OFFER TO FACILITATE JORDAN'S CSF CLAIMS

C O N F I D E N T I A L SECTION 01 OF 02 AMMAN 000326 SIPDIS DOD FOR OFFICE OF UNDER SECRETARY OF DEFENSE-COMPTROLLER STATE FOR PM E.O. 12958: DECL: 01/09/2015 TAGS: PREL MASS IZ JO SUBJECT: OFFER TO FACILITATE JORDAN'S CSF CLAIMS REF: A. 01/07/05 DAO LETTER TO UNDER SECRETARY OF DEFENSE - COMPTROLLER ¶B. 04 AMMAN 9151 ¶C. 04 AMMAN 5467 (EXDIS) ¶D. 04 AMMAN JO 5645 Classified By: CDA David Hale for reasons 1.4 (b) & (d). -------------- SUMMARY -------------- ¶1. (U) Embassy Amman strongly supports a proposal, put to King Abdullah during his December 2004 Washington visit, to send a U.S. budgetary delegation to Amman to facilitate the Coalition Support Fund (CSF) reimbursement process. The Jordanian Armed Forces (JAF) have submitted new claims (ref A),while previous claims still remain under review at U.S. Central Command and the Office of the Under Secretary of Defense-Comptroller. Post requests consideration of a CSF revolving account for the Government of Jordan (GOJ) similar to that used by the Government of Pakistan for expenditures in support of U.S. efforts in the Global War on Terror (GWOT). End Summary. -------------- CSF Background -------------- ¶2. (C) CSF is a fund appropriated to the Pentagon to help cover the costs incurred by allies supporting Operation Iraqi Freedom. These are not/not FMF funds. Jordan has to date received over $93 million in CSF reimbursements in support of U.S. military operations in Afghanistan and Iraq. Jordan has an additional claim for $114 million in CSF that remains under review by U.S. Central Command and the Office of the Under Secretary of Defense-Comptroller. Post recommended in July 2004 (refs C and D) that the USG agree to pay, out of CSF, nearly $13 million of the $114 million in Jordan Armed Forces (JAF) claims. Post recommended that about $10 million in claims be disallowed, while urging that $91 million of Jordan's other requests for CSF reimbursement be addressed with sustained levels of new FMF since they represent ongoing, increased border security costs. -------------- New CSF Request -------------- ¶3. (U) In a new request received in December 2004 (ref A) the JAF has submitted claims for CSF reimbursement for the six month period 1 April to 30 September 2004. Post recommends the USG consider payment of about $5 million of the new request out of CSF funds and offsetting $27 million of the claim with a commensurate increase in FY 05 FMF supplemental assistance tied to border security improvement. (NOTE: Recommendations and complete numerical breakdown contained in ref A.) -------------- Delegation to Review CSF Claims -------------- ¶4. (U) During his December 2004 visit to Washington, a proposal was put to King Abdullah to send a U.S. budgetary delegation to Amman to facilitate reimbursement of Jordan's CSF claims, a proposal he has welcomed. The core of the delegation would comprise of representatives from the Office of the Secretary of Defense-Comptroller and the United States Central Command, and would focus on the procedures for the GOJ to follow in claiming reimbursement. ¶5. (U) The delegation would further address ways to improve and expedite the process for finalizing existing claims and to facilitate reimbursement of future GOJ expenditures in support of USG initiatives, primarily those focused on the GWOT. Post recommends that the delegation help develop accounting procedures that take into consideration the systems currently in place within the JAF and its limited capability to compile the data required under current CSF reimbursement guidelines. -------------- Reimbursement Facility -------------- ¶6. (U) Post also requests consideration of establishing a revolving account that the GOJ can draw on similar to that which is available to the Government of Pakistan for supporting U.S. efforts in the GWOT. -------------- Comment -------------- ¶7. (U) Jordan has repeatedly proven to be an exceptional ally in the GWOT and in support of Operations Enduring Freedom and Iraqi Freedom. GOJ national funds earmarked to sustain and modernize JAF equipment and facilities have been diverted to support U.S. military operations. Timely reimbursement arrangements for this key partner will have a direct bearing on our continuing efforts in the region. Embassy Amman stands ready to assist the proposed delegation. ¶8. (U) Baghdad minimize considered. HALE