Identifier
Created
Classification
Origin
05AMMAN6975
2005-08-30 07:25:00
CONFIDENTIAL
Embassy Amman
Cable title:  

JORDANIAN FIRMS TO CODEL HOEKSTRA: STAY THE COURSE

Tags:  PREL ECON ETRD IZ JO 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
C O N F I D E N T I A L SECTION 01 OF 02 AMMAN 006975 

SIPDIS

E.O. 12958: DECL: 08/29/2015
TAGS: PREL ECON ETRD IZ JO
SUBJECT: JORDANIAN FIRMS TO CODEL HOEKSTRA: STAY THE COURSE
IN IRAQ, CHANGE ECONOMIC DEVELOPMENT PLANS

Classified By: CHARGE CHRISTOPHER HENZEL FOR REASONS 1.4 B, D.

C O N F I D E N T I A L SECTION 01 OF 02 AMMAN 006975

SIPDIS

E.O. 12958: DECL: 08/29/2015
TAGS: PREL ECON ETRD IZ JO
SUBJECT: JORDANIAN FIRMS TO CODEL HOEKSTRA: STAY THE COURSE
IN IRAQ, CHANGE ECONOMIC DEVELOPMENT PLANS

Classified By: CHARGE CHRISTOPHER HENZEL FOR REASONS 1.4 B, D.


1. (C) SUMMARY: During two informal meetings arranged by
Jordanian businessman Khaled Kanaan, a congressional
delegation led by House Intelligence Committee chairman Peter
Hoekstra heard prominent Jordanian businessmen strongly urge
members of congress to remain engaged in Iraq while
rethinking the means by which USG private sector programs
attempted to provide for Iraq's basic services and
infrastructure. In one meeting attended by Charge, Deputy
Prime Minister Marwan Muasher told Hoekstra that early U.S.
withdrawal from Iraq would be "a catastrophe" for Jordan.
The businessmen supported Kanaan's view that the rules for
private sector participation in Iraq's reconstruction should
be re-written to include "regional" businesses capable of
getting the work done now. END SUMMARY.

Businessman Involved in Iraq: "Change the Bids Process"
-------------- --------------


2. (C) At CODEL's August 21 meeting with Kanaan, CEO and
chairman of Mid Jordan Investments and Resources Company --
which is heavily involved in Iraq-related enterprises --
Kanaan painted a picture of a broken plan to stabilize Iraq
through economic security. (Minister of Health Said Darwazeh
joined the meeting, stating that he owns 12 percent of
Kanaan's company.) Kanaan told the story of a successful
Iraqi lawyer who left Baghdad for Jordan because his family
had no electricity 21-22 hours each day and he could not put
kerosene in his backup generator because he had no gas in his
car to go fetch it. Oil, water and electricity were all
lacking, said Kanaan. Large electric generators were going
off line and even less electricity was getting through to the
people.


3. (C) Kanaan noted that the "process" was to blame and
that prime contractors could not find local Iraqis competent
to do the work, but were not allowed to "go to companies in
the region" to hire those firms that could get the job done.
Kanaan, not shy about promoting his own business, pointed to
the success of his firm, which provides complete services to
U.S. bases in Iraq. More broadly, he said that many

Jordanian firms had long experience in Iraq and could do what
others could not. Kanaan also made a strong pitch for the
USG to fix the "process" related to infrastructure awards for
Iraq's reconstruction. (For example, Kanaan noted that the
currently mandated reconstruction contracts failed to require
a "Method Statement" explaining how a contractor would
complete the task being put out for bid.) He also noted
"security" ate up too much of project budgets, that the time
between winning bids on projects and signing contracts was
too long (two years in the case of a Basra hospital's
refurbishment),and that prime contractors were at times
significantly delaying payments for work performed (out of
incompetence not malice, he noted).

Business Elite, DPM Muasher Add Their Views
--------------


4. (C) Minister of Health Darwazeh, expressing an interest
in widening the CODEL's understanding of Jordanian
perspectives on Iraq, arranged a dinner at his residence with
leading Jordanian businessmen on August 23. Joining him
along with Charge were Deputy Prime Minister Marwan Muasher
and Minister of Labor Basem Al Salem. Included in the group
were the CEOs of four of Jordan's most prominent companies --
Fadi Ghandour of ARAMEX; Mazen Darwazeh of Al Hikma
Pharmaceuticals; Ghassan Nuqul of the Nuqul Group; and Ali
Al-Husri of the Export and Finance Bank. Others included
businessmen having licensing agreements with leading U.S.
movie studios and record labels, or with U.S. alcoholic
beverage firms.


5. (C) Commenting on that day's international media focus
on U.S. opponents to the effort in Iraq, DPM Muasher told
Rep. Hoekstra and Charge that it would be "a catastrophe" if
the U.S. were to significantly scale back its military
presence in Iraq before Iraqi forces were "ready to control
the situation." The CEOs, while critical of the initial U.S.
decision to intervene, agreed with Muasher that an early exit
would spell serious trouble for the region. They again
placed emphasis on fixing the process in Iraq regarding
private sector involvement. Export and Finance Bank CEO Ali
Al-Husri complained that while his bank's investment in a
private bank in Iraq was resulting in more services to the
local business community there, he was facing extreme
difficulty with several Iraqi ministries, which delayed
action unnecessarily. Jordanian businessman Samir Murad said
that corruption was an increasing problem in Iraq.


6. (C) While the businessmen could not agree on a specific
way forward, a number stressed the need to achieve basic
security and economic stability first, before focusing on
political development. Curbing corruption was a top
priority. Some argued that the de-Ba'athification process
had gone on too long, that some former Ba'ath Party members
were not really Saddam supporters, and that these individuals
were now needed to move Iraq's economic development forward.

Unanimity on Staying the Course
--------------


7. (C) The one theme that emerged with a single voice was
the request from this group -- a mixture of East Bankers,
West Bank Palestinians, Christians and Muslims -- that the
U.S. continue its presence in Iraq. Training more Iraqi
soldiers and police in Jordan would help security (as would
bringing back some Ba'athists in the security arena). One or
two expressed disenchantment with an "occupying force" in
Iraq. Nonetheless, none could agree that the hasty pullout
of U.S. or coalition forces was an acceptable alternative at
present.

8. (C) "Jordan has put all of its chips on the table with
the United States," said Minister Darwazeh. The GOJ would
continue to back the U.S., but the U.S. should not withdraw
troops now, he said.


9. (SBU) Khaled Kanann of MJC and his colleague, Donald
Bray, are preparing what they call a "white paper regarding
regional private sector partnerships for progress in Iraq."
We expect this paper, being prepared for submission to other
members of Congress, will flesh out some of the themes raised
at the meeting with CODEL Hoekstra.

COMMENT
--------------


10. (C) Putting aside the obvious self-interest, there may
be one or two constructive points in the germinal stages
among the suggestions and critiques being raised by these
Jordanian businessmen. Post will follow up on the proposed
white paper.


11. (U) CODEL Hoekstra did not have the opportunity to
clear this message.
HENZEL