US embassy cable - 05AMMAN326

C O N F I D E N T I A L SECTION 01 OF 02 AMMAN 000326 
 
SIPDIS 
 
DOD FOR OFFICE OF UNDER SECRETARY OF DEFENSE-COMPTROLLER 
STATE FOR PM 
 
E.O. 12958: DECL: 01/09/2015 
TAGS: PREL, MASS, IZ, JO 
SUBJECT: OFFER TO FACILITATE JORDAN'S CSF CLAIMS 
 
REF: A. 01/07/05 DAO LETTER TO UNDER SECRETARY OF 
 
        DEFENSE - COMPTROLLER 
     B. 04 AMMAN 9151 
     C. 04 AMMAN 5467 (EXDIS) 
     D. 04 AMMAN JO 5645 
 
Classified By: CDA David Hale for reasons 1.4 (b) & (d). 
 
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SUMMARY 
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1. (U) Embassy Amman strongly supports a proposal, put to 
King Abdullah during his December 2004 Washington visit, to 
send a U.S. budgetary delegation to Amman to facilitate the 
Coalition Support Fund (CSF) reimbursement process. The 
Jordanian Armed Forces (JAF) have submitted new claims (ref 
A), while previous claims still remain under review at U.S. 
Central Command and the Office of the Under Secretary of 
Defense-Comptroller.  Post requests consideration of a CSF 
revolving account for the Government of Jordan (GOJ) similar 
to that used by the Government of Pakistan for expenditures 
in support of U.S. efforts in the Global War on Terror 
(GWOT).  End Summary. 
 
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CSF Background 
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2. (C) CSF is a fund appropriated to the Pentagon to help 
cover the costs incurred by allies supporting Operation Iraqi 
Freedom.  These are not/not FMF funds. Jordan has to date 
received over $93 million in CSF reimbursements in support of 
U.S. military operations in Afghanistan and Iraq. Jordan has 
an additional claim for $114 million in CSF that remains 
under review by U.S. Central Command and the Office of the 
Under Secretary of Defense-Comptroller. Post recommended in 
July 2004 (refs C and D) that the USG agree to pay, out of 
CSF, nearly $13 million of the $114 million in Jordan Armed 
Forces (JAF) claims.  Post recommended that about $10 million 
in claims be disallowed, while urging that $91 million of 
Jordan's other requests for CSF reimbursement be addressed 
with sustained levels of new FMF since they represent 
ongoing, increased border security costs. 
 
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New CSF Request 
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3. (U) In a new request received in December 2004 (ref A) the 
JAF has submitted claims for CSF reimbursement for the six 
month period 1 April to 30 September 2004.  Post recommends 
the USG consider payment of about $5 million of the new 
request out of CSF funds and offsetting $27 million of the 
claim with a commensurate increase in FY 05 FMF supplemental 
assistance tied to border security improvement. (NOTE: 
Recommendations and complete numerical breakdown contained in 
ref A.) 
 
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Delegation to Review CSF Claims 
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4. (U) During his December 2004 visit to Washington, a 
proposal was put to King Abdullah to send a U.S. budgetary 
delegation to Amman to facilitate reimbursement of Jordan's 
CSF claims, a proposal he has welcomed.  The core of the 
delegation would comprise of representatives from the Office 
of the Secretary of Defense-Comptroller and the United States 
Central Command, and would focus on the procedures for the 
GOJ to follow in claiming reimbursement. 
 
5. (U) The delegation would further address ways to improve 
and expedite the process for finalizing existing claims and 
to facilitate reimbursement of future GOJ expenditures in 
support of USG initiatives, primarily those focused on the 
GWOT.  Post recommends that the delegation help develop 
accounting procedures that take into consideration the 
systems currently in place within the JAF and its limited 
capability to compile the data required under current CSF 
reimbursement guidelines. 
 
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Reimbursement Facility 
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6. (U) Post also requests consideration of establishing a 
revolving account that the GOJ can draw on similar to that 
which is available to the Government of Pakistan for 
supporting U.S. efforts in the GWOT. 
 
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Comment 
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7. (U) Jordan has repeatedly proven to be an exceptional ally 
in the GWOT and in support of Operations Enduring Freedom and 
Iraqi Freedom.  GOJ national funds earmarked to sustain and 
modernize JAF equipment and facilities have been diverted to 
support U.S. military operations.  Timely reimbursement 
arrangements for this key partner will have a direct bearing 
on our continuing efforts in the region.  Embassy Amman 
stands ready to assist the proposed delegation. 
 
8. (U) Baghdad minimize considered. 
HALE