US embassy cable - 04AMMAN2579

C O N F I D E N T I A L AMMAN 002579 
 
SIPDIS 
 
E.O. 12958: DECL: 04/04/2024 
TAGS: EFIN, EPET, JO, PREL 
SUBJECT: JORDANIAN FINANCE MINISTER ON WANING ASSISTANCE 
FROM ARAB NEIGHBORS 
 
Classified By: Ambassador Edward W. Gnehm.  Reasons 1.5 (B,D). 
 
1.  (C)  SUMMARY:  Jordan's Finance Minister revealed that 
although Saudi Arabia had ended its oil donations to Jordan 
as of April 1, Jordan had received and expected to continue 
to receive further financial support from the United Arab 
Emirates and Kuwait.  END SUMMARY. 
 
2.  (C)  In an April 1 meeting with the Ambassador and 
Ecouns, Jordan's Finance Minister Mohammad Abu Hammour 
revealed the latest on the aid it had been receiving from 
Saudi Arabia, Kuwait, and the UAE in the year following the 
fall of the Saddam Hussein regime.  According to Abu Hammour, 
during the first six months of the post-war period, Kuwait 
had provided Jordan US$50 million in aid.  Abu Hammour said 
that the Kuwaiti Prime Minister had said that after 
disbursing this allotment for the first six months, they 
could then discuss what would happen for the following 
six-month period.  Nevertheless, Abu Hammour is expecting a 
cash transfer from the Kuwaitis in early May for US$55-60 
million more, depending on the price of oil at that time. 
 
3.  (C)  In the case of Saudi Arabia, the Jordanian 
government had asked the Saudis for continuation of its oil 
assistance.  Abu Hammour said he had been sending a letter to 
them each month for some time requesting the continuation of 
the 50,000 barrels/day shipments.  However, he had recently 
received a letter from the Saudis stating that, as of April 
1, any oil they sent to Jordan must be paid for. 
 
4.  (C)  In the case of the UAE, Jordan has so far received 
US$37 million in assistance and expects to receive another 
$70 million over the coming months. 
 
5.  (C)  COMMENT:  Abu Hammour was clearly disappointed with 
the Saudi position and concern about the cost of oil is a 
common refrain heard in government and business circles in 
Amman.  If oil prices continue at this level, he may be 
forced to consider raising fuel prices again as soon as this 
summer.  (Septel will report on the rise in fuel charges 
which began April 3 as well as on other recent Finance 
Ministry successes.)  END COMMENT. 
GNEHM