KING REACHES OUT TO PARLIAMENT IN WAKE OF FINANCE

C O N F I D E N T I A L SECTION 01 OF 02 AMMAN 005065

SIPDIS

E.O. 12958: DECL: 06/23/2015
TAGS: PGOV KDEM KMPI ECON JO
SUBJECT: KING REACHES OUT TO PARLIAMENT IN WAKE OF FINANCE
MINISTER RESIGNATION

REF: A. AMMAN 4802

B. AMMAN 4652

C. AMMAN 4368

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

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SUMMARY
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1. (C) The resignation of Finance Minister Bassem
Awadallah was welcomed by traditionalist forces in
parliament, most of whom are expected to drop their
opposition to PM Badran's reformed cabinet in an
upcoming vote of confidence. While some observers
warn the move could embolden anti-reform forces,
King Abdullah has used the resignation to help shore
up support in parliament for his reform agenda. End
Summary.

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MIXED REACTION TO AWADALLAH RESIGNATION
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2. (U) In a public letter to PM Badran quoted on the
front pages of all major dailies, King Abdullah
expressed regret at the resignation of controversial
Finance Minister Bassem Awadallah on June 16 (ref A),
calling it a "sacrifice" for reform. The King
characterized calls to oust Awadallah as an
"unjustified attack ... by those who criticize and
stymie this national (reform) program," and stressed
"reform is about principles, not persons." The King
said Awadallah "gave Jordan a lot and he will continue
to do so in a distinguished way if new developments
require his return."


3. (C) For their part, the 48 MPs who had publicly
pledged to withhold confidence in Badran's government
over the composition of the cabinet (and who had put
Awadallah's removal at the top of their demands)
(refs B, C),expressed satisfaction with the resignation.
MP Abdel Jalil Maaytah (East Banker, Kerak) told
reporters that Awadallah's departure was a "positive
step" that would defuse the crisis between the
government and parliament. MP Abdullah al-Jazi (East
Banker, Southern Badia) noted to poloff that the
resignation had paved the way for a vote of confidence
when parliament convenes for an extraordinary session
(most likely during the first half of July). MP
Mohammad Arsalan (East Banker, Zarqa) said in a meeting
with poloff that while he fully supported Awadallah's
economic policies, he nevertheless welcomed the
resignation, stating it was "the price the government
had to pay" for ignoring parliament and choosing a
minister known to alienate MPs.


4. (C) Political analysts viewed Awadallah's departure
as marking a new chapter in Jordanian politics in which
the traditionalists in parliament, feeling their
interests under threat, are now more than willing to
directly challenge the government despite their strong
pro-Hashemite loyalties. "The resignation has become
the new reality of the political scene," Director of the
Center for Strategic Studies at the University of Jordan
Mustafa Hamarneh told press. Al-Ghad columnist Samih
Maaytah wrote, "The resignation was a political exit for
the impasse between both sides," adding that he expected
a limited cabinet reshuffle would not have a "qualitative
change or effect." Dr. Mohammad al-Momani, a professor
of political science at Yarmouk University, complained
that Awadallah's resignation was a victory for "anti-
reformers" and gave the traditionalists "an upper hand"
in dictating the pace and scope of Jordan's reform
program.


5. (U) The English-language Jordan Times was
downright vicious in criticizing those who forced
Awadallah's resignation, lambasting them as
"playground bullies" whose agitation "arises from an
appalling self-interest." It accused them of
"sacrificing the interests of the many in national
reform" for the interests of a few who are desperate
to "reinforce the status quo." "To these deputies, we
say, you have no right to hold the country hostage to
your narrow ambitions."

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KING MAKING THE ROUNDS IN PARLIAMENT
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6. (U) In the wake of Awadallah's departure, King
Abdullah has initiated consultations with all
parliamentary blocs in an effort to build support for
PM Badran's government and his reform agenda. In the
first of a series of meetings, the King met on June 19
at the Royal Court with 28 MPs representing the
National Parliamentary Action Front (led by Lower
House Speaker Abdul Hadi Majali) and the New
Reformists bloc, urging that a "new chapter" be opened
between the deputies and the cabinet. According to a
press release by the Jordan News Agency, he told the
MPs that "judgments should be on programs and not on
persons," and emphasized that the legislative and
executive branches should "work as one team."
Reflecting comments made to Secretary Rice during
their meeting later that evening (septel),the King
also said the government needed to engage in a
dialogue with parliament to better explain Jordan's
accomplishments to citizens. "I sensed that there was
shortcomings in talking (to citizens) about national
programs and achievements."


7. (C) MP Arsalan told poloff that the June 19
meeting was "very positive" and that the King
acknowledged that past governments had done a poor job
in providing information to MPs. According to Arsalan,
all the MPs in attendance (including those who had
threatened to withhold confidence in the government)
expressed their support for the King's reform efforts,
though he questioned the sincerity of some of these
professions.


8. (U) King Abdullah continued his outreach to MPs in
separate meetings on June 20 and 21 with other blocs.
During his talks with deputies from the Islamic Action
Front (IAF) and the centrist National Democratic
Coalition, the King announced a soon to be released
"integrated study" by the Royal Court on new anti-
corruption mechanisms designed to increase transparency
in government and cut graft. MPs reportedly focused
their remarks on poverty and unemployment. Outside of
the palace, PM Badran is conducting a similar outreach
effort, holding multiple meetings with groups of MPs,
as well as leaders of political parties.

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COMMENT
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9. (C) While some observers warn that Awadallah's
resignation may embolden anti-reform forces, the
palace has no intention of scaling back or slowing
down its reform agenda. Rather, the King is
attempting to use the resignation to the GOJ's
benefit, indicating to obstructionist MPs that with
their demands for Awadallah's departure now met, and
with a renewed commitment to increased engagement with
parliament, it's time for them to fall in line. The
expected addition of new ministers from the south in
an anticipated limited cabinet reshuffle will also
serve to placate traditionalist MPs. Royal Court
Minister Marwan Muasher told Charge on June 23 that
the reformed cabinet would be unveiled late next week,
with 7-9 new ministers, among them himself as Deputy
Prime Minister and de facto head of the economic team
and the reform agenda. A vote of confidence would be
set shortly thereafter, as soon as parliamentary
speaker Majali returned from foreign travel. Painful
steps, including a 25% cut in fuel subsidies, would
follow immediately afterward.


10. (C) As a result of this particular crisis, the
palace and GOJ have learned, albeit somewhat painfully,
that selecting a government without parliamentary
input and introducing legislation without a concerted
attempt to justify its benefits are out of step with
calls for more democracy and a surefire way to generate
suspicions and provide ammunition to the opponents of
reform. Although many MPs are narrowly focused on
their own personal interests and have little appetite
for genuine reform, a majority of them are still
predisposed to support the King and, by proxy, the
government if the palace makes clear its support for
the GOJ agenda. More regular dialogue with parliament,
and a better government PR campaign to promote reform
among the genuine public, will serve the GOJ well.
HALE