US embassy cable - 02AMMAN5839

S E C R E T AMMAN 005839 
 
SIPDIS 
 
E.O. 12958: DECL: 10/07/2012 
TAGS: PREL, ECON, IZ, SY, JO 
SUBJECT: PM ABUL RAGHEB ON SYRIA, IRAQ:  IT'S THE ECONOMY, 
STUPID 
 
Classified By: Amb. Edward W. Gnehm for reasons 1.5 (B) and (D) 
 
------------------------------------- 
VISIT TO SYRIA:  FOCUS ON THE ECONOMY 
------------------------------------- 
 
1.  (S)  The Ambassador and DCM spoke October 5 with Prime 
Minister Ali Abul Ragheb about his recent visit to Syria 
(other topics septels, notal).  Abul Ragheb focused mostly on 
economic issues.  Bashar al-Asad, he said, had "asked all the 
right economic questions," and PM Mohammed Miru, a 
conservative by nature, had shown "a little more interest in 
free enterprise."  Abul Ragheb commented that an economic 
advisor to PM Miru (he remembered the name as Ali Hussein) 
was "impressed with the Jordanian economic model."  In spite 
of all the positive noise, however, Abul Ragheb concluded 
that privatization was "a distant prospect" in Syria. 
 
2.  (S)  Bashar complained that he had "no good people in the 
public sector" that he could count on to enforce economic 
reform measures.  The Jordanians responded that no one could 
wait on reforms until there was a reformed bureaucracy in 
place to carry out the reforms -- they would never happen. 
Abul Ragheb said he told the Syrians that their strict 
regulation of currency exchange is a real obstacle to 
economic growth, as is the high corporate income tax rate 
(allegedly 54 percent, compared to 15-35 percent in Jordan). 
 
----------------------------------- 
SYRIANS HOPING TO AVOID WAR IN IRAQ 
----------------------------------- 
 
3.  (S)  Abul Ragheb said the Syrians were very concerned 
about a U.S. strike on Iraq because of the effect it would 
have on Syrian trade.  Abul Ragheb had the impression that 
the Syrians had accepted the initial Iraq statement offering 
the return of inspectors as a real sign of Iraqi good faith, 
and that the Syrians "want to believe" that there will 
not/not be a military confrontation. 
 
GNEHM