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FM AMEMBASSY MANAMA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6345
INFO RUCNIRA/IRAN COLLECTIVE PRIORITY
RUEKJCS/SECDEF WASHDC PRIORITY
RUEKJCS/OSD WASHDC PRIORITY
RHMFISS/HQ USCENTCOM MACDILL AFB FL PRIORITY
RHBVAKS/COMUSNAVCENT  PRIORITY

C O N F I D E N T I A L SECTION 01 OF 03 MANAMA 000079 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 01/23/2017 
TAGS: PREL MARR ECON PGOV KDEM BA REGION BILAT
OFFICIALS 
SUBJECT: KING AND DEPUTY DEFENSE SECRETARY ENGLAND CONFER 
ON REGIONAL CHALLENGES, BAHRAINI AFFAIRS 
 
Classified By: CDA Susan L. Ziadeh for reasons 1.4 (b) and (d). 
 
------- 
Summary 
------- 
 
¶1.  (C) King Hamad and Deputy Defense Secretary England 
discussed bilateral relations, Iran, Iraq, Syria, U.S. policy 
in the region and Bahraini domestic affairs during a January 
22 lunch meeting.  The King declared that Bahrain is proud of 
its relationship with the United States and pledged that 
Bahrain would remain a leader among the GCC countries in 
support of U.S. objectives.  He noted that Crown Prince 
Salman would visit Washington in early March to discuss a 
"total strategy" to address regional challenges as part of 
the Gulf Security Dialogue.  Iran, the King said, is 
unpredictable and uses rhetoric that makes everyone cautious. 
 This is a sign of weakness, in his view.  The King praised 
new U.S. steps to apply pressure to Iran in Iraq.  On 
Bahraini affairs, the King said the recent elections had gone 
well but there was room for fine-tuning.  Bahrain's neighbors 
did not like the political reform program, but the King had 
argued that government was doing what is right for Bahrain, 
not for other countries.  He is proud of the free trade 
agreement and noted that members of parliament representing 
Sunni, Shia, and Islamist trends had all supported 
ratification.  End Summary. 
 
--------------------------------- 
"Proud of Relationship with U.S." 
--------------------------------- 
 
¶2.  (C) King Hamad bin Isa Al Khalifa hosted Deputy Secretary 
of Defense England for lunch January 22 and they discussed 
bilateral relations, Iran, Iraq, Syria, U.S. policy in the 
region, and Bahraini domestic affairs, among other issues. 
The King declared, "We are proud of our wonderful 
relationship with the United States and we thank you for your 
support and presence in the Gulf, which has become a model 
for growth and stability."  He credited U.S. military 
assistance to the Bahrain Defense Force (BDF) for enabling 
the BDF to be a leader in the region for efficiency.  He said 
Bahrain was always willing to take the lead, citing Bahrain's 
2005 deployment of a special forces unit to Afghanistan and 
current participation in Gulf combined naval task forces.  To 
counter the coming threat, Bahrain will focus on improving 
its sea and air defenses.  The Deputy Secretary said the 
United States appreciates Bahrain's leadership and its 
outspoken friendship. 
 
¶3.  (C) The King noted that Crown Prince Shaikh Salman bin 
Hamad Al Khalifa would visit Washington in the beginning of 
March and would lead the Bahraini delegation for a Gulf 
Security Dialogue (GSD) session, among other activities.  He 
said the CP will be prepared to discuss a "total strategy" 
for addressing regional challenges.  (The King implied that 
the CP would be responding to the paper presented by the U.S. 
GSD team in October 2006.)  The goal is to bring the two 
sides closer on a technical basis.  Bahrain looks forward to 
this exchange of information and ideas, the King said. 
 
-------------------------------------------- 
Iran Unpredictable, Syrian Link to Hizballah 
-------------------------------------------- 
 
¶4.  (C) Asked about Iran's aggressive behavior, the King 
commented, "Good always asks evil, why?"  He said that 
Ahmadi-Nejad's actions had even caused the Iranian parliament 
and former president Khatemi to complain.  He stated that 
Iran is unpredictable and unwise, and the language Iran uses 
makes everyone cautious.  This behavior is not in Iran's own 
interests and is a sign of weakness.  The Deputy Secretary 
suggested Iran's actions could be a means to divert attention 
from internal problems.  The King recalled that former Deputy 
Prime Minister Shaikh Abdullah bin Khalid had attended a 
conference in Iran on Shia Islam in Bahrain, and the Iranians 
had arranged for a Sunni Baluchi Iranian to publicly pledge 
his loyalty to the regime.  The Bahrainis interpreted this to 
mean that Supreme Leader Khamenei is worried about Baluchis 
and their potential to cause problems internally.  He said 
there is no one now who can check the power of the mullahs 
who run the country. 
 
¶5.  (C) The King stated that Iran wants to dominate the 
region.  To solve the problem in Iraq, we need to solve Iran. 
 Iraq would be in a much better position without Iranian 
infiltration and meddling.  The Deputy Secretary said the 
 
MANAMA 00000079  002 OF 003 
 
 
U.S. had begun applying pressure to Iran in Iraq, and the 
King replied that everyone appreciates this move.  He noted 
there had been talk, including in the Bahraini press, that 
the U.S. had been supporting Iranians against Arabs in Iraq. 
The recent U.S. moves show this is not the case. 
 
¶6.  (C) The King noted that he had met with Syrian president 
Bashar Al Asad some time ago and urged Asad to break the link 
between Iran and Hizballah and disengage entirely from 
Lebanon.  In response to Asad's claim that he needed a 
presence in Lebanon to protect Syria, the King recommended 
that Syria consult with the U.S. and France on dealing with 
possible future threats from Lebanon.  The King also told 
Asad that he had proof of Hizballah links to Bahrain.  He 
subsequently dispatched Interior Minister Shaikh Rashed bin 
Abdullah Al Khalifa to Damascus to present this information, 
but during the visit the Israel-Hizballah conflict started, 
making it impossible for Shaikh Rashed to press the issue. 
The Deputy Secretary replied that Syria was still allowing 
weapons shipments to Hizballah. 
 
-------------------------------------- 
U.S. Should Continue Regional Policies 
-------------------------------------- 
 
¶7.  (C) The King said that U.S. policy in the region had 
generated a lot of criticism, but it was important that the 
United States continue its policies.  The Middle East, he 
said, had followed bad practices for a long time, resulting 
in conflict, weak economies, and bad management.  For the 
U.S. to come and help is a great opportunity.  If countries 
benefit, that is good.  If they do not, it is the fault of 
the regional countries, not the U.S.  (Comment:  An apparent 
reference to Iraq.)  Bahrain supports what the United States 
is doing in Iraq and the region, and is trying to get other 
GCC countries to join the U.S. and Bahrain in protecting the 
Gulf.  The Deputy Secretary said that the U.S. has the right 
objectives and is implementing policies to achieve these 
objectives. 
 
----------------------------------- 
Elections Bring Critics Into System 
----------------------------------- 
 
¶8.  (C) In response to the Deputy Secretary's question, the 
King said the November/December parliamentary elections had 
gone well but there was always room for fine-tuning.  He 
noted that a former "street leader" was now a member of 
parliament, and he was able to express his views inside the 
system.  "If he has a better idea for Bahrain, why shouldn't 
we listen?"  The King said he does not feel too much weight 
on his shoulders because the responsibility for governing is 
shared with the people and the people's representatives.  He 
noted that Arabic daily newspaper Al Wasat editor-in-chief 
Mansour Al Jamry had appeared on Al Jazeera a few days 
earlier.  Al Jamry, a prominent Shia who had been in exile in 
London before the King instituted his reform program, had 
said the Shia in Bahrain were different than those in Iran 
and Iraq.  Al Jamry said the Shia support Bahrain's National 
Charter and that there was great opportunity for all in 
Bahrain.  The King indicated that he was happy to hear Al 
Jamry's comments. 
 
¶9.  (C) The King said Bahrain had some "rough times" with its 
neighbors (in the GCC) over its democracy program.  "They 
thought it was like a revolution against them," he said.  The 
King had argued that when Bahrain is stable, Saudi's Eastern 
Province, site of the oil deposits, and Qatar are also more 
stable.  Bahrain, he said, is not a model for other regional 
countries; the government is doing what is right for Bahrain 
and Bahrain only.  The King said that he urged government 
ministers to clarify for the parliament and people how a 
democratic system should work.  Of critical importance is 
that no one is above the law, including members of 
parliament.  He noted that Bahrain is one of only two Arab 
countries that has a constitution court charged with ruling 
on constitutional matters.  "We are managing well so far," he 
said. 
 
------------------------ 
Modernizing Legal System 
------------------------ 
 
¶10.  (C) The King continued that the British had left behind 
a good civil service system and structure in the early 1970s. 
 However, when Bahraini youth had returned from Arab 
countries such as Lebanon, Iraq, Syria, and Egypt, where they 
 
MANAMA 00000079  003 OF 003 
 
 
had been educated, they brought with them ideas about the 
Soviet and old Turkish systems, where "employees did 
nothing."  On the one hand, Bahrain was with the U.S. in the 
fields of oil, military, automobiles, and aviation, but its 
rules and laws were from the Soviet Union.  People realized 
this mistake and Bahrain made a successful effort to 
modernize and update laws on trade, economy, and freedoms. 
"We're working hard and fast to recover," the King commented. 
 
----------------------- 
Economic Reform and FTA 
----------------------- 
 
¶11.  (C) The Bahraini economy is working well because of the 
high level of education of the citizens, the King said, 
citing nine percent economic growth.  (Note:  The IMF 
published a figure of 7.1 percent growth for 2006.)  The goal 
is to ensure there is a good distribution of wealth so 
everyone benefits.  Unemployment had declined from 20 percent 
to four percent in four years.  (Comment:  The King based 
this claim on the results of the Ministry of Labor's National 
Employment Program.  Many economists argue that this is not a 
true measure of unemployment in the country.)  The Crown 
Prince, he said, was working hard to change the system. 
There is some tension between government ministries, which 
are used to doing business the old way, and the Economic 
Development Board (EDB), which is run by young people who 
know how to work with the world.  The two sides are now 
trying to coordinate on economic policy.  When the CP took 
the chairmanship of the EDB, corruption at some government 
institutions declined, which the King attributed to EDB and 
parliamentary oversight. 
 
¶12.  (C) When Bahrain began reforming its economy, the King 
said, Saudi Arabia did not like what it was doing.  But Saudi 
Arabia understands now and it is also moving in the right 
direction.  In response to the Deputy Secretary's question 
about the impact of the U.S.-Bahrain free trade agreement 
(FTA), the King stated that business people from other Gulf 
countries were watching Bahrain closely.  At first, there was 
pressure on Bahrain "out of jealousy," but Bahrain took the 
necessary steps to improve its economy and commercial laws. 
The UAE, he said, thought an FTA was easy, but now it had 
stopped its negotiations with the U.S. because the required 
changes are too difficult.  The Deputy Secretary noted that 
the FTA was seen as the seal of approval for Bahrain's 
economy.  The King said he was proud of the agreement and 
that all members of parliament - Sunni, Shia, Islamists - had 
supported FTA ratification. 
 
------------------- 
Education Exchanges 
------------------- 
 
¶13.  (C) The Deputy Secretary asked about the interest of 
Bahrainis to study in the United States.  The King said his 
own son and daughter had been studying in the U.S. at the 
time of 9/11 and they had remained in the country and felt 
very comfortable.  The Ambassador noted that interest and 
participation in the Fulbright program and other education 
exchange programs had increased greatly.  The Deputy 
Secretary said the exchange of students was an important way 
 
SIPDIS 
to build friendships and cultural bonds. 
 
¶14.  (U) Deputy Secretary England cleared this cable. 
 
 
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Visit Embassy Manama's Classified Website: 
http://www.state.sgov.gov/p/nea/manama/ 
********************************************* ******** 
ZIADEH