VZCZCXRO1336
OO RUEHDE RUEHDH RUEHDIR
DE RUEHRH #0949/01 2010816
ZNR UUUUU ZZH
O 200816Z JUL 09
FM AMEMBASSY RIYADH
TO RUEHC/SECSTATE WASHDC IMMEDIATE 1247
INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE

UNCLAS SECTION 01 OF 03 RIYADH 000949 
 
SENSITIVE 
SIPDIS 
 
FOR UNDER SECRETARY KENNEDY FROM AMBASSADOR ERDMAN 
DEPT PASS TO UNDER SECRETARY FOR MANAGEMENT 
 
E.O. 12958: N/A 
TAGS: AMGT ABLD ASEC CMGT CVIS CASC ECON PREL SA
SUBJECT: SCENESETTER FOR UNDER SECRETARY KENNEDY'S JULY 
25-27 VISIT TO SAUDI ARABIA 
 
INTRODUCTION 
------------ 
 
¶1. (SBU) Embassy Riyadh warmly welcomes you to the Kingdom. 
Saudi Arabia remains an important strategic U.S. ally by 
virtue of its energy resources, geographic location, 
counterterrorism role, and leadership within the Muslim 
world.  The Al Saud see the United States as their most 
important strategic partner and guarantor of their security. 
In addition, we have many shared objectives on global and 
regional issues, including global financial and energy 
stability, combating threats posed by terrorism and 
extremism, the urgent need for progress towards Middle East 
peace, and addressing the dangers posed by Iran and 
destabilization in Pakistan. 
 
¶2. (SBU) Our work in the Kingdom requires a fully-staffed 
embassy with the resources necessary to maximize Saudi 
cooperation on facilities security, counterterrorism, and a 
range of political and economic issues.  The importance of 
Saudi Arabia's role is reflected in the number of non-stop 
VIP visitors to the Kingdom, all of which require logistical 
and substantive support.  In the past two months alone we 
have hosted the President, Defense Secretary Gates, Treasury 
Secretary Geithner, Special Envoys / Representatives 
Mitchell, Ross, and Holbrooke, General Petraeus, a CODEL, and 
numerous other officials.  Beyond Riyadh, Jeddah is the de 
facto seat of government in the Kingdom for three months 
every summer, placing an enormous burden on the resources of 
our Consulate General, which supports numerous senior U.S. 
visitors during this period.  In this respect, it functions 
as much more than a traditional consulate, and resource 
decisions need to take this into account. 
 
¶3. (SBU) While the security situation in the Kingdom remains 
fragile, it has improved dramatically over the past five 
years.  The Saudi government now fully understands the direct 
threat to the Kingdom posed by Al Qaeda -- which was not the 
case before 2003 -- and due to the government's increased 
vigilance and counterterrorism cooperation, there has been no 
significant terrorist incident in the Kingdom since early 
¶2007.  We welcome the Department's recent decisions to extend 
the length of tours in the Mission to two years and to allow 
the return of all family members to Dhahran and of certain 
family members to Riyadh and Jeddah.  As we move to two-year 
tours, this will have an important bearing on our ability to 
ensure we have the staff we need to fulfill our critical 
mission.  I look forward to discussing with you ways we can 
ensure positions in Riyadh and Jeddah continue to receive 
qualified bidders with two-year tours taking them away from 
their school-age children for a longer period of time.  End 
introduction. 
 
CHALLENGES WITHIN THE MISSION 
----------------------------- 
 
¶4. (SBU) A few basic facts first:  country-wide, we have 468 
U.S. personnel, including 305 U.S. military.  The Embassy has 
a budget of $22 million (combined ICASS and Program), 7 
agencies, 112 U.S. employees, and 215 Foreign Service 
Nationals.  Jeddah has a total of 143 employees (29 U.S. and 
114 local).  Dhahran has 105 employees (22 U.S. and 83 
local).  Unlike most embassies outside the Gulf, the local 
employees are almost entirely third country nationals and 
this poses a unique set of problems. 
 
¶5. (SBU) You will be meeting with the Embassy's local staff, 
almost all of whom are non-Saudi, but who are hired locally 
and therefore not considered third-country nationals for 
employment purposes.  However, most maintain strong ties to 
their home countries, creating a dichotomy which hurts 
morale.  Their main concerns include the lack of a 
comprehensive retirement plan (as they are not eligible to 
enroll in the Saudi social security scheme); their desire for 
an education allowance for their children; concerns about how 
the homeward passage (similar to an R&R) program is 
administered; and the inclusion of family members over 23 
years old in their health insurance policy.  They are also 
concerned that recent pay increases are not keeping pace with 
inflation.  In 2008 they received a 2.9 percent raise while 
inflation was 9.2 percent. 
 
¶6. (SBU) Vacancies in Post's eligible family member (EFM) 
positions remain a source of concern.  Currently five of nine 
positions in Riyadh and one of two positions in Dhahran are 
unfilled.  Most of Riyadh's current EFMs are slated to depart 
in the next few months, with only one replacement identified 
to date.  We expect the Department's recent relaxation of the 
 
RIYADH 00000949  002 OF 003 
 
 
Mission's unaccompanied status may ease this situation, but 
encourage you to consider further accommodations such as 
permitting the return of home-schooled children or children 
who would board elsewhere, such as in Bahrain. 
 
LIMITED CONSULAR RESOURCES, EXPANDED WORKLOAD 
--------------------------------------------- 
 
¶7. (SBU) Year-on-year visa adjudications are up 40 percent 
this year, finally surpassing pre-9/11 levels for the first 
time this past June.  The bulk of these are for business, 
tourism, and study, with almost 19,000 Saudi students (plus 
their family members) currently in the U.S.  Security 
advisory opinions, required in around 40 percent of all visa 
cases, remain the biggest impediment to the smooth and 
efficient adjudication of visas.  In addition to visa issues, 
we are working with American citizens on a range of concerns, 
including child custody and refugee cases (especially 
problematic given the lack of rights accorded to women and 
children and which generate strong Congressional interest) 
and visa reciprocity.  Despite our 2008 agreement with the 
Kingdom, Saudi authorities rarely grant the five-year 
multiple-entry visas which Americans are authorized.  We 
continue to engage Saudi authorities on these issues at all 
appropriate levels. 
 
EVOLVING SECURITY ENVIRONMENT 
----------------------------- 
 
¶8. (SBU) The security environment in the Kingdom has improved 
significantly since 2003 - 2004, when Al Qaeda attacks 
peaked.  Saudi security forces have dramatically improved 
their training, equipment, and intelligence gathering 
capabilities.  They have hardened likely targets, captured or 
killed almost 3,000 terrorists, and continue to make the 
Kingdom a hostile environment for both indigenous and 
transnational terrorism.  That said, the security situation 
here remains fragile.  Al Qaeda in the Arabian Peninsula 
issued a statement this past January in which it announced 
its intentions to continue targeting the Kingdom's 
government, its infrastructure, and Westerners.  The Kingdom 
is ground zero for three of Al Qaeda's key global objectives: 
 toppling the Al Saud, seizing control of the two holy cities 
of Mecca and Medina, and deepening the international 
financial crisis by interrupting Saudi oil exports. 
 
PROTECTING ENERGY INFRASTRUCTURE 
-------------------------------- 
 
¶9. (SBU) In May 2008, the Secretary and the Saudi Interior 
Minister signed a Technical Cooperation Agreement (TCA) 
creating the Office of Program Management - Ministry of the 
Interior (OPM-MOI).  OPM-MOI is a State-led interagency 
effort to assist the Saudi Interior Ministry (MOI) with 
protection of critical infrastructure.  Interagency partners 
currently include the departments of Defense and Energy.  DOD 
is contributing expertise in training and is equipping a new 
35,000-man MOI security force that will protect critical 
infrastructure sites.  DOE is assisting MOI by conducting 
critical infrastructure vulnerability assessments and by 
providing technical assistance.  To date, four agreements 
have been signed with the SAG to fund this program.  We are 
waiting on $37 million in Saudi funds to be transferred -- 
imminently we are told -- from the Ministry of Finance to 
OPM-MOI's U.S. Treasury Department bank account. 
 
¶10. (SBU) Other significant OPM-MOI activities include 
assisting MOI to develop a diplomatic security equivalent, 
cyber security assistance, providing bilingual technical 
experts to MOI, maritime critical infrastructure protection, 
and border security.  This is a long-term and path-breaking 
form of engagement with the SAG (and with any country, for 
that matter), and other USG interagency partners will soon be 
assisting the program. 
 
DHAHRAN: WHERE TO MOVE? 
----------------------- 
 
¶11. (SBU) Our Consulate General in Dhahran, where you will be 
traveling on the second leg of your visit, is in negotiations 
with the SAG for a new Consulate site.  Although the 
Consulate would prefer to build its new office building and 
staff housing on the existing site, the SAG has indicated 
that the adjacent university would like to expand, and 
proposed relocating the Consulate elsewhere.  The Ministry of 
Foreign Affairs has identified two possible sites (which you 
will get a chance to visit) and we have proposed a third, 
which they are still considering.  Our lease on the existing 
 
RIYADH 00000949  003 OF 003 
 
 
site expires in 2016.  This is further complicated due to the 
existence of the International School (Dhahran Academy) that 
is co-located on the existing Consulate property. 
 
¶12. (SBU) Although somewhat recovered in recent years, CG 
Dhahran still faces an acute staffing shortage.  With 22 
Americans and 83 local staff, and only one (entry-level) 
officer covering political and economic issues, the consulate 
needs the deputy principal officer position reinstated to 
assist with post management and reporting.  We recently 
reinstated full consular operations in Dhahran after a 
fifteen year hiatus, but have been relying on TDY staff from 
Riyadh to meet substantial demand for these services.  This, 
together with the fact that there are 13,000 American 
citizens in the Consulate's district requiring various 
citizen services, places a burden on the existing staff.  To 
help alleviate this, the one un-filled consular position that 
has been approved by CA should be staffed as soon as 
possible.  Post is also in need of a second ARSO position. 
ERDMAN