Posted on 05/12/2003 7:15:09 PM PDT by Prodigal Son
Washington will give Jordan $700 million to compensate its ally for losses caused by the war in neighbouring Iraq, Jordanian officials said yesterday.
They said US Secretary of State Colin Powell, expected later yesterday in Amman on the third leg of a Middle East tour, would sign a document transferring the funds in a ceremony today before heading to Saudi Arabia.
"This aid is a sign of appreciation for our role and to minimise the impact of the Iraq war on the Jordanian economy," said one official.
The kingdom estimates the war in Iraq cost its aid-dependent economy millions of dollars as a result of lost business opportunities and the halt of cheap Iraqi oil supplies after the conflict began in March.
Jordan discreetly helped to facilitate the US-led campaign to overthrow former Iraqi President Saddam Hussein. King Abdullah distanced himself publicly from the war under strong domestic pressure while allowing US special forces crucial access to western Iraq from Jordanian soil.
The $700 million tranche is part of a $1.1 billion aid package to the kingdom that includes $400m in military aid. This is in addition to $450m given annually by Washington to Amman.
Jordan's deal is part of a $8bn supplemental aid package to reward regional allies including Egypt, Afghanistan, Israel and Pakistan.
With US lobbying, Jordan has secured three months of free oil from Saudi Arabia, Kuwait and the UAE to make up for lost Iraqi supplies.
Powell will also seal a long-delayed bilateral investment treaty held up since 1997 which officials and businessmen hope will boost growing US direct investment.
The treaty affords better protection to US firms operating in Jordan and encourages investment in industrial parks that export duty free to the lucrative US market.
Jordon is a poor country with few natural assets, but they have signed a peace agreement with Israel and have lived relatively peacefully with them for years up until the terrorists started infiltrating the country.
Perhaps to drop charges against Chalabi
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