JORDANIAN REQUESTS FOR ASSISTANCE - UPDATE

C O N F I D E N T I A L AMMAN 009602 SIPDIS E.O. 12958: DECL: 12/04/2014 TAGS: PREL MASS EAID EFIN IZ JA JO GCC SUBJECT: JORDANIAN REQUESTS FOR ASSISTANCE - UPDATE REF: A. AMMAN 9151 ¶B. AMMAN 8107 Classified By: CDA Christopher Henzel, reasons 1.4 (b) and (d) ¶1. (C) Ref A previewed requests for assistance that we expect King Abdullah to pursue during his December 6 meetings in Washington with President Bush and others. Updates follow on likely requests for FMF, ESF, Gulf state support, and debt relief. ¶2. (C) Military assistance: Prince Faisal provided DATT with documents describing Jordanian requests for military aid in terms that are more detailed than past exchanges with the GOJ. These documents have been sent to NEA/ELA and to DoD, and post understands they were forwarded to White House staff working on preparations for the visit. The overall request for additional military assistance is USD 500 million, up from the USD 400 million request that has been under discussion for a year. The revised list places a heavier emphasis on C4ISR and border security. ¶3. (C) Economic support funds: Planning Minister Bassem Awadallah, during his late-November visit to Washington, circulated papers detailing GOJ plans for programs that would be funded with the USD 300 million ESF supplemental the GOJ seeks. The papers are consistent with the programs outlined ref A. ¶4. (C) Iraq/Jordan border crossing: In a meeting with Charge David Hale December 4, Awadallah placed particular emphasis on the proposed new, joint Jordanian/Iraqi border crossing facility at Karamah/Trebil, through which we estimate forty percent of Iraq's imports currently flow. Awadallah noted the December 3 double car bomb attack that insurgents launched from Iraq against the crossing (see septel in DAO channels.) Reports indicated that the second car bomb, which failed to detonate, was targeting a large fuel convoy marshaling on the Jordanian side and preparing to cross into Iraq. Awadallah commented that if the second attacker had succeeded, "there would be no border crossing." ¶5. (C) Gulf States: In an initiative that the GOJ had not previously raised with post in discussions of preparations for the King's visit, Awadallah sought USG support for Jordanian requests to Saudi Arabia, Kuwait and the UAE to renew their concessional oil supplies to Jordan. The Jordanian agreement with Saudi Arabia, which provides free of charge 50,000 barrels per day (about half of Jordan's crude intake), is set to expire in April, 2005. King Abdullah was in Saudi Arabia December 4. ¶6. (C) Japanese Debt Relief: Awadallah indicated the GOJ may again ask the USG to seek to persuade Tokyo that a debt swap for Jordan (in exchange for Jordanian forgiveness of Iraq's balance under the two countries' trade clearing account) serves U.S. and Japanese strategic interests. Charge Hale noted that the USG has reviewed this proposal, and that among our concerns is the unhelpful precedent this would set for treatment of Iraqi debt. Awadallah's argument, which King Abdullah may also make, is that Jordan is the only aid-dependent state with significant Iraqi "debt", and that the GOJ proposal is a win/win for Iraq and Jordan. ¶7. (U) Baghdad minimize considered. HENZEL