Identifier
Created
Classification
Origin
02AMMAN5839
2002-10-08 12:17:00
SECRET
Embassy Amman
Cable title:  

PM ABUL RAGHEB ON SYRIA, IRAQ: IT'S THE ECONOMY,

Tags:  PREL ECON IZ SY JO 
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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
-------------------------------------

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