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Frustrations with GCC Trade Negotiations

Posted on 13 May 2011 by hashimilion

C O N F I D E N T I A L RIYADH 000935

SIPDIS

STATE FOR NEA/ARP (HARRIS)
DEPT PASS USTR FOR JASON BUNTIN

E.O. 12958: DECL: 07/12/2010
TAGS: ETRD ECIN PREL GCC SA AS NZ JA
SUBJECT: GCC TRADE NEGOTIATIONS DOWN UNDER: STICKING POINTS
AND FRUSTRATION WITH THE GCC

Classified By: DCM David Rundell reasons 1.4 (b) and (d).

SUMMARY
——-

¶1. (C) At a diplomatic roundtable on free trade agreement
(FTA) negotiations with the Gulf Cooperation Council (GCC),
the Australian and New Zealand DCMs expressed fatigue and
frustration with their respective experiences. The New
Zealand DCM said his government is prepared to pull out after
the next round if the two sides cannot make significant
progress. Both said their governments are frustrated with
the GCC as a negotiating partner, and both agreed the GCC
consultations between negotiating sessions has proved to be a
major barrier to progress. End summary.

STICKING POINTS AND FRUSTRATION WITH THE GCC
——————————————-

¶2. (C) According to Australian DCM Roy Clogstoun, his
country’s trade agreement negotiations with the GCC are hung
up on the issue of the GCC’s current five percent tariff on
automobile imports (which Australia would like to eliminate)
and unresolved issues with the services and investment
sections of the agreement. While the current tariff is
relatively low, Australians fear another country (i.e. Japan)
could gain an advantage by negotiating a lower tariff
subsequently. New Zealand’s negotiations are stuck on the
issue of dairy products, though New Zealand DCM Peter Noble
also noted the services and investment portions of their
agreement were sub-optimal (Note: Reportedly, dairy and
sheep products account for 80 percent of New Zealand’s
exports to the GCC.). He described the dispute mechanism and
arbitration sections of the agreement as “acceptable,” but he
said his country was preparing to abandon the process after
the next round in October if negotiators did not make
substantial progress towards reaching an agreement by then.

¶3. (C) Both DCMs expressed frustration with the GCC, going so
far as to question the GCC’s motivation for negotiating the
agreements. Noble implied the Saudis may be using the
negotiations as a training exercise for future agreements
with larger trading partners, noting the Chinese had openly
done so with his country in bilateral trade negotiations.
Both emphasized repeatedly that the GCC’s lack of interim
consultations between member states seriously hampered
progress that otherwise might be easy to achieve. “They
don’t talk to each other between rounds of meetings,” one
said, “they just return to their capitals until the next
round.” The two DCMs asserted that Saudi Arabia controls the
GCC in negotiations and has used smaller GCC members as pawns
in the process — convincing other individual members to
pretend to be the lone holdout opposing a proposal, when in
fact all six member governments actually were in opposition.
Our contacts have said the members tend to act in concert to
distract attention from controversial issues like the human
rights records of individual GCC countries.

¶4. (C) Japanese DCM Fumio Iwai told Econoff in a separate
meeting that the GCC postponed the July round of its free
trade negotiations with Japan. “We are in the same boat as
the Australians,” he said, in that the sticking point in
their negotiations is the five percent auto tariff. Iwai
said the Saudis had the strongest opposition to lowering the
tariff, and he noted that the issue had been raised at the
highest bilateral levels.

COMMENT
——-

¶5. (C) Given GCC officials previously have told us they also
are in FTA negotiations with China, Japan, and Turkey, it
seems likely the New Zealand DCM’s fears that the GCC is
using its separate negotiations with Australia and New
Zealand as a training round may be well-founded.
Nevertheless, that does not mean the GCC wants them to fail.
The failure of EU - GCC negotiations in late 2008
demonstrated an inflexibility which also seems underway here.
One bright spot: both DCMs noted the successful conclusion
of U.S. FTAs with Bahrain and Oman had positively influenced
the negotiating atmosphere.
ERDMAN

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Warmth is Back in Pakistani-Saudi Relations?

Posted on 26 April 2011 by hashimilion

In normal circumstances, a visit by a Pakistani minister to Riyadh would make no news at all. But these are interesting, although not abnormal, times in Pakistan-Saudi relationship.

There is a consensus among political observers that after the inception of the PPP-led government in 2008, Islamabad’s ties with Riyadh had lost the warmth that had defined their partnership for the past six decades.

But the chill has apparently given way to a thaw, the observers think, and Islamabad now seems to be back on the regional radar — for more than one reasons.

The visit is taking place in the backdrop of the so called ‘Arab spring’ which has almost stalled and appears to be going nowhere. Old regional alignments are being revived and new alignments have been emerging on the wider Middle East chessboard as a new cold war between regional heavyweights gets stickier.

The ongoing popular uprising in a number of countries have all lent a new meaning to the Arab-Iran gulf. And Pakistan’s role in the scenario has come under a renewed focus.

Events over the past few years have only helped reinforce and entrench misgivings within the Arab world about the growing Iranian influence. The departure of Saddam Hussain from Baghdad and the fostering of Maliki government in Iraq, has led many to look at the development from a different perspective- the growing Shia influence in the Arab world.

King Abdullah of Jordan once referred to it as “the expanding Shia crescent” in the region. Arab governments feel apprehensive on that account. And recent events seem to have only reinforced their fears.

In Lebanon the influence of the pro-Iran Hezbollah is ascending — at the expense of the Saudi-backed Hariri. This was regarded by many here as a strategic loss.

Riyadh has also been complaining, for long, of the growing Iranian influence in Hamas-ruled Gaza. And to counter Tehran’s growing clout, Riyadh had little option than supporting the pro-West Abbas set-up in the West Bank. Then the upheaval in Egypt turned out to be the last straw on the back of the proverbial camel. King Abdullah of Saudi Arabia supported Hosni Mubarak till the end.

The US failure to support Mubarak, not only soured the political relations between Riyadh and Washington, but also forced the Kingdom to play its cards rather aggressively. There was no room for further complacency — many felt here.

When the uprising began in Bahrain, everyone here in Riyadh realised the stakes were too high. The option of watching things take its own course was definitely not on the table. Riyadh acted and acted swiftly.

WAR OF WORDS

An explosive war of words erupted between Riyadh and Tehran. Events in Bahrain exacerbated tensions between Saudi Arabia, its Arab allies and Iran, dragging relations between them to its ebb in at least a decade and setting the stage for confrontations elsewhere in the region.

The Gulf Cooperation Council, comprising six Arab states around the Gulf, was also dragged into action. The GCC explicitly warned Iran of dire consequences, if it continued endeavouring to make inroads into the Arab world.

Back-channel diplomacy was also used to send the message in rather clear terms to Tehran. Gulf governments were no more ready to give in and vowed doing everything at their disposal to protect their ‘legitimate interests’.

Hands off the Arab world — was the clear message to Iran. And in the meantime, the Arab world also went into full gear to galvanise support and muscle to block Tehran’s inroads, into what is being termed here the ‘Arab territory’ – through the Shia soft belly of the Arab states.

And it is here that Pakistan and Turkey got into the loop too. For after all these are the two strongest countries — as far as muscle is concerned — within the Sunni world.

A stream of events took place in a short span of time. Saudi National Security Council chief Prince Bandar bin Abdul Aziz came over to Islamabad, immediately after the meeting in Kuwait of President Zardari and Prince Naif bin Abdulaziz, the second deputy premier and the long-time interior minister.

And Prince Bandar’s visit was preceded by a visit of the Saudi chief of staff to Pakistan. In the meantime, the Bahraini foreign minister also dashed to Pakistan, despite the ongoing strife in his country.

Something was indeed brewing. Islamabad was again on the radar in Riyadh. Interestingly, the visit of Hina Rabbani Khar to Riyadh was announced after Prince Bandar sent a letter to Prime Minister Gilani — following up on his meetings in Islamabad late last month. In the letter, Prince Bandar reiterated Saudis’ desire to further strengthen relations with Pakistan in all areas of mutual interest.

In the aftermath of Prince Bandar’s regional visit, Riyadh has already signed a security agreement with Malaysia, vowing to enhance the level of security cooperation between the two countries. And after his Beijing trip, Saudi Arabia and China too announced signing an agreement on nuclear cooperation for peaceful purpose.

And Prince Bandar is no ordinary diplomat. He is often regarded as a trouble-shooter for Riyadh. John Hannah, writing in the Foreign Policy magazine, says: ‘Saudi Arabia’s legendary former ambassador to Washington, Prince Bandar bin Sultan, is once again a major presence on the world stage.’

And his previous visit to Pakistan did not escape world attention and generated considerable interest. In the same story Hannah says: “More interestingly – and undoubtedly more worrisome – at the end of March, in the wake of the Saudi intervention in Bahrain, Bandar was dispatched to Pakistan, China and India to rally support for the kingdom’s hard line approach to the region’s unrest.

“Bandar’s formidable skills in the service of a Saudi Arabia that feels itself increasingly cornered and unable to rely on US protection is a formula for trouble — made even worse when the likes of Pakistan and China are thrown into the mix.

“No one should forget that, in the late 1980s, it was Bandar who secretly brokered the delivery of Chinese medium-range missiles to the kingdom, totally surprising Washington and nearly triggering a major crisis with Israel. The danger today, of course, is that the Saudis feel sufficiently threatened and alone to engage in similar acts of self-help.

“Would they seek to modernise their ballistic missile force? Even worse, would the kingdom go shopping for nuclear weapons or, at a minimum, invite Pakistan to deploy part of its nuclear arsenal in the country?”

As the Middle East convulses and Iran relentlessly inches closer to achieving a nuclear weapons capability, has that time finally arrived? Even short of these extreme scenarios, other troubling possibilities exist. During his trip to Pakistan, Bandar reportedly discussed contingencies under which thousands of additional Pakistani security forces might be dispatched to Bahrain and Saudi Arabia to crush the uprising.

So it appears Pakistan is getting sucked into a regional cold war — and Washington may not mind it this time too. When Hina Rabbani Khar lands in Riyadh today, she can expect the red carpet to roll — once again. The talk of chill seems a distant story.

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Middle East Power Shifts Put Region In State Of Flux

Posted on 22 April 2011 by hashimilion

‘Melodrama” and ”Middle East” are words that sit comfortably in the same sentence. But who would have thought, as the world thrilled to the peaceful revolt by millions of ordinary Tunisians in January, that just three months later two of the region’s bad-cop regimes - Riyadh and Tehran - might be seen to be verging towards war?

They are on snarling terms already. Amid the clamour for rights and reform across the Middle East and North Africa, the irony of these heavyweights coming to blows is that each is as repressive as the other - but none of that will stop the rest of the region, and the world, lining up to take sides.

For now it’s a cold war, fought by proxies elsewhere. In Lebanon, the Saudi-backed Sunnis have lost significant ground to the Iranian- and Syrian-backed Hezbollah, which now controls the levers of power in Beirut.

In the current crises, Riyadh and Tehran face-off in Bahrain - Tehran is backing the majority Shiites; Riyadh had thrown its lot in with the minority Sunni monarchy, as it attempts to smash the protest movement. And Yemen, on the Saudis’ southern border, is the most likely next point of friction between the two.

Historically, they have pulled in opposite directions. Saudi Arabia is Arab and Sunni; Iran is Persian and Shiite. Both invest hugely in spreading their beliefs to the farthest corners of the Muslim world. Iran lines up with the so-called Arab rejectionists - Syria, Hezbollah and Hamas. The Saudis line up with Egypt, Morocco, the Gulf statelets and the Palestinian Fatah faction. Riyadh pulls with Washington; Tehran against.

”The cold war is a reality,” a senior Saudi official told The Wall Street Journal. ”Iran is looking to expand its influence. The instability over the last few months means that we don’t have the luxury of sitting back and watching events unfold.”

How that plays out will be intriguing in what has become a ”yes, but …” geopolitical, global crossroads. The permutations tantalise. If the Damascus regime of Bashar al-Assad collapses, what are the implications if the Syrian alliance with Tehran fractures? What becomes of Syria’s joint sponsorship, with Iran, of Hezbollah in neighbouring Lebanon and of Hamas in the Palestinian Occupied Territories?

All these are ”yes, but …” issues, as much for Damascus as for Tehran. Given that Syria remains, technically at least, at war with Israel, can we assume that any new order in Syria would rush to throw over Hezbollah and Hamas? Even Israel, as much as it loathes the Tehran-Damascus-Hezbollah-Hamas quartet, is wary of who and what might replace Assad in the Syrian capital, because just as the interim regime in Cairo is shifting away from the ousted regime’s alliance with Israel, there is no guarantee that a new Syrian leadership will be any friendlier to Tel Aviv.

What if Syria dumped Iran as an ally - but was to pick up expansionist Turkey as a new best friend in the region? Likewise, how might the regional balance be altered if Tehran was to lose Damascus as an ally, but in turn was to pick up Shiite-controlled Iraq and liberated Egypt, which this week revealed that it was resuming diplomatic relations with Tehran?

The official spokesman for the Egyptian Foreign Ministry told reporters: ”We are prepared to take a different view of Iran; the former regime used to see Iran as an enemy, but we don’t.” Similarly, the ministry confirmed that new Foreign Minister, Nabil Elaraby, was considering a visit to the Hamas-controlled Gaza Strip. As a return on the Americans’ huge blood-and-treasure investment in deposing Saddam Hussein and thereby delivering Iraq from minority Sunni control to a majority Shiite government that is becoming increasingly relaxed and comfortable in its dealings with Tehran, the US has handed the Iranian regime a rare gift. Yes, the ayatollahs might lose Syria as their Arab champion, but here is Arab Baghdad and Washington’s lock-step ally Cairo beckoning Tehran with open arms.

The Saudis are furious with Washington over the loss of Sunni control of Iraq and over Barack Obama selling out the Egyptian leader, Hosni Mubarak. Such is the chill between the two countries that Riyadh recently refused official visits by the US Secretary of State, Hillary Clinton, and by the Defence Secretary, Robert Gates. A measure of Saudi determination - maybe that should be ”desperation” - is that when Riyadh saw a need to quell the unrest in Bahrain, it ignored pleas from Washington and sent its own troops over the causeway that links Bahrain to the kingdom.

This is a regime that ordinarily pays others to fight its battles - see its funding of Iraq in its 1980s war with Iran; or has relied on allies - see American wars against Saddam Hussein in 1991 and in 2003.
Ramping it all into a religious conflict, a senior Saudi official was quoted: ”King Abdullah has been clear that Saudi Arabia will never allow Shia rule in Bahrain - never.” In turn, Iran’s President, Mahmoud Ahmadinejad, has warned the House of Saud that it ”should learn from Saddam’s fate”.

The stakes for the US are huge - a third of its imported oil comes from Saudi Arabia, and Bahrain hosts the US Navy’s Fifth Fleet, which patrols vital sea lanes through which a fifth of the world’s oil supplies are shipped. Equally, Riyadh and other capitals in the region have openly speculated on pursuing their own nuclear programs, if Tehran is allowed to persist with its program.

The story of the Washington response to all of this is circuitous.

The Western military intervention in Libya is dressed up as a humanitarian act, but don’t be fooled, writes Robert Kaplan of the Centre for a New American Security in The Wall Street Journal. Arguing that in foreign policy all moral questions are really questions of power, Kaplan observes: ”We intervened twice in the Balkans in the 1990s, only because Yugoslav dictator Slobodan Milosevic had no nuclear weapons and could not retaliate against us; unlike the Russians, whose destruction of Chechnya prompted no thought of intervention on our part.”

Was that then the rationale for Washington’s decision to throw its superpower weight behind the Libyan intervention? Not entirely - orchestrated leaks from the Obama White House reveal that a critical element in the decision to join the attacks on Libya’s leader, Muammar Gaddafi, was the message such an action would send to Tehran.

As reported by The New York Times, failure to act against Libya would be seen by Tehran as a failure by Obama to follow through on his claim that Gaddafi had ”lost the legitimacy to lead”, as a confirming sign of weakness that Obama also would not follow through on his vow that he would never allow Iran to build a nuclear weapon.

Benjamin Rhodes, a senior aide present for the talks, was quoted: ”The ability to apply this kind of force in the region this quickly - even as we deal with other military deployments in Iraq and Afghanistan - combined with the nature of this broad coalition, sends a very strong message to Iran about our capabilities, militarily and diplomatically.”

In a broadcast translated into Persian and beamed into Iran to mark last month’s Persian new year, Obama told Iranians: ”So far, the Iranian government has responded by demonstrating that it cares more about preserving its own power than respecting the rights of the Iranian people. These choices do not demonstrate strength, they show fear.”

In this context Libya is presented as a sideshow. The real contest is with Tehran, which the Americans want to see stopped in its nuclear tracks - and whose tilt for the balance of power in the entire region they have blocked.

But the Arab uprisings were something of a get-out-of-jail-free card for Iran. In January, Washington was happy in the belief that it was boxing Tehran in with economic sanctions; a deal with Russia to halt weapons deliveries to Tehran; and a computer virus called Stuxnet, which was eating its way through the centrifuge machines in the Iranian uranium enrichment program.

Fast-forward to the present, and Washington’s Arab allies are more preoccupied with their own longevity and - ka-ching, ka-ching - Iran is doing better than the sanctions might have allowed, thanks to the crises in the region driving oil to $US100-plus a barrel.

In all of this, Washington’s key ally in the region was to be Riyadh. But the contempt for the US coming out of the Saudi capital is visceral - in the view of the princes, the Bush administration botched by toppling Saddam, thereby delivering Iraq to Tehran; and the Obama administration is condemned equally for selling out Mubarak, and allowing the grubby rank-and-file Egyptians to have a meaningful vote.

In these twin efforts, Washington is seen to have dislodged two great stones in what was a Sunni wall that effectively thwarted Iranian ambition. Likewise, in refusing to go along with Saudi efforts to resolve the Palestinian crisis, Riyadh saw Washington prolonging the issue that Iran used to great effect in stirring the Arab street.

Washington, it must be noted, does not have a mortgage on hypocrisy in the region. The Americans look morally bankrupt - leading the charge against Gaddafi and dumping long-standing allies Mubarak in Cairo and Zine El Abidine Ben Ali in Tunis, while at the same time allowing the leaders of Bahrain, Yemen and Syria to get away with murder in confronting protesters.

But, like the US, the Iranian ayatollahs are into picking winners and losers. Initially they simply ignored the growing unrest in allied Syria, but when that became unsustainable, they took to casting the demonstrations against Assad as the work of Israeli-trained provocateurs.

The revolts in Tunisia and Egypt, according to the Tehran spin, were belatedly inspired by Iran’s 1979 revolution. And while it champions the ”Islamic awakening” rights of the demonstrators who are being brutalised by the regime in neighbouring Bahrain, it whitewashes out of the equation its own brutal suppression of Iranians who have attempted to revive the mass protests that erupted in the wake of Iran’s disputed presidential election in 2009.

For the mullahs, the region’s uprisings are a day-by-day proposition. They might posture endlessly about the holy Shiite suffering in Bahrain, but they know - and they know that their people know - the revolts in Tunisia and in Egypt were a secular lunge for a kind of democracy which, if successful, will make their theocracy a sad venture by comparison.

But for now, Iranian security forces have arrested opposition leaders and tightened media censorship and control of the internet and social media. In the region, the Iranian leadership observes a greater level of difficulty for Washington in achieving the three elements of its regional policy - a region from which the oil flows freely; in which Israel is protected; and in which citizens enjoy basic human rights, or at least to the extent that they do not attack US interests, as expressed by Thanassis Cambanis, of Columbia University. Or, to quote the Hillary Clinton lexicon - ”stability”.

As they happily crack the heads of the few who dare to take to the streets in Iranian cities, the mullahs cannot believe the Sunni Saudis were mug enough to send forces into Bahrain to put down an uprising by Shiites.

Despite endless complaints from Riyadh, there has been little to substantiate its claims that Iran is deliberately manipulating events in Bahrain - even US diplomats have reported no signs of Iranian intervention in the Bahraini protests.

It was only after the Bahraini regime unleashed its brutal attacks on demonstrators that posters of the Hezbollah leader, Hassan Nasrallah, appeared in the crowds and that calls were made for the ousting of the royal family. Iran did beam broadcasts of Nasrallah’s speeches into Bahrain, but foreign diplomats back the protest leaders’ denial of claims by the regime that they have received money and weapons from Tehran.

For the Saudis, the uprisings are a horrific moment. Abutted by all of Jordan, Yemen, Iraq and Bahrain, Riyadh views the varying degrees of unrest in all four as a threat to its own stability. Others agree.
Kaplan grinds all this into a single, core question for Washington: ”Which regime [will last] longer: Saudi Arabia’s or Iran’s? If the Saudi monarchy turns out to have more staying power, we will wrest a great strategic victory from this process of unrest; if Iran’s theocracy prevails, it will signal a fundamental eclipse of American influence in the Middle East.”

Answers to that question thrown up by some analysts, make the call in Tehran’s favour.

In a joint-paper, Ruth Hanau Santini, of the Brookings Centre on the US and Europe, and Emiliano Alessandri, of the German Marshal Fund, see the balance of power in the Persian Gulf shifting in Iran’s favour, ”just as it did in 2003, with the US-led war in Iraq”.

They write: ”Regional power shifts, rising oil prices and progress in its nuclear program all seem to have combined to boost Iran’s external ambitions.

”The authority of Saudi Arabia, which has long served as a counterbalance to Iran, the bastion of regional stability, and the guarantor of Israel’s survival, has been severely weakened by the ongoing turmoil.”

Reviewing Washington’s options, the paper concludes: ”Iran’s calculus that the current level of unrest will turn to Tehran’s advantage, without it having to lift a finger, makes it an especially difficult interlocutor.”

By Paul McGeogh

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The Arab Spring and the Saudi Counter-Revolution

Posted on 18 April 2011 by hashimilion

We return from a recent trip to the region persuaded that the main question engaging people with respect to the “Arab spring” is no longer “who’s next,” but rather “how far will Saudi Arabia go in pushing a counter-revolutionary agenda” across the Middle East? Whether Saudi Arabia is really capable of coping with the momentous changes going on in the region — not just with respect to demands for political change in a number of Arab states, but geopolitically, as well — is a truly profound and important question. To unpack this, it is helpful to take a historical perspective on Saudi Arabia and its traditional national security strategy.

Unlike Iran and Turkey, many Arab states are not, within their current boundaries, “natural” states. Most, in fact, are the creations of colonial powers, at least within their present borders — e.g., Iraq, Jordan, Lebanon, Syria, and the smaller GCC states all fit this bill.

Saudi Arabia, like Egypt, is an important exception to this generalization. But, in contrast to Egypt, Saudi Arabia is not a historically “natural” state. The Saudi state was definitely created — but by indigenous actors, not outsiders.

Saudi Arabia is the product of hard-fought tribal wars and alliances, legitimated by an indigenously generated ideology — that is, the particular form of Islam that has been championed by the al-Saud since the mid-18th century, commonly known in the West as wahhabi (though many Saudis resist the term), and described by many of our Iranian interlocutors as salafi (though that strikes us as a more general term that can apply to Sunni Muslims who do not follow a Saudi-prescribed religious line). Buttressed by its massive oil wealth, the Kingdom of Saudi Arabia has emerged as a formidable, “home grown” political entity.

Since the consolidation of the modern Saudi state in the 1920s and 1930s, the Kingdom has turned to the United States as its principal external security partner. There were two main reasons for the Saudis’ original alignment with Washington: America had no legacy of colonial entanglements in the Middle East, and it was not Britain. At least some Saudi princes believe, to this day, that, but for the British, the al-Saud would have ended up controlling the entire Arabian peninsula, including territories now occupied by the smaller Gulf Arab states. And, in the 1930s, King ‘Abd al-Aziz ibn Saud was worried that London would try to weaken his autonomy and bring the new Saudi state firmly under British influence, along with its Bahraini, Kuwaiti, and other Gulf Arab wards.

The United States seemed the best available hedge against that — so, American oil companies received the first major oil concession in Saudi Arabia, in 1933. After World War II, the Kingdom developed a deep and multi-faceted strategic relationship with the United States. In essence, America and Saudi Arabia both wanted to cooperate in balancing against other external powers seeking to expand their influence in the Persian Gulf — but, during the Cold War, the major external power of concern was no longer Britain but the Soviet Union.

This record helps us understand the principal objectives and major elements of Saudi Arabia’s current national security strategy. The Kingdom wants to have at least a quasi-hegemonic status on the Arabian peninsula; at the same time, it does not want another regional state to attain what it would see as hegemony over the Middle East as a whole. And, even in the post-Cold War period, the Saudis have wanted to see their relationship with the United States as the ultimate guarantee of their security and survival.

Today, that strategy is in crisis on all fronts — and the Saudis are not handling it well.

The strategy is in crisis, first of all, because of Riyadh’s plummeting confidence in the reliability and competence of the United States as a security partner. This dynamic is not, per se, new. The Kingdom grew increasingly disenchanted with various aspects of America’s Middle East policy during the 1990s — disenchantment intensified by the various traumas that fallout from the 9/11 attacks inflicted on U.S.-Saudi relations. (The militancy associated with the religious ideology promoted by Saudi Arabia over decades has generated a number of significant security problems for the United States.)

But the Saudi leadership — including, it would seem, King Abdullah himself — is both enormously angry and deeply unsettled by what it sees as Washington’s abandonment of Egyptian President Hosni Mubarak. Egypt is a critically important state for the Saudi — and it has not always been a friendly one. Mubarak’s predecessors, Nasr and Sadat, both challenged Saudi Arabia, in diametrically different but powerful ways. And now that Egyptian political order, the orientation of which is so strategically consequential for Saudi Arabia, is again up for grabs. So, while Western assessments have tended to criticize President Obama and his Administration for being too slow in supporting “forces of change” in Egypt, from a Saudi perspective the Obama Administration dropped Mubarak much too quickly, squandering opportunities to support him in pushing back against those demanding his removal.

On the regional front, the Saudis are discombobulated by what they see as a rising tide of Iranian influence across the Middle East. The Islamic Republic’s allies have been winning, politically, in key venues — Iraq, Lebanon, Palestine. Historically, the Saudis have never been big fans of pan-Arabism. But, in recent years, senior Saudi princes have, with increasing frequency, denounced what they have come portentously to call Iranian “interference” in “Arab affairs.” Now, with the Arab spring, the Saudis are alarmed that the influence of the Islamic Republic and political forces friendly to it will rise even more dramatically. The Saudis are even more alarmed about the potential geopolitical consequences of these developments — e.g., the high likelihood that post-Mubarak Egypt will enjoy improved relations with the Islamic Republic.

So, as the Saudi state sees itself increasingly “encircled” by multiple and expanding threats, Saudi leaders are doubling down on the fundamentals of their traditional national security strategy — military force to ensure its dominance on the Arabian peninsula, the use of religious ideology to raise sectarian concern about rising Shi’a influence, and putting enormous financial resources on the table (e.g., $30 billion for Bahrain) to further its goals. This approach is clearly reflected in the Kingdom’s response to recent events in Bahrain, culminating in the dispatch of Saudi military forces to repress popular protests there.

But Bahrain is not the only place in the region where the Saudi counter-revolution is being felt. Saudi initiative was critical to bringing about the Arab League’s quasi-endorsement of international military intervention in Libya. That amounts to Saudi endorsement of coercive regime change in another Arab state. Regime change is unacceptable in Bahrain, but OK in Libya — the main thing is, the Saudis have reaffirmed their ability to suck the United States onto their side in regional disputes (at those in which Israel is not taking a position at odds with the Saudis).

Washington’s deference to Saudi anxieties could prove almost as corrosive to the possibility of America making critically necessary adjustments in its own Middle East policies as Washington’s deference to Israel.

By Flynt Leverett and Hillary Mann Leverett

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