US embassy cable - 05MANAMA1434

C O N F I D E N T I A L SECTION 01 OF 02 MANAMA 001434 
 
SIPDIS 
 
E.O. 12958: DECL: 08/24/2015 
TAGS: PGOV, ETRD, ETTC, ECIN, ECON, BA 
SUBJECT: ISRAELI BOYCOTT SCRAPPED 
 
 
Classified By: Ambassador William T. Monroe, reasons 1.4 (b) and (d) 
 
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SUMMARY 
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1. (C) The GOB has made good on its promise to close its 
Israeli Boycott Office and is now the subject of heated 
criticism from the press, parliamentarians, political 
societies and anti-normalization groups.  Following the 
October 1 opening of its current session, the Parliament 
appears set to hear debate on the controversy.  As the GOB 
prepares to face its domestic critics, it can take some 
solace in the knowledge that it is not alone in the region in 
facing the need to end the boycott of Israel.  End Summary. 
 
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BOYCOTT OFFICE CLOSED 
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2. (SBU) Minister of Finance Shaikh Ahmed bin Mohammed Al 
Khalifa September 5 sent a letter to USTR Portman reaffirming 
that the secondary and tertiary boycotts of Israel had been 
abolished, and attached a copy of a memorandum to all 
ministries reminding them of that fact and instructing them 
to ensure that tender offers and government contracts 
reflected this.  The letter said that "Bahrain recognizes the 
need to dismantle the primary boycott of Israel and is 
beginning efforts to achieve that goal."  Shaikh Ahmed sent a 
second letter to USTR Portman September 17 informing him that 
"the Boycott of Israel Office in the Kingdom of Bahrain is 
now closed." 
 
 
3. (C) Econoff called on Bahrain Customs, Ports and Free 
Zones President Eid Abdulla Yusuf September 20 and received a 
tour of the dilapidated and now abandoned boycott office 
space.  Yusuf said the six former employees had been 
reassigned to other Customs jobs.  Emboff confirmed with 
national phone company Batelco September 21 that the phone 
line to the Boycott of Israel Office had been permanently 
disconnected. 
 
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LOCAL REACTION 
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4. (U) A controversy erupted when news of the closure of the 
local boycott office was leaked.  Parliament opened on 
October 1 and the press is forecasting a stormy week.  Member 
of Parliament (MP) Mohammed Khalid will reportedly present an 
urgent proposal rejecting an end to the boycott.  However, MP 
Jihad Bukamal, chair of the Finance and Economy Committee of 
the Council of Representatives, urged that the public should 
not make any conclusions regarding the lifting of the boycott 
prior to hearing the GOB's response to expressions of 
dissent. 
 
5. (U) Akhbar Al Khalij columnist Tefla Al Khalifa criticized 
MPs as "pretending to be surprised by the decision to lift 
the ban on Israeli goods" and asserts that the Council of 
Representatives knew or should have known that the lifting of 
the boycott was inevitable.  Al Wasat editorialist Hafedh Al 
Sheikh decried the "ferocious and desperate pressure" the 
U.S. applies against GCC states and Arab and Islamic 
countries to recognize the "Zionist state."  Al Wasat's 
Fawzia Rasheed demands that the government reconsider its 
decision to end the boycott, citing the public's resentment. 
 
6. (U) Al Menbar Al Islami Deputy Chairman Ahmed Abdulla said 
his block in the Council of Representatives will use "all 
parliamentary tools" to reject the end of the boycott.  Other 
political societies also weighed in.  National Democratic 
Action Society Chairman Ibrahim Sharif urged resistance to 
any measures leading to normalization with Israel.  He added 
that the results of lifting the boycott would not be 
beneficial to Bahrain and doubted that local businessmen 
would begin importing Israeli goods for fear of alienating 
customers.  The Al Wasat Al Arabi Al Islami Society urged all 
citizens to stand united in confronting the government's 
normalization policies and insisted that the legitimate 
rights of Palestine will not be abandoned. 
 
7. (U) Anti-normalization groups were also quick to denounce 
the move.  Society for Resisting Normalization Chairman 
Mohammed Al Aradi was quoted in daily newspaper Al Wasat as 
saying he saw no benefits to the FTA.  Referring to the 
Israeli boycott, he added that Arab League obligations should 
supersede FTA commitments. 
 
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GOB READIES A RESPONSE 
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8. (C) In anticipation of tough questioning by 
parliamentarians in the coming week, Minister of Finance 
Shaikh Ahmed called the Ambassador on October 2 to ask for 
information on what other regional countries had done, or 
pledged to do, on the boycott issue as part of their FTA 
negotiations with the U.S., as well as any commitments Saudi 
Arabia had made in connection with its WTO accession.  He 
said that the Ministry was preparing a paper that would 
approach the issue from different aspects - technical, 
commercial, political - and that he wanted to be well 
prepared both for private discussions with key 
parliamentarians and committees, and for any public 
questioning that he will face. 
 
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COMMENT 
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9. (C) Bahrain's lifting of the boycott may have been sparked 
by FTA-related preparations, but it has been an outstanding 
requirement since its 1994 accession to the WTO.  Bahrain is 
not alone in the region in confronting this issue.  Other 
regional countries either negotiating FTAs with the U.S. or 
preparing to negotiate will need to address this issue as 
well.  Bahrain may feel exposed and alone at the current 
time, but several of its neighbors will soon have to wrestle 
with this same issue.  End Comment. 
 
 
MONROE