US embassy cable - 05AMMAN2753

C O N F I D E N T I A L AMMAN 002753 
 
SIPDIS 
 
NEA FOR FRONT OFFICE 
NSC FOR ABRAMS 
TREASURY FOR MILLS/SHWARZMAN 
USDOC FOR 4520/MAC/ANESA/HVINEYARD 
USDOC FOR 4521/MAC/ANESA/CLOUSTANAU/NWIEGLER 
 
E.O. 12958: DECL: 12/29/2014 
TAGS: EPET, PREL, EFIN, SA, KU, JO, TC 
SUBJECT: FINANCE MINISTER REVIEWS STATUS OF OIL GRANTS 
 
 
Classified By: Charge d'Affaires David Hale for reasons 1.4 (b) and (d) 
 
1. (C) In a March 30 meeting with Charge, Finance Minister 
Mohammed Abu Hammour reviewed the likelihood of Jordan's 
receipt of oil grants in 2005. Abu Hammour noted that during 
the most recent visit by King Abdullah to Saudi Arabia in 
early March, the Saudis had promised to grant Jordan 25,000 
barrels per day in free crude for the next twelve months.  He 
also stated that the United Arab Emirates had promised a cash 
grant of $200 million to help cover fuel costs, but that 
there had been no commitment from the Kuwaitis.  Abu Hammour 
added, however, that he had not given in to Prime Minister 
Faisal al-Fayez's request that Abu Hammour authorize more 
spending from the general budget now that these commitments 
had been made.  Jordan's experience, said Abu Hammour, had 
taught it the folly of relying on promises of aid from GCC 
countries - in 2003, for example, the UAE had promised 25,000 
barrels per day of free crude for a period of three months, 
but only delivered it for two months.  Abu Hammour pledged 
that he would release no funds for extra spending until the 
promised monies actually came in. 
 
2. (C) COMMENT: If this information is accurate, the Saudis 
are offering half of the daily free crude they provided 
throughout 2003 and 2004.  The UAE's promised cash grant is 
substantially larger than that granted in 2004 by Kuwait (UAE 
did not provide any direct grant aid to the GOJ in 2004). 
HALE