Identifier
Created
Classification
Origin
03AMMAN2374
2003-04-20 14:36:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Amman
Cable title:  

TFIZ01: OFAC LICENSE REQUEST DENIAL LETTER

Tags:  EFIN ETRD ETTC PREL JO 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
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

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