VZCZCXRO0408
OO RUEHBC RUEHDE RUEHDIR RUEHIHL RUEHKUK RUEHLH RUEHPW RUEHROV
DE RUEHRH #1034/01 1881259
ZNY CCCCC ZZH
O 061259Z JUL 08
FM AMEMBASSY RIYADH
TO RUEHC/SECSTATE WASHDC IMMEDIATE 8712
INFO RUEHXK/ARAB ISRAELI COLLECTIVE IMMEDIATE
RUEHEE/ARAB LEAGUE COLLECTIVE IMMEDIATE
RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE IMMEDIATE
RUCNIRA/IRAN COLLECTIVE IMMEDIATE
RUCNRAQ/IRAQ COLLECTIVE IMMEDIATE
RUCNISL/ISLAMIC COLLECTIVE IMMEDIATE
RUEHGB/AMEMBASSY BAGHDAD IMMEDIATE 0685
RUEHMD/AMEMBASSY MADRID IMMEDIATE 0173
RUEHJI/AMCONSUL JEDDAH IMMEDIATE 9613
RUEHRH/CHUSMTM RIYADH SA IMMEDIATE
RUEAIIA/CIA WASHDC IMMEDIATE
RHMFISS/COMUSCENTAF SHAW AFB SC IMMEDIATE
RUCPDOC/DEPT OF COMMERCE WASHDC IMMEDIATE
RUEKDIA/DIA WASHINGTON DC IMMEDIATE
RHMFISS/HQ USCENTCOM MACDILL AFB FL IMMEDIATE
RUEKJCS/JOINT STAFF WASHDC IMMEDIATE
RHEHNSC/NSC WASHDC IMMEDIATE
RUEKJCS/SECDEF WASHINGTON DC IMMEDIATE

C O N F I D E N T I A L SECTION 01 OF 02 RIYADH 001034 
 
SIPDIS 
 
E.O. 12958: DECL: 07/02/2013 
TAGS: CIA ECON IR IS IZ MASS MCAP MOPS PGOV PINR
PREL, SA 
SUBJECT: SEN. KERRY IN SAUDI - IRAN, IRAQ AND OIL 
 
Classified By: Ambassador Ford Fraker for reasons 1.4 (b) and (d) 
 
¶1. (C) SUMMARY:  Senator John Kerry (D-MA) traveled to the 
Kingdom on June 28-30 where he met with Saudi King Abdullah 
bin Abdulaziz Al Saud, Chief of General Intelligence Prince 
Muqrin Bin Abdulaziz Al Saud, Minister of Finance Dr. Ibrahim 
Al-Asaf, and Assistant Interior Minister for Security Affairs 
Prince Mohammed Bin Naif (MBN).  The Ambassador and DCM 
accompanied to all these meetings.  Discussions included 
Saudi views on the Iranian threat, their distrust of Iraqi 
Prime Minister Nuri Al-Maliki, progress against Al Qaeda, oil 
production and the Saudi riyal-dollar peg.  The King 
elaborated on furthering global religious tolerance and 
combating extremism through the Inter-Faith Dialogue he 
launched, where the next step will be a multi-faith 
conference, including Christian, Jewish and Muslim 
representatives, scheduled for July 16 in Madrid (Septel). 
END SUMMARY. 
 
IRAN 
---- 
 
¶3. (C) The Saudis were unanimous in their view that Iran was 
a growing threat with a goal of not just achieving greater 
influence but expansion of their sphere of control, citing 
"Syrian duplicity" in supporting Hezbollah and opposing the 
Lebanese government, and support to Yemeni insurgents leading 
to fighting along the Saudi-Yemen border.  MBN expounded on 
the possibility of Iran gaining control of Mecca and Medina, 
Islam's two holy cities, that could occur if the Saudi 
government were toppled.  They all acknowledged Iran's 
expansionist operations trying to convert Sunni Muslims to 
the Shi'ite sect, and subversive involvement in non-Arab 
Muslim areas such as Indonesia, Malaysia and sub-Saharan 
Africa.  The King especially was vociferous in his 
condemnation of Syrian President Bashar Assad in aligning 
with Iran. 
 
IRAQ 
---- 
 
¶4. (C) Regarding Iraq, the Saudis acknowledged violence has 
been significantly reduced.  As a sign of progress, Muqrin 
informed us of the humanitarian assistance program he is 
devising with Iraqi National Security Advisor Mowafaq Rubaie 
(Septel).  Al-Asaf was heartened the Iraqis were taking a 
more Arab nationalist view and putting sectarian differences 
aside, implying this meant Iran would lose influence in Iraq. 
 However, in all of the Iraq discussions, distrust and 
displeasure with the current Iraqi government was strongly 
expressed.  MBN bemoaned the GOI's decision to execute Saddam 
Hussein at the height of the Hajj (Dec 30, 2006) when there 
were 4 million pilgrims in Mecca.  He opined the potential of 
even small riots during this event could have led to a 
massive loss of life and tremendous damage during this highly 
publicized event on Saudi soil.  Muqrin noted the King 
considered Maliki as untrustworthy because Maliki had 
reportedly promised the King to rein in the Shia militias in 
2006, but had not done so (NOTE: the GOI, beginning with the 
Basra and Sadr City Iraqi Army led operations in March 2008, 
have now beaten down these militias).  King Abdullah was most 
vehement in his distrust of Maliki, calling him "an Iranian 
100%" and that the GOI has allowed "half of Iraq to become 
Iranian." 
 
¶5. (C) The topic of the 500 mile long border security fence 
being built along Saudi Arabia's northern border with Iraq, 
which still has contracts pending, was raised.  MBN 
highlighted the importance of this security initiative.  Sen. 
Kerry requested that Raytheon, who is bidding on this 
contract, be given consideration on its bid.  To which MBN 
responded that if Raytheon "gets its bid right," they would 
win the contract. 
 
RIYADH 00001034  002 OF 002 
 
 
 
COUNTERING AL QAEDA IN SAUDI 
---------------------------- 
 
¶6. (C)  The Saudis highlighted how in the past four years 
they have significantly degraded Al Qaeda's ability to 
conduct operations in Saudi Arabia.  MBN characterized our 
bilateral relationship as "we are at war together against Al 
Qaeda," adding that political partisanship should not 
interfere in the mutually beneficial security operations we 
jointly conduct.  Both Muqrin and MBN emphasized the close, 
effective working relationship and intelligence sharing they 
have with Riyadh GRPO and the FBI.  MBN explained in detail 
how the SAG's de-radicalization program works, where it 
includes not attributing blame to the individual, rather 
describing them as being "misled" by Al Qaeda.  Also that MOI 
works with the families and local tribes to rehabilitate the 
individual.  At the same time, they are working hard to 
present a global image of the SAG as a force against, not 
for, terrorism.  He cautioned that the biggest threat in 
Saudi Arabia is the annual Hajj, where millions of Muslims 
come to make the pilgrimage, and there is always the chance 
that some would overstay to commit terrorist acts. 
 
OIL PRICES AND DOLLAR PEG 
------------------------- 
 
¶7. (C) Sen. Kerry raised the issue of oil prices and 
associated economics with Al-Asaf.  Al-Asaf commented on 
issues relating to oil production, supply constraints and the 
impact of monetary policy on oil pricing.  He explained Saudi 
Arabian leadership was reacting vigorously to the current 
high oil price climate, including expansion of oil production 
to eventually 12.5 million barrels per day and investments in 
refining capacity.  Sen. Kerry queried Al-Asaf if the Saudi 
Riyal would remain pegged to the dollar (3.75 SAR = 1 USD). 
Al-Asaf assured us that there were would be no change. 
Despite pressure to peg the riyal to the Euro or to a basket 
of currencies, Al-Asaf stated the Saudi-U.S. relationship is 
best served by maintaining the status quo in monetary policy. 
 Al-Asaf expressed concern of a deep recession in the U.S. 
this year with its subsequent global impact.  Regarding our 
bilateral relationship, he advised that "Congress should be 
more flexible in U.S. arms sales to the Kingdom."  Hinting 
that he was pleased with the Administration, but resented 
Congress putting up barriers to agreed upon weapons 
purchases.  He added that many of our bilateral issues could 
be smoothed over if the Israeli-Palestinian issue were 
resolved. 
 
COMMENT 
------- 
 
¶8. (C) Atmospherics during Sen. Kerry's visit were extremely 
positive.  MBN's characterization that we are war together 
summed up the message from the Saudis emphasizing the 
strength of our relationship and the vast number of issues we 
do agree on. 
FRAKER