US embassy cable - 02AMMAN6754

UNCLAS AMMAN 006754 
 
SIPDIS 
 
NSC FOR GARY EDSON/JOHN CLOUD 
STATE PASS USTR FOR NED SAUMS 
TREASURY FOR PATRICIA BROWN AND MARSHALL MILLS 
 
E.O. 12958: N/A 
TAGS: EFIN, ETRD, JO 
SUBJECT:  JORDAN FORMALLY ASKS FOR TAX TREATY 
 
REF: Goldberger-Brown e-mail of 11/18 and previous 
 
THIS IS AN ACTION REQUEST; SEE PARA 3. 
 
1.  (u)  Embassy received on November 17 a diplomatic note 
from the GOJ that included a formal request to begin 
negotiating a bilateral tax treaty.  Text of diplomatic 
note below: 
 
2.  (u)  Begin text: 
 
Number:WM/US/1/2533 
Date:13 Nov 2002 
 
(complimentary opening) the Jordanian delegation to the 
Joint Commission meetings that will be held in Washington 
between 11-13 December 2002 in accordance with the Free 
Trade Agreement wishes to start negotiations with the 
American side with the aim of reaching an agreement to 
o 
avoid double taxation, as a mechanism to implementing the 
Free Trade Agreement. 
 
The Foreign Ministry respectfully asks the Embassy to 
inform the concerned American authorities of the 
Jordanian's side desire to negotiate about the above 
mentioned agreement within the framework of the 
preparations for the Joint Commission meetings 
(complimentary closing). 
 
End text. 
 
3.  Action request:  A bilateral tax treaty would provide a 
third "pillar" of support to Jordan's burgeoning economy, 
complementing our BIT and FTA.  Taken together, these 
agreements will further promote investment and growth in 
Jordan, which will in turn promote social and political 
stability for a key regional ally.  The GOJ has requested 
that the tax treaty be approached as a "deliverable" for 
the December 11 FTA Joint Commission meeting - if not a 
signing ceremony, at least an announcement that the two 
sides have agreed to begin negotiations.  We would 
appreciate Washington guidance regarding the USG's 
willingness to conclude such a treaty, and an outline of 
the steps necessary to get there. 
Gnehm