Regional rivalries over Pakistan surface during Hillary Clintons visit to the Gulf. The UAE foreign secretary tells her that the Saudi government is discriminating against Asif Ali Zardari, the Pakistani president, because the Saudis fear he is a Shia allied with Iran. 1.(U) Classified by Bureau Assistant Secretary Jeffrey Feltman. Reasons 2. (U) April 7, 2009; 1:30 p.m.; Washington, DC. US: The Secretary Acting Assistant Secretary Jeffrey Feltman Jake Sullivan, S staff Barbara Masilko, NEA Notetaker UAE: UAE Foreign Minister Sheikh Abdullah bin Zayed (AbZ) Ambassador Yousef al Otaiba Abdullah al Saboosi, UAE Notetaker Nuclear Cooperation and Export Control 5. (S) The Secretary expressed the Administrations commitment to the US-UAE Agreement for Cooperation on the Peaceful Uses of Nuclear Energy (aka 123 Agreement). She emphasized that our goal is to get the agreement completed as smoothly as possible. AbZ said that he is delighted with the progress on the agreement. He added that the UAEs goal is to create a gold standard for a nuclear power program. Then, because of the strong commitments the UAE has made, it will be impossible to have improper use of its nuclear facilities. Major Economies Forum 9. (S) The Secretary noted UAE interest in the Major Economies Forum on Energy and Climate (MEF). While noting that the UAE does not technically meet the criteria for the meeting, based on size of the economy alone, the Secretary said there are many criteria that make it important for the UAE to attend, adding she will make a recommendation for UAE participation as an observer. AbZ said the UAE bid to host the International Renewable Energy Agency (IRENA) headquarters would be very difficult to achieve if the UAE is locked out of the MEF preparatory meeting in Washington and promised we will remember your help. Iran 10. (S) The Secretary said the US is looking to see if Iran can be engaged in any productive manner and noted that Special Advisor Ross would travel to the region soon for consultations. AbZ told the Secretary that UAE feels threatened by Iran today, even though Iran does not yet have a nuclear capability. AbZ asserted that the UAE is even more worried about Iranian intentions than is Israel. AbZ encouraged the US to consider a GCC plus 3 and P5 plus 1 joint meeting. Iraqi GCC plus 3 11. (S) The Secretary expressed interest in the Iraqi invitations for a GCC plus 3 meeting in Baghdad, at a date to be determined. She noted the value of the GCC plus 3 mechanism not only for furthering Arab engagement with the Iraqi government during a time of transition, but as a way to send a message to Iran that Iraq has broad support in the Arab world. Afghanistan/Pakistan 12. (S) The Secretary told AbZ that the US needs help to stem the flow of funds from the Gulf to the Taliban. She noted that one area of potential action is reviving training related to bulk cash smuggling. 13. (S) Thanking the UAE for hosting the Friends of Pakistan preparatory meeting, the Secretary said she hopes AbZ would attend the April donors conference in Tokyo. AbZ confirmed that he plans to attend and said that the UAE will make a strong pledge, but no decision has been made on an exact dollar figure. 14. (S) AbZ express concern over Saudi Arabias decision not to make a pledge at the Tokyo conference. AbZ said that the Saudis have never liked the Pakistan Peoples Party, and support Nawaz Sharif. In addition, AbZ posited that Saudi Arabia suspects that Zardari is Shia, thus creating Saudi concern of a Shia triangle in the region between Iran, the Maliki government in Iraq, and Pakistan under Zardari. Feltman noted a pattern of Saudi behavior of withholding financial assistance - not supporting March 14 in Lebanon, not sending funds to the PA, and not planning a pledge for Pakistan. Otaiba added that Saudi Arabia also failed make a commitment at the G20 meeting.