FOLLOW-UP ON IRAQI ASSETS IN JORDAN

S E C R E T AMMAN 006233

SIPDIS

CPA FOR GEORGE WOLFE
TREASURY FOR GC AUFHAUSER/ZUARTE

E.O. 12958: DECL: 09/30/2013
TAGS: ETTC EFIN JO IZ
SUBJECT: FOLLOW-UP ON IRAQI ASSETS IN JORDAN

REF: SECSTATE 269804

Classified By: Ambassador Edward W. Gnehm. Reasons 1.5 (b) and (d).


1. (S) In a September 29 meeting with the Ambassador,
Finance Minister Marto confirmed that he was ready to chair
the meeting on assets and bilateral financial issues agreed
to during Prime Minister Ali Abul Ragheb's September 16
meeting in Washington with State and Treasury officals (ref).
Marto said other members of the Jordanian team would be
Minister of Industry and Trade Moh'd Abu Hammour, Central
Bank Governor Umayya Toukan, and former Industry and Trade
Secretary General Samer Tawil (currently tourism minister,

SIPDIS
Tawil has extensive experience with Iraqi issues from his
time at the trade ministry). Marto said he was available at
any time in early October, with the exception of October
9-11, when he is scheduled to participate in a conference in
Beirut.


2. (S) Marto made clear that in addition to issues
regarding frozen Iraqi assets, he would like to discuss the
status of the $1.4 billion in Central Bank of Jordan claims
on the Iraqi Central Bank. He said that Jordan felt strongly
that these claims were different from other government's
claims on Iraq and that they should not be lumped with other
Iraqi government obligations dealt with by the Paris Club.
In response to the question raised in para 4 of reftel, Marto
confirmed that the Jordan National Bank, was heavily exposed
to Iraqi trade and was in danger of financial collapse if its
claims on Iraq were not covered. Iraq exposure was also a
major contributor to the financial difficulties of another
bank, the Philadelphia Bank.


3. (S) Comment: Marto said he would welcome participation
by Iraqi trade, finance ministry and central bank officials.
We agree that in order for the meetings to be meaningful and
productive, it would be very helpful for Iraqis --
particularly those with knowledge and ideally direct
experience on the former bilateral oil-for-goods protocol --
to be part of the team from Baghdad.
GNEHM