Wikileaks Cablegate: Reliance Industries oil and gas exploration
Wikileaks Cablegate: Reliance Industries oil and gas exploration
The latest WikiLeaks expose of classified US documents include many with an India connection.

Cable 08MUSCAT174, ADMIRAL WILLIAM J. FALLON'S MEETING WITH SULTAN

Reference ID: 08MUSCAT174

Date: 2008-03-01 05:05

Classification: SECRET//NOFORN

Origin: Embassy Muscat

VZCZCXRO2105

PP RUEHBC RUEHDE RUEHKUK RUEHROV

DE RUEHMS #0174/01 0610549

ZNY SSSSS ZZH

P 010549Z MAR 08

FM AMEMBASSY MUSCAT

TO RUEHC/SECSTATE WASHDC PRIORITY 9318

RHMFISS/CDR USCENTCOM MACDILL AFB FL PRIORITY

INFO RUEHEE/ARAB LEAGUE COLLECTIVE

RHEHNSC/NSC WASHDC

RUEKJCS/SECDEF WASHDC

S E C R E T SECTION 01 OF 03 MUSCAT 000174

SIPDIS

NOFORN

SIPDIS

E.O. 12958: DECL: 03/01/2018

TAGS: PGOV PREL PTER ENRG KWMN IR IZ MU

SUBJECT: ADMIRAL WILLIAM J. FALLON'S MEETING WITH SULTAN

QABOOS

Classified By: Ambassador Gary A. Grappo for Reasons 1.4 (b, d)

-------

SUMMARY

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¶1. (C) Sultan Qaboos discussed both domestic and regional

issues during his February 19 meeting with Admiral William J.

Fallon, CENTCOM Commander. On the domestic front, the Sultan

described his desire to empower the government to be more

responsive to citizen concerns. Seeking to strengthen the

role of Omani women, the Sultan plans to convene a conference

in 2009 designed to increase the participation and leadership

of women in all aspects of Omani society. Sultan Qaboos also

shared plans for continued infrastructure development in Oman

and described efforts underway to obtain more natural gas.

On Iraq, the Sultan advised against a premature withdrawal of

U.S. forces and stated that more regional assistance would be

forthcoming if Iraqis would "come together" to take charge

of, and invest in, their own country. Sultan Qaboos shared

U.S. concerns about Iranian meddling in Iraq and elsewhere,

but contended that Tehran knew confrontation with the U.S.

was not in its interest. Iran's "charm offensive" in the GCC

had succeeded in lessening suspicions of some officials about

the true intentions of Iranian policies. End Summary.

¶2. (C) CENTCOM Commander Admiral Fallon, accompanied by the

Ambassador, met February 19 with Sultan Qaboos bin Sa'id for

approximately 2 hours at one of the Sultan's castles -- Husn

al Shumugh -- in the interior of Oman. (Note: The Sultan

was outside of Muscat on his annual 4-6 week "meet the people

tour" during which he visits selected sites outside the

capital. End Note.) The Sultan appeared in good health and

was cheerful, although he commented that his role as ruler of

Oman was demanding and did not allow him time to do all the

things he wanted to do, such as reading more books. "My

office is wherever I am," he stated, noting that he

constantly had to attend to paperwork and urgent requests

from his staff, among other tasks. The Sultan added that

despite his busy schedule, he always made time to "watch the

news," though he did not elaborate on his preferred media

outlet.

-------------------

CONCERNS ABOUT IRAQ

-------------------

¶3. (C) The Sultan expressed concern over a premature

withdrawal of U.S. forces from Iraq. Recognizing recent

improvements in the security situation, he counseled that

American troops should only leave "when the time is right."

He stressed that Iraqis had to "take charge" of the fate of

their country, but questioned whether the different factions

would be able to "come together" to accomplish this. He

pointedly asked the Admiral, "Do you really think Prime

Minister Maliki and his government are capable of pulling the

country together?" The Sultan did not directly respond to

Admiral Fallon's comment on the need for assistance and

investment for Iraq from elsewhere in the region. Instead,

he stated that if the Iraqi people helped themselves and

invested in their own country, others would follow suit.

¶4. (C) The Sultan appeared to follow events in Iraq closely.

He commented, for example, that the Kurds had apparently

"come out well" in recent central government talks on budget

issues, and asked about the status of electricity production

in Iraq. The Sultan seemed to take a particular interest in

Admiral Fallon's discussion of Iraqi Shia leader Abdul Aziz

al-Hakim, including the status of Hakim's health and his

possible successors.

--------------------------

INFRASTRUCTURE DEVELOPMENT

--------------------------

¶5. (C) In addition to emphasizing the need for outside

investment in Iraq, Admiral Fallon highlighted the importance

of assistance from regional states for infrastructure

development in Afghanistan and other Central Asian nations.

Again the Sultan sidestepped the issue and shifted the

conversation to the critical role of roads and highways in

economic development. He then mentioned infrastructure

projects for Oman currently under consideration, including

construction of a new dam and a freight rail line from the

northern port of Sohar to the planned port in Duqm. The

Sultan hoped that the southern port of Salalah could be

linked by rail to Muscat and, eventually, to other GCC

states.

MUSCAT 00000174 002 OF 003

--------------

IRANIAN ISSUES

--------------

¶6. (C) The Sultan commented that the Iranians are "not

fools," and claimed that Tehran realized there are "certain

lines it cannot cross" (i.e., direct confrontation with the

U.S.). Regarding GCC relations with the Iranian government,

he stated, "Iran is a big country with muscles and we must

deal with it." He continued that Iran's "charm offensive" in

the region had achieved a degree of success as some GCC

authorities (he did not mention names) were now less

suspicious of Iranian intentions. The Sultan added,

laughing, that "I must say that as long as (the U.S.) is on

the horizon, we have nothing to fear."

¶7. (C) Responding to Admiral Fallon's frustration with

Iranian interference in Iraq, the Sultan remarked that

Iranian meddling abroad was "almost a game" to the regime in

Tehran, and said that Iran's leaders would have to stop this

practice if Iran wanted to "join the world as a noble

country." The Sultan hoped that Iraqi leaders would clearly

tell and convince Iranian President Ahmadinejad during his

upcoming visit to Iraq to cease Iran's unhelpful interference

in their internal affairs. On the possibility that Iran is

waiting out the President's final term before re-assessing

its strategy, the Sultan said that Tehran should realize that

it has to deal with the U.S. as a country, and not just the

current administration.

------------------

THE SEARCH FOR GAS

------------------

¶8. (C) After noting Iranian dependence on imports of refined

fuel, the Sultan described Oman's efforts to obtain more

natural gas to fuel growing domestic power needs and

large-scale industrial projects. Oman had committed too much

of its limited gas production to long-term liquefied natural

gas (LNG) export contracts. As a result, the government was

trying to boost production by taking smaller and less

productive gas fields away from Petroleum Development Oman

(PDO) -- 60% owned by the government and 34% owned by Royal

Dutch Shell -- and awarding them to outside companies such as

British Gas and BP. The Sultan claimed these firms were in a

better position to increase productivity in these fields, and

pointed to the progress of U.S.-based Occidental Petroleum

Company in raising oil production in former PDO concession

areas, such as Mukhaizna.

¶9. (C) Looking offshore, the Sultan said he hoped that new

gas fields would be found in the Gulf of Oman to help ease

the country's natural gas shortage. India's Reliance

Industries was currently exploring a deepwater oil and gas

block in this body of water, but had made no significant

discoveries yet. Qatar would begin supplying gas to Oman by

2013, the Sultan noted, but not in quantities sufficient to

meet outstanding needs. He added that Oman was still

supplying limited gas from Musandam to Ras al-Khaimah in the

UAE due to an agreement he made with its emir -- and which

the Sultan felt he could not break -- well before Oman was

squeezed for this resource.

---------------------------

THE IMPORTANCE OF EDUCATION

---------------------------

¶10. (C) Sultan Qaboos shared that he placed a great deal of

importance on education, and noted that a study of history

provided the context needed to better understand present

trends and events. Regarding claims that some rulers in the

region wanted to keep their people uneducated in order to

more easily control them, the Sultan explained that this

strategy could easily backfire as it also left the populace

more susceptible to influence by extremists, such as the

Muslim Brotherhood. Former Egyptian president and

pan-Arabist leader Gamal Abdal Nasser, the Sultan said, had

"set the region back" by being "anti-everything" and engaging

in vitriolic rhetoric designed to keep the masses ignorant.

-----------------------------------

EMPOWERING THE GOVERNMENT AND WOMEN

-----------------------------------

¶11. (C) On domestic politics, the Sultan announced that he

would hold the first-ever combined meeting of his Cabinet of

Ministers and the Majlis al-Shura (the directly elected lower

MUSCAT 00000174 003 OF 003

house of Oman's bicameral advisory body) on February 26. By

meeting together, the Sultan hoped that the Cabinet and the

Majlis would learn how to cooperate better and jointly focus

on important issues. He commented that both bodies also

needed to "demonstrate more leadership" and avoid past

foot-dragging on promises made to the populace. "People need

to see the results of decisions," the Sultan stated.

¶12. (C) Letting Admiral Fallon and the Ambassador in on a

"secret," the Sultan confided that he planned to call for a

conference of all "notable women" in Oman in 2009 in a bid to

encourage Omani women to expand their participation and

leadership in different aspects of Omani society. Minister

of Social Development, Dr. Sharifa bint Khalfan al-Yahyaiya

(one of Oman's three female cabinet ministers) will chair the

meeting on the Sultan's behalf. Lamenting that no women won

seats in the October 2007 election for the Majlis al-Shura,

Sultan Qaboos observed that Omani women were stuck in

tradition and needed to be empowered to "take more charge"

and to be "less shy." "Some customs (regarding women)," he

added, "shouldn't be kept." Nevertheless, gradual change is

occurring in Oman, the Sultan asserted. His philosophy was

to "let it happen," rather than hold it up to public debate,

as the latter course of action often led to factional

fighting, internal strife, and other ills.

---------------------------------------------

A RECURRENT THEME: MORE RESPONSIVE GOVERNMENT

---------------------------------------------

¶13. (C) In concluding the meeting, Sultan Qaboos returned to

his goal of improving the responsiveness of the Omani

government to citizen concerns. He stated that he would be

pressing "harder" on his ministers to engage in more and

better public relations efforts before the Omani police and

to effectively enforce their decisions so that the people

could see the benefits of announced actions. Giving one

particular example, the Sultan said that rather than simply

announce a new development project, the government should

explain the downstream employment opportunities the project

would generate for Omani citizens. Effective cooperation

between ministries and the Majlis Oman was also needed to

strengthen the civil institutional framework in Oman, the

Sultan added.

-------

COMMENT

-------

¶14. (S/NF) In discussing his desire for operational change

in the senior government ranks, the Sultan twice implied (but

did not directly state) that such change was needed to

prepare the country for his eventual departure from power.

The Sultan's comments indicated that he may feel the

government is too dependent on his authority and should be

empowered to run more effectively without constant direction

from the palace. End Comment.

¶15. (U) This message has been reviewed by Admiral Fallon.

GRAPPO

Reproduced from cablegate.wikileaks.org


List of India-related documents from the first batch of 226 documents released by WikiLeaks

(India-specific portions highlighted in bold)

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- India critical of sanctions on Iran

- Saudi Arabia expanding relations with India

- 'Little to fear about India having nuclear weapons'

- Iran could follow India's path in going nuclear

- Differing opinions of US and India

- India benefitting from international security

- Fissile Material Cutoff Treaty and India

- Nuclear facility safeguards in India

- Israel-India strategic partnership

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- Indo-US trade relations and foreign aid

- Sanctions and German business interests in India

- Some Indian-origin people supplying equipment to Iran

- Germany on US-EU position towards India

- Israeli relations with India

- Reliance Industries oil and gas exploration

- US-Indian economic cooperation and Indo-Pak relations

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