JORDAN: IRAQI ASSETS TEAM

S E C R E T AMMAN 007401

SIPDIS

E.O. 12958: DECL: 11/13/2008
TAGS: EFIN ETTC IZ JO
SUBJECT: JORDAN: IRAQI ASSETS TEAM

REF: STATE 269804

Classified By: Ambassador Edward W. Gnehm. Reason 1.6.


1. (S) Post understands that Washington and CPA may be
preparing to send a team to Jordan over the coming weekend to
follow-up on the various issues related to Iraqi assets
frozen in Jordan. We fully support this approach, which has
been requested by the Jordanians and which we have argued for
in order to sustain the important progress we have made in
the past week on the frozen assets issues.


2. (S) In order for the visit to be productive, the team
should consist of U.S. and Iraqi/CPA officials with the
breadth of experience and authority required to follow-up the
issues discussed by former Prime Minister Abul Ragheb and
Treasury GC Aufhauser, U/S Larson in Washington in September
(reftel). In addition to tracking Iraqi assets, these
include how to assess and deal with claims presented by
Jordanian banks and merchants for goods delivered to Iraq,
but not paid for due to the interruption of the war, as well
as with the accumulated Jordanian Central Bank claims on Iraq
that amount to up to $1.5 billion. The team should also be
prepared to discuss the impact on the Jordanian banking
sector of the transfer of large sums to the Development Fund
for Iraq (DFI). On the Iraqi side, the team should include
officials knowledgeable about the history of the trade
relationship with Jordan from the ministry of trade and the
central bank. U.S. team members would best be policy level
officials who can speak with authority on the trade and
financial issues.


3. (S) The appropriate Jordanian interlocutors will likely
be top Jordanian officials, including Prime Minister Fayez,
Deputy Prime Minster and Minister of Trade Halaiqa, Finance
Minister Abu Hammour, Planning Minister Awadallah, and
Central Bank Governor Toukan. It would help make a team's
visit most productive if these ministers had more than 48
hours warning before a team's arrival. In fact, we cannot
confirm at the start of the local Friday/Saturday weekend
that these officials will be available early next week.


4. (S) Ambassador's comment: We have made considerable
progress in recent days on Iraqi asset issues. We have
enormous equities in the bilateral relationship that remain
vital to us, for example, Jordan's support for Iraqi police
and military training, our anti-terrorism cooperation,
Jordan's participation with us in Afghanistan and Liberia,
humanitarian support for Iraq, and border security. It is
critically important that we deal with the Jordanians in a
way that keeps in perspective the entire scope of our
relationship. An approach that takes these equities into
account, as well as one that demonstrates an understanding of
Jordan's interests, will have the best chance of succeeding
in terms of maximizing Jordanian cooperation in returning
Iraqi assets to Iraqi control. I am convinced that this can
come out right; we just need to do it the right way.
GNEHM