US embassy cable - 03AMMAN2374

UNCLAS AMMAN 002374 
 
SIPDIS 
 
SENSITIVE 
 
TREASURY FOR OFAC FOR DAVID MILLS 
 
E.O. 12958: N/A 
TAGS: EFIN, ETRD, ETTC, PREL, JO 
SUBJECT: TFIZ01: OFAC LICENSE REQUEST DENIAL LETTER 
DELIVERED 
 
REF: 03/17/03 OFAC LETTER FROM MILLS TO DCM 
 
1.  (U) This cable contains an action request.  Please see 
para. 5. 
 
2.  (SBU) As per instructions REF, econoff delivered letter 
to Dr. Muwaffak Haddadin, Director General, Arab Company for 
Drug Industries and Medical Appliances (ACDIMA), on April 16. 
 The letter, a copy of which was provided to post by OFAC, 
informed Haddadin that his request for a license to unblock 
$4.5 million frozen in an account of Iraq-based Rafidain Bank 
at the Bank of New York had been denied. 
 
3.  (SBU) After reading the letter, Haddadin said he 
"expected" the response.  He explained that the sum in 
question represented installments and interest on an 
outstanding loan due to ACDIMA from Iraq-based Arab Company 
for Antibiotics Industries (ACAI).  He said ACDIMA loaned $9 
million to the Iraqi company, in which it has a 36% stake, in 
1995 for infrastructure improvements and equipment purchases. 
 ACAI had not made a payment on the loan since 2001, Haddadin 
said, and the funds have since been blocked pursuant to U.S. 
sanctions regulations regarding Iraq.  He said that although 
the action was not a surprise, he was unclear as to what 
options might be available to ACDIMA at present or what 
options the company might have once sanctions are lifted. 
Haddadim added that he was unsure as to whether or not the 
Iraqi company was even functioning at this point. 
 
4.  (SBU) ACDIMA is jointly owned by 15 Arab governments. 
The largest shareholders are the governments of Iraq and 
Saudi Arabia, each with a 17% stake.  Headquartered in Amman, 
the company has offices and factories in Iraq, the UAE, Saudi 
Arabia, Tunisia, Syria, and Jordan.  The company is a 
producer of pharmaceuticals, veterinary medicines, and dental 
materials, and is an importer of medical equipment and 
supplies. 
 
5.  (SBU) Haddadin requested Embassy assistance in working 
with the Department of Treasury to provide further 
information to ACDIMA regarding possible next steps.  We 
would appreciate OFAC's advice regarding this request. 
 
 
 
GNEHM