This record is a partial extract of the original cable. The full text of the original cable is not available.

260826Z Jan 06

UNCLAS SECTION 01 OF 03 AMMAN 000617 
 
SIPDIS 
 
DEPT FOR E AND EB 
STATE PASS TO USAID 
 
E.O. 12958: N/A 
TAGS: ECON EAID EINV JO
SUBJECT:  REPORT ON MENA OECD MEETING 
 
 
¶1. (U) Summary: The Jordan Investment Board hosted a meeting 
January 23 and 24 to plan for the upcoming Ministerial on 
the MENA OECD Investment Program scheduled for February 13 
and 14 at the Dead Sea.  The UK, Japan and U.S. (as primary 
OECD donors) joined OECD and Jordan for the meeting. The 
Ministerial will endorse the results of the first year of 
the program designed to support policy reform to improve the 
climate for investment and private sector development in 
countries in the region.  Among other things, the 
Ministerial will adopt a declaration welcoming the progress 
to date, endorsing common principles and good practices, 
welcoming national action plans, and endorsing the next 
year's program focused on concrete progress on national 
reform agendas. 
 
¶2. (U) The meeting reviewed logistics and preparation of the 
declaration, business participation, media involvement and 
the status of financial support for the program in 06. 
Ministers and/or heads of investment agencies including 
Bahrain, Egypt, Jordan, Algeria, Lebanon, Morocco, Tunisia, 
Saudi Arabia, UAE, Palestinian Authority, Syria, and Oman 
confirmed their participation.  Jordanian Minister for 
Commerce and Industry, Sharif Al Zu'bi told U.S. and OECD 
officials that he will continue his efforts to encourage 
participation by others in the region (e.g., Kuwait, Qatar 
and Oman), and would raise the issue in meetings in the U.S. 
during the King's visit mentioning specifically the 
possibility of raising it in his meeting with Secretary 
Gutierrez.  Among OECD members, minister or senior level 
participation has been confirmed by U.S. (OPIC President 
Mosbacher), Japan, UK, Turkey, Switzerland, and Sweden. 
Participation has also been confirmed by the European 
Commission, World Bank (VP Portman), IMF, PEPMENA, Islamic 
Development Bank, and European Investment Bank. Washington 
is encouraged to request posts in the region assistance to 
support Jordanian efforts to encourage participation by 
other MENA countries.  End Summary. 
 
¶3. (U) Agenda: 
 
Details on the MENA OECD investment program and the 
Ministerial are available on the OECD web site 
(www.oecd.org/mena/investment).  The Ministerial will begin 
with a business forum on the morning of February 13 
including the presentation of a business statement and panel 
discussion on enterprise financing in the MENA region. 
Following lunch will be opening statements by Minister Zu'bi 
of Jordan and UK Minister of Trade and Investment, Ian 
Pearson, as co-chairs of the investment program.  This will 
be followed by four panels on Investment Promotion, tax 
framework for investment, diversification - role of 
financial markets in supporting entrepreneurship.  Dinner 
that night will provide the setting for investor of the year 
awards to one or two firms from individual MENA countries 
based on the criteria of job creation and entrepreneurship. 
 
¶4. (U) King Abdullah is scheduled to address the opening 
session on February 14 along with OECD Secretary General 
Donald Johnston.  This will be followed by statements by 
business representatives, followed by a press break, 
followed in turn by presentation by individual MENA 
ministers of their National reform agendas, and the adoption 
of the Ministerial declaration.  This will be followed by 
closing statements and a press conference and a lunch. 
Attendance by King Abdullah will depend in large part on the 
level of participation by others invited to the Ministerial 
and will not likely be finally determined until shortly 
before the Ministerial.  Present responses are encouraging, 
but Jordan is looking for U.S., Japan and UK assistance in 
encouraging high level participation.  Jordan and OECD will 
provide Department with further details on where assistance 
would be desirable and may approach U.S. posts in MENA 
countries through their own Embassies. 
 
------------------------------------------- 
Ministerial Declaration and other documents 
------------------------------------------- 
 
¶5. (U) The Ministerial Declaration was reviewed at the Amman 
meeting and a revised version will be circulated again to 
participating governments shortly based on comments to date. 
The draft declaration had been reviewed at earlier working 
group and steering group meetings in June and September and 
remained open for further comment.  It is hoped this will be 
the final version before the Ministerial.  However, 
anticipating the possibility of last minute questions, 
arrangements will be made for the possibility that work will 
be needed on February 13 to finalize the declaration by 
representatives of the ministers during the ongoing 
Ministerial.  The portion of the session of the Ministerial 
at which the declaration will be adopted tentatively will be 
closed to the press against the eventuality that an issue 
arises that must be settled by ministers.  However, absent 
such a development, the adoption of the declaration will be 
opened to the press.  In addition, the declaration will not 
be titled as a "Ministerial declaration" rather it will be 
titled as a declaration adopted by the ministerial 
conference to avoid issues arising from the fact that some 
countries will not be represented by Ministers. 
 
¶6. (U) There will also be a concluding statement by the 
chair of the Ministerial that will summarize results.  A 
draft was reviewed at the Amman meeting and it was agreed 
that the draft conclusions would not be shared in advance, 
but would be presented to Ministers at the Ministerial by 
the chair.  A revised draft will be shared shortly by Jordan 
and OECD with the U.S., UK, and Japan.  Other documents 
available to the Ministers will include the recommendations 
of the working groups, stocktaking reports prepared by those 
groups, a progress report on the program, a proposed program 
for 2006, and the business statement.  None of these will be 
approved independently by the ministers, but will be 
addressed instead in the declaration. 
 
----- 
Press 
----- 
 
¶7. (U) OECD has contracted with a media company to provide 
assistance in securing participation by national, regional 
and global media outlets.  Press will be allowed in all 
sessions except the session for the adoption of the 
declaration.  If the declaration is finalized before then 
that session will be open to the press as well.  The 
consultant is preparing a press package that will provide 
basic information on the program and information packaged to 
facilitate reporting in the run-up to the ministerial as 
well on its results afterward.  Facilities will be available 
for private interviews or bilateral meetings during the 
Ministerial.  All documents available to ministers will be 
available to the press.  However, the declaration, 
individual reform agendas, and chairs' conclusion will not 
be available to them until the end of the Ministerial. 
 
---------------------- 
Business Participation 
---------------------- 
 
¶8. (U) The morning of February 13 will be devoted to 
engagement with the business sector and a related panel 
discussion on enterprise financing in the MENA region. 
Shafik Gabr of the Arab Business Council will attend.  John 
Sullivan from CIPE and a number of members of the Business 
and Industry Advisory Committee (BIAC) will also be in 
attendance.  BIAC has been coordinating preparations of a 
business statement to the ministerial.  Jordan is asking 
countries to identify business leaders and associations 
which are interested and should be sent invitations.  MENA 
countries have been asked to nominate one or two business 
firms for the investor of the year awards based on the 
criteria of job creation and entrepreneurship that will be 
presented at a dinner on February 13. 
 
--------------------------------- 
Jordan Reluctant to Give up Chair 
--------------------------------- 
 
¶9. (U) The only mildly discordant note at the meeting was 
the desire of the head of the Jordan Investment Board not to 
give up co-chairmanship of the Program and its Steering 
Group.  Japan gave up its co-chairmanship in favor of UK 
last February.  With changes in the Jordanian government, 
the present team has only been involved for a relatively 
short period of time, although Jordan has co-chaired for the 
last year, so it is easy to understand their desire. But 
from the perspective of other MENA countries and integrity 
of a "regional" program, the change is desirable.  In 
addition, Egypt has been a leader in outlining a pursuing 
its reform agenda.  Although rotation is not a formally 
agreed principle, it is an expectation and Egypt has 
formally expressed interest.  This will need to be worked 
out before the ministerial where the transition would be 
announced. 
 
--------------------------------------------- -- 
Meeting of Development Assistance Organizations 
--------------------------------------------- -- 
 
¶10. (U) On the February 15, Jordan and OECD will host a 
meeting of development assistance organizations to 
facilitate their better understanding of the program and how 
it relates to their own plans and programs for the region. 
Participation will include institutions attending the 
Ministerial (e.g., World Bank, IFC, Islamic Development 
Bank, European Investment Bank) and bilateral assistance 
agencies.  The focus will be how their programs can be 
better coordinated to support common goals.  Some of these 
institutions are already participating at staff level in 
meetings of the steering group and the working groups. 
However, it is hoped that the meeting can result in a more 
strategic view of the potential for their cooperation.  The 
U.S. rep met with Econ section and USAID officials at the 
U.S. Embassy in Jordan to discuss the possibility that they 
can contribute to a better understanding of the 
opportunities by their colleagues at other posts in the 
region to augment efforts in Washington. 
 
--------- 
Financing 
--------- 
 
¶11. (U) OECD stressed that without continuing financing by 
current donors at last year's level, the program will have 
to shut down following the Ministerial.  They have reported 
that Bahrain has confirmed its pledge of 200,000 euros and 
has asked for account information to facilitate the transfer 
of funds.  U.S., UK and Japan reported that they hope to 
continue funding at last year's level although final 
decisions have not yet been made ($500,000 U.S. and 230,000 
and 435,000 euros for Japan and UK respectively).  In 
addition, Saudi Arabia is still expected to contribute 
300,000 euros and Spain, Turkey and Switzerland are also 
expected to contribute 30-50 thousand euros each. However, 
the OECD remains concerned without firm commitments in hand. 
 
HALE