Identifier
Created
Classification
Origin
06DAMASCUS844
2006-03-01 12:32:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Damascus
Cable title:
FACTS ON US BUSINESS ACTIVITY IN SYRIA
how-toVZCZCXRO3277 OO RUEHBC RUEHDE RUEHKUK RUEHMOS DE RUEHDM #0844 0601232 ZNR UUUUU ZZH O 011232Z MAR 06 FM AMEMBASSY DAMASCUS TO RUEHC/SECSTATE WASHDC IMMEDIATE 7391 INFO RUEHEE/ARAB LEAGUE COLLECTIVE PRIORITY RUEHTV/AMEMBASSY TEL AVIV PRIORITY 0822 RUEHC/SECSTATE WASHDC PRIORITY 7392 RHEHNSC/NSC WASHDC PRIORITY RUMICEA/USCENTCOM INTEL CEN MACDILL AFB FL PRIORITY RUEATRS/DEPT OF TREASURY WASHDC PRIORITY RHEHAAA/WHITE HOUSE WASHDC PRIORITY RUCNDT/USMISSION USUN NEW YORK PRIORITY 0067
UNCLAS DAMASCUS 000844
SIPDIS
SENSITIVE
SIPDIS
DEPT PLEASE PASS TO EU MEMBER STATES COLLECTIVE IMMEDIATE
NEA/ELA
NSC FOR ABRAMS/DORAN/SINGH
TREASURY FOR GLASER/LEBENSON
EB/ESC/TFS FOR SALOOM
E.O. 12958: N/A
TAGS: ECON EFIN EINV SY
SUBJECT: FACTS ON US BUSINESS ACTIVITY IN SYRIA
REF: A. LONDON 1459
B. DAMASCUS 641
C. DAMASCUS 196
UNCLAS DAMASCUS 000844
SIPDIS
SENSITIVE
SIPDIS
DEPT PLEASE PASS TO EU MEMBER STATES COLLECTIVE IMMEDIATE
NEA/ELA
NSC FOR ABRAMS/DORAN/SINGH
TREASURY FOR GLASER/LEBENSON
EB/ESC/TFS FOR SALOOM
E.O. 12958: N/A
TAGS: ECON EFIN EINV SY
SUBJECT: FACTS ON US BUSINESS ACTIVITY IN SYRIA
REF: A. LONDON 1459
B. DAMASCUS 641
C. DAMASCUS 196
1. (SBU) The following information is offered for EU posts,
consideration and reference when discussing aligning EU and
USG policy vis--vis the SARG (ref A). Two discrepancies
between USG and EU economic policy are apparent from
Damascus: EU missions continue to promote business investment
in Syria, including visits by trade missions from EU memeber
states, and development assistance continues to flow from
Europe. Though the EIB loans arguably have the highest
profile, EU member states also have on-going bilateral
development assistance programs with the SARG. This is in
contrast to USAID, which closed its mission in Syria in 1983
following Syria's designation as a state sponsor of terrorism.
2. (U) Unlike governments of EU countries, the USG does not
promote US business activity in Syria. We do, in fact,
discourage US companies that consult with us from investing
in Syria at this time. In spite of this, the SARG has been
using its control of domestic media to imply there is
significant new American business interest in Syria. While
this is not/not the case, it is part of a larger campaign the
Syrian regime has been pursuing to hype foreign direct
investment to reassure a worried public and subvert its
international political isolation (ref B).
3. (U) Though a ban on all US business activity is one of
the six options available to President Bush under the Syria
Accountability and Lebanese Sovereignty Restoration Act,
which he signed into law in May 2004, it has not yet been
implemented. In spite of that, most US companies have either
divested or are in the process of divesting their business
interests in Syria (ref C). We are not aware of any large US
companies that are either pursuing existing business
enterprises or exploring new opportunities in Syria. The
only US companies we are aware of that are still pursuing
business in Syria are either small companies privately owned
by Syrian-Americans or small independent oil companies. US
exports to Syria are banned, with the exception of food and
medecine, but Exxon-Mobil and ConocoPhillips both have
contracts to import oil from Syria. US imports from Syria
did increase by roughly 20 percent last year (to USD 324
million total in imports),which could be largely
attributable to the increased price of oil.
SECHE
SIPDIS
SENSITIVE
SIPDIS
DEPT PLEASE PASS TO EU MEMBER STATES COLLECTIVE IMMEDIATE
NEA/ELA
NSC FOR ABRAMS/DORAN/SINGH
TREASURY FOR GLASER/LEBENSON
EB/ESC/TFS FOR SALOOM
E.O. 12958: N/A
TAGS: ECON EFIN EINV SY
SUBJECT: FACTS ON US BUSINESS ACTIVITY IN SYRIA
REF: A. LONDON 1459
B. DAMASCUS 641
C. DAMASCUS 196
1. (SBU) The following information is offered for EU posts,
consideration and reference when discussing aligning EU and
USG policy vis--vis the SARG (ref A). Two discrepancies
between USG and EU economic policy are apparent from
Damascus: EU missions continue to promote business investment
in Syria, including visits by trade missions from EU memeber
states, and development assistance continues to flow from
Europe. Though the EIB loans arguably have the highest
profile, EU member states also have on-going bilateral
development assistance programs with the SARG. This is in
contrast to USAID, which closed its mission in Syria in 1983
following Syria's designation as a state sponsor of terrorism.
2. (U) Unlike governments of EU countries, the USG does not
promote US business activity in Syria. We do, in fact,
discourage US companies that consult with us from investing
in Syria at this time. In spite of this, the SARG has been
using its control of domestic media to imply there is
significant new American business interest in Syria. While
this is not/not the case, it is part of a larger campaign the
Syrian regime has been pursuing to hype foreign direct
investment to reassure a worried public and subvert its
international political isolation (ref B).
3. (U) Though a ban on all US business activity is one of
the six options available to President Bush under the Syria
Accountability and Lebanese Sovereignty Restoration Act,
which he signed into law in May 2004, it has not yet been
implemented. In spite of that, most US companies have either
divested or are in the process of divesting their business
interests in Syria (ref C). We are not aware of any large US
companies that are either pursuing existing business
enterprises or exploring new opportunities in Syria. The
only US companies we are aware of that are still pursuing
business in Syria are either small companies privately owned
by Syrian-Americans or small independent oil companies. US
exports to Syria are banned, with the exception of food and
medecine, but Exxon-Mobil and ConocoPhillips both have
contracts to import oil from Syria. US imports from Syria
did increase by roughly 20 percent last year (to USD 324
million total in imports),which could be largely
attributable to the increased price of oil.
SECHE