FINANCE MINISTER REVIEWS STATUS OF OIL GRANTS

C O N F I D E N T I A L AMMAN 002753

SIPDIS

NEA FOR FRONT OFFICE
NSC FOR ABRAMS
TREASURY FOR MILLS/SHWARZMAN
USDOC FOR 4520/MAC/ANESA/HVINEYARD
USDOC FOR 4521/MAC/ANESA/CLOUSTANAU/NWIEGLER

E.O. 12958: DECL: 12/29/2014
TAGS: EPET PREL EFIN SA KU JO TC
SUBJECT: FINANCE MINISTER REVIEWS STATUS OF OIL GRANTS


Classified By: Charge d'Affaires David Hale for reasons 1.4 (b) and (d)


1. (C) In a March 30 meeting with Charge, Finance Minister
Mohammed Abu Hammour reviewed the likelihood of Jordan's
receipt of oil grants in 2005. Abu Hammour noted that during
the most recent visit by King Abdullah to Saudi Arabia in
early March, the Saudis had promised to grant Jordan 25,000
barrels per day in free crude for the next twelve months. He
also stated that the United Arab Emirates had promised a cash
grant of $200 million to help cover fuel costs, but that
there had been no commitment from the Kuwaitis. Abu Hammour
added, however, that he had not given in to Prime Minister
Faisal al-Fayez's request that Abu Hammour authorize more
spending from the general budget now that these commitments
had been made. Jordan's experience, said Abu Hammour, had
taught it the folly of relying on promises of aid from GCC
countries - in 2003, for example, the UAE had promised 25,000
barrels per day of free crude for a period of three months,
but only delivered it for two months. Abu Hammour pledged
that he would release no funds for extra spending until the
promised monies actually came in.


2. (C) COMMENT: If this information is accurate, the Saudis
are offering half of the daily free crude they provided
throughout 2003 and 2004. The UAE's promised cash grant is
substantially larger than that granted in 2004 by Kuwait (UAE
did not provide any direct grant aid to the GOJ in 2004).
HALE