US embassy cable - 04AMMAN730

C O N F I D E N T I A L AMMAN 000730 
 
SIPDIS 
 
NSC FOR E. ABRAMS 
E STAFF FOR CADE 
CAIRO FOR CHAUDRY 
 
E.O. 12958: DECL: 01/29/2009 
TAGS: EAGR, PREL, JO 
SUBJECT: JORDAN:  FY04 FOOD AID 
 
REF: 2003 AMMAN 6504 
 
Classified By: David Hale, CDA.  Reasons 1.5 (b) and (d). 
 
1.  (C)  We understand that USDA and State are considering 
reducing Jordan's PL480 Title I allocation from $20 million 
in FY03 to $15 million in FY04 due to a reduction in the 
global amount of funding available for this program.  We 
cannot comment on competing needs, but Washington should be 
aware even a $5 million reduction would have a meaningful 
impact on Jordan's budget as the Government struggles to meet 
its FY04 deficit target in the face of strong Parliamentary 
opposition to the tax and price hikes to which the Government 
is already committed.  Higher wheat prices this year will 
also increase the overall cost of wheat procurement. 
Moreover, the Jordanians will view a reduction as a rebuff at 
a political level, particularly given that the King recently 
asked for the President's support for an additional $300 
million in FY04 economic aid.  While U.S. assistance levels 
to Jordan are indeed extraordinary, these levels reflect the 
importance of our extremely close partnership in meeting key 
foreign policy challenges.  The Jordanians are taking large 
risks for this relationship; a reduction in our support, 
however small or mitigated by increases elsewhere, only 
leaves them more exposed and less able to help. 
HALE