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Patrick X Disney  06/27/2006 08:24:52 AM  From  DB/Inbox:  Patrick X 
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C O N F I D E N T I A L        MUSCAT 01015

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C O N F I D E N T I A L SECTION 01 OF 02 MUSCAT 001015 
 
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STATE FOR NEA, NEA/IR, NEA/ARP 
 
E.O. 12958: DECL: 06/25/2021 
TAGS: PREL ELNT EWWT EPET XF IR MU
SUBJECT: OMAN FM UPDATE ON IRAN, GULF SECURITY 
 
 
Classified By: Ambassador Gary A. Grappo.  Reason: 1.4 (b, d). 
 
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Summary 
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¶1. (C) In a June 20 meeting, FM Yusuf bin Alawi again voiced 
optimism that Iran would respond positively to the West's 
latest offer, but noted that several Arab states were angry 
that details on security assurances to Iran were not 
discussed with them first.  He sees a 1987 Security Council 
resolution as already giving the UN a role in Gulf security, 
and described GCC contingency thinking on how to alleviate 
any blockage of the Strait of Hormuz.  The Minister showed no 
sign of undertaking a diplomatic mission to Iran as requested 
by the GCC.  End summary. 
 
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Iran Eager for Deal 
------------------- 
 
¶2. (C) In a June 20 call by the Ambassador, Minister 
Responsible for Foreign Affairs Yusuf bin Alawi provided 
further insights on Omani and GCC attitudes toward Iran.  The 
Minister was still optimistic that Iran would not "waste the 
opportunity" of the USG's latest offer, saying that National 
Security Council Secretary Ali Larijani was due to see EU 
Foreign Policy Representative Javier Solana in the coming 
days and appeared determined "to strike a deal."  Asked about 
Khamenei's attitude, Bin Alawi quickly replied, "He should 
listen to Larijani!"  The Minister's policy advisor Mohammed 
al-Hassan then chimed in, "He (Khamenei) does." 
 
--------------------------------------------- 
Arabs Angry at Lack of Prior USG Consultation 
--------------------------------------------- 
 
¶3. (C) Turning to the GCC, Bin Alawi warned the Ambassador 
that some of the member states and others remain unhappy with 
the USG for failing to consult on the regional security 
aspects of the EU offer to Iran.  He said Bahrain in 
particular appeared vexed, though he assured that Oman has 
complete confidence that Washington and London understand its 
security requirements.  Having recently been in Jordan, the 
Minister confided that King Abdullah was also upset at the 
USG's failure to provide prior consultation, being 
particularly alarmed at the growing Syria-Iran axis.  Bin 
Alawi told the king to have faith that any deal worked out 
with Iran would be comprehensive and not focus only on the 
Gulf.  He nevertheless sees the need for closer USG 
consultations. 
 
--------------------------------------------- -- 
UN Already Empowered to Engage on Gulf Security 
--------------------------------------------- -- 
 
¶4. (C) The Minister also cited UNSCR 598 (1987), which 
brought an end to the Iran-Iraq war, as providing a ready 
basis for UN involvement in promoting security arrangements 
in the Gulf.  (Note: Point 8 of the Resolution states: "(The 
Security Council) further requests the Secretary-General to 
examine, in consultation with Iran and Iraq and with other 
States of the region, measures to enhance the security and 
stability of the region."  End note.)  The Minister said Iran 
aspires to be a regional power.  To achieve that status, it 
must have dialogue with the U.S. and, presumably, return to 
the foreign policy practices of the former Shah.  The 
Minister sees such an evolution as a major achievement.  "If 
Iran is brought into the fold (of the regional community), 
then the Revolution is over!  This is inevitable." 
 
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Contingencies for Strait of Hormuz 
---------------------------------- 
 
¶5. (C) The Ambassador noted that a recent meeting of GCC 
Transportation Ministers reportedly discussed security in the 
Strait of Hormuz, and asked for details.  Bin Alawi replied 
that no plan was developed, but rather there were simply some 
expressions of concern as to what might happen were 
navigation to be disrupted in the Strait.  He said the GCC 
members continue to discuss a number of proposals, including 
possibly building a rail line between Oman and the northern 
Gulf, and "linking water networks."  (Note:  Although this is 
the first we have heard of it, Bin Alawi said the water 
linkage project is already "half-way complete."  He noted 
that Kuwait is most vulnerable and therefore most eager to 
see it finished; we presume the plan is to somehow link GCC 
desalination production.  End note.)  Talk of an oil pipeline 
to Omani ports on the Arabian Sea continues to circulate, as 
it has "since the 1970's."  Bin Alawi said Oman would 
certainly welcome an oil pipeline, but said such a GCC 
decision would be purely political because it would never be 
justifiable on economic grounds.  The Minister added, 
however, "I personally do not see any threat to blocking off 
the Strait of Hormuz." 
 
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No Imminent Travel to Iran 
-------------------------- 
¶6. (C) Asked if there were any other "developments" in 
Oman-Iran relations (the GCC has urged Bin Alawi to travel to 
Tehran as a special envoy), the Minister replied there was 
"nothing new."  He plans to begin his summer holidays at the 
beginning of July for about two months.  He gave no 
indication of being any closer to satisfying the GCC's 
request. 
GRAPPO