VZCZCXRO0507
PP RUEHAG RUEHAST RUEHDA RUEHDBU RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA
RUEHLN RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHTC #0728/01 1091225
ZNR UUUUU ZZH
P 191225Z APR 07
FM AMEMBASSY THE HAGUE
TO RUEHC/SECSTATE WASHDC PRIORITY 8904
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
RUEHRC/DEPT OF AGRICULTURE WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASH DC PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
RUEHBS/USEU BRUSSELS PRIORITY 0467

UNCLAS SECTION 01 OF 03 THE HAGUE 000728 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EUR/UBI (RREITER), EUR/ERA 
STATE ALSO FOR EEB/TPP/BTA/EWH (JSTRUBLE), EEB/IFD/OIA 
STATE PLEASE PASS USTR 
USDOC FOR 4212/USFCS/MAC/OWE/DCALVERT 
USEU FOR DMULLANEY 
 
E.O. 12958: N/A 
TAGS: ECON ETRD EINV PGOV USTR WTRO PINR NL
SUBJECT: NEW DUTCH TRADE MINISTER TO FOCUS ON BUSINESS 
CLIMATE 
 
REF: THE HAGUE 325 
 
THIS MESSAGE IS SENSITIVE BUT UNCLASSIFIED.  PLEASE HANDLE 
ACCORDINGLY. 
 
¶1.  (SBU)  SUMMARY.  New Dutch Trade Minister Heemskerk's 
positive experience in America as a young student should bode 
well for maintaining Dutch support within the EU for U.S. 
positions in WTO/Doha talks and related trade issues. 
Heemskerk recently told Ambassador Arnall that support for 
"one-stop shops" aimed at improving the business climate for 
foreign businesses and expatriate workers in the Netherlands 
would be a priority during his tenure.  He said he looked 
forward to his first official visit to Washington in 
mid-June.  He also plans to lead the Dutch delegation to the 
September High Tech Connections III mission to San Francisco 
and will speak at a Commerce-initiated "Go-Zone" investment 
event in June in the Netherlands.  END SUMMARY. 
 
¶2.  (U)  On April 17, Ambassador Arnall called on Frank 
Heemskerk in his new capacity as Dutch Trade Minister. 
Heemskerk serves as the State Secretary for Foreign Trade and 
Deputy to new Minister of Economic Affairs Maria van der 
Hoeven.  Given the division of portfolios at the Ministry of 
Economic Affairs (MEA), Heemskerk also carries the title of 
Trade Minister and represents the Netherlands abroad on trade 
matters.  Heemskerk took up his position along with other 
members of the center-left Balkenende IV cabinet in February 
(reftel).  EconCouns accompanied the Ambassador to the 
meeting.  Other MEA participants included Marten van den 
Berg, Deputy Director General for Foreign Economic Relations, 
and Wink Joosten, Policy Officer, Trade Policy Department. 
 
GOOD RELATIONS WITH US KEY 
-------------------------- 
 
¶3.  (U)  Heemskerk opened the meeting by underscoring the 
strength of U.S.-Dutch economic and trade relations and the 
importance of maintaining this relationship.  The Netherlands 
is the fourth largest direct investor in the U.S. ($171 
billion accumulative total in 2005) and the eighth largest 
recipient of U.S. exports ($26.5 billion in 2005).  The U.S. 
remains the largest direct investor in the Netherlands ($181 
billion in 2005), with some 1,600 U.S. companies with 
subsidiaries or offices in the Netherlands. 
 
¶4.  (SBU)  Heemskerk said he often reflected on his own 
positive American experience as a senior high school exchange 
student in Wichita, Kansas in 1988.  He remained in close 
contact with his American host family and had traveled back 
to Kansas several times.  His American host brother had also 
visited him in the Netherlands, he added. 
 
SEEKING PROGRESS ON WTO 
----------------------- 
 
¶5.  (SBU)  There appeared to be "good progress" recently on 
the WTO/Doha Round negotiations, Heemskerk noted.  He said 
the Netherlands continued to favor a multilateral approach 
but also recognized the benefits of bilateral Foreign Trade 
Agreements.  He said he was looking forward to his first 
official visit to Washington, tentatively planned for 
mid-June, to learn more about U.S. positions in these talks 
and other U.S.-Dutch trade issues.  The Ambassador stressed 
the U.S. Administration's continued commitment to achieving a 
successful Doha agreement.  He also offered Embassy 
assistance in securing productive and beneficial meetings for 
Heemskerk during his Washington visit. 
 
"ONE-STOP SHOPS" FOR EXPATS 
--------------------------- 
 
¶6.  (SBU)  Ensuring a good business climate for foreign 
businesses and their expatriate workers, Heemskerk 
emphasized, would be one of his top priorities during his 
four-year term.  He praised the role of the American Chamber 
of Commerce and its members' active part in serving as the 
MEA's "eyes and ears" on identifying ways to improve services 
 
THE HAGUE 00000728  002 OF 003 
 
 
for foreign businesses operating in the Netherlands.  He 
noted the establishment of "one-stop shops" in Amsterdam, 
Rotterdam, and Wassenaar for foreign companies and expatriate 
workers to help ease some of the start-up administrative 
burdens related to operating and working in the country.  As 
one of his first projects, Heemskerk said he planned to bring 
together the planners behind these various "one-stop shops" 
to share experiences and best practices.  He was hopeful that 
such an initiative would lead to better services and a 
proliferation of "one-stop shops" in other cities and regions 
in the country. 
 
¶7.  (SBU)  Heemskerk said the MEA was also exploring options 
that would include charging Dutch and foreign companies a set 
local tariff for local services (e.g., security, street 
cleaning) in their communities.  Such a system would replace 
the current subsidy system funded through tax revenues and 
redistributed to municipalities to cover the costs of such 
services, which Heemskerk indicated was time-consuming and 
inefficient.  Adoption of such a system, he explained, would 
require approval by a majority of businesses in a community. 
 
HIGH TECH CONNECTIONS III 
------------------------- 
 
¶8.  (SBU)  Heemskerk said he planned to lead the Dutch 
delegation to the September 23-27 High Tech Connections (HTC) 
III Mission to San Francisco.  (HTC is a public and private 
consortium that includes participation by Embassy The Hague's 
Foreign Commercial Service.)  He noted that earlier HTC 
missions to Silicon Valley (2004) and Boston (2005) had been 
very successful from a Dutch perspective in promoting 
technological exchanges to drive innovation and business 
matchmaking among American and Dutch companies, institutions, 
and universities.  Heemskerk suggested that the Ambassador's 
participation could play a key role in ensuring the mission's 
success, given his own ties to California.  He also asked for 
the Ambassador's support in approaching California Governor 
Arnold Schwarzenegger as a guest speaker at the event. 
 
"GO-ZONE" INITIATIVE 
-------------------- 
 
¶9.  (SBU)  Heemskerk expressed great interest in the 
Department of Commerce "Invest in America" initiative aimed 
at attracting general investments into the U.S. and the 
"Go-Zone" initiative, which specifically targets investments 
into Louisiana and Mississippi.  EconCouns noted cooperation 
between the MEA and the Embassy's Foreign Commercial Service 
and Economic Section in hosting a early June event to 
introduce potential Dutch firms to investment opportunities 
in various sectors in these two states, which were hit 
hardest by Hurricane Katrina.  Heemskerk confirmed his 
participation as a speaker at the June event and offered his 
assistance in ensuring its success. 
 
COMMENT/BIO INFORMATION:  "THE RED BANKER" 
------------------------------------------ 
 
¶10.  (SBU)  Trained as an economist, Heemskerk (37) had made 
a career at the Dutch bank ABN Amro, where he specialized on 
the Middle East, before becoming a member of the Second 
Chamber of parliament for the PvdA (Labor) party in 2003. 
Heemskerk is considered a close confidant of new Finance 
Minister and former Labor leader Wouter Bos.  He was a member 
of Niet Nix, a political reform movement within the PvdA that 
sought to introduce major changes in the party.  His 
affiliation with this group and banking background earned him 
the nickname of the "Red Banker."  Red is the color of the 
Labor party.  His consideration of non-traditional Labor 
ideas such as a local service tariff for businesses versus 
government subsidies suggests that he remains unafraid to 
propose and test new ideas. 
 
11  (SBU)  Heemskerk's fondness for America and his time 
there as a young man was clear during the meeting.  Such 
leanings should bode well for maintaining the Dutch as an 
ally within the EU for U.S. positions in the WTO/Doha talks 
 
THE HAGUE 00000728  003 OF 003 
 
 
and on related trade matters.  While acknowledging a need to 
master the technical details within his trade portfolio, 
Heemskerk told the Ambassador he was excited about his new 
position and was confident that his economic and banking 
experience would prove to be strong assets.  He also 
commented that the new coalition government appeared to be 
working well together, despite initial skepticism about the 
feasibility of a coalition among the two more conservative 
parties -- Christian Democrats and Christian Union -- and the 
more social-oriented Labor party. 
ARNALL