VZCZCXYZ0006
PP RUEHWEB

DE RUEHDO #0781 3100752
ZNR UUUUU ZZH
P 050752Z NOV 08
FM AMEMBASSY DOHA
TO RUEHC/SECSTATE WASHDC PRIORITY 8383
RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY
INFO RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY

UNCLAS DOHA 000781 
 
SENSITIVE 
SIPDIS 
 
TREASURY FOR D/S KIMMITT, A/S SOLOMON 
 
E.O. 12958: N/A 
TAGS: EFIN BTIO ECIN ECON EINV QA
SUBJECT: QATAR'S INTEREST IN BILATERAL TAX TREATY 
 
REF: A. DOHA 151 
     ¶B. DOHA 590 
 
¶1. (SBU) During a meeting with Finance and Economy Minister 
Yousef Hussain Kamal (septel), Deputy Treasury Secretary 
Robert Kimmitt inquired about a recent diplomatic note from 
the Qatari embassy in Washington to the Treasury Department 
indicating Qatar's interest in negotiating a bilateral tax 
treaty.  Kamal said the double taxation issue is "a long 
story" and Qatar would be happy to send or receive a team to 
reopen discussions on the issue.  He added that Qatar 
believes such treaties encourage investment. Qatar has such 
treaties with most countries, though not with the U.S., even 
though 70 percent of Qatar's foreign direct investment (FDI) 
is from America, according to Kamal.  Deputy Secretary 
Kimmitt responded by pledging to look into the issue, noting 
that the USG has limited resources to negotiate treaties and 
therefore has certain core requirements that would need to be 
addressed following consultation with U.S. companies to 
ensure that the proposed treaty would, in fact, address 
specific problems.  He also noted that expanded information 
exchange is required in all new treaties. 
 
¶2. (SBU) Comment:  Qatar has signed a number of bilateral tax 
treaties in recent months, usually as part of high-level 
visits by foreign leaders to Doha.  Post is unaware of any 
specific U.S. business concerns on double taxation or other 
tax issues, although U.S. energy firms have told us of Qatar 
Petroleum's concern over the U.S. tax treatment of its 
liquefied natural gas (LNG) exports and the receiving 
terminal being built in Texas (see reftels).  Qatar has 
recently signaled interest in a number of bilateral economic 
initiatives, including a Bilateral Investment Treaty (BIT) 
but forward movement has thus far been inhibited by the 
disorganization of Qatar's ministries and over-extended key 
employees.  Post will consult with local U.S. business 
contacts on any specific tax concerns and relay any 
substantive feedback to State, Commerce, and Treasury. 
 
¶3. (U) Deputy Secretary Kimmitt has cleared this message. 
 
LeBaron