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

UNCLAS SECTION 01 OF 02 MUSCAT 000502 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE PASS USTR FOR DEP USTR SCHWAB, J.BUNTIN 
STATE FOR NEA/ARPI, EB/TPP/ATT 
DUBAI FOR ATO MHENNEY 
USDA FOR FAS/W JBERNSTEIN AND APHIS JGREIFER 
 
E.O. 12958: N/A 
TAGS: EAGR ETRD ECON PREL MU
SUBJECT: COMMERCE MINISTER ASSERTS NO BEEF BAN OR 
CONDITIONS, SEEKS DIALOGUE 
 
REF: MUSCAT 484 AND PREVIOUS 
 
¶1. (U) This is an action cable for USTR.  See para 6. 
 
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Summary 
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¶2. (SBU) In a March 29 meeting with EmbOffs, Minister of 
Commerce Maqbool Sultan responded to USG concerns over 
contemplated Omani conditions on U.S. beef imports by 
assuring that no ban or conditions were currently in place. 
Given Omani concerns following three instances of BSE in U.S. 
cattle, however, the Minister plans to discuss in a March 29 
telcon with Deputy USTR Schwab what measures Oman might be 
able to take to reassure consumers without putting in 
jeopardy upcoming House hearings on the Free Trade Agreement. 
 End summary. 
 
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No Ban or Conditions Yet in Force 
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¶3. (SBU) The contemplated Omani conditions on U.S. beef 
imports as appeared in a March 27 letter from Oman's Minister 
of Agriculture to the Minister of Commerce (reftel) are 
NOT/NOT in force, according to Minister of Commerce and 
Industry Maqbool bin Ali Sultan.  In a March 29 meeting with 
Pol/Econ Chief and EconOff, he took umbrage with the 
Embassy's determined effort to rescind the contemplated 
conditions and objected to our sharing information on the 
notional conditions with Washington.  He appeared to 
understand, however, that the envisioned conditions -- if 
applied -- could imperil Free Trade Agreement ratification 
hearings in the U.S. House tentatively scheduled for the week 
of April 3.  For that reason, he had spoken that morning with 
Agriculture Minister Shaykh Salim al-Khalili.  (Note: In 
addition to hearing from Emboffs, the Minister had received 
urgent messages along similar lines from Oman's legal 
consultants in Washington, and from Oman's Ambassador to the 
U.S.  End note.) 
 
¶4. (SBU) The Minister reiterated that Oman does not ban 
imports of U.S. beef, and has taken no formal decision to 
impose new conditions on such imports.  He said he will 
reiterate those points in a planned phone call to Deputy U.S. 
Trade Representative Susan Schwab later on March 29.  He did 
ask, however, whether any conditions similar to those in the 
March 27 letter might be acceptable to the USG, consistent 
with OIE standards.  He argued that many of the conditions 
stipulated in the March 27 internal letter were already met 
by U.S. meat exporters, implying that they were purposely 
drafted that way.  Emboffs reiterated that imposition of any 
conditions on the importation of U.S. beef without a 
scientifically confirmed basis would not be acceptable to the 
U.S.  The Minister asked for information on conditions the 
USG might apply were a case of BSE diagnosed in Omani cattle, 
intimating that a reciprocal process might be acceptable.  He 
also expressed interest in hearing what conditions have been 
applied on U.S. beef by other nations. 
 
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Action Request 
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¶5. (SBU) The Minister is determined to allay USG fears on the 
beef issue, but is likewise irritated that an issue viewed by 
the Omani government as a genuine health concern may 
jeopardize the FTA ratification process.  At the same time, 
U.S. beef exporters have genuine concerns about Omani import 
limitations.  At least two U.S. beef shipments have already 
been denied entry on BSE grounds, according to both the 
shippers and informally by MinAg personnel.  The U.S. 
Agricultural Trade Office in Dubai reports that a major Omani 
grocery chain, Al Fair, is delaying the purchase of two U.S. 
beef shipments per month over uncertainty of Omani policy. 
(Note: It was Al Fair's beef shipment in February that was 
denied entry and destroyed by Omani authorities.  End note.) 
 
¶6. (U) Given the above, the Embassy proposes the following 
tack in Deputy USTR Schwab's March 29 telcon with Minister 
Maqbool: 
 
-- Do not specifically raise the March 27 conditions unless 
first raised by the Minister.  (Note:  Post learned of the 
conditions after obtaining a copy of a private Omani 
inter-ministerial correspondence.) 
-- Ascertain, however, standing Omani policy on U.S. beef in 
light of the statements to EmbOff by MinAg personnel that a 
ban over BSE concerns was in effect; reports that two U.S. 
beef imports were already denied entry; and the report that 
retailers fear ordering future shipments pending 
clarification of Omani policy. 
 
-- Offer to provide briefings to relevant Omani agricultural 
personnel on USG meat inspection standards, including 
measures in place pertaining to BSE. 
 
-- Be prepared to respond to queries on actions the USG would 
take in the event of a BSE case in Oman, as well as what 
conditions other states may have applied to U.S. beef exports 
in the wake of recent U.S. BSE cases. 
 
-- Reiterate USG determination to win Congressional 
ratification of the FTA, and express deep appreciation for 
the Minister's personal efforts and perseverance in this 
difficult process. 
GRAPPO