US embassy cable - 03SANAA1192

S E C R E T SECTION 01 OF 02 SANAA 001192 
 
SIPDIS 
 
EB/ESC/ESP (GGLASS), S/CT (SFOX), NEA, IO/PHO (APEREZ), 
NSC (GPETERS), TREASURY GENERAL COUNSEL (JZARATE), TREASURY 
TASK FORCE ON TERRORIST FINANCING 
TREASURY PASS OFAC 
 
E.O. 12958: DECL: 05/25/2008 
TAGS: KVPR, ETTC, EFIN, PTER, PREL, CVIS, TERFIN, COUNTER TERRORISM, DEMARCHE 
SUBJECT: TERRORIST FINANCE: SANAA: PRENOTIFICATION OF 
ADDITION OF AL AQSA FOUNDATION TO E.O. 13224 ASSET FREEZE 
LIST 
 
REF: A. SECSTATE 137082 B. SANAA 442 
 
Classified By: DCM ALAN MISENHEIMER FOR REASONS 1.5 (B) AND (D) 
 
------ 
SUMMARY 
------- 
1.  (S) Summary: The head of the Americas Desk at the 
Ministry of Foreign Affairs had little substantive comment on 
the USG designation of the al-Aqsa Foundation as a Foreign 
Terrorist Organization. Al-Aqsa is a sensitive subject in 
Yemen and USG efforts to extradite al-Aqsa's local leader, 
Sheikh Muhammad Ali Hassan al-Muayad, from his current German 
detention are not popular. We may see some public reaction to 
the designation: at the same time our demarche was presented, 
a public demonstration was calling for the release of 
al-Muayad.  End Summary 
 
--------------------------- 
REQUESTING ROYG COOPERATION 
--------------------------- 
2. (S) On May 26, Pol/Econ Chief spoke with Abdul Salam 
al-Awadhi, the head of the MFA's America's desk, and Dirham 
al-Saidi, USA desk officer, about USG plans to freeze assets 
of the al-Aqsa Foundation and designate it as a Foreign 
Terrorist Organization.  Using reftel talking points and 
background information (left as a non-paper) she emphasized 
current international cooperation to end terrorist financing, 
and Yemen's critical role in that campaign.  To support these 
efforts, the USG urged ROYG action to investigate the local 
branch of the al-Aqsa Foundation, to freeze its assets and to 
block the transfer of its funds. 
 
3. (S)  Al-Awadhi responded very briefly on substance, noting 
that the issue remains sensitive.   He believes the Al-Aqsa 
Foundation's Sanaa office is still open, but has no 
information about its activities. He recalled previous 
instances of close cooperation between Yemen and the US on 
terrorist matters, and promised that the al-Aqsa designation 
information would be promptly conveyed to the appropriate 
authorities and held confidential until the US public 
announcement. 
 
4. (C) Al-Awadhi and al-Saidi spoke at some length about 
Islamic traditions of charity, without specifically 
mentioning al-Aqsa or its leader, Sheikh Muhammad al-Muayad. 
Yemenis, like other Arabs, were angered by the plight of the 
Palestinians and gave charity to help them.  If such 
generosity had been subverted by terrorists, they agreed that 
governments must monitor charitable operations.  However, not 
everyone who supported the Palestinians was a terrorist.  The 
POL/ECON chief firmly rejected that linkage: the USG funds 
humanitarian relief to the Palestinians and encourages others 
to do so as well.  Terrorism is an entirely different 
subject. 
 
--------------------------- 
DEMONSTRATION FOR AL-MUAYAD 
--------------------------- 
5. (C) Returning from the MFA, the Embassy vehicle was forced 
to detour several blocks by a demonstration in Tahrir 
(Liberation) Square. According to local press accounts, more 
than 5,000 people attended the demonstration in support of 
al-Muayad, calling for the ROYG to insist on his immediate 
release from German detention, and to resist US efforts to 
obtain his extradition. (RSO local staff estimated the actual 
number of demonstrators at around 800.) 
 
6. (C) Islaah, the conservative Islamic political party that 
came second in Yemen's recent parliamentary elections, 
sponsored the rally. The popular prayer leader, radical 
Sheikh Abdul Majid al-Zindani addressed the crowd, calling on 
President Ali Abdullah Salih to protect al-Muayad and bring 
him home.  According to press accounts, Salih recently 
authorized the use of public funds for al-Muayad's defense in 
the German courts, and plans to raise the matter during his 
previously scheduled visit to Germany next month. 
 
----------------------- 
THE GERMANS ARE QUERIED 
----------------------- 
7. (C) The German DCM in Sanaa has also told us that the 
German Embassy has received several recent queries from the 
ROYG on al-Muayad's status, and numerous messages from the 
Sheikh's supporters calling for his immediate release. 
 
HULL