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### Viewing cable 07RIYADH367, APHSCT TOWNSEND FEBRUARY 6 MEETING WITH FOREIGN

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
07RIYADH367 | 2007-02-24 12:12 | 2010-12-05 12:12 | SECRET | Embassy Riyadh

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    VZCZCXRO6905
    OO RUEHBC RUEHDBU RUEHDE RUEHDIR RUEHIHL RUEHKUK RUEHLH RUEHPW RUEHROV
    DE RUEHRH #0367/01 0551220
    ZNY SSSSS ZZH
    O 241220Z FEB 07
    FM AMEMBASSY RIYADH
    TO RHEHNSC/NSC WASHDC IMMEDIATE
    RUEHC/SECSTATE WASHDC IMMEDIATE 4470
    INFO RUEHXK/ARAB ISRAELI COLLECTIVE PRIORITY
    RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE PRIORITY
    RUCNIRA/IRAN COLLECTIVE PRIORITY
    RUCNRAQ/IRAQ COLLECTIVE PRIORITY
    RUCNISL/ISLAMIC COLLECTIVE PRIORITY
    RUEHJI/AMCONSUL JEDDAH PRIORITY 8359

` `

    S E C R E T SECTION 01 OF 03 RIYADH 000367

    SIPDIS

    SIPDIS

    E.O. 12958: DECL: 02/24/2017
    TAGS: PTER PGOV PREL PINR EFIN KTFN MEPP KPAL SA
    SUBJECT: APHSCT TOWNSEND FEBRUARY 6 MEETING WITH FOREIGN
    MINISTER PRINCE SAUD AL-FAISAL

    REF: 06 RIYADH 9083

    Classified By: Ambassador James C. Oberwetter
    for reasons 1.4 (b) and (d).

    ¶1.  (S) SUMMARY: Assistant to the President for Homeland
    Security and Counterterrorism Francis Fragos Townsend covered
    both counterterrorism cooperation and regional political
    issues in her meeting with Foreign Minister Prince Saud
    Al-Faisal at his home in Jeddah on February 6.  Saud
    described the February 2 arrests of ten suspected terrorism
    financiers in Jeddah and Medina as a positive step that could
    well result in other leads and arrests.  On the proposed
    Charities Commission, Saud said that the SAG is leaning
    toward establishing a government entity that directly
    disburses charitable funds.  He characterized engagement with
    Iran as a two-pronged approach involving frank dialogue and
    security pressure.  "We will supply the logic and you supply
    the pressure," he said, adding that the US Navy's recent
    strengthening of presence in the Gulf was a good example of
    the force element.  In response to APHSCT Townsend's request
    to use SAG influence with Arabsat to block Al-Manar
    broadcasting, Prince Saud replied that Iranian-financed
    cultural centers in Lebanon, Iraq and Afghanistan are a
    greater source of Iranian influence in the region than
    Al-Manar television.  On Arab-Israeli issues, Prince Saud
    hoped Secretary Rice would return to the region soon to
    address the "key substantive issues" of Jerusalem and
    Palestinian refugees.  In a subsequent private meeting,
    APHSCT Townsend renewed US concerns about the Saudi
    Ambassador in the Philippines; Saud said that the ambassador
    would be ending his tour shortly. END SUMMARY.

    ¶2.  (S)  APHSCT Townsend commended Prince Saud on efforts to
    counter terrorist financing but urged more progress. She
    noted that the President was quite concerned about bilateral
    cooperation in this area and that she had a letter for King
    Abdullah from the President on this subject.  Prince Saud
    replied that the arrests of ten terror financing suspects on
    February 2 was "good progress" but that "more needs to be
    done."  Questioning these suspects could lead to more leads
    and arrests, he noted.  APHSCT Townsend said she had just met
    with Finance Minister al-Assaf to ask about the royal decree
    on declaring cash upon exit and entry.  The King had issued
    the decree over one year ago but it has yet to be
    implemented. Prince Saud noted that the Customs people are
    not the most capable, and that he was surprised at the lack
    of implementation.

    ¶3.  (S) Asked by Prince Saud what the Ministry of Foreign
    Affairs could do to help on counterterrorism cooperation,
    APHSCT Townsend raised establishment of the Charities
    Commission, which was announced two years ago but not yet
    implemented. She noted that it could be set up in either of
    two ways: as a government body which is responsible for
    disbursing charitable donations; or as a regulatory body to
    oversee acts of the private charities, which is the way the
    US does it.  She stressed that a decision, either way, is
    needed.   Saud said the SAG was leaning towards an
    organization that has direct responsibility for disbursing
    charitable funds.   He noted there are Islamic law
    implications, implying that these implications are slowing
    down the decision process but are important to consider
    carefully.  APHSCT Townsend raised the issue of continuing
    activity by remnants of the UN-sanctioned al-Haramain
    organization.  Saud responded that any proposed illegal
    transfers are being monitored and stopped.  By following the
    trail of illegal transfers, the SAG has found and stopped the
    source of funding in many investigations-- sending a strong
    preventative message to others engaging in similar, illegal
    activities.  APHSCT Townsend thanked Prince Saud for the
    SAG's efforts in this area

    ¶4.  (C) Asked by APHSCT Townsend about his views of
    developments in Iran, Prince Saud described the recent
    Iranian message, brought by Larijani, offering to help
    prevent a Sunni/Shi'ite sectarian divide.  Saud said his
    government is focused on Iranian actions, not words.  The
    Saudis had earlier warned the Iranians against pursuing a
    "dangerous" policy of sectarian division, especially in Iraq.
    He said Iran was embarking on a dangerous path of "fitna"
    (dissention) within the Muslim community.  Although there is
    a Shi'ite majority in Iraq, elsewhere in the region the Shi'a
    are a minority.  A sectarian-based policy in Iraq could
    jeopardize the situation of these Shi'ite minorities outside

    RIYADH 00000367  002 OF 003

    Iraq, he noted.

    ¶5.  (C) Saud compared the Iranian influence in Iraq with
    Iranian influence in Lebanon, commenting that he saw
    positive signs in Lebanon, where Iran urged Hizbollah to stop
    street protests and go back to their homes.   Saud said that
    it is SAG policy to pursue very frank discussions with the
    Iranians; we need a joint policy of frankness and security
    pressure, he stressed.  Strengthening the US Navy presence in
    the Gulf sent a good message.  "You provide the pressure and
    we'll provide the logic," he said.

    ¶6.  (C) APHSCT Townsend said that Hizbollah does not appear
    to the US to have toned down its rhetoric, and she raised the
    request for Saudi help with Arabsat to block the broadcast of
    al-Manar television.  Blocking al-Manar would help reduce
    Hizbollah's sphere of influence, she said.  The French have
    agreed not to permit the broadcast of al-Manar, she noted.
    Prince Saud replied that the "more important problem" is the
    Hizbollah cultural center, which exercises greater influence
    than al-Manar television and could be closed down by  the
    multi-national forces, he asserted.  The Iranians also fund
    such centers in Afghanistan and Iraq, he said.

    ¶7.  C)  Ambassador Oberwetter asked Prince Saud about media
    reports ahead of Russian President Putin's visit to Saudi
    Arabia on February 11-12 regarding a Russian interest in
    discussing a "Middle East Security Regime."  Prince Saud said
    that he was unaware of such a plan, and that the scheduled
    visit will focus on bilateral relations, including military
    cooperation and economic agreements.  He noted that the
    Saudis will raise the possible purchase of military equipment
    from the Russians because "your people told us it would be
    better purchased from Russia, because they are cheaper and
    just as good."  He said he did not know why the US had told
    the Kingdom to go to the Russians, but that they would
    nonetheless.  He added that the Saudis will raise UN Security
    Council issues, especially the tribunal to look into the
    Hariri assassination, and the Quartet issues.

    ¶8.  (S) On Arab-Israeli issues, Prince Saud said that he
    talked with Secretary Rice via telephone on February 4 about
    the Fatah-Hamas reconciliation meeting in Mecca. He said if
    they reach an agreement, the Saudis would hope for a positive
    US reaction.  He hoped that there would not be too many
    conditions placed upon Hamas in order for it to enter into a
    national unity government.  APHSCT Townsend said they US
    expected Hamas to stop fighting and to make progress on peace
    with Israel. More important than what they say is what they
    do, she stressed.  Saud stressed the importance of having
    clear guidelines and goals, which are applied to both sides
    of the conflict.  He said he expects Secretary Rice to return
    to the region, to meet with Prime Minister Olmert and
    President Abu Mazen.  He said he hopes she will address the
    substantive issues - Jerusalem and Palestinian refugees --
    and noted that it has been seven years since anyone has
    discussed the status of Jerusalem.  The side issues, for
    instance opening a passage between Gaza and the West Bank,
    should be handled at a different level, by Assistant
    Secretary Welch, he suggested.

    SIPDIS

    ¶9.  (S) In a following private meeting with Saud, attended
    only by the Ambassador, APHSCT Townsend raised US concerns
    with the potential involvement of the Saudi ambassador to the
    Philippines Muhammad Amin Waly in terrorism facilitation,
    particularly his intervention to get two members of IIRO out
    of prison.  Prince Saud said some of his actions may have
    involved bad judgment rather than intentional support for
    terrorism.  Waly had been investigated, he said, and no
    evidence was found regarding his involvement.  Since this
    Ambassador's assignment in Manila would be ending in several
    months,  Saud asked for USG evidence of his involvement.
    APHSCT Townsend said the USG would cooperate with the
    Mubahith in providing evidence.

    ¶10.  (S) Prince Saud then raised in the private meeting the
    Saudi Embassy in Washington's problems with the US bank that
    handles the Embassy account.  He asserted that the US bank is
    performing audits on the Saudi Embassy bank accounts beyond
    what is required by US law, and asking inappropriate and
    aggressive questions.  He noted that the Saudi Embassy enjoys
    diplomatic immunity.  If this is the bank's initiative, he
    asked for USG intercession.  APHSCT Townsend said we would
    look into it.

    RIYADH 00000367  003 OF 003

    ¶11.  (U) This cable has been cleared by APHSCT Townsend.

    OBERWETTER

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