GOJ SAYS KUWAITI AND EMIRATI CASH GRANTS ALREADY

C O N F I D E N T I A L AMMAN 000009

SIPDIS

E.O. 12958: DECL: 01/02/2015
TAGS: PREL EAID EPET EFIN ENRG JO
SUBJECT: GOJ SAYS KUWAITI AND EMIRATI CASH GRANTS ALREADY
EXPIRED; SAUDI CRUDE GRANT WILL EXPIRE APRIL 2005 AS
REPORTED

REF: 2004 STATE 275413

Classified By: Charge d'Affaires David Hale for reason 1.4 (b,d)


1. (C) Finance Minister Abu Hammour, in a January 3
conversation, reconfirmed to Charge that Jordan's arrangement
to receive 50,000 barrels per day in crude from Saudi Arabia
is currently scheduled to conclude at the end of April 2005.
Abu Hammour also confirmed that the Kuwaiti and Emirati
pledges had expired. (NOTE: The Kuwaiti cash pledge was for
one year, beginning in March 2003, and the Emirati cash
pledge was for nine months, beginning in March 2003.) The
GOJ has therefore requested U.S. assistance in interceding
with Saudi Arabia to extend its grant of crude oil. The USG
intercession with the governments of Kuwait and the UAE, on
the other hand, would aim at prompting these governments to
make new pledges of assistance to Jordan.


2. (C) According to Finance Ministry figures received on
December 30, Jordan received JD 49.6 million ($70 million)
from the UAE in cash during 2003 - post estimates this figure
would be close to full payment of the UAE's pledge of the
cash equivalent of nine months of crude at 25,000 bpd. Also
according to these figures, Kuwait paid to the GOJ cash in
the amount of JD 60.3 million ($85 million) in 2004. This
contribution, in addition to the Kuwaitis' JD 18.5 million
($26 million) to Jordan in 2003, would be roughly equivalent
to full payment of its pledge of 25,000 bpd for one year.
HALE