VZCZCXYZ0003
PP RUEHWEB

DE RUEHRH #0149/01 0321431
ZNR UUUUU ZZH
P 011431Z FEB 10
FM AMEMBASSY RIYADH
TO RUEHC/SECSTATE WASHDC PRIORITY 2424
INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY

UNCLAS RIYADH 000149 
 
SENSITIVE 
SIPDIS 
 
STATE FOR NEA/ARP, NEA/RA 
STATE PASS TO USTR 
STATE PASS TO DOC/BIS/OAC 
 
E.O. 12958: N/A 
TAGS: ECON ETRD KBCT PREL SA IS
SUBJECT: SAUDI COMMERCE MINISTRY WELCOMES ANTIBOYCOTT 
COMPLIANCE OFFICE VISIT 
 
REF: A. 09 RIYADH 1301 
     ¶B. 09 RIYADH 1382 
     ¶C. 09 RIYADH 1551 
     ¶D. DIPLOMATIC NOTE 09-175 
 
Summary 
------- 
 
¶1. (SBU) Representatives from DOC's Office of Anti-Boycott 
Compliance visited Riyadh January 31 to discuss Saudi 
progress on reported Arab League Boycott requests.  Saudi 
Arabia's compliance record has improved dramatically from 350 
prohibited requests in 1994 to five prohibited requests in 
¶2009.  Deputy Minister for Foreign Trade Abdullah Al-Hamoudi 
personally met with the delegation, and demonstrated a 
detailed knowledge of outstanding complaints.  Al-Hamoudi 
reiterated pledges made previously by Minister Alireza that 
the Ministry of Commerce and Industry takes all 
boycott-related complaints seriously.  Al-Hamoudi committed 
to investigate all prohibited requests, and to be the point 
of contact on future complaints.  End summary. 
 
MOC reaffirms total SAG elimination 
of secondary and tertiary aspects of boycott 
-------------------------------------------- 
 
¶2. (SBU) Mr. Fred Davidson and Mr. Ned Weant from DOC's 
Office of Anti-Boycott Compliance visited Riyadh January 31 
to discuss Saudi progress on reported Arab League Boycott 
requests.  Deputy Minister for Foreign Trade Abdullah 
Al-Hamoudi personally met with the delegation, along with 
Director General for Industrial Research Ahmed Al-Sadhan and 
a representative from the Ministry's Boycott Office.  Weant 
highlighted Saudi Arabia's compliance record, which has 
improved dramatically from 350 prohibited requests in 1994 to 
five prohibited requests in the first three quarters of 2009. 
 Al-Hamoudi said the Kingdom had eliminated the secondary and 
tertiary aspects of the boycott, and affirmed that all 
government and private sector entities must enforce the law. 
 
¶3. (SBU) Al-Hamoudi acknowledged past requests, many of which 
were misunderstandings regarding the use of outdated forms, 
he said.  The Kingdom is committed to continuing to work with 
the U.S. to investigate all requests, he said, noting that 
the U.S. is the Kingdom's top trade partner.  Al-Hamoudi said 
he was surprised to receive a note from the Embassy (ref D), 
which lists prohibited requests from two companies.  Noting 
one of the companies was a private entity headquartered 
elsewhere in the Gulf Cooperation Council (GCC) with a 
subsidiary in Saudi Arabia, Al-Hamoudi said his Ministry was 
investigating the request but needed more detailed 
information about the case.  His Ministry sent a letter to 
the Ministry of Foreign Affairs in response to the Embassy's 
note requesting additional information.  Al-Hamoudi 
emphasized the elimination of secondary and tertiary aspects 
of the boycott was a Council of Ministers and GCC Summit 
resolution, "without question, it is the law." 
 
Deputy Minister commits to investigate requests 
--------------------------------------------- -- 
 
¶4. (SBU) Given copies of the five prohibited requests from 
2009, Al-Hamoudi carefully read each and responded, "we will 
investigate."  He emphasized Saudi Arabia did not have a 
blacklist and although the Kingdom does have a restricted 
list, the list has been empty for some time.  Al-Hamoudi 
quickly recognized one of the entities, Saudi Business 
Machines, used an old form that did not reflect current Saudi 
boycott policy.  Saudi Arabia only imposes the primary aspect 
of the boycott, he said, and anecdotally explained that the 
small Israeli-made fuel filters in General Motors vehicles 
are acceptable as long as they are not shipped directly as 
spare parts. 
 
¶5. (SBU) Regarding a medical equipment company's complaint 
that a Ministry of Health official made a verbal prohibited 
request, Al-Hamoudi said it would be difficult to make a case 
on a verbal request.  Asked how to pursue the case, Davidson 
said it would be difficult to investigate and noted the 
Ministry of Health eventually finalized a deal with the 
medical equipment company in question.  Al-Hamoudi instructed 
the Boycott Office to send a reminder to the Ministry of 
Health regarding Saudi Arabia's current Arab League Boycott 
policy.  Asked for an appropriate point of contact on boycott 
issues, Al-Hamoudi said he would be the point of contact for 
all boycott-related complaints. 
 
 
Comment 
------- 
 
¶6. (SBU) The Deputy Minister's personal involvement and 
detailed knowledge indicates the Ministry of Commerce and 
Industry takes all boycott-related complaints including 
thoses from private sector firms seriously and is consistent 
with previous discussions on the topic (ref A, B, and C). 
Al-Hamoudi's commitment to investigate all prohibited 
requests, and to be the point of contact on future 
complaints, further reflects Saudi Arabia's high-level 
engagement on all of its GCC and WTO trade commitments. 
Saudi Arabia's willingness to investigate private entities is 
also a noteworthy indication of how seriously the SAG takes 
this issue, and the SAG's strong commitment to honor its 
commitments. 
 
¶7. (U) This cable has been cleared by the delegation. 
 
SMITH