US embassy cable - 04AMMAN3485

C O N F I D E N T I A L AMMAN 003485 
 
SIPDIS 
 
STATE ALSO FOR A/S WAYNE 
NSC FOR EDSON/KIFAYAT 
TREASURY FOR J. ZARATE, A. DEMOPULOS 
CPA FOR OLIN WETHINGTON, JOHN VARDAMAN 
 
E.O. 12958: DECL: 05/06/2014 
TAGS: EFIN, ETTC, PREL, IZ, JO 
SUBJECT: JORDAN:  CLARIFICATION ON IRAQI ASSET FIGURES 
 
REF: AMMAN 03430 
 
Classified By: CDA DHALE for Reasons 1.5 (b) and (d). 
 
 
 
 
 1.  (C)  On May 6, 2004, Charge called alone on Jordanian 
Finance Minister Mohammad Abu Hammour to clarify the figures 
on the remaining frozen Iraqi assets he relayed in the 
earlier May 4 meeting (Reftel).  Abu Hammour admitted to some 
reluctance to speaking openly in front of the Iraqis who 
participated, one of whom had engaged him somewhat 
confrontationally during that meeting. At Charge's request, 
Abu Hammour produced a current table on the remaining balance 
of the frozen Iraqi assets. Excluding the earlier transfers 
to the DFI and both the earlier and recent settlements of 
claims, the total remaining balance of these assets is JD 120 
million (USD 168 million).  Of this, JD 40 million (USD 56 
million) is the paid-in capital for Rafidain Bank.  Deducting 
that capital and the JD 30 million (USD 42 million) set aside 
to meet the maximum possible remaining valid claims under 
review leaves a remaining balance available for transfer to 
the DFI at JD 50 million (USD 70 million).  Abu Hammour 
earlier estimated that USD 70-120 million would be available 
for transfer, but the higher-end of that estimate clearly 
included the USD 56 million in Rafidain capital, which Iraqi 
officials have said separately should not be transferred. 
 
2.  (C)  Abu Hammour returned to the problem he faced in 
"covering" the USD 1.3 billion Central Bank claim on Iraq, 
for external auditing purposes.  He asked that we help get a 
letter from Iraqi authorities acknowledging that the amounts 
were in a trade clearing account and would be resolved 
through negotiations at a later date. 
 
3.  (C)  Neither Abu Hammour nor the Deputy Central Bank 
Governor, seen by Charge in an earlier meeting, could shed 
further light on the mechanics of what they said had been 
clearances by Rafidain Bank of the recent settled Jordanian 
commercial claims, but they maintained they had received 
them.  They said they also had respected blocks placed by 
Rafidain on some payments proposed by the Jordanians, and no 
payments were made.  In a separate meeting with Rafidain Bank 
officials, CPA official John Vardaman requested all 
communications and letters sent directly by Rafidain to the 
Jordanian Finance Ministry, on its own behalf or for the 
Central Bank of Iraq. The Bank promised to provide them on 
May 9. 
HALE