JORDAN FINANCE AND FOREIGN MINISTERS ON WASHINGTON

C O N F I D E N T I A L AMMAN 006507

SIPDIS

TREASURY FOR U/S TAYLOR

E.O. 12958: DECL: 11/05/2007
TAGS: EFIN JO
SUBJECT: JORDAN FINANCE AND FOREIGN MINISTERS ON WASHINGTON
MEETINGS



1. (c) The Ambassador called on Foreign Minister Marwan
Muasher on November 4 and on Finance Minister Michel Marto on
November 5 to review their recent meetings in Washington on
supplemental economic assistance for Jordan. Confirming the
informal readouts the embassy has received by email, both
were very pleased with the way things went. They said they
were especially reassured by the serious, senior-level
attention the United States is giving this issue.


2. (c) Marto and Muasher both said they completely
understood the sensitivity of quoting specific figures and
assured the Ambassador that they will be extremely discrete.
They also confirmed that they will begin work at once on the
list of five questions that came out of the meetings. (Marto
asked for more clarity on the third question, regarding how
assistance would be used to help ensure adequate budget
resources.) They would be happy to welcome U.S. experts to
Jordan for further technical work, with a goal of wrapping up
a package by November 15.


3. (c) Muasher and Marto said that the financial package
described by NSA Rice, U/S Larson and others would meet
Jordan's needs. They said it was their understanding that in
addition to a supplemental ESF package, the U.S. would
continue its efforts to assure Jordan's access to alternative
sources of supply if Iraqi oil shipments were cut off.
Muasher said that, as discussed with A/S Burns, he had tried
to reach Kuwaiti State Minister Shaikh Muhammad to follow-up
on their discussions in Amman earlier this month on a
Kuwaiti-Saudi-UAE oil package. While he had not yet heard
back from Shaikh Muhammad, Muasher understood from A/S Burns
that Saudi Arabia and the UAE appeared to be favorably
disposed, but he thought an additional high-level
intervention by the United States would be necessary.


4. (c) Marto was also very pleased with his meeting with
U/S Taylor. He personally welcomed the emphasis on economic
conditionality he had heard in the meetings at State and
Treasury, particularly regarding continued performance under
the IMF stand-by program. This message, he said, helped him
maintain the government's support for economic reform,
including pension reform, under the Fund program. Noting
that Prime Minister Abul Ragheb had told him that it would be
politically impossible for the government to raise gasoline
or diesel prices in the midst of a military conflict, Marto
said that such conditionality helped his efforts to convince
the government to eliminate subsidies and meet budget targets
agreed with the IMF.
GNEHM