US embassy cable - 04AMMAN1471

C O N F I D E N T I A L AMMAN 001471 
 
SIPDIS 
 
STATE FOR NEA/ARN 
STATE ALSO FOR EB/CBA - F. MERMOUD 
 
E.O. 12958: DECL: 02/26/2014 
TAGS: EAIR, BEXP, ETRD, PREL, JO 
SUBJECT: UPDATE ON BOEING 
 
REF: 02/24/04 FAX FROM NEA/ARN 
 
Classified By: AMBASSADOR EDWARD W. GNEHM.  REASONS 1.5 (B,D) 
 
1.  (C)  SUMMARY:  In several conversations during the past 
10 days, King Abdullah told the Ambassador that, even though 
the latest Airbus offer was better than Boeing's, he intended 
to make a "political" decision to have Royal Jordanian buy 
Boeing aircraft.  Several recent developments, including a 
message from the King through a senior and reliable 
messenger, imply some vacillation in the King's resolve.  RJ 
Board on February 22 after lengthy debate decided that RJ 
should lease rather than purchase new aircraft.  Influential 
brother of the King, Prince Faisal, reportedly believes 
Airbus's offer is so good that it deserves serious 
consideration.  And finally, the date for a decision -- 
originally according to the King to be in February -- is now 
unlikely before his return to Jordan March 8.  Unfortunately, 
he spends the week before that in London, Paris, Berlin, and 
Dublin where we can assume he will come under intense 
pressure to decide in favor of Airbus.  END SUMMARY. 
 
2.  (C)  Only two board members voted against a 
recommendation by the board on February 22 to go only with a 
lease arrangement, according to reliable sources.  They were 
reportedly under pressure to make the fiscally conservative 
decision.  The Boeing deal was considered to be beyond the 
GOJ's resources. Prince Faisal, who has previously leaned 
toward Boeing, reportedly also is now thinking that the 
latest Airbus offer is too good to pass up. 
 
3.  (C)  The King, in multiple conversations with the 
Ambassador in the past 10 days, was clearly leaning in favor 
of the Boeing sale.  He referred to difficult conversations 
with the British in which he told them directly that the UK 
did not provide Jordan with USD 700 million when they were in 
need.  "That counted for something."  The King has continued 
to ask for additional U.S. efforts to cover the "gap", or the 
difference between their cost estimates of an Airbus and a 
Boeing purchase.  Both he and Prince Faisal were saying 10 
days ago that the GOJ's budget would be used to cover the gap 
if that was necessary.  This issue continues to be raised, 
most recently by Finance Minister Abu Hammour with Treasury 
U/S Taylor earlier this week.  Subsequently, the King used a 
trusted interlocutor to convey to the Embassy, after he 
departed for Asia, that he remained under intense pressure to 
buy Airbus and the "gap" remained a large concern. 
Incredibly, the interlocutor suggested that we approach the 
Saudis or Libyans to make a financial contribution toward 
this sale. 
 
4.  (C)  Ref letter in support of Boeing from influential 
members of Congress just arrived.  We believe it will have a 
favorable impact in support of the Boeing offer.  Embassy has 
forwarded the letter to the King's delegation, now traveling 
in Malaysia. 
 
5.  (C)  COMMENT:  In our estimation, the King is vacillating 
in his resolve to go with Boeing.  This will only get worse 
with his travel to Europe this coming week.  We believe the 
letter from Congress will be meaningful but not sufficient to 
counter the European pressure the King will soon encounter. 
As to our recommendation on what should be done, in truth the 
King needs to receive a high-level phone call from Washington 
reinforcing the President's previously expressed desire -- 
repeated in the Secretary's letter -- urging the King to buy 
Boeing. 
GNEHM