Identifier
Created
Classification
Origin
05DAMASCUS6439
2005-12-12 11:38:00
CONFIDENTIAL
Embassy Damascus
Cable title:  

THE SARG PRESENTS ITS DEVELOPMENT PLAN TO THE

Tags:  EAID ECON EFIN EINV SY 
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VZCZCXRO1640
OO RUEHBC RUEHDE RUEHKUK RUEHMOS
DE RUEHDM #6439/02 3461138
ZNY CCCCC ZZH
O 121138Z DEC 05
FM AMEMBASSY DAMASCUS
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6074
INFO RUEHEE/ARAB LEAGUE COLLECTIVE PRIORITY
RUEHTV/AMEMBASSY TEL AVIV PRIORITY 0631
RUCNDT/USMISSION USUN NEW YORK PRIORITY 0047
RHEHAAA/WHITE HOUSE WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RHMFISS/HQ USCENTCOM MACDILL AFB FL PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
C O N F I D E N T I A L SECTION 02 OF 02 DAMASCUS 006439

SIPDIS

SIPDIS

NEA/ELA
NSC FOR ABRAMS/DORAN
TREASURY FOR GLASER/LEBENSON
EB/ESC/TFS FOR SALOOM

E.O. 12958: DECL: 12/11/2015
TAGS: EAID ECON EFIN EINV SY
SUBJECT: THE SARG PRESENTS ITS DEVELOPMENT PLAN TO THE
DONOR COMMUNITY


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DAMASCUS 00006439 002 OF 002


the control of the government bureaucracy.


6. (C) Comment. Though the SARG,s initiative to consult
with the donor community is a positive step, the plan itself
lacks detail and it remains doubtful that the reformers have
a real mandate. Unfortunately, the SARG is still unable to
discuss publicly its largest economic challenges ) subsidies
that consume nearly 50 percent of its published budget, and
privatization of the cash hemorrhaging state-owned
enterprises. Ultimately, the SARG will have to face the
reality that Husrieh alluded to ) implementing its
development plan would cause its corrupt classes to lose
their stranglehold on economic activity, formalize economic
decision-making, and remove the security services from their
current role of implementing the anonymous economic policy
vetoes of regime insiders. The reformers have yet to prevail
in a confrontation with either group.
SECHE

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