US embassy cable - 05MANAMA1485

C O N F I D E N T I A L SECTION 01 OF 02 MANAMA 001485 
 
SIPDIS 
 
NEA/ARPI 
USTR FOR J. BUNTIN 
 
E.O. 12958: DECL: 10/12/2015 
TAGS: PGOV, ETRD, ETTC, ECIN, ECON, BA 
SUBJECT: PARLIAMENT BLASTS GOB FOR LIFTING BOYCOTT 
 
REF: MANAMA 1434 
 
Classified By: Ambassador William T. Monroe, reasons 1.4 (b) and (d) 
 
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SUMMARY 
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1. (C) In a nearly unanimous vote October 11, the parliament 
issued a strong rebuke to the GOB for lifting the ban on 
Israeli goods and closing the boycott office.  The parliament 
expressed its displeasure by issuing a "proposal" to 
reinstate the Israeli Goods Boycott and reopen the boycott 
office. Foreign Minister Shaikh Khalid bin Ahmed Al Khalifa 
and Minister of Finance Shaikh Ahmed bin Mohammed Al Khalifa 
appeared before parliament in a session Shaikh Ahmed later 
described to the Ambassador as "a bit ugly."  He reaffirmed 
that the government has no intention of drafting a law in 
response to the parliament's proposal, stating that the 
government's position on this is clear.  He said he hoped to 
manage the issue in committee and that the coming days will 
indicate how much staying power the political 
outrage/opposition has.  End Summary. 
 
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STORMY SESSION 
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2. (U) Foreign Minister Shaikh Khalid bin Ahmed Al Khalifa 
and Minister of Finance Shaikh Ahmed bin Mohammed Al Khalifa 
appeared before parliament October 11 following a demand 
issued by fifteen Members of parliament (MPs) for the 
government to explain the closure of the Israeli Boycott 
Office. 
 
3. (U) During the session, Al Menbar presented proposed 
legislation containing four recommendations for the Cabinet: 
First, that the government decision to lift the Israeli 
Boycott be withdrawn; second, that the boycott Office be 
reopened; third, that Law 5 of 1963, which established the 
Boycott Office be reactivated; and fourth, that the 
government refrain from taking any such actions in the future 
without parliamentary consultation.  All but one of the 
thirty MPs present during the session voted in favor of the 
proposal, an unusual display of Sunni and Shia unity.  The 
proposal does not have force of law; it is a proposal for the 
government to consider, somewhat akin to a "Sense of the 
Congress" resolution.  (Note: Parliament cannot draft laws; 
only the government can do that.  End Note.) 
 
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GOVERNMENT MOUNTS DEFENSE 
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4. (C) Shaikh Ahmed described the session to the Ambassador 
October 12 as "a bit ugly"  The Gulf Daily News, a widely 
read English-language daily, quoted MP Al Menbar Bloc member 
Hassan Bukhammas as shouting "Death to America and Israel." 
Shaikh Ahmed was quoted as saying, "The world is changing and 
we need to compete.  This will not be possible if we don't 
stick to the World Trade Organization agreements, of which we 
are a founding member." 
 
5. (C) Shaikh Khalid addressed widely-circulated rumors 
originating from the notion that the closure of the boycott 
office was expressly required by the FTA and that the GOB was 
moving to normalize ties with Israel.  He pointed out that 
the FTA had been discussed and reviewed by the parliament and 
that the FTA did not contain any boycott provisions.  He said 
the decision to lift the boycott did not entail any economic, 
cultural, political or diplomatic normalization.  (Note: 
National Democratic Institute (NDI) Director Fawzi Guleid 
told Poloff October 12 that this issue has sparked a climate 
of mistrust between the government and parliamentarians.  He 
said MPs feel tricked and that the government is hiding 
secret provisions of the FTA.  End Note.) 
 
SIPDIS 
 
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GOB ASSESSMENT 
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6. (C) Shaikh Ahmed told the Ambassador that the government 
has no intention of responding to the Parliament's resolution 
by drafting a law.  He said he hoped to manage the issue in 
committee, and that political opposition/outrage would 
gradually subside.  The coming days, he added, will indicate 
how strongly and lasting this opposition will be.   (Note: 
Two small demonstrations were staged following Friday prayers 
October 7.  Al Menbar Vice President Dr. Ali Ahmed said Al 
Menbar would continue to organize events against 
normalization with Israel.  End Note.) 
 
7. (C) Bahrain Customs, Ports and Free Zones President Dr. 
Eid Abdulla Yusuf called Econoff October 12 to say that 
despite the current activity in the parliament, he did not 
expect the Boycott Office to be reopened.  "It's like a gale, 
with strong blustering winds at first, but then it dies down 
and becomes quiet," he said.  Dr. Eid opined that the 
forceful objections voiced by MPs were merely designed to 
garner support from their constituencies ahead of upcoming 
elections. 
 
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COMMENT 
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8. (C) While we don't anticipate any backsliding on the 
boycott decision, we shouldn't underestimate the strength of 
the anger and backlash from the boycott decision, at least 
among the politicians.  The rhetoric was nasty and heated, 
and has added a sour note to what had heretofore been a very 
positive attitude toward the FTA.  The parliamentary backlash 
may also complicate government efforts to rush through 
required IPR implementing legislation for the FTA. 
MONROE