JORDAN-BASED COMPANY WORRIED ABOUT IRAQI SUBSIDIARY

UNCLAS AMMAN 003891 SIPDIS SENSITIVE TREASURY FOR OFAC FOR DAVID MILLS E.O. 12958: N/A TAGS: ETTC MOPS PREL IZ JO SUBJECT: JORDAN-BASED COMPANY WORRIED ABOUT IRAQI SUBSIDIARY REF: A) AMMAN 2509 B) AMMAN 2374 SENSITIVE BUT UNCLASSIFIED; NOT FOR INTERNET DISTRIBUTION ¶1. (SBU) Dr. Muwaffak Haddadin, Director General, Arab Company for Drug Industries and Medical Appliances (ACDIMA) met with Econoff June 29 to express concern regarding ACDIMA's Iraq-based subsidiary Arab Company for Antibiotics Industries (ACAI). Haddadin said he was concerned about the security of the plant, which is 25 kilometers southeast of Baghdad, and the safety of its employees. ACAI is a producer of antibiotics and other pharmaceuticals. ¶2. (SBU) Haddadin said that, as of last week, the factory had yet to sustain any damage, either during the war itself or since the end of the war in April. But he said that there was an increased presence of local militias and possible looters, threatening the day-to-day operation of the plant. Haddadin noted that the plant, which had been inspected by UNMOVIC in December 2002, contained a number of potentially dual-use components, including an autoclave and injection equipment. That being the case, he suggested that it would be in American interests to find a way to protect the factory, possibly with "a tank or some military presence." Haddadin said he would send us a map with the location of the factory. ¶3. (SBU) Haddadin also asked Econoff if the Embassy had received a response to his request for a license to unblock funds frozen pursuant to U.S. sanctions against Iraq (REF A). Econoff responded in the negative, but told Haddadin Post would follow up. GNEHM