JORDANIAN FINANCE MINISTER ON WANING ASSISTANCE

C O N F I D E N T I A L AMMAN 002579 SIPDIS E.O. 12958: DECL: 04/04/2024 TAGS: EFIN EPET JO PREL SUBJECT: JORDANIAN FINANCE MINISTER ON WANING ASSISTANCE FROM ARAB NEIGHBORS Classified By: Ambassador Edward W. Gnehm. Reasons 1.5 (B,D). ¶1. (C) SUMMARY: Jordan's Finance Minister revealed that although Saudi Arabia had ended its oil donations to Jordan as of April 1, Jordan had received and expected to continue to receive further financial support from the United Arab Emirates and Kuwait. END SUMMARY. ¶2. (C) In an April 1 meeting with the Ambassador and Ecouns, Jordan's Finance Minister Mohammad Abu Hammour revealed the latest on the aid it had been receiving from Saudi Arabia, Kuwait, and the UAE in the year following the fall of the Saddam Hussein regime. According to Abu Hammour, during the first six months of the post-war period, Kuwait had provided Jordan US$50 million in aid. Abu Hammour said that the Kuwaiti Prime Minister had said that after disbursing this allotment for the first six months, they could then discuss what would happen for the following six-month period. Nevertheless, Abu Hammour is expecting a cash transfer from the Kuwaitis in early May for US$55-60 million more, depending on the price of oil at that time. ¶3. (C) In the case of Saudi Arabia, the Jordanian government had asked the Saudis for continuation of its oil assistance. Abu Hammour said he had been sending a letter to them each month for some time requesting the continuation of the 50,000 barrels/day shipments. However, he had recently received a letter from the Saudis stating that, as of April 1, any oil they sent to Jordan must be paid for. ¶4. (C) In the case of the UAE, Jordan has so far received US$37 million in assistance and expects to receive another $70 million over the coming months. ¶5. (C) COMMENT: Abu Hammour was clearly disappointed with the Saudi position and concern about the cost of oil is a common refrain heard in government and business circles in Amman. If oil prices continue at this level, he may be forced to consider raising fuel prices again as soon as this summer. (Septel will report on the rise in fuel charges which began April 3 as well as on other recent Finance Ministry successes.) END COMMENT. GNEHM