US embassy cable - 05AMMAN6975

C O N F I D E N T I A L SECTION 01 OF 02 AMMAN 006975 
 
SIPDIS 
 
E.O. 12958: DECL: 08/29/2015 
TAGS: PREL, ECON, ETRD, IZ, JO 
SUBJECT: JORDANIAN FIRMS TO CODEL HOEKSTRA: STAY THE COURSE 
IN IRAQ, CHANGE ECONOMIC DEVELOPMENT PLANS 
 
Classified By: CHARGE CHRISTOPHER HENZEL FOR REASONS 1.4 B, D. 
 
1.  (C)  SUMMARY:  During two informal meetings arranged by 
Jordanian businessman Khaled Kanaan, a congressional 
delegation led by House Intelligence Committee chairman Peter 
Hoekstra heard prominent Jordanian businessmen strongly urge 
members of congress to remain engaged in Iraq while 
rethinking the means by which USG private sector programs 
attempted to provide for Iraq's basic services and 
infrastructure.  In one meeting attended by Charge, Deputy 
Prime Minister Marwan Muasher told Hoekstra that early U.S. 
withdrawal from Iraq would be "a catastrophe" for Jordan. 
The businessmen supported Kanaan's view that the rules for 
private sector participation in Iraq's reconstruction should 
be re-written to include "regional" businesses capable of 
getting the work done now.    END SUMMARY. 
 
Businessman Involved in Iraq: "Change the Bids Process" 
--------------------------------------------- ---------- 
 
2.  (C)  At CODEL's August 21 meeting with Kanaan, CEO and 
chairman of Mid Jordan Investments and Resources Company -- 
which is heavily involved in Iraq-related enterprises -- 
Kanaan painted a picture of a broken plan to stabilize Iraq 
through economic security.  (Minister of Health Said Darwazeh 
joined the meeting, stating that he owns 12 percent of 
Kanaan's company.)  Kanaan told the story of a successful 
Iraqi lawyer who left Baghdad for Jordan because his family 
had no electricity 21-22 hours each day and he could not put 
kerosene in his backup generator because he had no gas in his 
car to go fetch it.  Oil, water and electricity were all 
lacking, said Kanaan.  Large electric generators were going 
off line and even less electricity was getting through to the 
people. 
 
3.   (C)  Kanaan noted that the "process" was to blame and 
that prime contractors could not find local Iraqis competent 
to do the work, but were not allowed to "go to companies in 
the region" to hire those firms that could get the job done. 
Kanaan, not shy about promoting his own business, pointed to 
the success of his firm, which provides complete services to 
U.S. bases in Iraq.  More broadly, he said that many 
Jordanian firms had long experience in Iraq and could do what 
others could not.  Kanaan also made a strong pitch for the 
USG to fix the "process" related to infrastructure awards for 
Iraq's reconstruction.  (For example, Kanaan noted that the 
currently mandated reconstruction contracts failed to require 
a "Method Statement" explaining how a contractor would 
complete the task being put out for bid.)  He also noted 
"security" ate up too much of project budgets, that the time 
between winning bids on projects and signing contracts was 
too long (two years in the case of a Basra hospital's 
refurbishment), and that prime contractors were at times 
significantly delaying payments for work performed (out of 
incompetence not malice, he noted). 
 
Business Elite, DPM Muasher Add Their Views 
------------------------------------------- 
 
4.  (C)  Minister of Health Darwazeh, expressing an interest 
in widening the CODEL's understanding of Jordanian 
perspectives on Iraq, arranged a dinner at his residence with 
leading Jordanian businessmen on August 23.  Joining him 
along with Charge were Deputy Prime Minister Marwan Muasher 
and Minister of Labor Basem Al Salem.  Included in the group 
were the CEOs of four of Jordan's most prominent companies -- 
Fadi Ghandour of ARAMEX;  Mazen Darwazeh of Al Hikma 
Pharmaceuticals;  Ghassan Nuqul of the Nuqul Group;  and Ali 
Al-Husri of the Export and Finance Bank.  Others included 
businessmen having licensing agreements with leading U.S. 
movie studios and record labels, or with U.S. alcoholic 
beverage firms. 
 
5.  (C)  Commenting on that day's international media focus 
on U.S. opponents to the effort in Iraq, DPM Muasher told 
Rep. Hoekstra and Charge that it would be "a catastrophe" if 
the U.S. were to significantly scale back its military 
presence in Iraq before Iraqi forces were "ready to control 
the situation."  The CEOs, while critical of the initial U.S. 
decision to intervene, agreed with Muasher that an early exit 
would spell serious trouble for the region.  They again 
placed emphasis on fixing the process in Iraq regarding 
private sector involvement.  Export and Finance Bank CEO Ali 
Al-Husri complained that while his bank's investment in a 
private bank in Iraq was resulting in more services to the 
local business community there, he was facing extreme 
difficulty with several Iraqi ministries, which delayed 
action unnecessarily.  Jordanian businessman Samir Murad said 
that corruption was an increasing problem in Iraq. 
 
6.  (C)  While the businessmen could not agree on a specific 
way forward, a number stressed the need to achieve basic 
security and economic stability first, before focusing on 
political development.  Curbing corruption was a top 
priority.  Some argued that the de-Ba'athification process 
had gone on too long, that some former Ba'ath Party members 
were not really Saddam supporters, and that these individuals 
were now needed to move Iraq's economic development forward. 
 
Unanimity on Staying the Course 
------------------------------- 
 
7.  (C)  The one theme that emerged with a single voice was 
the request from this group -- a mixture of East Bankers, 
West Bank Palestinians, Christians and Muslims -- that the 
U.S. continue its presence in Iraq.  Training more Iraqi 
soldiers and police in Jordan would help security (as would 
bringing back some Ba'athists in the security arena).  One or 
two expressed disenchantment with an "occupying force" in 
Iraq.  Nonetheless, none could agree that the hasty pullout 
of U.S. or coalition forces was an acceptable alternative at 
present. 
8.  (C)  "Jordan has put all of its chips on the table with 
the United States," said Minister Darwazeh.  The GOJ would 
continue to back the U.S., but the U.S. should not withdraw 
troops now, he said. 
 
9.  (SBU)  Khaled Kanann of MJC and his colleague, Donald 
Bray, are preparing what they call a "white paper regarding 
regional private sector partnerships for progress in Iraq." 
We expect this paper, being prepared for submission to other 
members of Congress, will flesh out some of the themes raised 
at the meeting with CODEL Hoekstra. 
 
COMMENT 
------- 
 
10.  (C)  Putting aside the obvious self-interest, there may 
be one or two constructive points in the germinal stages 
among the suggestions and critiques being raised by these 
Jordanian businessmen.  Post will follow up on the proposed 
white paper. 
 
11.  (U)  CODEL Hoekstra did not have the opportunity to 
clear this message. 
HENZEL