US embassy cable - 05AMMAN5988

C O N F I D E N T I A L AMMAN 005988 
 
SIPDIS 
 
STATE FOR NEA/ELA AND NEA/REA 
 
E.O. 12958: DECL: 07/26/2015 
TAGS: EAID, EFIN, IZ, JO 
SUBJECT: ASSISTANT SECRETARY WAYNE'S CONVERSATIONS WITH 
JORDANIAN PM BADRAN AND PLANNING MINISTER AL-ALI 
 
REF: A. AMMAN 5887 
 
     B. AMMAN 5725 
     C. STATE 130427 
 
Classified By: CDA DAVID HALE FOR REASONS 1.4 (B) AND (D). 
 
1. (C) SUMMARY: On the margins of the Donors Committee 
meeting of the July 18-19 International Reconstruction Fund 
Facility for Iraq (IRFFI), EB Assistant Secretary Wayne had 
conversations with Jordanian Prime Minister Adnan Badran and 
with Minister of Planning and International Cooperation 
Suhair al-Ali.  Iraqi Planning Minister Barham Salih was also 
present during one of the discussions.  Badran pressed for 
debt swap ceiling increases, more oil grants from Gulf 
neighbors, and support for major infrastructure projects such 
as the Red-Dead Sea water conveyance project (Ref C) and an 
Iraq-Jordan border facility.  END SUMMARY. 
 
PM on Debt Swap Ceiling and Oil Grants 
--------------------------------------- 
 
2. (C) Badran urged the USG to approach those opposed to 
raising Jordan's debt swap ceiling and to appeal to Saudi 
Arabia, Kuwait and the Gulf States to continue oil grants. 
He expressed appreciation for the President's efforts with 
Crown Prince Abdullah, but expressed his view that the Saudis 
had not yet been forthcoming.  On oil grants in particular, 
Badran said the gesture of support for Jordan's reforms would 
carry as much weight as the support itself.  He noted that 
Saudi Arabia's current support meets only a small percentage 
of Jordan's oil needs; it would take "just" one day of Saudi 
Arabia's income to provide a sufficient level of support. 
A/S Wayne stressed that the President and Secretary had 
already approached the Saudis, but agreed to transmit the 
request. 
 
3. (C) On debt swaps, A/S Wayne reiterated that the Deputy 
Secretary had told GOJ interlocutors July 10 (Ref A) that the 
 
SIPDIS 
USG could work to build G7 consensus, particularly urging 
Germany, Canada and Japan to support raising the debt swap 
ceiling.  (NOTE:  The USG itself would not participate in any 
debt swaps with Jordan.  Congressional authority only exists 
to promote tropical forest conservation.  END NOTE.)   Al-Ali 
also raised Jordan's request for 80% debt reduction.  A/S 
Wayne told her that debt forgiveness had no support among the 
G7 and explained that U.S. budget rules dictate that it would 
cost the USG almost 100 percent of any dollar spent to 
forgive Jordan's debt.  Minister al-Ali said Jordan would 
prefer increased ESF in that case. 
 
Red-Dead and Iraq-Jordan Border Facility 
---------------------------------------- 
 
4. (C) Badran also highlighted two development projects.  He 
went into great detail on the proposed Red Sea - Dead Sea 
water conveyance project (Ref C), which he wants to move 
forward to spur development along the project route.  He said 
he believes the project could be designed so it would not 
change the salinity and spoil the Dead Sea.  He said the 
World Bank would do a feasibility study.  In the presence of 
Iraqi Minister Salih, Badran highlighted his desire to 
upgrade the Iraq-Jordan border area to speed the flow of 
trucks.  Al-Ali and Salih said they had discussed the 
possibility of a free trade area near the border and a link 
to Jordan's Qualifying Industrial Zones (QIZs).  Further 
developing the existing route to Aqaba port would come later. 
 A/S Wayne noted that linking free zones to the QIZs would 
require Israeli content and U.S. legislation. 
 
Reform Government, Fuel Price Increases Accepted 
--------------------------------------------- --- 
 
5. (C) Badran said he was hopeful that his government would 
have at least a year to pursue reforms after winning a vote 
of confidence.  (NOTE:  On July 21, the vote of confidence in 
the  government passed by a vote of 66-37. END NOTE.). 
However, he and al-Ali complained of the Parliamentarians' 
unjustified criticism.  The detractors claimed they want to 
care for the poor and that Badran's government was for the 
rich, but they offered no good alternatives.  Badran, al-Ali 
(and Finance Minister al-Kodah) all expressed pleasure that 
the Jordanians had accepted the first fuel price increases 
without protest, which they said they hoped reflected some 
grasp of Jordan's poor financial straits. 
 
6. (U) A/S Wayne cleared this message. 
HALE