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UNCLAS SECTION 01 OF 05 DOHA 000150 
 
SENSITIVE 
SIPDIS 
 
H PASS TO SFRC STAFF MEMBER JAY BRANEGAN 
 
E.O. 12958: N/A 
TAGS: ENRG EPET EINV EMIN EAGR QA AJ CH IN JA LI
TZ, RS 
SUBJECT: EXTRACTIVE INDUSTRIES TRANSPARENCY INITIATIVE 
GAINS MOMENTUM WITH QATAR-HOSTED CONFERENCE 
 
REF: DOHA 128 
 
DOHA 00000150  001.7 OF 005 
 
 
-------------- 
(U) KEY POINTS 
-------------- 
 
-- Qatar hosted the fourth global conference of the 
Extractive Industries Transparency Initiative (EITI) Feb. 
16-18, 2009.  EITI is a voluntary coalition of countries, 
companies and civil society organizations that seeks to 
improve revenue transparency in the extractives sector.  EITI 
has made progress in the two years since the last conference 
and now is being adopted in 26 countries. 
 
-- Liberia's President Ellen Johnson Sirleaf, energy 
ministers from Iraq and Qatar, and senior business leaders 
made strong expressions of support for EITI.  A diverse group 
of representatives from governments, the private sector, and 
civil society attended; however, despite USG and GOQ efforts, 
China, India, and Russia were absent from the event. 
 
-- Azerbaijan was approved as the first EITI compliant 
country and Tanzania became the 25th EITI implementing 
country.  Japan announced that they will become an EITI 
supporting country.  The EITI also ratified a formal 
governance structure and approved a new Board. 
 
-- Opening the conference, Qatar's Energy Minister Abdullah 
Al-Attiyah announced his country was considering joining EITI 
as an implementing country, and that Qatar Petroleum may join 
as a supporting company.  Doing so would make Qatar the first 
Gulf country to join EITI. 
 
------------- 
(SBU) COMMENT 
------------- 
 
-- The USG is an active supporter of EITI and sees it as an 
important part of our anti-corruption and energy security 
strategies.  The 400 delegates from dozens of countries 
 
DOHA 00000150  002.4 OF 005 
 
 
attending the meetings indicate that support continues to 
build for EITI around the world. 
 
-- Azerbaijan became the first EITI compliant country, 
demonstrating that the initiative is making progress.  21 
other implementing countries have until March 2010 to become 
compliant.  There is an EITI buzz among countries with 
significant extractives sectors, and among the international 
representatives who work with and lend to those countries 
(e.g., the World Bank).  International energy companies are 
supportive of the initiative, as they see it as fostering 
stable political environments.  Donors also see EITI as 
increasing confidence that their money is used effectively, 
because increased transparency contributes to less corrupt 
practices. 
 
-- The U.S. seeks to increase awareness of the initiative and 
strengthen bilateral engagement beyond EITI implementing 
countries, particularly with emerging economies like India 
and China.  Interested missions can increase their knowledge 
of EITI by accessing the EITI website: www.eitransparency.org 
or by contacting EEB/ESC David Henry. 
 
-- Qatar's hosting of this conference, without formally 
committing itself to the initiative's principles, reflects a 
certain dichotomy on the part of Qatar's Energy Minister.  On 
the one hand, he is believed to be personally committed to 
stamping out corruption in Qatar and helping clean up the 
energy sector worldwide.  On the other hand, he may be 
uncomfortable with the level of transparency suggested by 
full compliance with the EITI principles. 
 
-- Qatar's becoming an EITI implementing country would give 
the initiative strong backing from the world's leading 
oil-producing region. 
 
-- However, whether Qatar will ultimately open its books, and 
whether a viable multi-stakeholder group can be assembled in 
Qatar (as called for by the initiative's validation process) 
when there is not a single true NGO and little civil society, 
 
DOHA 00000150  003.4 OF 005 
 
 
is another issue.  In the meantime, Qatar hopes for 
commercial benefit from being seen to support international 
standards on transparency. 
 
End Key Points and Comment. 
 
------------------ 
Conference Results 
------------------ 
 
¶1. Qatar hosted February 16-18, 2009 the Fourth Global 
Conference of the Extractive Industries Transparency 
Initiative (EITI), attended by 400 delegates from 80 
countries.  The conference was officially opened by Qatar's 
Deputy Prime Minister and Minister of Energy and Industry 
Abdullah Al-Attiyah (standing in for the Amir), President of 
Liberia Ellen Johnson-Sirleaf, President of Shell Jeroen van 
der Veer, Open Society Institute Director George Soros, and 
EITI Chairman Peter Eigen, all of whom gave strong 
expressions of support for the initiative.  The USG 
delegation was led by EEB/ESC Deputy Assistant Secretary Doug 
Hengel.  Senate Foreign Relations Committee staff member Jay 
Branegan also attended.  Despite USG and GOQ efforts, China, 
India, and Russia declined to attend or send observers. 
 
¶2. At the Doha meetings, Azerbaijan was certified as being 
the first EITI Compliant country, having successfully 
completed EITI's validation process.  EITI adopted a more 
formal governance structure and a new EITI board was elected 
in which the U.S. serves as an alternate.  Tanzania was 
admitted as an EITI candidate country and will have until 
February 2011 to fully implement EITI.  Japan expressed its 
intention to become an EITI supporting country. 
 
¶3. Iraq's Oil Minster gave a strong expression of support for 
EITI and reiterated Iraq's intention to become an EITI 
implementing country. 
 
¶4. Representatives of the Publish What You Pay Coalition (a 
collection of NGOs) used the conference to promote the 
 
DOHA 00000150  004.4 OF 005 
 
 
Extractive Industries Transparency Disclosure Act, proposed 
U.S. legislation that would require U.S.-listed companies to 
report their country-by-country payments with the Securities 
and Exchange Commission. 
 
---------------------------------------- 
Qatar Considering Joining the Initiative 
---------------------------------------- 
 
¶5. During his keynote address at the conference opening, 
Deputy Prime Minister and Minister of Energy and Industry 
Abdullah Al-Attiyah announced that Qatar is considering 
becoming an implementing country of the EITI, and Qatar 
Petroleum may join EITI as a supporting company.  (Note: 
Doing so would make Qatar the first Gulf country to join 
EITI).  From the Arab world, Yemen is a candidate country and 
Iraq is in the process of becoming an EITI candidate.  Qatar 
also provided substantial financial support for the 
conference. 
 
¶6. After his prepared remarks, Al-Attiyah spoke energetically 
about the need for transparency in the economic sector. 
Referencing the financial crisis, he skewered rating agencies 
for their inability to report accurately on the health of 
financial institutions.  Al-Attiyah appears to believe that 
increasing transparency in Qatar will help support the Amir's 
vision of developing the country's economy beyond oil and 
gas, by attracting diverse investments which will help build 
human capital.  Al-Attiyah noted that commodity-based 
economies tend to support "gold-rush" investment, and Qatar 
"does not want to be a ghost country."  (Note: See reftel for 
Al-Attiyah's private comments on the initiative to DAS 
Hengel.) 
 
¶7. Following this conference, Qatar will host in November the 
Sixth Global Forum Ministerial on Fighting Corruption and 
Safeguarding Integrity, and the Conference of States Parties 
to the UN Convention Against Corruption. 
 
¶8. EEB has cleared this cable. 
 
DOHA 00000150  005.4 OF 005 
 
 
LeBaron