CANADA REMAINS COOL TO JORDAN,S REQUEST TO RAISE

UNCLAS OTTAWA 002673 SIPDIS SENSITIVE E.O. 12958: N/A TAGS: EFIN KTIA CA JA GM SUBJECT: CANADA REMAINS COOL TO JORDAN,S REQUEST TO RAISE ITS PARIS CLUB DEBT SWAP CEILING TO 50 PERCENT FROM 30 PERCENT REF: SECSTATE 163071 ¶1. (SBU) Finance Canada tells us that the GOC believes Jordan benefitted from exit treatment (that is, it was not expected back at the Paris Club) and does not need more debt assistance. On debt swaps more generaly, Finance officials are concerned that swaps are often used for trade distortion and, at the last G-7 meeting, asked for a methodology discussion on use of debt swaps. They have not heard that there is any momentum within the G-7 for such discussion. ¶2. (SBU) Finance has not given recent full consideration to the specific case of Jordan's request for an increase in its debt swap ceiling. They asked if the USG plans to raise the issue at the next Paris Club meeting, noting that it is not on the agenda. Visit Canada's Classified Web Site at http://www.state.sgov.gov/p/wha/ottawa WILKINS