ASSISTANT SECRETARY WAYNE'S CONVERSATIONS WITH

C O N F I D E N T I A L AMMAN 005988

SIPDIS

STATE FOR NEA/ELA AND NEA/REA

E.O. 12958: DECL: 07/26/2015
TAGS: EAID EFIN IZ JO
SUBJECT: ASSISTANT SECRETARY WAYNE'S CONVERSATIONS WITH
JORDANIAN PM BADRAN AND PLANNING MINISTER AL-ALI

REF: A. AMMAN 5887


B. AMMAN 5725

C. STATE 130427

Classified By: CDA DAVID HALE FOR REASONS 1.4 (B) AND (D).


1. (C) SUMMARY: On the margins of the Donors Committee
meeting of the July 18-19 International Reconstruction Fund
Facility for Iraq (IRFFI),EB Assistant Secretary Wayne had
conversations with Jordanian Prime Minister Adnan Badran and
with Minister of Planning and International Cooperation
Suhair al-Ali. Iraqi Planning Minister Barham Salih was also
present during one of the discussions. Badran pressed for
debt swap ceiling increases, more oil grants from Gulf
neighbors, and support for major infrastructure projects such
as the Red-Dead Sea water conveyance project (Ref C) and an
Iraq-Jordan border facility. END SUMMARY.

PM on Debt Swap Ceiling and Oil Grants
--------------


2. (C) Badran urged the USG to approach those opposed to
raising Jordan's debt swap ceiling and to appeal to Saudi
Arabia, Kuwait and the Gulf States to continue oil grants.
He expressed appreciation for the President's efforts with
Crown Prince Abdullah, but expressed his view that the Saudis
had not yet been forthcoming. On oil grants in particular,
Badran said the gesture of support for Jordan's reforms would
carry as much weight as the support itself. He noted that
Saudi Arabia's current support meets only a small percentage
of Jordan's oil needs; it would take "just" one day of Saudi
Arabia's income to provide a sufficient level of support.
A/S Wayne stressed that the President and Secretary had
already approached the Saudis, but agreed to transmit the
request.


3. (C) On debt swaps, A/S Wayne reiterated that the Deputy
Secretary had told GOJ interlocutors July 10 (Ref A) that the

SIPDIS
USG could work to build G7 consensus, particularly urging
Germany, Canada and Japan to support raising the debt swap
ceiling. (NOTE: The USG itself would not participate in any
debt swaps with Jordan. Congressional authority only exists
to promote tropical forest conservation. END NOTE.) Al-Ali
also raised Jordan's request for 80% debt reduction. A/S
Wayne told her that debt forgiveness had no support among the
G7 and explained that U.S. budget rules dictate that it would
cost the USG almost 100 percent of any dollar spent to
forgive Jordan's debt. Minister al-Ali said Jordan would
prefer increased ESF in that case.

Red-Dead and Iraq-Jordan Border Facility
--------------


4. (C) Badran also highlighted two development projects. He
went into great detail on the proposed Red Sea - Dead Sea
water conveyance project (Ref C),which he wants to move
forward to spur development along the project route. He said
he believes the project could be designed so it would not
change the salinity and spoil the Dead Sea. He said the
World Bank would do a feasibility study. In the presence of
Iraqi Minister Salih, Badran highlighted his desire to
upgrade the Iraq-Jordan border area to speed the flow of
trucks. Al-Ali and Salih said they had discussed the
possibility of a free trade area near the border and a link
to Jordan's Qualifying Industrial Zones (QIZs). Further
developing the existing route to Aqaba port would come later.
A/S Wayne noted that linking free zones to the QIZs would
require Israeli content and U.S. legislation.

Reform Government, Fuel Price Increases Accepted
-------------- ---


5. (C) Badran said he was hopeful that his government would
have at least a year to pursue reforms after winning a vote
of confidence. (NOTE: On July 21, the vote of confidence in
the government passed by a vote of 66-37. END NOTE.).
However, he and al-Ali complained of the Parliamentarians'
unjustified criticism. The detractors claimed they want to
care for the poor and that Badran's government was for the
rich, but they offered no good alternatives. Badran, al-Ali
(and Finance Minister al-Kodah) all expressed pleasure that
the Jordanians had accepted the first fuel price increases
without protest, which they said they hoped reflected some
grasp of Jordan's poor financial straits.


6. (U) A/S Wayne cleared this message.
HALE