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