US embassy cable - 04AMMAN7200

C O N F I D E N T I A L SECTION 01 OF 02 AMMAN 007200 
 
SIPDIS 
 
E.O. 12958: DECL: 08/26/2014 
TAGS: ETRD, ECON, JO, SY 
SUBJECT: JORDANIAN PM'S VISIT TO SYRIA: "SOME POSITIVENESS" 
ON THE ECONOMIC FRONT 
 
REF: DAMASCUS 05064 
 
Classified By: CDA David Hale, Reasons 1.5 (b) and (d) 
 
 1.  (C)  SUMMARY:  Jordan's Deputy Prime Minister and 
Minister of Industry and Trade said the recent Jordanian 
visit to Syria found "some positiveness" on most economic 
issues, especially on trade.  Jordan's main interest on the 
economic side was getting Syria to implement agreements 
already in place.  Regarding the Jordanian trucks seized by 
Syria for allegedly carrying Israeli goods, the Deputy Prime 
Minister said the problem was now a customs matter. 
Assessing his counterparts, Halaiqa said the Syrians had some 
good ministers, particularly those of Economy and of Finance, 
and that he felt that a number of top officials on the 
economic side were frustrated with the current state of 
affairs in the Syrian government.   END SUMMARY. 
 
2.  (U)  Prior to departing for Syria, Prime Minister Faisal 
Fayez billed the trip as primarily focused on economic and 
trade issues (see septel for a readout on security and border 
issues.)  He told the Jordanian press that the delegation he 
would lead to Syria would call for implementation of the 
Jordan-Syria Free Trade Agreement, designed to lift gradually 
all tariffs on agricultural, animal and industrial exports 
and imports between the two countries.  In addition, there 
would be discussions on the gas pipeline, which currently 
supplies Jordan with Egyptian gas and which is scheduled to 
be extended to Syria by early 2006. 
 
3.  (C)  On August 24, Charge called on Deputy Prime Minister 
and Minister of Industry and Trade Mohammad Halaiqa who 
described the visit.  Halaiqa had been the senior economic 
minister on the Jordanian delegation led by Prime Minister 
Fayez.  The delegation included Minister of Water and 
Irrigation and Minister of Agriculture Hazem Nasser, Finance 
Minister Mohammad Abu Hammour, Justice Minister and Minister 
of State for Cabinet Affairs Salah Bashir, and Interior 
Minister Samir Habashneh.  Halaiqa said the Jordanian mission 
had found "some positiveness" in Syria on most issues, 
especially on trade.  Jordan's main goal on the economic side 
had been to seek Syrian implementation of agreements already 
in place. 
 
4.  (C)  Halaiqa said that Jordan succeeded in reducing the 
number of Jordanian goods Syria had kept restricted under the 
Syria-Jordan trade protocol from 10 or 11 to just two or 
three.  He said Syria was still being held back by its desire 
to protect its state-owned enterprises. 
 
5.  (C)  Referring to the confiscation of Jordanian trucks 
for allegedly carrying Israeli products, Halaiqa said the 
problem was now "a customs matter."  He explained that the 
goods seized were Italian and had been imported through Haifa 
for a U.S. military contractor in Iraq.  Unable to cross the 
border for unknown reasons, the drivers headed to Syria in 
order to attempt to enter Iraq from there or Turkey.  The 
notable Hebrew markings on the trucks led to their detention 
in Syria.   Halaiqa added that smuggling and cross-border 
trade in general were on the agenda of the talks. 
 
6. (C)  With respect to his counterparts in Syria, Halaiqa 
said that there were good ministers in Syria on the economic 
side, particularly the Ministers of Finance and Economy.  He 
did sense frustration on the part of some of his counterparts 
about the lack of real progress on many issues by their own 
government. 
 
7.  (C)  Halaiqa explained that the Jordanian delegation had 
been broadly based at the request of the Syrians, who were 
seeking to learn from the Jordanian model of economic reform 
and trade liberalization. Both sides had agreed on a 
follow-up visit at a lower level.  Referring to his recent 
visit to Ireland on an AID-supported visit to assess 
Ireland's investment promotion successes, Halaiqa said he 
told the Syrians they needed to go to Ireland too to learn 
from the Irish model. 
 
------- 
COMMENT 
------- 
 
8.  (C)  Syrian-Jordan trade remains modest.  The goods being 
traded are mainly foodstuffs, mechanical equipment, and 
apparel.  Over the last ten years, Jordan has imported 
annually any where from $44 million to $153 million in goods 
from Syria, with totals fluctuating substantially from year 
to year.  Jordan's exports to Syria have been even more 
modest, ranging from $3 million to $14 million over the past 
ten years.  The figures look more balanced over the first 
five months of this year, with $85 million in Jordanian 
imports from Syria versus $76 million in exports to Syria. 
Nevertheless, expanding this continued low level of trade was 
one of the goals of the Jordanian mission. 
9.  (SBU)  Regarding smuggling and cross-border trade, 
familial bonds across this border have long been strong. 
Jordan hosts a group of Syrian families who left Syria during 
the first half of the last century.  Although all are now 
considered full Jordanian citizens, many still have family 
ties in Syria.  Most lost everything when Syrian governments 
nationalized their businesses, but talent and trade networks 
allowed most to rebuild their fortunes.  They include 
prominent families like the Bdeir, the Taba'a, the Humsei, 
the Al-Jabri and the Malas. 
 
10.  (U)  Baghdad minimize considered. 
HALE