VZCZCXRO0627
PP RUEHDE RUEHDH RUEHDIR
DE RUEHRH #0575/01 1051545
ZNR UUUUU ZZH
P 151545Z APR 09
FM AMEMBASSY RIYADH
TO RUEHC/SECSTATE WASHDC PRIORITY 0662
INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE
RUEHRC/DEPT OF AGRICULTURE WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS SECTION 01 OF 02 RIYADH 000575 
 
SIPDIS 
 
STATE FOR NEA/ARP AND EEB 
PLEASE PASS TO USTR FOR JASON BUNTIN 
PLEASE PASS TO USDOC FOR STEVEN GARRETT 
 
E.O. 12958: N/A 
TAGS: PREL EAGR ETRD ECON KIPR TSPL SA OVIP ALIREZA
SUBJECT: COMMERCE MINISTER ALIREZA ENTHUSIASTIC ABOUT 
UPCOMING TRIP TO WASHINGTON 
 
REF: A. RIYADH 537 
     ¶B. RIYADH 451 
     ¶C. RIYADH 311 
     ¶D. RIYADH 226 
     ¶E. 08 RIYADH 775 
     ¶F. SCHWEDT-BUNTIN 3/22 EMAILS 
 
¶1. (SBU) Key points: 
 
-- Minister of Commerce and Industry Abdullah Zainal Alireza 
confirmed he will be in Washington, DC, April 21-30 to 
deliver remarks at a conference at the New America Foundation 
and to meet with U.S. officials.  He stressed the need to 
emphasize business and trade as the future of the U.S.-Saudi 
relationship, not just oil and security, and he underlined 
his hopes for working with the new administration.  Alireza 
commented briefly on the need to bring more U.S. visitors to 
the Kingdom to increase knowledge of Saudi Arabia in general. 
 
--Alireza specifically requested meetings with the 
Secretaries of State and Commerce as well as the USTR. 
 
-- (SBU) The Minister briefly addressed allowing a 
third-party audit of SAG computers for pirated software, 
assigning a point of contact in his Ministry to work with us 
directly. 
 
 
-- (SBU) The Minister said he is certain that, despite a 
recent drop in inflation, prices on basic commodities will 
rise again within a year, and he is taking steps to counter 
this eventuality (including possible price controls). 
 
¶2. (SBU) Comment:  Alireza is the cabinet member who 
represents both the liberal Hijaz and the economic reform 
oriented business community.  He was an active member of the 
Saudi WTO negotiating team.  Post strongly supports his 
requests for cabinet level meetings in Washington. 
 
Washington itinerary:  program and priorities 
-------------------------------------------- 
 
¶3. (SBU) Charge d'Affaires met Saudi Minister of Commerce and 
Industry Abdullah Zainal Alireza April 14 to discuss the 
Minister's upcoming travel to Washington, DC, as well as the 
Minister's commitment to allow a third-party audit of 
government software use.  The Minister confirmed he will 
travel to Washington from April 21- 30 with a delegation that 
includes three of four deputy ministers:  Abdullah 
al-Hamoudi, Deputy Minister for Foreign Trade, Hasan Al-Akeel 
Deputy Minister for Internal Trade, and Khalid al-Suleiman, 
Deputy Minister for Industry.  Although he is visiting the 
United States to deliver remarks at a conference held by the 
New America Foundation (NAF), the Minister expressed a desire 
to use the trip as an opportunity to meet senior USG 
officials about his consumer protection agenda (ref D).  He 
was delighted when the Charge presented him a white paper 
listing USG agencies that are prepared to meet, and said he 
would like to meet with as many as possible from April 22 to 
24, with his deputies  meeting any that he cannot.  He cited 
meetings at the Small Business Administration and the Federal 
Trade Commission as his top priorities.  In addition to the 
NAF Conference and agency meetings, the Minister plans to 
meet with the U.S.-Saudi Business Council and spend 
substantial time on Capitol Hill meeting with members of 
Congress.  He said he plans to have dinner with Steven 
Clemons, Director of the American Strategy Program at the NAF 
on Sunday evening. 
 
¶4. (SBU) The Minister said he looks forward to this visit, 
particularly his meetings on the Hill, as an opportunity to 
educate Americans about the Kingdom.  He spoke positively 
about meeting new administration officials, predicting a more 
favorable experience with now interlocutors.  He outlined an 
ambitious schedule and repeatedly said he'd like as many 
meetings as possible.  The Minister also repeatedly said he 
felt that the U.S.-Saudi relationship had grown beyond oil 
and defense and should focus more heavily on trade and 
business (Note:  Alireza comes from a prominent old Jeddawi 
mercantile clan)  He said, "Business is the cement foundation 
of our relationship." 
 
Minister receives USG software audit proposal 
--------------------------------------------- 
 
¶5. (SBU) The Charge addressed the Minister's commitment 
 
RIYADH 00000575  002 OF 002 
 
 
during their last meeting to allow a third-party to audit SAG 
computers for illegally installed software (ref b) and gave 
him a written letter with a proposed action plan and an offer 
of USG technical assistance.  Alireza pointed out he'd heard 
rumors USG officials at the recent Trade and Investment 
Framework Agreement (TIFA) meetings in Washington were very 
pleased with progress the SAG has made on IPR enforcement. 
Econcouns responded that the TIFA was a huge success, and to 
best capitalize on the momentum, an audit of this type would 
send a strong signal to U.S. about the commitment the SAG has 
made to IPR compliance, which many companies use to gauge the 
business climate.  Alireza handed the letter to an aide and 
said that Deputy Minister Hamoudi would be the lead on this 
issue, and he hoped a plan could be in place before the 
delegation travels. 
 
Projections for the coming year: 
inflation will rise again? 
-------------------------------- 
 
¶6. (SBU) The Minister asserted that his greatest challenge 
over the coming year would be a resurgence of inflation, 
particularly of prices of staples like wheat and rice.  He 
said that when he took office in 2007, "all the ills in the 
Kingdom were blamed on the Commerce Ministry."  He described 
his efforts to ameliorate what he sees as an inevitable rise 
in prices by streamlining the supply chain, working with the 
Agriculture Ministry to ensure supplies are adequate, the 
lines of distribution are free from corruption, and said, if 
necessary, that the Ministry would impose price controls on 
commodities. 
RUNDELL