US embassy cable - 05MANAMA1833

C O N F I D E N T I A L SECTION 01 OF 02 MANAMA 001833 
 
SIPDIS 
 
E.O. 12958: DECL: 12/11/2015 
TAGS: PREL, PGOV, ECON, BA, REGION, POL, OFFICIALS 
SUBJECT: AMBASSADOR DISCUSSES DEMONSTRATIONS AND IRAN WITH 
MINISTER OF STATE FOR CABINET AFFAIRS SHAIKH AHMED BIN 
ATEYATALLA 
 
Classified By: Ambassador William T. Monroe for reasons 1.4(b) and (d). 
 
1.  (C) Summary:  During a meeting with the Ambassador 
December 4 newly-appointed Minister of State for Cabinet 
Affairs and head of the Central Informatics Organization 
Shaikh Ahmed Bin Ateyatalla Al Khalifa expressed dismay at 
recent public disturbances, saying that they damage the 
business climate.  GCC neighbors have their eyes on the 
Bahraini democratic experiment and are discouraged when they 
see problems.  He expressed concern about Iran's nuclear 
ambitions and called attention to the recent name change of 
the Bahraini branch of an Iranian bank.  Shaikh Ahmed said he 
has proposed that the GOB appoint an official government 
spokesperson for the first time.  He also said that the 
younger generation of GOB officials have helped usher in 
Information Technology (IT) reform.  End Summary. 
 
------------------------------------- 
Visitors Want Fun, Not Demonstrations 
------------------------------------- 
 
2.  (C) In a meeting December 4 with Shaikh Ahmed Bin 
Ateyatalla, the Ambassador asked about the GOB reaction to 
recent demonstrations and violence in the streets.  Shaikh 
Ahmed lamented the recent activities, saying that when 
visitors to Bahrain see demonstrations and perceive a threat, 
they do not want to return.  These visible protests damage 
the business climate.  He pointed out that Bahrain is a 
social and democratic experiment for other GCC countries. 
Neighbors watch closely what happens in Bahrain, and if the 
perception is that the experiment is progressing in a 
negative direction, they will shy away from democratic 
progress. 
 
3.  (C) Shaikh Ahmed continued that the petition signed by 28 
members of the Council of Representatives against hotels 
serving alcohol during Ramadan does not bode well for the 
progressive social and business climate, which many are 
trying to foster.  Shaikh Ahmed stated that Dubai has been 
effective in making Emiratis "share holders" in its becoming 
a tourist hub, but that municipal councils in Bahrain have 
blocked potential investment projects that would likely have 
attracted tourists.  Many Saudis visit Bahrain to enjoy 
themselves, but if there is the perception that Bahrain does 
not provide fun for people, they will stop visiting Bahrain. 
He said that even alcohol-free Kuwait is making strides at 
providing enjoyable activities for residents and visitors 
including parties and concerts. 
 
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Concerns About Iran 
------------------- 
 
4.  (C) Shaikh Ahmed expressed concern about the influence of 
Iran and Shi'a clerics in Bahrain and said that the GCC is 
very nervous about Iran's nuclear aspirations.  He explained 
that Iran has long considered Bahrain a part of Iran; up 
until 20 years ago the Iranian parliament had two members 
that were considered representatives of the Bahraini islands. 
 He said there are indications that Iran has made Shaikh Isa 
Qassem a representative spiritual head, "ayatullah," here in 
Bahrain, authorized to collect "al-khums," for Shi'a, the 
one-fifth share of one's savings donated each year in support 
of community religious activities.  He also said that a 
well-known Iranian bank recently changed its name to Future 
Bank, allegedly to mask its origins, and that it is a conduit 
for funds to and from Iran. 
 
----------------------- 
GOB Image Needs Shining 
----------------------- 
 
5.  (C) In the area of Cabinet affairs, Shaikh Ahmed said 
that he is heading a media committee, which is focusing on 
GOB public relations.  The GOB has not been effective at 
spreading its message; it needs to inform the public better 
about what the government is accomplishing.  He said that the 
GOB has not had an official government spokesperson before 
but expressed the need to appoint someone to this role. 
(Note:  The press reported this week that, for the first 
time, the MFA plans to appoint a spokesman to deal with 
foreign relations-related issues.  End note.) 
 
6.  (C) The Ambassador inquired into recent press reports 
about regulations on the posting of signs and banners in 
public.  Shaikh Ahmed said that the posting of unauthorized 
signs had gotten out of control and was aesthetically 
unpleasant.  Some signs present sectarian issues promoting 
disunity in the society.  He said that the GOB has formed a 
committee which will accept applications, verify that the 
signs do not present anything contrary to Bahraini law, and 
approve posting of the signs for a defined period of time. 
 
-------------------- 
Embracing Technology 
-------------------- 
 
7.  (C) Regarding Bahraini government reform, Shaikh Ahmed 
said that the younger generation of government ministers is 
energetic and has the blessing of the King.  He said that on 
some initiatives progress is happening so fast that the older 
ministers are letting go, stepping aside and allowing the 
change to happen.  An example is the IT initiative the GOB 
has undertaken to connect 270 buildings throughout Bahrain, 
including all ministries, forming a government intranet.  He 
explained that infrared, laser and microwave transmissions 
are all being used. 
 
8.  (C) Shaikh Ahmed explained that Bahrain has begun 
offering a "smart card" to its citizens on a voluntary basis; 
Bahrain is the first GCC country to do so.  The card has two 
computer chips: the larger has 64K of memory and will contain 
one's identification numbers and personal information; the 
second has 1K of memory and can be used for public 
transportation fares and other minor financial transactions. 
One memory slot has been reserved for the banking sector so 
that the card may be used for personal banking.  Shaikh Ahmed 
described electronic gates to be installed at the airport for 
passport control purposes.  Bahrain has used card 
specifications allowing compatibility with systems other GCC 
countries may adopt in the future. 
 
MONROE