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### Viewing cable 06RIYADH9095, xxxxxxxxxxxx ON IRANIAN THREATS

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
06RIYADH9095 | 2006-12-16 14:18 | 2010-12-05 21:30 | SECRET//NOFORN | Embassy Riyadh
Appears in these articles: www.spiegel.de

`

    VZCZCXRO6985
    OO RUEHBC RUEHDE RUEHIHL RUEHKUK
    DE RUEHRH #9095/01 3501418
    ZNY SSSSS ZZH
    O 161418Z DEC 06
    FM AMEMBASSY RIYADH
    TO RUEATRS/DEPT OF TREASURY WASHDC IMMEDIATE
    RUEHC/SECSTATE WASHDC IMMEDIATE 3751
    RHEHNSC/NSC WASHDC IMMEDIATE
    INFO RUCNRAQ/IRAQ COLLECTIVE PRIORITY

` `

    S E C R E T SECTION 01 OF 02 RIYADH 009095

    SIPDIS

    NOFORN
    SIPDIS

    E.O. 12958: DECL: 12/04/2016
    TAGS: PREL EFIN PTER IZ IR SA
    SUBJECT: xxxxxxxxxxxx ON IRANIAN THREATS

    Classified By: Ambassador James C. Oberwetter for reasons 1.5 (b) and (
    d).

    (S/NF) Summary: xxxxxxxxxxxx told Assistant to the President for Homeland
    Security and Counterterrorism Frances Fragos Townsend that he
    was speaking for the King when he urged action to counter
    Iranian threats. xxxxxxxxxxxx said he worries more about an
    Iranian missile launch against Saudi oil facilities than a
    terrorist attack against them, because he can take
    preventative measures against terrorism but not against
    Iranian missiles. On the Iranian banking initiative, xxxxxxxxxxxx
    urged getting action from the UAEG to freeze what he claimed
    was up to $12 billion in Iranian assets in Dubai-based banks.
    xxxxxxxxxxxx also discussed the failure to establish a charities
    commission, and the need to replace the head of Saudi's
    financial intelligence unit, as well as the King's personal
    security measures. End Summary.

    Iranian Bank Assets and Transactions
    -------------------------------------

    ¶2. (S/NF) In an early hour meeting at his palace in Riyadh
    November 15, xxxxxxxxxxxx began by asking APHSCT Townsend if
    there were any follow-up items from her meetings the prior
    day with Prince xxxxxxxxxxxx or Prince xxxxxxxxxxxx.
    Townsend noted that xxxxxxxxxxxx had a list of banking institutions
    doing business with Iran. We need to use leverage with them,
    she added, to get them to do what UBS and Credit Suisse have
    done. xxxxxxxxxxxx agreed. He suggested we need to have an
    approach, either openly declare the policy as governments or
    perhaps get some of the banks to announce a new policy
    towards Iran by themselves.

    ¶3. (S/NF) xxxxxxxxxxxx saw Dubai as the problem for this new
    initiative. He said Dubai has 8-12 banks with extensive
    links with Iran, holding up to $12 billion in Iranian assets.
    xxxxxxxxxxxx indicated he had met with MBR and MBZ and that MBZ
    was supportive of our efforts. We need to send someone
    quickly to the UAE to freeze these assets before the Iranians
    begin to unload them. In addition, he continued, the Saudi
    Monetary Authority should issue a caution to Saudi banks to
    refrain from Iranian transactions or else jeopardize their
    international dealings.

    Terrorist and Iranian Missile Threats to Saudi Energy
    Facilities
    --------------------------------------------- -----

    ¶4. (S/NF) Townsend next raised recent threat information
    about Saudi energy facilities. xxxxxxxxxxxx noted that the
    Security Facilities Service aims to reach 35,000 personnel,
    with all military services contributing to it. xxxxxxxxxxxx said
    he was relatively confident in the SAG's ability to handle
    terrorist threats to the energy facilities by deploying more
    forces and building perimeters. The more dangerous threat,
    in his view, is a SCUD missile launch from Iran, which could
    happen with short or no notice. The Iranians would target
    Saudi facilities at Ras Tanura and Jubail, also perhaps the
    US bases in Qatar and Bahrain, which would cause the Saudis
    to be involved as well, he said. His concern was that
    tightening sanctions on Iran will cause Iran to up the ante,
    triggering an escalation leading to a missile launch. Given
    the possibility of this scenario, he speculated on the option
    of a pre-emptive strike. "I would rather be on the offensive
    since we are the target," he said, later adding that he meant
    a state of military readiness, not offensive action. xxxxxxxxxxxx
    stressed that this sense of urgency came from King Abdallah,
    he was not freelancing. He added that he, Prince xxxxxxxxxxxx and
    Prince xxxxxxxxxxxx were getting together an "Iran
    to-do list."

    ¶5. (S/NF) On the Europeans' positions, xxxxxxxxxxxx asserted that
    French President Chirac wants to be satisfied we've done
    everything possible politically. However he is not prepared
    to accept Iran as a nuclear nation. Russia got an earful
    from King Abdalllah, he claimed, on relations with Iran and
    Syria.

    Counterterrorism Cooperation
    ----------------------------

    ¶6. (S/NF) xxxxxxxxxxxx sees an "alliance of convenience" between
    Iran and al-Qaida. He and Prince xxxxxxxxxxxx agree that Iran
    would try two terrorist tracks against Saudi Arabia: al-Qaida
    elements and the "mini-Hizballah" in the Eastern Province.
    Asked by Townsend on how other GCC countries are cooperating
    on CT, xxxxxxxxxxxx said he is very satisfied with UAE, not
    unsatisfied with Bahrain, but not comfortable with Kuwait's

    Riyadh 00009095 002 of 002

    position. Townsend, who had met with the Amir of Kuwait on
    November 14, agreed the Amir is focused only on what happens
    in Kuwait, xxxxxxxxxxxx said there was a disagreement in Kuwait on
    CT measures. xxxxxxxxxxxx said his main channel there is the
    foreign minister who has a steady hand and who is not
    comfortable with what he sees. Oman, xxxxxxxxxxxx continued,
    thinks it's safe because it is too far away. xxxxxxxxxxxx said he
    hoped the December 9/10 GCC Summit would include a clear
    statement on counterterrorism cooperation.

    ¶7. (S/NF) Townsend raised the status of the commission to
    monitor and regulate Saudi charities, saying that since this
    commission was announced publicly long ago and not yet
    established, it is now a credibility issue. xxxxxxxxxxxx agreed,
    noting that the Government was going slowly because of fears
    of being attacked by the religious people, But he said it was
    time to bring it to the King and get a decision. "Since we
    often get accused of being autocratic, we might as well be
    autocratic once in a while." He added that if pious Saudis
    wanted to help the poor, there were plenty of poor Saudis
    they could help and thus no need to fund outside charities.
    When Townsend raised the importance of the Joint Terrorist
    Finance Task Force, xxxxxxxxxxxx replied that he wants to resolve
    this so they could get items like this off the agenda and
    focus on the real strategic threat -- Iran. Townsend said
    she would be thrilled if she didn't have to raise it again on
    her next visit.

    ¶8. (S/NF) On counterterror financing issues, xxxxxxxxxxxx said
    Muhammad bin Nayef was unhappy with the head of the Saudi
    Financial Intelligence Unit xxxxxxxxxxxx, and
    would replace him. Bandar claimed that Muhammad bin Nayef
    reports having frozen 189 bank accounts, with nearly $20
    million in frozen assets. xxxxxxxxxxxx asserted that the SAG
    shared our interest fully in going after terrorist financing,
    but that we need to do it intelligently so as not to create
    economic martyrs for the religious extremists.

    The King's Personal Security
    ----------------------------

    ¶9. (S/NF) Townsend raised recent measures to provide new
    equipment, which xxxxxxxxxxxx thanked her for. He added that he
    was trying to convince the King to buy 3 or 4 helicopters,
    including a medical helicopter, Lockheed Martin models,
    similar to those used by POTUS. But the King says he cares
    first about the security of the country, and less about his
    personal security. If the King doesn't use them, xxxxxxxxxxxx said
    they would find another use for them.

    ¶10. (U) APSCT Townsend has cleared this cable.

    Gfoeller

`