US embassy cable - 03AMMAN6000

C O N F I D E N T I A L AMMAN 006000 
 
SIPDIS 
 
EB/ESC/ESP(GGLASS) 
S/CT (SFOX) 
IO/PHO (APEREZ) 
NSC (JMYERS) 
TREASURY FOR GC AUFHAUSER/ZARATE 
TREASURY FOR OFAC NEWCOMB 
TREASURY TASK FORCE ON TERRORIST FINANCING 
 
E.O. 12958: DECL: 09/17/2008 
TAGS: ETTC, EFIN, PTER, KPAL, JO 
SUBJECT: TERRORIST FINANCE: AMMAN: HAMAS NAMES: JORDAN 
RESCINDS FREEZE 
 
REF: A. SECSTATE 242722 
 
     B. AMMAN 5941 
 
Classified By: David M. Hale, Charge d'Affaires a.i. 
 
1.  (c)  Summary.  The Jordanian Central Bank canceled an 
order to commercial banks to freeze bank accounts of 
HAMAS-connected individuals and entities in Jordan following 
a political firestorm sparked when the order leaked in the 
local press.  Although there were no actual HAMAS-related 
funds in Jordan -- following Jordan's 1999 decision to close 
HAMAS offices and expel organization leaders -- the incident 
shows the depth of sympathy for HAMAS's charitable work among 
some elements of the Jordanian public.  End Summary. 
 
2.  (c)  Central Bank of Jordan (CBJ) Deputy Governor 
Muhammad Said Shahin confirmed a September 16 Petra news 
agency report that the CBJ had rescinded an instruction to 
commercial banks to freeze financial assets of HAMAS-related 
individuals and entities in Jordan.  Shahin said this 
followed a political firestorm sparked by the September 15 
publication by al-Rai newspaper of the CBJ instruction, which 
CBJ Governor Umayya Toukan circulated to the banking 
community during the last week of August, following the 
receipt of reftel request.  The Petra report, quoting 
information minister Nabil Sharif, was featured prominently 
in Arabic and English dailies September 17. 
 
3.  (c)  Shahin said Toukan had no alternative but to cancel 
his instruction, which had been issued in conformity with the 
GOJ's practice of following U.S. asset freeze orders, in 
order to help "cool things down."  He said the issue was, in 
any case, academic -- since none of the six HAMAS leaders or 
organizations maintained accounts in Jordan.  Indeed, he 
noted that Jordan had already made the politically costly 
decision in 1999 to arrest HAMAS leaders (including several 
listed in the assets freeze) and expel the organization from 
Jordan.  Thus, the current uproar made little sense, and 
Shahin hoped it would pass quickly. 
 
4.  (c)  Shahin also blamed the Banking Association, from 
which al-Rai had apparently obtained the Governor's 
handwritten letter, for mishandling the instruction, as well 
as al-Rai, a government-owned and controlled newspaper, for 
publishing it.  The CBJ had hoped to keep the instruction 
confidential among banks to avoid the furor that has indeed 
 
SIPDIS 
resulted. 
 
5.  (c)  Comment:  While the GOJ shares U.S. views on HAMAS, 
the incident shows the depth of sympathy for HAMAS's 
charitable work (and more) among large segments of the 
public.  A senior MFA official recently described to POL and 
ECON counselors the dilemma the government faced in taking 
action against HAMAS, which many Jordanians see as a 
"humanitarian" organization providing much-needed services to 
Palestinians.  Thus, the GOJ had never formally designated 
HAMAS as a political organization.  Members of the Jordanian 
Muslim Brotherhood/Islamic Action Front, longtime advocates 
of HAMAS, decried the asset freeze and the European decision 
to blacklist HAMAS (ref b).   We expect IAF deputies in 
parliament to denounce the incident -- as yet another example 
of US favoritism of Israel as they have in response to nearly 
recent events perceived to hurt HAMAS or the Palestinian 
cause. 
HALE