US embassy cable - 05ABUDHABI4232

UNCLAS SECTION 01 OF 02 ABU DHABI 004232 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR NEA/ARPI, NEA/PI 
STATE PASS USTR FOR A/USTR SHAUN DONNELLY 
 
E.O. 12958: N/A 
TAGS: KBCT, KMPI, ETRD, ECON, TC 
SUBJECT: FOLLOW-UP ON ARAB LEAGUE BOYCOTT 
 
1. (SBU) Summary and Action Request:  Two Department of 
Commerce officials from the Office of Anti Boycott Compliance 
visited the UAE on September 28.  They had productive 
meetings with three U.S. businesses and with the Director of 
the Ministry of Economy's trade control department. 
Subsequently, Econchief met with MinEcon A/US for 
International Cooperation Abdullah Saleh.  Emirati officials 
reiterated the UAEG's commitment to do away with prohibited 
secondary and tertiary boycott requests and their interest in 
working with the USG in that regard.  It was also clear that 
UAEG officials do not fully understand U.S. law and have a 
different understanding what constitutes "primary" boycott 
language and what constitutes "secondary" boycott language. 
Commerce officials offered to again visit the UAE to have 
follow-up discussions with UAEG experts in an effort to solve 
the boycott problem.  Embassy recommends that the follow-up 
meetings happen quickly and will work with Commerce and the 
UAEG  to determine the best possible time.  Econchief 
suggested that the Ministry of Economy reiterate its 
instructions regarding the boycott.  End Summary and Action 
Request. 
 
2. (SBU) On September 28, Ned Weant and Frederick Davidson 
of the Department of Commerce's Office of Anti Boycott 
Compliance, and BIS Export Control Officer, met with Juma 
Al-Mubarak, the Director of the Ministry of Economy and 
Commerce's Trade Control Department and three U.S. companies 
that have faced Arab League boycott issues.  Juma Al-Mubarak 
reiterated the UAEG's commitment to not implementing the 
secondary and tertiary aspects of the boycott.  The meeting, 
however, made it clear that there are some differences of 
opinion about whether certain language is primary boycott 
language or secondary boycott language.  For example, 
Davidson explained that language stating that a company 
"agrees to comply with all relevant UAE laws as they pertain 
to the boycott of Israel" was prohibited as a second-level 
boycott.  Al-Mubarak disagreed, noting that the relevant laws 
prohibit the import of Israeli goods, which is a primary 
boycott issue.  Davidson offered to have U.S. experts visit 
the UAE to work with UAE counterparts on eliminating 
secondary and tertiary boycott requests.  Al-Mubarak welcomed 
the visit and the potential cooperation. 
 
3. (SBU) Weant and Davidson met with two companies and spoke 
with a third about problems facing American companies in the 
UAE regarding boycott language.  One company advised that 
prohibited language has in the past been maintained on the 
Ministry of Finance website for downloading into contracts 
for purchases by government agencies.  Another company 
expressed concern that individual companies or company 
officers could choose to include such language independently 
of the government policy.  In the third case, Davidson was 
able to provide on the spot counseling to a company who was 
ready to sign a contract.  EconChief contacted MinFin A/US 
for Revenue and Budget Khalid Al-Bustani to ask about the 
contracts on the website.  Al-Bustani said that he had 
understood that the contracts with the prohibited language 
had been removed from the web site, but promised to double 
check. 
 
4. (SBU) On October 2, Econchief met with Ministry of Economy 
Assistant Under Secretary for International Cooperation 
Abdullah Al-Saleh to discuss the boycott.  (Note: Al-Saleh 
had been unable to meet with the Commerce anti-boycott team, 
as both he and the Minister of Economy were traveling 
internationally on the 28th. He offered to follow-up with 
Econchief the day he returned.  End Note.)  Econchief 
stressed the alarming increase in UAE prohibited boycott 
requests during the second quarter of 2005 and that the UAE 
needed to take actions to eliminate them.  Econchief also 
passed Al-Saleh information on the most recent boycott 
requests along with information on Emirati companies making 
these requests. 
 
5. (SBU) Al-Saleh reiterated the UAEG's policy of not 
implementing the secondary and tertiary aspects of the Arab 
League Boycott.  He stressed that the Ministry of Economy 
would continue to work to eliminate these boycott requests, 
adding "I want to remove barriers to U.S. firms that want to 
do business in the UAE."  Al-Saleh also explained that the 
boycott issue was a sensitive one in the UAE and he 
understood that it was a sensitive one in the US as well.  He 
confirmed that the Ministry of Economy and Commerce had sent 
out instructions to the UAEG and to state owned enterprises 
such as the Emirates Telecommunications Company (Etisalat) 
and the Abu Dhabi National Oil Company (ADNOC) reminding them 
that the UAE does not enforce the secondary and tertiary 
boycotts.  Al-Saleh added that the Ministry had also informed 
some private sector companies, and that the memo had 
suggested alternate language.   During the conversation, he 
also noted that there appeared to be differences in 
interpretation on language between the UAEG and the USG, and 
welcomed a visit by U.S. experts in an effort to resolve 
this.  Econchief suggested that it would be useful for the 
Ministry to send out further reminders of the UAEG's policy, 
to which Al-Saleh responded positively. 
QUINN