Special Report
June 30, 2006

SUSRIS Quarterly Summary
A Review of April-June 2006 Production

This compilation provides a summary of SUSRIS articles, interviews, essays, items of interest and special reports distributed between April 1-June 30, 2006.

We'd like to take this opportunity to thank you for helping make the SUSRIS a top choice for news, analyses, discussions and interviews concerning US-Saudi relations.  We appreciate your continued interest in receiving SUSRIS newsletters, in recommending SUSRIS to your friends and colleagues, in visiting the SUSRIS Web site and in participating in on-line discussions.  

US-Arab Economic Forum
June 29 , 2006

Leaders and senior officials from numerous Arab nations are in Houston for the US-Arab Economic Forum, which runs there through Wednesday. Top executives from several large American corporations are also on hand, along with diplomats and other U.S. government officials. There are some 800 participants in this second US-Arab Economic Forum. They are gathered at the convention center in downtown Houston to discuss everything from prospects for peace in the Middle East to the development of economic relations that go beyond oil and gas projects.

The Challenges of Globalization and Interdependence
Abdullatif A. Al-Othman
June 23, 2006

"..Traditional national borders are becoming meaningless for the transfer of capital and ideas. In this context we are no longer just Saudis, Americans, or any other nationality. Our fates and prosperities are tied to the global economy. This reality is not yet fully appreciated, which explains, in part, the continuing appeal of policies promoting self-reliance.."

Gulf Security and US-Saudi Relations: The Cases of Iran and Iraq -  A Conversation with Khalid al-Rodhan
June 21, 2006

"..Both Iran and Iraq have historically been the wildcards in the Gulf. Predicting the future is hard in the case of Iran but its even more difficult in the case of Iraq. I don�t think we�ll see major changes. In terms of Iran�s nuclear issue I believe we will continue to see the back and forth talk about negotiations -- whether Iran accepts the six nations offer remains to be seen. I don�t believe there will be major changes there.."

I Think We Need to Talk - Prince Turki Al-Faisal
June 20, 2006

"..Over the past five years, the relationship between our two nations has been severely tested. But we have endured the challenges and we have come very far in that time. It is appropriate to speak about how far we�ve come, and where we need to go, and, definitely, some ideas on how we can get there..  ..The relationship had its ups and downs, as all do. We helped each other where we could. Out mutual efforts to combat the threat of communism throughout the world united us in a common cause � one in which we both prevailed. And together, we stopped Saddam Hussein�s aggression and drove him from Kuwait. We were strong military allies, reliable energy partners and good friends.  But, our sensitivities to each other's sensitivities led us to keep things from each other. And criticisms definitely festered beneath the surface on both sides.."

Saudi Arabian Super-Achiever to Deliver UCLA Student Commencement Address
June 15, 2006

A hard-charging political science major from Saudi Arabia has been selected to deliver the student address at the June 16 commencement exercises for UCLA's College of Letters and Science.. .."Manal brought to UCLA an enormous spirit, and her accomplishments are extraordinary," said Marc Mayerson, assistant dean of social sciences and head of the speaker selection committee. "She is truly an international citizen and scholar. In her we see the best of our common cause and humanity."

State of the Oil and Gas Industry
Saudi Aramco CEO Abdallah Jum'ah
June 13, 2006

"..Certainly today's prices cannot be justified simply on the basis of supply-demand fundamentals. As we all know, supplies are secure, demand is being met, and global inventory levels are comfortable. So, why are we continuing to see prices in the seventy-dollar range?.."

World Championship of Soccer Opens
U.S. and Saudi Arabia Field Teams
June 9, 2006

Teams from the United States and Saudi Arabia are among the 32 teams that will compete in 64 games over the next 31 days for the world championship of soccer that will be won in Berlin, Germany on July 9.  This SUSRIS IOI provides background information and links so you can follow your team or just to find out what all the 'buzz' is about.

Saudi Arabia and Jordan Confer on Middle East Peace
June 8, 2006

Saudi Arabia and Jordan [June 7] rejected Israeli Prime Minister Ehud Olmert�s unilateral withdrawal plan from the West Bank and urged Palestinians and Israelis to resume peace negotiations, an official said yesterday after talks between Custodian of the Two Holy Mosques King Abdullah and Jordan�s King Abdallah in Riyadh.. ..The Saudi-Jordan summit talks come against the backdrop of a new international initiative to revive Israeli-Palestinian peace talks in coordination with Washington. It follows another summit meeting recently between the Saudi king and President Hosni Mubarak in the Egyptian resort of Sharm El-Sheikh.

Educational Reforms in Saudi Arabia: We're Trying Hard to Change
Prince Turki al-Faisal
June 8, 2006

In May the Center for Religious Freedom, a division of Freedom House in Washington, released a report critical of textbooks used for Islamic studies in Saudi Arabian elementary and secondary schools. The report cited current academic year materials as promoting an ideology of hatred against people "who do not subscribe to the Wahhabi sect of Islam.".. ..Last October King Abdullah was interviewed by Barbara Walters of ABC News and was asked about the textbook issue. He responded, "I will not deny that such extremism existed in the Kingdom of Saudi Arabia, but such extremism exists in almost every country in the world. If you look at the United States and what people have said about Islam I ask myself why the focus is only on Saudi Arabia when it comes to such matters when we all should be fighting such extremist thought everywhere.

The Arabs Take a Chinese Wife: Sino-Arab Relations in the Decade to Come 
Chas W. Freeman, Jr.
June 1, 2006

"..What do the Arabs and Chinese see in each other? Quite a bit. The Arabs see a partner who will buy their oil without demanding that they accept a foreign ideology, abandon their way of life, or make other choices they'd rather avoid. They see a country that is far away and has no imperial agenda in their region but which is internationally influential and likely in time to be militarily powerful. They see a place to exchange their portraits of little green dead Americans for things they can unwrap and enjoy. They see a country that unreservedly welcomes their investments and is grateful for the jobs these create. They see a major civilization that seems determined to build a partnership with them, does not insult their religion or their way of life, values its reputation as a reliable supplier too much to engage in the promiscuous application of sanctions or other coercive measures, and has no habit of bombing or invading other countries to whose policies it objects.."

It Is Time for New Saudi-US Bridges
Khaled Batarfi
May 31, 2006

"..Saudis and Americans found themselves in dire need of outstanding communicators after Sept. 11, 2001. Unfortunately, there was shortage of such talent on both sides. Somehow, we couldn�t communicate well for many years. Things are improving, but still.. ..a lot needs to be done before we declare victory. Needless to say, we were totally taken by surprise. In the beginning, we, Saudis, couldn�t believe that some of our own committed such horrible and sophisticated crime. We were stuck in the denial mode for too long. Some still are. This cost us very precious time. By the moment we moved, it was almost too late to repair the damage, let alone improve the image of our nation, culture and people. Our enemies, on both sides, used the stall to further the damage and their agenda.."

On Relations and Reforms: A Conversation with Usamah al-Kurdi
SUSRIS Interview Reprint
May 30, 2006

"..People are under that impression that decisions in Saudi Arabia are made by the stroke of a pen. In fact, we have our own democracy. The exchanges of dialogue that take place before a decision is made, might not be on the pages of the newspapers all the time. Yet, the issues are certainly discussed and decisions are reached based on hearing the arguments of all the parties. The institutions in Saudi Arabia will continue to perform, I believe, as they have always been planned to perform.  The Basic Law of government in Saudi Arabia, that was issued 13 years ago, clearly addresses the issue of succession. So we were following a law when Prince Abdullah took over after the death of King Fahd, God bless his soul. There was a law that was applied. So the change was not an arbitrary one.."

With China It's Simply Business, Not a Clash of Civilizations
Tang Li
May 29, 2006

"..The implications of all these interactions are staggering. The world�s largest manufacturer (China) and the world�s largest back-office (India) are scurrying to build a relationship with the world�s largest supplier of energy (Saudi Arabia.) Nobody has talked about conflicts between these cultures and yet the results of the friendship that these nations are trying to develop will have an immense impact on the way the world economy develops.."

There Are Misperceptions on Both Sides
Lubna Hussain
May 25, 2006

"..What ensued over the next hour or so was the development of a greater mutual understanding between us. Rather than reinforcing stereotypes and fortifying our individual positions of sanctimony and belligerence, we began to see things more clearly from the other side. I realized that there must be many individuals like this who aren't consumed by some sort of irrational hatred for us, but are just unaware of who we are and what we want. That at the end of the day if there was more exchange of views and ideas between people from opposing sides that the slight shift in perceptions that this would bring about would eventually culminate in a better understanding of everyone. That if such a thing were to happen then the world would indeed be a much better place, albeit with a lot of unemployed politicians..."

US-Saudi Business Relations A Conversation with Khaled Al-Seif
SUSRIS Interview Reprint
May 24, 2006

"..As you know Saudi Arabia is committed to the stability of oil prices in the world but global consumption has increased tremendously over the last few years. It has been driven, in particular, by the increased demand from new markets like China and India. Since Saudi Arabia is committed to stabilizing world oil prices we started increasing production to try to put the brakes on the rise in prices.."

American Culture Shock Works For Sure
Khaled Batarfi
May 23, 2006

"..Going to America right away from a conservative society is usually a huge culture shock. Many cannot cope, but most do process the change and absorb the different lifestyle, in time. America, as an immigrant society, more than most Western nations, has the capacity of accommodating and welcoming strangers. Depending on the place you happen to visit or live in, you may get easier or harder transit experience. Young and liberal get on faster than the older and conservative, but somehow, almost all manage to manage.."

US-Saudi Arabia Strategic Dialogue
Secretary of State Condoleeza Rice and Foreign Minister Saud Al Faisal
Press Conference
May 21 , 2006

"..We have just had extensive discussions. First of all, we had some time together to discuss regional issues of interest and global issues of interest, how to consider the prospects for peace in the Middle East, how to convince Iran to follow the international consensus that there should be a negotiated and diplomatic solution to the problem in which Iran and the international community now finds itself. We discussed the coming of a new government in Iraq and our desire to support stability and peace in Iraq and a unity government that can serve all Iraqis. We had a chance to talk about Lebanon and about the need to fully implement the resolutions on the sovereignty of Lebanon that have been passed by the UN Security Council.  The principal purpose, however, of this meeting was to have our second session of the Strategic Dialogue.. ..I think you can see from the broad range of issues that we deal with that this is a relationship that is both deep and broad, a relationship that goes back decades and a relationship that is critically important not just to the peace and security of the region but to the peace and security of the world.."

US-Saudi Strategic Dialogue Joint Statement
May 21 , 2006

"One of the key objectives of the Strategic Dialogue is to institutionalize relationships across government departments in both countries to ensure that issues are dealt with effectively. This is done through the working groups. At the level of the Strategic Dialogue, senior officials from both governments have the opportunity to assess the overall relationship and to exchange views on strategic matters of importance to both countries, whether these matters are bilateral, regional or international. Since the initiation of the Strategic Dialogue, our two countries have been able to clearly and honestly exchange views on bilateral, regional and international issues. The Dialogue has also contributed to educating each other about certain aspects of our respective societies and systems. This has led to better understanding on both sides, which in turn has eased some of the respective concerns we may have had about each other. We look forward to further enhancing our understanding of each other in a manner that serves both our people."

Prince Saud Al-Faisal Talks with the Press in Washington
May 21, 2006

"..Peace in the region, especially with the threat, now, of weapons of mass destruction -- and I don�t just mean atomic, but other weapons of mass destruction, biological and chemical -- walls and fortresses are no longer the things that give you safety. The thing that has obstructed moving in a realistic fashion is the insistence on putting the issue of the security of Israel ahead of any other consideration. Israel demands to have complete security before it starts negotiating a peace process. It is exactly the reverse. You achieve peace and then you have security. If you have complete security, what do you need peace for? This is the insidious logic that keeps people from talking to each other. No normal situation has ever existed where one side rely on security as the only measure of its being in an area. Israel cannot live in the region in spite of the people in the region. It must make peace with the people of the region to be secure, and not the reverse.."

Arab News Overview
May 19, 2006

"..Since the inauguration of the Saudi-US Relations Information Service over three years ago we have been privileged to occasionally share reporting and commentary from Arab News. The on-line version of the first English language daily in Saudi Arabia has become an indispensable source of information and insights. Today we are pleased to bring to your attention some basic information about Arab News gleaned from its Web site. We hope you find this useful and recommend you add http://www.ArabNews.com to your list of frequently viewed Web sites.."

Building Bridges: A Conversation with
Princess Loulwa Al-Faisal
SUSRIS Interview Reprint
May 18, 2006

"..You should also know that at that point in our history we were a country of 5% literacy and at the moment we're a country of 5% illiteracy. That shows how far we have come in just seventy years - even less if you consider that formal education started 50 years ago.  It's not just Americans who are not familiar with these facts. We're asked about the same things in other places too.."

Young and Restless
Afshin Molavi
May 17, 2006

"..Saudi Arabia is one of the youngest countries in the world, with some 75 percent of the population under 30 and 60 percent under 21; more than one in three Saudis is under 14.  Saudi Arabia's changes are coming not only from the authorities above, but also from below, driven by this young and increasingly urban generation. Even as some of them jealously guard parts of the status quo and display a zeal for their Islamic faith unseen in their parents' generation, others are recalibrating the balance between modernity and tradition, directing bursts of new energy at civil society and demanding new political and social rights.."

A Saudi Tradition Worth Our Respect
Michael Saba
May 11, 2006

"..Long states that the extended family in Saudi Arabia is the most important institution in the Kingdom and often refers to the people of Saudi Arabia as being like one large extended family. The importance of family in Saudi Arabia cannot be overemphasized, he continues. "The miracle is not how much Saudi society has changed, ..(i)t is how resilient the society has been in the face of change. The family system is still intact and indeed is probably the most stabilizing force in the country. Whatever Saudi Arabia's political or economic future, it is difficult to visualize without the paramount importance of family ties," he says in the book..."

Polarization, Perspectives and Prescriptions in US-Arab Relations: A Conversation with Dr. David E. Long
May 9, 2006

"..So then you ask yourself why all of this brouhaha about Arab terrorism and port security? And my answer is this. There are elections coming up next November. The population of this country has been submerged in fear mongering about terrorism, coming both from al-Qaeda as well as from the Administration. When this came up it struck a fear in them that I think was not even thought about either on the "Hill" or by the Administration.."

Gulf Cooperation Council Consultative Summit
Riyadh, Saudi Arabia
May 7, 2006

Leaders from the six GCC countries met in Riyadh, Saudi Arabia on Saturday, May 6, 2006 to discuss a number of "front-burner" issues including the confrontation arising from Iran's nuclear enrichment program, stabilization efforts in Iraq, the financial crisis facing the Palestinian Authority's Hamas-led government, and coordination in the war on terrorism. This NID provides highlights of the meeting, an article describing the meeting and links to related news reports and SUSRIS items.

U.S.-Saudi Energy Dialogue
Energy Secretary Samuel Bodman
May 4, 2006

"..the United States and Saudi Arabia are, and I believe will continue to remain, strong trading partners with a strong mutual interest in the free flow of oil through open markets around the world.. ..As the holders of the world�s only substantive spare production capacity and the world�s largest strategic petroleum reserve, Saudi Arabia and the United States are in a unique position to provide the supply assurance the world oil market is seeking.."

The Future of US-Saudi Energy Relations
Ali I. Al-Naimi
May 3, 2006

"..Political tensions, tight petroleum product markets, and talk of the world running out of oil are fostering an environment of fear and uncertainty in oil markets and among consumers. The consequences are clear to us all - prices for crude oil, heating oil and gasoline have risen to record levels. This is not a situation in which anyone can take comfort.. ..We are at the crossroads on the path to our energy future. The decisions we take today will help determine whether or not we can achieve sustainable energy security.."

GlobeInvest Banking Forum
April 29, 2006

"..There is a perception all over the world that with high oil prices, the Gulf region has solid liquidity with huge surpluses of funds to finance its current and future projects, [Dr. Nahed M. Taher, CEO, GulfOne Investment Bank] said, adding, �This implies that they have no problems in conquering their future structural bottlenecks and finance.� �This is incorrect,� said Nahed, a strong proponent of the Kingdom�s economic liberalization and reform in the interest of its burgeoning population and sustainable economic development. �It�s incorrect because of the lack of proper investment banking activities and long-term debt tools that misutilize much of the incoming funds and hinder the development, depth and expansion of the private sector�s role in the economy, which is essential for bringing efficiency and acceleration to our economic growth,� she said.."

The Time is Now in Saudi Arabia: A Conversation with Rachel Bronson
Complete Interview
April 27, 2006

"..Jeddah in particular and Saudi Arabia in general are in a race against time and the time that they are racing against is King Abdullah's biological clock. This was starkly obvious in a number of ways at the Forum. For instance, a lot of proposals had overly ambitious deadlines of being completed by 2010. That's because many realize that there is an opportunity for creativity and momentum that may not be there ten years from now. The best example of this is King Abdullah Economic City. I don�t believe ground is yet broken on the project but the plans are for people to begin moving in in 24-36 months. This is a massive $30 billion dollar project to create a -- a Dubai on the Red Sea -- if you will. King Abdullah has given investors and developers the go ahead for this as one way to motivate further economic growth, address Saudi Arabia�s deep education problems, spur employment, and so forth. It�s ambitious. It�s questionable whether it will work. And it�s expected to all happen within just a few years. For most developers the notion that you can do this in a few years is somewhat absurd but I think in Saudi Arabia at the moment everything is on a very quick timetable. The question, for many, is who knows if King Abdullah�s successor will be as interested in supporting such a project..."

Saudi-Sino Relations: President Hu in Riyadh
April 24, 2006

"..If the January visit of King Abdullah to Beijing opened a new era in Sino-Saudi relations, as Chinese leader Hu Jintao claimed at the time, then the April 22-24 visit of President Hu to Riyadh appears to have solidified the relationship. The burgeoning ties between Riyadh and Beijing have been characterized as the result of Saudi Arabia's recognition of Asia's rising economic and geo-strategic status and China's increasing appetite for energy and the importance it attaches to securing future supplies of hydrocarbon resources. The talks between the leaders and delegations centered on trade, especially in the area of oil, natural gas and minerals. China's commerce minister, according to AFP, said the volume of trade between the countries was $2.7 billion in the first two months of 2006, up 43 percent from the same period in 2005.."

Two Kingdoms� Dialogue: Round Two of Saudi-UK Forum
April 22, 2006

"..During the first session of this important and continuing dialogue which took place in London last year, I had stressed the value of the relations between our two countries and thought that the two Kingdoms were uniquely positioned to cooperate and play an effective role in dealing with major global issues facing us today. I specifically referred to certain religious, geographic, economic, and cultural factors enabling the two Kingdoms to acquire a certain position of influence. And notwithstanding the existence of a healthy difference and diversity, we can utilize these unique positions in a complementary manner that allows both of us to be more effective in our endeavours. It seems appropriate that in this current session, we should pause to reflect, evaluate, and reinforce what has been achieved during this past year.."

Prospects for Business in the Arab World
Panelists Examine Post-'DPW' Environment
By Patrick W. Ryan
April 13, 2006

The red-hot political controversy over Dubai Ports World�s acquisition of the British Peninsular & Oriental Steam Navigation Co., and assumption of leases to manage terminals in six U.S. cities, has faded from America�s front pages, radio talk shows and cable news pundit panels. But the howling of charges that some of America�s Gulf allies were too cozy with terrorists and the Taliban is still ringing in the ears of many specialists who closely follow developments between the United States and the Arab world.

Saudi Arabia - Japan Relations
Crown Prince Sultan Wraps Up Tokyo Visit
April 8, 2006

Saudi Arabia's Crown Prince Sultan completed a three-day visit to Tokyo, the first leg of travels that will also take him on to Singapore and Pakistan.  While in Tokyo the Crown Prince met with Prime Minister Koizumi and other officials to discuss the broad spectrum of Saudi-Japanese relations.  They concluded a memorandum of understanding on political consultations and noted the agreement to open free trade talks between Japan and the Gulf Cooperation Council.

The Fight Against Terrorism Financing and Money Laundering
U.S. Senate Banking Committee Hearing
April 6, 2006

The United States Senate Committee on Banking, Housing and Urban Affairs held a hearing April 4, 2006 to question government officials about the threats posed by terrorist financing and money laundering. Testimony was given by E. Anthony Wayne, Assistant Secretary of State for Economic and Business Affairs, and Stuart Levey, Under Secretary, Office of Terrorism and Financial Intelligence, U.S. Department of the Treasury and included discussion of Saudi Arabia's efforts in stemming the flow of money to terrorist organizations.

Saudi Arabia - Japan Relations
Abdulaziz Sager
April 5, 2006

The timing and the leader involved in the visit to take Saudi-Japanese relations to the next level could not have been better � the two countries commemorated the 50th anniversary of diplomatic ties last year and Prince Sultan, then defense and aviation minister, was the first high-ranking Saudi official to visit Japan in 1960. In choosing Japan for his first foreign tour since assuming new office, Crown Prince Sultan is following King Abdullah�s trend of Riyadh making a concerted effort toward further warming relations with its Asian neighbors.