Cablegate: Jordan Appreciates U.S. Position On Debt Buyback;

VZCZCXYZ0001
OO RUEHWEB

DE RUEHAM #4205 2900914
ZNR UUUUU ZZH
O 170914Z OCT 07
FM AMEMBASSY AMMAN
TO RUEHC/SECSTATE WASHDC IMMEDIATE 0601
INFO RUEHFR/AMEMBASSY PARIS IMMEDIATE 1464
RUEHKO/AMEMBASSY TOKYO IMMEDIATE 0254
RUEHRL/AMEMBASSY BERLIN IMMEDIATE 0327
RUEATRS/DEPT OF TREASURY WASHDC IMMEDIATE

UNCLAS AMMAN 004205

SIPDIS

SENSITIVE
SIPDIS

DEPT FOR NEA, NEA/ELA, AND EEB

E.O. 12958: N/A
TAGS: EFIN ECON PREL JO
SUBJECT: JORDAN APPRECIATES U.S. POSITION ON DEBT BUYBACK;
AMBASSADOR ENCOURAGES REALISTIC PARIS CLUB APPROACH

REF: A. TOKYO 4827

B. STATE 144375
C. STATE 144451

Sensitive but unclassified. Not for internet distribution.

1. (SBU) Ambassador delivered on October 16 ref C demarche
on the U.S. decision to support Jordan's debt buyback
proposal in the Paris Club to Bassem Awadallah, the King's
Office Director, by phone (Awadallah was in Paris).
Awadallah responded that the GOJ was appreciative of U.S.
support and fully understood that any discount would be
covered out of Economic Support Funds, subject to
congressional notification and approval. Awadallah further
appreciated U.S. willingness to approach Japan (ref B).

2. (SBU) In a subsequent phone conversation early on October
17, Ambassador reasserted to Awadallah the need for Jordan to
take a realistic approach in Paris Club negotiations and not
risk securing broad participation in the buyback operation by
pursuing an unattainable discount. Awadallah commented that
Jordan still intended to seek a 10% discount and that Germany
indicated it would participate "with France and the U.S." at
that rate.

3. (SBU) Ambassador again emphasized Jordan should not over
reach, and noted market dynamics that were leading Paris Club
experts to lower their recommendation of an appropriate rate
for Jordan. Awadallah noted added that the Jordanian
Ambassador in Tokyo reported late October 16 that the
Japanese government found the situation "awkward" and was
exploring ways to be flexible.

Visit Amman's Classified Web Site at
http://www.state.sgov.gov/p/nea/amman
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