UAE surprised at US warning on Syria, Iran trade

DUBAI, Dec 15 (Reuters) A United Arab Emirates official voiced astonishment today at a threat of US action against the Gulf state for allegedly failing to prevent a flow of technology to Iran and Syria that can be used in homemade bombs.

''This is truly a surprising claim and I am sure it will raise many reservations. Actually our cooperation and coordination with several US government departments over this issue is very close and effective,'' said Abdullah Al Saleh, under secretary at the economy ministry.

US Assistant Secretary of Commerce for export administration Chris Padilla said in a speech yesterday that Washington might consider action against its Gulf ally because Abu Dhabi had so far failed to heed US calls on the issue.

''We continue to discuss this issue with UAE authorities but time for action is running short,'' Padilla said, without saying what kind of action was envisaged.

Washington has accused Syria and Iran of allowing military equipment into neighbouring Iraq, where so-called Improvised Explosive Devices (IEDs) are one of the deadliest weapons used in the insurgency against US troops.

Saleh said his country would continue to cooperate closely with Washington on implementing export controls.

''We are very happy with this cooperation and consistently working to make it even stronger,'' Saleh said in remarks delivered by his office in response to a question by Reuters.

The UAE has suspended 24 companies for breaches of export rules in the past two years, he said. ''The UAE should be complimented on its efforts, commitment and cooperation.'' Officials of the two countries meet regularly to exchange information to improve the monitoring of companies suspected of violating the rules, he said.

Padilla cited the activities of Mayrow General Trading, a UAE-based company, as ''just one example of an alarming lack of export oversight by the government of UAE.'' He said Washington was disturbed by the diversion of goods to Iran and Syria through UAE ports.

The United States has been working with the UAE for several years in areas such as technical assistance and training to help it develop an export control law, Padilla said.

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