US embassy cable - 05AMMAN4996

C O N F I D E N T I A L SECTION 01 OF 02 AMMAN 004996 
 
SIPDIS 
 
E.O. 12958: DECL: 06/21/2015 
TAGS: PGOV, PREL, ECON, KMPI, JO 
SUBJECT: THE DEPUTY SECRETARY'S MAY 20 ROUNDTABLE MEETINGS 
ON REFORM WITH JORDANIAN CIVIL SOCIETY AND BMENA BUSINESS 
LEADERS 
 
 
Classified By: CDA David Hale for Reasons 1.4 (b), (d) 
 
1.  (U) The Deputy Secretary met separately with members of 
Jordan,s civil society and with business leaders from the 
BMENA region on May 20 at the Dead Sea Movenpick Hotel, 
Jordan, on the margins of the World Economic Forum conference. 
 
2.  (U) Participants: 
 
U.S. 
----- 
The Deputy Secretary 
Executive Assistant to the Deputy Secretary Wilson 
Embassy Amman Charge d'Affaires Hale 
Deputy Spokesman Ereli 
NEA DAS Carpenter 
NSC Director Pandith 
D Special Assistant Davies 
D Special Assistant Waller 
Embassy Amman Econ Counselor Eason 
Embassy Amman Cultural Affairs Officer Winton 
Notetaker Schedlbauer 
 
Jordan Civil Society 
-------------------- 
GOJ Finance Minister Bassam Awadallah 
GOJ Culture Minister Asma Khader 
Victor Billeh, Director, UNESCO Beirut 
Maha Khatib, Director, Jordan River Foundation 
Rami Khouri, Editor-at-large, the Daily Star 
Lina Koura, Sisterhood is Global Institute 
Anas Al Saket, Jordanian Women,s Association 
Soraya Salti, Senior Vice-President, Junior Achievement 
Worldwide 
Samar Dodin, writer, specialist for Amman Municipality 
Azzam Shweihat, Jordanian-American Business Association 
 
Arab/BEMENA Business Leaders 
---------------------------- 
Khalid Abdulla-Janahi, Chairman, Shamil Bank of Bahrain, 
Bahrain 
Henry T. Azzam, Board Member, Royal Jordanian Airlines, 
Jordan 
Mazen S. Darwazeh, Chairman Hikma Pharmaceuticals, Jordan 
Talal Al-Gaaod, Businessman, Iraq 
Fadi Ghandour, President and CEO, Aramex International, Jordan 
Khalid Kanoo, Chairman, Chamber of Industry and Commerce, 
Bahrain 
Muslim Lakhani, Chairman, Mesa Petroleum Limited, Pakistan 
Murad Ali Murad, Chairman National Bank of Kuwait and 
Bahrain, Bahrain 
 
3.  (C) Summary: In separate roundtables with the Deputy 
Secretary, members of Jordanian civil society and the 
 
SIPDIS 
Arab/BMENA business community discussed reform in the Arab 
world.  The civil society participants discussed the 
challenges of overcoming political intimidation, building 
support for reform among all sectors of society and not 
just within the elite, and putting a local face on reform. 
The business leaders also argued for an Arab formula/plan 
for reform, but generally acknowledged that U.S. pressure 
in favor of a reform agenda was helpful.  The Deputy 
Secretary agreed that building public support for reform 
 
SIPDIS 
is critical.  End Summary. 
 
Arab citizens still intimidated by those in power; 
stymies their embrace of reform agendas 
--------------------------------------------- ----- 
 
4.  (C) The Deputy Secretary met first with the Jordanian 
Finance and Culture Ministers and eight members of 
Jordanian civil society.  Daily Star Editor-at-large Rami 
Khoury enthused about what he described as a moment of 
change: for the first time, Arab civil society and the 
USG were both talking about reform.  However, he 
suggested there was a disconnect between America,s aims 
and its ability to deliver change, and that this 
disconnect was at least in part due to Arab attitudes 
toward U.S. policy ) especially what he described as the 
centrality of the Arab-Israeli dispute.  Finance Minister 
Awadallah disagreed, citing a recent poll that found a 
strong majority of Arabs believe that the chief obstacle 
to reform is a lack of sincerity on the part of Arab 
governments; less than 10 percent identified the Arab- 
Israeli dispute as an impediment.  Khoury rejoined that 
while there is an enormous latent desire for reform, 
most Arab citizens do not feel empowered enough to 
challenge their governments and are wary of embracing 
government-sponsored reform agendas. He ended by 
suggesting the U.S. adopt a more multi-lateral approach 
to promoting reform.  The Deputy Secretary observed 
that it is America,s willingness to lead the 
international community ) including, if necessary, 
through unilateral action ) that sometimes creates 
the context for successful multilateralism. 
 
5.  (C) Jordan River Foundation Director Maha Khatib 
stated that the Jordanian parliament is generally 
representative of the Jordanian people, but largely 
resistant to the government's reform efforts and to the 
conceptualization of the reform agenda.  She argued 
that the elites have failed to transmit effectively the 
spirit of reform to the average Jordanian citizen or to 
parliament.  Culture Minister Asma Khader, a prominent 
human rights activist before joining the government in 
2003, agreed that although Jordan,s NGO community has 
produced many reformers, it remains a community of 
elites.  She, too, argued for putting the reform agenda 
in the hands of people at the grassroots level. 
 
Arab formula of reform needed; US pressure helpful 
--------------------------------------------- ----- 
6.  (C) In the next roundtable discussion with members of the 
Arab/BMENA business community, the discussion largely focused 
on reform and the private sector's role in promoting change. 
Jordanian pharmaceutical manufacturer Mazen Darwazeh stressed 
that reform should be based on an "Arab formula" as ideas 
imposed from outside the region would be rejected.  Fadi 
Ghandour, the Jordanian founder of international express 
package delivery company Aramex, rebutted Darwazeh,s 
comments, saying there would be no reform if it were not for 
U.S. pressure.  He said it was up to the business community 
to promote reform.  Pakistani entrepreneur Muslim Lakhani 
lamented that the region needed a plan or it would always be 
following someone else's. 
 
Stock market boom but innovation lacking 
---------------------------------------- 
 
7.  (C) Henry Azzam, former CEO of Jordinvest, noted that 
many stock markets in the Arab world are booming since Arab 
money has returned from the U.S. because of the difficulties 
in opening American financial accounts post-2001.  These 
booming markets have encouraged greater capital market 
reforms.  Bahraini banker Khalid Abdulla-Janahi stated that 
while cash liquidity in the region had helped give rise to a 
stock market boom, real innovation was not taking place.  He 
noted that while tariffs had been removed as of January 1, 
2005 between Arab states, non-tariff barriers have increased 
as a result.  He stressed the need for business to be part of 
a constructive reform dialogue and also counseled that reform 
must come from the bottom up since it often has unpopular 
costs associated with it. 
 
Need to protect banking sector 
------------------------------ 
 
8.  (C) Bahrain Chamber of Commerce and Industry Chairman 
Khalid Kanoo noted that Bahrain has made progress in the last 
few years, largely thanks to the support of the USG. 
Bahraini bankers Murad Ali Murad sounded a note of caution 
that there can be downside risks to too much or too rapid 
reform.  He said the Bahraini banking sector could be hurt by 
reform if precautions were not taken to minimize risks.  He 
also stressed the need for good corporate and public 
governance, along with better enforcement of laws and greater 
transparency. 
 
Deputy Secretary: Build Public support 
-------------------------------------- 
 
9.  (C) The Deputy Secretary concluded the discussion by 
stressing the importance of building public support for 
reform, but also underscored the need not to be discouraged 
by the opposition of a few malcontents.  He recalled how, 
during a trip to Egypt in December 2004 for the signing of 
the Qualifying Industrial Zone (QIZ) agreement with Israel, 
he witnessed two demonstrations.  One demonstration featured 
approximately 300 people protesting the signing of an 
agreement with Israel; the second - and far larger - 
demonstration featured several thousand workers clamoring for 
the opportunity to work in the QIZ. 
 
10.  (U) This cable has been cleared by the office of the 
Deputy Secretary. 
HALE