US embassy cable - 04AMMAN4667

S E C R E T SECTION 01 OF 02 AMMAN 004667 
 
SIPDIS 
 
E.O. 12958: DECL: 06/08/2014 
TAGS: PREL, ECON, KDEM, KPAL, MASS, IZ, JO 
SUBJECT: SCENE SETTER FOR KING ABDULLAH'S VISIT TO U.S. 
(JUNE 8-16) 
 
Classified By: Ambassador Edward W. Gnehm for Reasons 1.5 (b), (d) 
 
1.  (C) King Abdullah is very pleased to have been invited to 
attend the G-8 Summit to discuss reform in Jordan, as well as 
in the Middle East.  The King sees himself as a leader in the 
region on reform and will attempt to speak for other 
reform-minded Arabs during his visit.  The King, however, 
will be conscious of his exposure in the region given the 
absence of other key Arab leaders (Egyptian & Saudi).  The 
situation in Iraq and the MEPP will feature prominently in 
his schedule of activities. 
 
2.  (C) G-8 REFORM PLAN:  The GOJ is vocal about the need for 
political and economic reforms in the Arab world and 
advocated strongly for a positive reform statement at the 
recent Arab League summit.  Nevertheless, Jordan has been 
circumspect in endorsing U.S.-generated proposals for reform 
in the region.  In a press interview June 7, the King stated 
that reforms must "emerge from within," rather than be 
imposed from the outside, cannot ignore the 
Israeli-Palestinian conflict, and must take into 
consideration "each state's particularities."  Foreign 
Minister Muasher and other officials, citing discussions at 
the Arab summit, have announced publicly that any G-8 reform 
plan for the region must be limited to Arab states only given 
the differences between Arab and other Muslim countries.  The 
King in private may be more flexible regarding the 
geographical scope of the G-8 initiative. 
 
3.  (C) MEPP:  The GOJ agrees that Israeli PM Sharon's Gaza 
withdrawal plan could represent an important opportunity in 
the peace process, but insists that the withdrawal be 
coordinated with the Palestinians, considered as part of the 
roadmap, and not come at the expense of Palestinian claims to 
the West Bank.  Jordan continues its opposition to the 
construction of the Israeli security barrier outside the 
Green Line amidst fears that this could prompt a transfer of 
Palestinians from the West Bank to Jordan.  The King remains 
frustrated at the Palestinians' failure to take steps against 
terror groups and blames Arafat for this inaction. 
 
4.  (C) IRAQ:  The GOJ has been steadfast in assisting our 
efforts in Iraq and quickly issued a public statement 
supporting the formation of the Iraqi Interim Government 
(IIG).  Although officials have told us in private that the 
IIG selection process was not perfect, they recognize the 
difficulties involved and have promised to cooperate with the 
new governing body.  The fact that new Iraqi President 
al-Yawer is a Sunni sheikh of the influential Shammar tribe 
(which has some members in Jordan), and that Ahmad Chalabi is 
not an IIG member, positively affects the IIG's image in 
Jordan. 
 
5.  (S) MILITARY ISSUES:  Jordan has been a resolute ally in 
the Global War Against Terror.  Through its field hospital in 
Fallujah and its deployment of special forces in Afghanistan, 
for example, the GOJ has gone to considerable lengths to 
support U.S. actions to combat terrorist groups.  There 
remain continual challenges with military funding, however, 
as Jordan lacks funds for the modernization of its armed 
forces necessary to address our requests for their support in 
the region.  The King requested a $400 million supplemental 
in military assistance during his last visit to the U.S., and 
he will likely re-engage U.S. officials with the need for an 
FY04 supplemental.  We believe that high on his list of 
priorities will be the establishment of a special operations 
and counter-terrorism (CT) training center.  Additionally, 
the King may speak about incremental costs of increased 
border security deployments, as well as unpaid bills from 
U.S. Forces in Jordan before and during Operation Iraqi 
Freedom.  Finding fund sources for border integrated 
enhancements, i.e., sensors, cameras, fiber optics, 
surveillance platforms, etc. and C4ISR (intranet architecture 
and wireless and secure communications connectivity between 
radar systems and command centers), thus enabling rapid 
response to ground or air incursions, may also be part of the 
King's military supplemental request. 
 
6.  (C) ECONOMIC ISSUES:  The King's significant economic 
reforms are beginning to bear fruit.  Jordan's trade with the 
U.S. is booming.  If current trends continue, Jordan will 
export $1 billion worth of goods to the U.S. this year, 
solidifying our role as Jordan's major trade partner. 
Jordan's debt picture continues to improve, with the debt/GDP 
ratio down to 89.7% from a high of 111% as recently as 1999. 
The GOJ is continuing a close consultative relationship with 
the IMF and will graduate from its IMF program next month. 
Unfortunately, U.S. exports to Jordan have remained static as 
imports have surged.  The King should also be urged to ensure 
that Jordan's government procurement activities be 
transparent and offer a level playing field to U.S. companies 
bidding on government tenders. 
 
7.  (U) Baghdad minimize considered. 
 
Visit Embassy Amman's classified website at 
 
http://www.state.sgov.gov/p/nea/amman 
or access the site through the State Department's SIPRNET 
home page. 
GNEHM