This record is a partial extract of the original cable. The full text of the original cable is not available.

C O N F I D E N T I A L SECTION 01 OF 02 MANAMA 000243 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 02/19/2016 
TAGS: PREL ETRD OVIP BA IR ECTRD REGION OFFICIALS BILAT
SUBJECT: AMBASSADOR AND CROWN PRINCE DISCUSS FTA AND IRAN 
 
REF: MANAMA 0180 
 
Classified by Ambassador William T. Monroe for reasons 1.4 
(b) and (d). 
 
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Summary 
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¶1.  (C) In their February 19 meeting, Crown Prince Shaikh 
Salman told the Ambassador that he would deliver a speech at 
the February 27 conference on the U.S.-Bahrain Free Trade 
Agreement (FTA), at which Commerce Secretary Gutierrez also 
will speak.  The CP said the government was still 
considering, if necessary, using "expedited powers" to ensure 
quick parliamentary approval of the final pieces of FTA 
implementation legislation.  The CP guaranteed a July 1 entry 
into force for the agreement.  He noted that he would visit 
Washington in late March or April.  Regarding Iran, he said 
that regional countries were worried about being trapped 
between two nuclear powers, Iran and Israel.  Some 
governments, in particular Egypt and Saudi Arabia, were under 
pressure from their citizens to pursue nuclear technology. 
Bahrain is interested in formalizing its relationship with 
NATO or concluding a public agreement for NATO protection in 
case of a nuclear threat.  The West should deal with Iran by 
"taking away its rights," such as travel visas.  Military 
confrontation should not be an option; the region has already 
faced too many major wars.  End Summary. 
 
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CP Confident on Passage of FTA Implementing Legislation 
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¶2.  (C) To open their February 19 meeting, the Ambassador 
informed Crown Prince Salman bin Hamad Al Khalifa that 
Commerce Secretary Carlos Gutierrez would visit Bahrain 
February 26-28 to participate in a conference on the 
U.S.-Bahrain FTA and to hold meetings with Bahraini 
officials.  The CP had been briefed on the conference by 
Economic Development Board (EDB) CEO Shaikh Mohammed bin Issa 
Al Khalifa and said he would deliver a keynote speech at the 
conference lunch.  He will address FTA implementation in the 
speech.  Bahrain still needs to complete some intellectual 
property rights legislation and regulations before the FTA 
can enter into force, and he wants to use the speech to 
emphasize the need for quick passage of the laws.  He said he 
was considering, if necessary, having the government use 
"expedited powers" to push the laws through parliament.  The 
CP assured the Ambassador that the legislation would be 
passed before parliament starts its summer break, well ahead 
of a July 1 implementation date. 
 
¶3.  (C) The CP said that the EDB's profile in the country was 
rising.  Parliament would vote within the next week or two on 
legislation establishing the Labor Market Regulatory 
Authority, which will oversee implementation of the country's 
labor reform initiative.  In this regard, the CP mentioned 
that many members of parliament do not want housemaids to be 
covered by the provisions of the labor reform bill (which 
will establish a fee payable to the government by employers 
of foreign workers).  Shaikh Salman said that one way or 
another, a loophole for housemaids would need to be closed. 
He noted that the EDB had also launched its education 
initiative and had secured additional capital for the Bahrain 
Development Bank. 
 
¶4.  (C) Shaikh Salman said he planned to visit Washington in 
late March or April, depending on King Hamad's schedule.  If 
he comes in April, the available dates are April 1-10 or 
after the 23rd. 
 
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Iran on My Mind 
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¶5.  (C) The CP said he had been speaking publicly about Iran 
lately.  Echoing Foreign Minister Shaikh Khalid's February 7 
comments to the Ambassador (reftel), the CP stated that 
Bahrain and other Arab countries are worried about being 
trapped between two nuclear powers, Iran and Israel.  A 
dangerous arms race in the region must be prevented. 
Political pressure is growing on governments in the region, 
in particular Egypt and Saudi Arabia, because people "feel 
exposed and left behind, and want to follow suit" by building 
a nuclear reactor.  Because of the high price of oil, 
governments have the resources to devote to nuclear 
technology. 
 
¶6.  (C) Shaikh Salman said that Bahrain, and probably other 
regional countries, were interested in formalizing their 
status with NATO or concluding a public agreement for NATO 
protection in the case of a nuclear threat.  The Ambassador 
briefed the CP on the $75 million U.S. initiative to 
broadcast into Iran and to support the development of Iranian 
civil society and education.  The CP replied that Iran sees 
itself as a great nation and must be "treated like an 
egomaniac."  He referred to the recommendations of an 
analysis he read, which said that the way to get Iran's 
attention is by "taking away its rights," such as by denying 
Iranians visas to travel. 
 
¶7.  (C) The CP said that he wants leaders to move away from 
talk of a military response to Iran's nuclear program.  The 
region has faced three major wars in the past 20 years and 
does not want a fourth.  Within Bahrain, sectarianism is a 
huge problem with no easy solutions.  The situation would be 
exacerbated by increased tensions with Iran.  The forces of 
moderation in the region have suffered for the past several 
years, with their agenda confined to "the boardrooms and 
ballrooms."  The extremists have the upper hand and there 
will be a delicate balance over the next decade.  He stated, 
however, that the United States has many good friends in the 
region who want to see the situation improve. 
 
MONROE