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Viewing cable 08ABUDHABI390, INTERAGENCY FOLLOW-UP ON ARAB LEAGUE BOYCOTT

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Reference ID Created Released Classification Origin
08ABUDHABI390 2008-03-27 13:56 2011-08-24 01:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Abu Dhabi
VZCZCXYZ0454
RR RUEHWEB

DE RUEHAD #0390 0871356
ZNR UUUUU ZZH
R 271356Z MAR 08
FM AMEMBASSY ABU DHABI
TO RUEHC/SECSTATE WASHDC 0652
INFO RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
UNCLAS ABU DHABI 000390 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR NEA/ARP, NEA/RA 
COMMERCE FOR BIS: EWEANT and FDAVIDSON 
STATE PASS USTR FOR JASON BUNTIN 
 
E.O. 12958: NA 
TAGS: KBCT ETRD ECON IS AE
SUBJECT: INTERAGENCY FOLLOW-UP ON ARAB LEAGUE BOYCOTT 
 
Ref: A) ABU DHABI 257, B) ABU DHABI 169 
 
1. (U) This is an action request.  Please see para 6. 
 
2. (SBU)  On March 9, a Commerce/State interagency team led by 
Edward Weant, Director of the Office of Anti Boycott Compliance, met 
with Ministry of Economy Officials, led by Under Secretary (planning 
sector) Mohammed bin Abdul Aziz to discuss UAE efforts to eliminate 
prohibited Arab League Boycott requests.   Weant expressed 
appreciation for the UAE's efforts to eliminate prohibited boycott 
language in line with the 1994 GCC decision not to enforce the 
secondary and tertiary aspects of the Arab League Boycott.  He 
stressed, however, that recent trends showed a sharp increase in 
both prohibited and permissible boycott requests.  Weant noted, by 
way of example, repeated boycott requests by Etisalat, which we 
understood had committed to revising its language.  Weant also 
highlighted other cases that demonstrated that UAE companies 
continued to use old forms with outdated language. 
 
3. (SBU) Abdul Aziz, who now has oversight on the office that deals 
with the boycott, expressed surprise.  He noted that Etisalat and 
other entities had formally notified the Ministry of Economy in 
writing that they had updated their language to match Ministry of 
Economy guidance.  He promised to personally raise the issue with 
Etisalat.  Based on his experience as an ex-Etisalat employee, he 
asserted that Etisalat was committed to complying, but was a "large 
company" which faced challenges in its efforts to do away with old 
forms. 
 
4. (SBU) Ministry of Economy Legal Advisor Issa Baddour noted that 
the Ministry had agreed on substitute language with USDOC/BIS 
(language that would not be reportable) for everything but letters 
of credit and certificates of origin.  The Ministry has asked all of 
the institutions and companies that have appeared on USDOC boycott 
reports to revise their language accordingly.  Baddour also noted 
that the UAEG had developed substitute language for letters of 
credit and certificates of origin and had sent this revised language 
to USDOC/BIS in May 2007.  He asked for confirmation that this 
language would also be permissible and not reportable. 
 
5. (SBU) In response to a question by Econchief about UAEG-Emirate 
level coordination on the issue of the boycott, Abdul Aziz confirmed 
that the Arab League boycott was a matter of "federal competency" 
rather than "emirate competency."  The Ministry of Economy could, 
therefore, instruct Emirate-level state owned enterprises to change 
their procedures.  In most cases, he argued, these companies were 
more than willing to change, as they view the boycott rules as a 
restraint on their ability to trade.  He did insist, however, that 
the Ministry could only encourage the private sector to comply, but 
could not compel compliance. 
 
6. (SBU) Action request:  Post requests that the Department provide 
a front channel response to the Ministry of Economy's revised 
language on the boycott (ref a).  Post requests that the response 
confirm that previously agreed language is permissible and not 
reportable and provide feedback on the two outstanding language 
questions, i.e., letters of credit and certificates of origin.  End 
Action Request. 
 
7. (U) This message was cleared by Mr. Weant. 
QUINN