ALLAWI MEETS WITH KING AND WOLFENSOHN

C O N F I D E N T I A L AMMAN 010177

SIPDIS

E.O. 12958: DECL: 12/23/2014
TAGS: PREL IZ JO
SUBJECT: ALLAWI MEETS WITH KING AND WOLFENSOHN


Classified By: CDA David Hale for reasons 1.4 (b),(d).

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SUMMARY
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1. (C) In a December 22 meeting, Iraqi PM Iyad Allawi
discussed with King Abdullah and World Bank (WB)
President James Wolfensohn assistance to Iraq for the coming
year, efforts to strengthen the Jordan-Iraq border, and GOJ
proposals to develop the Aqaba-Al Karama road and upgrade the
port at Aqaba. Allawi told local press he had met with Iraqi
tribal leaders in Amman and that none of them had
categorically rejected the holding of elections on January

30. According to post's Iraqi contacts, Allawi did not meet
with any Sunni opposition figures during his latest visit,
but has continued periodic contact with them
via telephone. End Summary.

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TRIPARTITE MEETING
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2. (U) Faris Hadad-Zervos, Head of the World Bank,s Iraq
Office in Amman, gave a brief readout to Econoff of a meeting
between Allawi, Wolfensohn and King Abdullah during a lunch
hosted by the King. Also in attendance were Jordanian PM
Faisal al-Fayez, GOJ Minister of Planning Bassam Awadallah,
Iraqi Minister of Planning Mehdi Al-Hafedh, and Jordanian
Royal Court Minister Samir Rifai. Hadad-Zervos said the
meeting focused on three issues: World Bank assistance to
Iraq, regional cooperation on projects of interest to Iraq,
and a GOJ proposal for infrastructure project development in
Jordan aimed at the Iraq transit trade.


3. (U) Meeting participants discussed implementation of the
USD 400 million in WB assistance programs to Iraq for the
coming year and next steps regarding an Iraqi request for USD
500 million in WB International Development Assistance (IDA)
loans-- 20-year, interest-free loans. They agreed that the
Iraqi Deputy Ministers from the Finance and Planning
Ministries, along with the Iraqi Central Bank, would develop
an IDA strategy document to submit to the WB board.


4. (U) Allawi, the King, Wolfensohn and others further agreed
to promote greater regional cooperation, especially projects
to benefit Iraqi trade development. The key priority,
according to Hadad-Zervos, is an effort to develop the
Iraq-Jordan border area, including a free trade zone.
Finally, the GOJ proposal to develop the Aqaba-Al Karama road
and to upgrade Aqaba port facilities was briefly discussed.
Allawi relayed to Wolfensohn the need for continued support
of Iraq by the World Bank through the WB's assistance program
and grants. He also called for greater support from the
international community.

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LOCAL PRESS COVERAGE
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5. (U) In an interview with local Arabic daily Al Rai, Allawi
urged &some8 of Iraq's neighbors to tighten their borders
to prevent infiltration of terrorists. With the exceptions
of Jordan, Kuwait and Turkey, Allawi said border cooperation
with Iraq,s other neighbors was "below expectations," but
noted this did not mean that terrorist acts were carried out
with the consent of foreign government authorities. On
elections, Allawi said he had met with several tribal leaders
in Amman (he presumably meant during previous visits) and
that they did not categorically reject the holding of
election on January 30.

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MEETINGS WITH SUNNI OPPOSITION FIGURES
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6. (C) Several of our Iraqi contacts told emboff December 23
that to their knowledge, Allawi did not request meetings with
any Sunni opposition figures ) including people he had met
with previously - during this latest visit. Allawi and his
people, however, continue to be in periodic telephone contact
with these leaders. We understand Allawi plans to visit
Amman December 29 on his return to Baghdad.


7. (U) Baghdad minimize considered.

Visit Embassy Amman's classified website at

http://www.state.sgov.gov/p/nea/amman/

or access the site through the State Department's SIPRNET
home page.
HALE