US embassy cable - 05MANAMA1813

C O N F I D E N T I A L MANAMA 001813 
 
SIPDIS 
 
E.O. 12958: DECL: 12/07/2015 
TAGS: PREL, PGOV, BA, IZ, REGION 
SUBJECT: BAHRAIN'S RELATIONS WITH IRAQ 
 
REF: A. STATE 216314 
 
     B. STATE 211125 
 
Classified by DCM Susan L. Ziadeh for reasons 1.4 (b) and (d). 
 
1.  (C) Per reftels, Pol/Econ Chief December 5 met with MFA 
Director for Arab Affairs Zoheir Mandeel and Bahraini Charge 
to Baghdad Hassan Al Ansari to urge more Bahraini support for 
Iraq, particularly in light of the upcoming elections.  Al 
Ansari, whose arm is still bandaged from wounds sustained in 
a July 5 assassination attempt in Baghdad, said that he is 
still accredited to the Iraqi government though he works out 
of Bahrain.  The Embassy remains open with 12 full-time Iraqi 
employees.  The Iraqi Embassy in Bahrain serves as the 
regional financial center for Baghdad's embassies in the 
region. 
 
2.  (C) Al Ansari explained that Bahrain had pledged $10 
million in support to Iraq at the Madrid conference and the 
GOB, through the Red Crescent Society, had already disbursed 
all of the funds.  The Society used the money for medicines, 
financing for the activities of humanitarian institutions, 
and funding for the construction of 25-30 sewing workshops 
for women.  The Iraqi government has asked the GOB for 
additional official support, but Bahrain has not yet made any 
decisions.  Bahrain's GIB Bank holds some $500 million in 
Iraqi debt and the Iraqi Central Bank and Bahrain's Ministry 
of Finance have engaged in discussions regarding the 
disposition of the debt. 
 
3.  (C) In addition to the official assistance, Al Ansari 
said that Bahrain had hosted the training of 4,000 Iraqi 
civil defense personnel by an American contractor.  The 
training will be completed by the end of the month and, in 
response to Bahrain's inquiry, the Iraqi government said 
there was no immediate need for additional training.  The 
Bahrain Institute of Banking and Finance trains 3-4 Iraqi 
bankers each month and arranges temporary internships at 
Bahraini banks.  On the commercial front, Bahrain's United Al 
Ahli Bank purchased the Commercial Bank of Iraq (CBI) and 
will expand CBI's operations from savings and checking 
accounts only to include a trading room and international 
operations.  As part of the deal, more than 70 Iraqi 
employees of CBI will come to Bahrain for training.  The 
Bahraini Adex Investment Bank has an office in Baghdad.  The 
Bahrain Chamber of Commerce and Industry has held several 
conferences on Iraq reconstruction and it intends to open a 
branch office in Baghdad when the security situation permits. 
 
4.  (C) Al Ansari said that Bahraini charitable organizations 
also contribute to Iraq.  The Islamic Education Society (Al 
Tarbiya Al Islamiya), a Salafi group, pays the salaries of 
employees at a free hospital located between Baghdad and 
Falluja.  Other groups donate school supplies, air 
conditioners, and refrigerators. 
 
5.  (C) With regard to official contacts, Iraqi Foreign 
Minister Zebari and Planning Minister Saleh participated in 
the November 11-12 Forum for the Future Conference in Manama 
and met with Bahraini officials.  Vice President Ghazi Yawar 
attended the December 2-4 IISS Gulf Dialogue conference in 
Manama and met with Prime Minister Shaikh Khalifa.  At the 
Gulf Dialogue, Foreign Minister Shaikh Khalid spoke publicly 
in support of all Iraqis participating in the December 15 
elections.  Bahrain is an active participant in the Iraq 
Neighbors Meetings. 
 
6.  (C) Comment:  Bahrain has publicly and privately 
supported the political and constitutional processes under 
way in Iraq.  Unlike its GCC counterparts, Bahrain does not 
have the financial resources to be a large donor, though the 
GOB understands the importance of making at least symbolic 
contributions.  Given its small size, Bahrain tends to 
operate within the consensus of regional and mulilateral fora 
like the GCC.  We will continue to urge the GOB to do what it 
can diplomatically and financially to support Iraq. 
 
MONROE