Washington Report on Middle East Affairs, August/September 1997, pgs. 55-63

Diplomatic Doings

Qatar's Emir Visits Washington

Sheikh Hamad bin Khalifa Al Thani, who became Emir of Qatar in June 1995, made his first state visit to the U.S. national capital the week of June 9. He was accompanied on the visit by Qatari Foreign Minister Sheikh Hamad bin Jassim bin Jabr Al Thani and former Qatari Ambassador to the U.S. Abdul Rahman bin Saud Al Thani, who now is political adviser in the Emiri Diwan. Also on hand for the visit was U.S. Ambassador to Qatar Patrick Theros.

In addition to meetings with President Bill Clinton and Secretary of State Madeleine Albright, Sheikh Hamad hosted a June 13 reception at Washington's Willard hotel for U.S. government officials, other Americans concerned with Middle East political and economic affairs, and members of the Washington, DC diplomatic corps.

Earlier on June 13 the Qatari Emir gave a talk at Georgetown University in which he upheld his reputation as a modernizer and innovator. He outlined Qatari economic and political plans for the immediate future, and then invited questions from the press. The Qatari Emir's talk was delivered in Arabic, with translation in English provided, but he conducted the question-and-answer session in the fluent English he perfected as a student at Sandhurst Military Academy in England.

In his talk Sheikh Hamad praised the United States for fighting aggression in the Middle East six years ago. He said the U.S. now must play a more active role in furthering the peace process. He confirmed that the next MENA (Middle East, North Africa) economic conference, which will follow earlier annual conferences held in Morocco and Egypt, will be convened this November in Doha, the Qatari capital, as scheduled.

This put to rest speculation that the conference, which will involve sessions between Israeli and Arab delegates concerning the economic future of the Middle East, might be postponed or cancelled as a result of the collapse of the Israeli-Palestinian peace process. Qatar has closed an Israeli government mission in Doha, but apparently plans to allow Israeli government representatives to attend the forthcoming talks there. Sheikh Hamad noted in his talk that President Clinton supports the coming conference.

The Qatari ruler quoted the late U.S. President John F. Kennedy as saying that the avoidance of peaceful change guarantees revolution. Qatar will pick a middle ground, he vowed.

He added that the end of the Cold War has had a major impact on every country in the world, leaving no question but that democracy is the wave of the future. In keeping with this worldwide trend, he said, municipal elections will be held in Qatar before the end of the year.

Turning to economic affairs, the Qatari Emir said a World Bank delegation will study how to promote private enterprise in Qatar. Changes cannot develop overnight, he declared, but changes nevertheless have to be made to avoid radical upset.

—Andrew I. Killgore

Ambassadors of Bahrain and Kuwait Attend Round Table

Bahraini Ambassador Dr. Mohammed Abdul Ghaffar Abdulla and Kuwaiti Ambassador Mohammed Sahbah Al-Salim Al-Sabah were among the speakers at a June 11 discussion on the two countries. The discussion at the National Council on U.S.-Arab Relations was hosted by the U.S.-Gulf Cooperation Council Corporate Cooperation Committee. Other speakers included Donald F. Hepburn, former CEO of the Bahrain Petroleum Company, Stephen Engelken, State Department deputy director for Arabian Peninsula affairs, and Fareed Mohamedi, managing director of market and country analysis of the Petroleum Finance Company.

Ambassador Abdulla of Bahrain traced the economic history of his country from the first discovery of oil in 1932 through the 1970s off-shore banking boom to the present emphasis on diversification and developing the island's substantial human capital. He said Bahrain continues to grow economically, with over 130 new companies registered since 1990 and the establishment of several large corporate training facilities. The major budgetary goal entails "increasing privatization and scrutinizing expenditures," he said.

Donald Hepburn congratulated Bahrain on its successful diversification efforts and predicted stability in Bahrain's offshore banking industry. He voiced apprehension, however, over Bahrain's rapidly growing population and also over its restrictive Agency Law. According to Hepburn, Bahrain's population growth rate of 3.4 percent, double the rate of developed countries, led to unemployment and ultimately to the serious disturbances of 1985. Hepburn predicted the economy will be improved by a combination of increased government revenue from the Abu Saafa oilfield (a gift from Saudi Arabia) and changes in the Ministries of Labor and Commerce. In the future, he hoped, the heads of these departments would make changes to the Agency Law, which stipulates that foreign companies require a Bahraini vendor for their products. Some foreign firms have been extremely disheartened by the vendors' lack of pre- or post-sales services, and hope to have the law overturned.

The State Department's Stephen Engleton emphasized the close relations that the U.S. enjoys with both Kuwait and Bahrain, but was cautious about improved relations with Iran under its new president. "The U.S. doesn't just have interests in Bahrain and Kuwait it has a real relationship," said Engleton. As far as relations with Iran and Iraq, however, he said that newly elected Iranian President Mohammad Khatami will be judged by his actions, not words.

Farid Mohamedi of the Petroleum Finance Company spoke of the financial conditions of both countries. Both, he said, would benefit from privatization, which would provide a new means for distribution of income. The dearth of equitable distribution, added Mohamedi, had contributed to unemployment and political problems.

The theme of privatization was enthusiastically picked up by Kuwaiti Ambassador Al-Sabah, who outlined some recent examples of privatization in his country. Pointing to a joint petrochemical venture by the Kuwait Petroleum Company and Union Carbide, he predicted that there will be more such couplings in the near future. In addition, Al-Sabah stated that Gulf Cooperation Council efforts to create a common market, with a joint electrical grid, Internet, and financial markets, among other endeavors, was one of the most promising projects in the area. As far as an improved climate under Iran's new president, Al-Sabah was optimistic, saying, "Iran voted for change. We are excited and believe this statement by the Iranian people shows a positive change."

For more information on National Council programs, contact Bonnie Goldsborough at (202) 293-0801.

—John Vandenberg