 
from state-controlled enterprises. 
MONROE