US embassy cable - 03AMMAN2786

C O N F I D E N T I A L SECTION 01 OF 02 AMMAN 002786 
 
SIPDIS 
 
DEPARTMENT PLEASE PASS TO SECRETARY'S PARTY 
DEPARTMENT PASS TO USTR FOR NOVELLI/SAUMS 
 
E.O. 12958: DECL: 05/11/2013 
TAGS: PREL, ETRD, KPAL, IS, XF, JO 
SUBJECT: JORDAN REACTS POSITIVELY TO PRESIDENT'S MAY 9 
SPEECH 
 
 
Classified By: Ambassador Edward W. Gnehm.  Reasons 1.5 (b,d) 
 
1. (C) Initial reaction in Jordan to the President's May 9 
speech calling for the establishment within ten years of a 
U.S.-Mideast Free Trade Area has been positive, especially 
among senior government officials.  In a phone conversation 
May 10 with the Ambassador, Foreign Minister Marwan Muasher 
applauded the President, both for his economic message to the 
region and for his clear and direct endorsement of the MEPP. 
On the latter, he noted that while there was, unfortunately, 
no direct reference to the Roadmap, the President's personal 
endorsement of the Secretary's mission and his explicit 
statement that "the Secretary travels with my commitment" was 
"very strong and very helpful" and constituted an important 
signal of U.S. resolve in the peace process. 
 
2. (C) In a separate conversation the same day, Minister of 
Planning Bassam Awadallah was even more enthusiastic about 
the President's speech.  Concerning the MEPP, Awadallah 
commented "it was a very serious approach . . . the best 
speech ever by the President on Palestine."  He added that he 
had been "very taken by the seriousness of the President's 
commitment to a Palestinian state" as well as the President's 
reference to upcoming Jordanian parliamentary elections as an 
important milestone for the region.  Awadallah welcomed the 
President's public announcement that Secretary Powell and 
USTR Zoellick will attend the upcoming World Economic Forum 
gathering in Jordan.  He added that he is confident Jordan 
will be competitive in a future Arab free trade area, 
doubting that "others could do what Jordan has done" in 
implementing needed economic reforms. 
 
3. (U) Awadallah expounded publicly on the benefits he 
foresaw for Jordan in an interview with the local press 
published May 11: "The President's initiative will further 
accelerate progress in the Middle East, increase inter-Arab 
trade, creating more jobs and attracting more investments . . 
. We believe in cooperation rather than shortsighted 
competition.  An economically stronger Iraq, an economically 
stronger Syria will also strengthen Jordan."  Underlining his 
belief that Jordan is well-positioned to benefit from the 
President's initiative, Awadallah noted "we are well ahead of 
everyone else (in the region).  We pioneered privatization, 
we pioneered intellectual property rights, we are in the 
forefront of liberalization." 
 
4. (U) In a May 11 editorial, the English-language 
Government-affiliated Jordan Times characterized the 
President's initiative as "timely and promising" but 
cautioned that "unless solid foundations for peace are laid, 
free market reforms have few chances.  Peace remains a 
prerequisite for development, prosperity and stability." 
Echoing Awadallah's confidence that Jordan would excel in a 
future free trade area, the editorial stated "this 
comparative advantage will always be there." 
 
5. (C) A quick survey of Embassy contacts also indicate that 
most viewed the President's initiative positively, although 
with a few caveats.  The vice chairman of the American 
Chamber of Commerce called it "an excellent idea" though he 
expressed concern that the 10-year timeframe was too long: 
"Can this wait 10 years?  You need to prove to people that 
the U.S. is serious about helping solve their problems now." 
A telecommunications executive called it "the most important 
suggestion anyone has made in the last five years."  He 
noted, however, that "deep political reform must accompany 
economic reform in the region" and added that he "hoped the 
countries of the region would be able to respond 
constructively to the initiative."  Finally, the vice 
chairman of the Amman Chamber of Commerce characterized the 
speech as "very, very good news, especially in the current 
situation.  It shows real U.S. support for the region." 
Representing the views of the business community "old guard" 
that controls the Amman Chamber, he feared that Jordan could 
be negatively affected over time as it loses the comparative 
advantage it currently holds as a result of the U.S.-Jordan 
FTA. 
 
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Comment 
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6. (C) The initial reaction we have heard thus far to the 
President's speech has been decidedly positive.  People here 
sense the seriousness of the President's tone and the 
commitment it represents, and welcome the U.S.'s renewed 
focus on resolving the problems of the region.  On top of 
that, the GOJ will certainly relish the opportunity to 
showcase Jordan at the upcoming World Economic Forum 
gathering, in the presence of Secretary Powell and USTR 
Zoellick, as a model for moving the region toward the 
creation of a free trade zone with the U.S. 
GNEHM