Order Code IB93085
Issue Brief for Congress
Received through the CRS Web
Jordan: U.S. Relations
and Bilateral Issues
Updated July 10, 2002
Alfred B. Prados
Foreign Affairs, Defense, and Trade Division
Congressional Research Service ˜ The Library of Congress

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CONTENTS
SUMMARY
MOST RECENT DEVELOPMENTS
U.S.-Jordanian Relations and the Gulf Crisis
Jordanian Issues of U.S. Interest
Stability of the Regime and Succession
Experiments in Democratic Reform
Reaction to Terrorist Attacks of September 11
Jordan’s Role in the Peace Negotiations
Peace Agreements
Implementation and Normalization
Further Arab-Israeli Negotiations
The West Bank and East Jerusalem
Hamas and Rejectionist Groups
Enforcement of Sanctions Against Iraq
Course of Jordanian-Iraqi Relations
Commercial Ties
Relations with Other Regional States
U.S. Aid Issues
Aid, Funding Levels, and Trade
Previous and Recent Aid
Middle East Peace and Stability Fund
FY2000 Assistance
FY2001 Assistance
FY2002 Assistance
FY2003 Assistance
Wye River Funds
Free Trade Agreement
Debt Relief
Armed Forces Modernization
Military Equipment
The 1996 Drawdown
The F-16 Aircraft Package
Further Requests
Military Cooperation
Alternatives and Implications

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Jordan: U.S. Relations and Bilateral Issues
SUMMARY
The death of King Hussein on February
1996, to forgive Jordan’s $702.3 billion debt
7, 1999, removed a strong U.S. ally and force
to the United States. On October 24, 2000,
for stability; however, most observers believe
the two countries signed a free trade agree-
his son and successor, King Abdullah, will
ment. On July 26, 2001, the Senate Finance
continue the late King’s moderate and pro-
Committee and the House Ways and Means
western policies. In recent years, Jordan has
Committee approved bills (S. 643 and H.R.
taken significant steps toward building demo-
2603) to implement the agreement. The
cratic life. Relatively free elections to the 80-
House approved H.R. 2603 by voice vote on
member parliament were held in 1989 and
July 31, the Senate did likewise on September
1993. Much of the opposition, including the
24, and President Bush signed the bill as P.L.
fundamentalist Islamic Action Group (IAF),
107-43 on September 28.
boycotted the 1997 elections over press re-
strictions and alleged attempts by the govern-
In each of the four fiscal years 1998
ment to by-pass parliament. The IAF did
through 2001, Jordan has received approxi-
participate in municipal elections in July
mately $225 million in annual U.S. assistance.
1999, and parliament has eased restrictions in
The same amounts are contained in H.R.
laws affecting the press.
2506, the Foreign Operations Appropriations
bill for FY2002. The conference report for
Several issues in U.S.-Jordanian relations
H.R. 2506 (H.Rept. 107-345, December 19,
are likely to figure in decisions by Congress
2001) was agreed to by the House and Senate,
and the Administration on future aid to and
respectively, on December 19 and 20, 2001,
cooperation with Jordan. These include the
and signed by the President as P.L. 107-115
stability of the Jordanian regime, democratic
on January 10, 2001. The Administration is
reform under way in Jordan, the role of Jordan
seeking to double U.S. assistance to Jordan in
in the Arab-Israeli peace process, Jordan’s
FY2003 in view of Jordanian support to the
cooler but fluctuating relations with Iraq, and
anti-terrorism campaign. It is also seeking
its relations with other regional states. King
$125 million for Jordan in FY2002 supple-
Abdullah expressed Jordan’s “absolute con-
mental funding to help fund high-priority
demnation” of the September 11 terrorist
requirements resulting from Jordan’s role in
attacks on the United States and was the first
the U.S.-led campaign against terrorism.
Arab head of state to visit President Bush after
the attacks. In December, Jordan sent military
Several alternative scenarios could de-
medical and mine clearing units to Afghani-
velop in Jordan: a continuation of the current
stan to support the U.S.-led campaign against
course toward democracy under the present
terrorism.
regime; a return to a more autocratic political
system; or fundamental changes in the charac-
Economic and military aid levels are
ter or configuration of the Jordanian state.
important factors in the bilateral relationship.
Steady democratic growth under the present
At the President’s request, Congress appropri-
regime would probably offer the best pros-
ated a total of $401 million in three separate
pects of supporting U.S. interests.
appropriation bills, enacted between 1994 and
Congressional Research Service ˜ The Library of Congress

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MOST RECENT DEVELOPMENTS
In its annual budget request, the Bush Administration is seeking to double U.S. aid to
Jordan in FY2003, in view of Jordan’s support for the U.S. campaign against terrorism.
Also, the Administration is seeking $125 million for Jordan under proposed FY2002
supplemental appropriations ($100 million in budget support and $25 million to finance
equipment for border security and special operations forces). The House and Senate passed
respective versions of an FY2002 supplemental appropriations bill (H.R. 4775) on May 25
and June 7, 2002; these versions do not contain specific earmarks for Jordan.
A press release by the Jordanian Embassy in Washington welcomed President Bush’s
speech of June 24 dealing with the Israeli-Palestinian conflict but did not specifically
mention the President’s call for a new Palestinian leadership. Following press reports in
early July that U.S. military planners are considering use of bases in Jordan to launch
military operations against Iraq, Jordanian officials on July 8 and 9 denied that Jordan
would be used as a launching pad for such operations. A U.S. official declined to discuss
U.S. war planning.
U.S.-Jordanian Relations and the Gulf Crisis
Although the United States and Jordan have never been linked by a formal treaty, they
have cooperated on a number of regional and international issues over the years. Several
factors have contributed toward U.S. interest in Jordan. First, throughout much of its history,
Jordan has been a pro-Western, modernizing country that has adopted moderate policies on
most regional issues. Second, the country’s stable political leadership and talented
population have given Jordan considerable importance in the Middle East political scene.
Third, Jordan has made significant contributions to regional stability and economic
development in the Persian Gulf area; during the 1970s and 1980s, Jordan provided the
small, oil-rich but newly independent Gulf states with military advisors, instructors,
engineers, skilled workers, and technical specialists. Fourth, because of its large Palestinian
population, its former role on the West Bank, and its extended border with Israel and the
occupied territories, Jordan is pivotal in the search for a solution to the Arab-Israeli conflict.
U.S. support has helped Jordan deal with serious vulnerabilities, both internal and
external. Jordan’s small size and lack of major economic resources have made it dependent
on aid from Western and friendly Arab sources. Jordan’s geographic position, wedged
between Israel, Syria, Iraq, and Saudi Arabia, has made it vulnerable to the strategic designs
of its more powerful neighbors, but has also given Jordan an important role as a buffer
between these potential adversaries. In 1990, Jordan’s unwillingness to join the allied
coalition against Iraq disrupted its relations with the United States and the Persian Gulf
states; however, relations improved after Jordan joined the Arab-Israeli peace process in late
1991 and, somewhat later, began to distance itself from Iraq.
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Jordanian Issues of U.S. Interest
Stability of the Regime and Succession
Throughout his 46-year reign, the
Jordan in Brief
late King Hussein was the dominant
figure in the Jordanian political scene
Population (July 2001): 5,153,378
and enjoyed a high degree of
growth rate 3.0%
legitimacy as head of a prestigious
Area: 89,213 sq km (34,445 sq mi, slightly smaller
dynasty, the loyalty of the armed
than Indiana)
Ethnic Groups: Arabs 98%
forces, and widespread respect as a
Circassians 1%
strong and energetic leader with
Armenians 1%
extensive experience in governing his
Religion: Sunni Muslim 92%; Christian 6%; small
country. On January 25, 1999, shortly
Muslim sects 2%
before his death from cancer on
Literacy (1995): 87% (male 93%, female 79%)
February 7, King Hussein designated
GDP (2001): $8.7 billion; real growth 3.5-4.0%
his eldest son Abdullah as Crown
Inflation (2001): 1.4%
Unemployment (2001): 13.2% (some unofficial
Prince and heir apparent. Upon
estimates are twice as high)
succeeding to the throne on February 7,
Armed Forces (2001): personnel 100,240
1999, King Abdullah appointed his
tanks 980
younger half brother, Prince Hamzah,
combat aircraft 101
as the new Crown Prince and heir
Trade Balance (2001): -$2.6 billion
apparent, in accordance with their late
External Debt (2001): $6.7 billion
father’s wishes.
Sources: U.S. Dept. of State; Central Bank of Jordan;
other U.S. and Jordanian government departments.
The King, known as Abdullah II,
attended secondary school in the
United States and has studied at Oxford
University and Georgetown University.
He also attended British military schools and has served in the Jordanian Army since 1984,
most recently as Commander of the Special Operations Command. King Abdullah’s wife,
Queen Rania, comes from a prominent Palestinian family, a fact that may garner additional
support from the Palestinian community. As a military officer who apparently did not expect
to succeed to the throne, King Abdullah was not heavily involved in politics, economics, or
foreign affairs, but had many contacts with military counterparts in Gulf states and other
friendly countries, including the United States. Despite the gap left by the death of King
Hussein, most observers agree that King Abdullah has been successful in consolidating his
rule and has won respect for his hands-on style of governing. (For more background
information, see CRS Report 98-703, Jordan: Succession Issues, by Alfred B. Prados.)
King Abdullah has been keenly interested in boosting Jordan’s economy, which has
been burdened by slow economic growth, declining per capita income, and high levels of
unemployment (see box). The government has recently instituted reform measures, including
reduced customs fees, laws protecting intellectual property, and removal of barriers to
foreign investment, and on April 11, 2000, Jordan became the 136th member of the World
Trade Organization (WTO). On April 15, 2002, Jordan’s Foreign Minister said the
government would impose “minimal” price increases on such staples as bread, barley, bran,
fodder, and diesel, fuel oil, and kerosene in an effort to qualify for an International Monetary
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Fund (IMF) program designed to reduce Jordan’s chronic budget deficits. A two percent
general sales tax was imposed on 87 items, mainly food products, on June 1, thus completing
IMF-directed reforms aimed at increasing domestic revenue.
Experiments in Democratic Reform
Jordan is a constitutional monarchy with a bicameral legislature composed of an elected
80-member lower house and a 40-member appointed upper house. Starting in 1989, the late
King supported a return to limited parliamentary democracy while periodically moving to
curtail dissent when it threatened economic reforms or normalization of relations with Israel.
Jordan held relatively free elections to the lower house of parliament in 1989 and 1993. In
both elections the fundamentalist Islamic Action Front (IAF), which opposed the government
on various issues, emerged as the largest single party, but the King was able to muster
majorities for his domestic and foreign policies. Elections held in November 1997, however,
were boycotted by the IAF and eight smaller nationalist parties, who complained that recent
government decrees had stifled dissent and marginalized the role of parliament.

King Abdullah has taken further measures to open the political system within certain
limits. Despite their boycott of the 1997 parliamentary elections, members of the IAF
decided to participate in municipal elections held in July 1999 to choose 2,530 councillors
for 304 municipalities. Although pro-government candidates won a majority of the seats, the
IAF registered gains, particularly in several larger cities including the capital city of Amman.
In mid-1999, the government proposed amendments to an unpopular press law that had
banned 14 topics including criticism of the royal family or coverage of the armed forces. On
September 6, 1999, Parliament went further and deleted the entire Article 37, which
contained the restrictions. Journalists, however, can still be punished for various violations
under other provisions of the penal code. Moreover on October 9, 2001, with parliament in
recess, the government promulgated an amendment to the press law stipulating closure of
publications that carry “false or libelous information that can undermine national unity or the
country’s reputation.” It also bans articles that incite crimes, strikes, or threats to public
order.
On June 16, 2001, King Abdullah dissolved parliament and approved a new electoral
law on July 23. The new law lowers the voting age from 19 to 18, expands membership in
the lower house of parliament from 80 to 104, and creates new safeguards against ballot
fraud. The law retains a voting system that favors tribal East Bank constituencies over the
largely Palestinian populated cities. On January 14, 2002, the King asked Prime Minister Ali
Abu Raghab to form a new cabinet charged with further economic reforms and with
preparing for elections later in 2002.
Reaction to Terrorist Attacks of September 11
On September 12, King Abdullah wrote President Bush expressing Jordan’s “absolute
condemnation of terrorist aggression against your nation” and assured him that Jordan stands
by the United States against the perpetrators. In an ABC interview, the King said Jordan is
associated with an international network of intelligence organizations to combat terrorism.
King Abdullah was the first Arab head of state to visit President Bush after the attacks, and
at a joint press conference on September 28, he reiterated Jordan’s “full, unequivocal
support” for the United States. President Bush said “the cooperation of our friend, the
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Jordanians, is strong and powerful.” Since then, Jordan has taken several steps to support
the U.S. campaign against terrorism. In December, Jordan sent approximately 200 military
medical personnel to Afghanistan to set up a 50-bed field hospital in the northern city of
Mazar-i-Sharif. As of February 27, 2002, according the State Department, the Jordanian
field hospital had treated 18,364 patients. Also in December, a small team of Jordanian
Army engineers arrived in Afghanistan to help clear a key air base of anti-tank and anti-
personnel mines. In addition, the State Department noted that Jordan has provided basing
and overflight permission for all U.S. and coalition forces.
Over a year before the September attacks, in April 2000, Jordan had charged 28 persons
(13 in absentia) allegedly linked to the exiled Saudi extremist Osama bin Laden with
involvement in a plot to carry out terrorist acts in Jordan. Six of these were sentenced to
death by a military court on September 18, 2000; 16 received varying prison terms (including
two life terms); and six were acquitted. Defense lawyers appealed 10 of the convictions.
One of those convicted in absentia was a U.S. citizen who was subsequently extradited by
Syria to Jordan and is to be retried in accordance with Jordanian law. In later developments,
a Time magazine article of November 18, 2001 reported that Jordan thwarted at least two
attacks planned by agents linked to bin Laden earlier in the year. On June 3, 2002, the
Christian Science Monitor reported that Jordanian authorities had recently arrested 11
suspected terrorists who were allegedly planning attacks on the U.S. and Israeli embassies
in Jordan, along with other Israeli targets on the West Bank. The detainees are said to have
ties to Osama bin Laden’s Al Qaeda organization.
Jordan’s Role in the Peace Negotiations
Peace Agreements. Jordanian-Israeli negotiations have constituted the most
successful phase of the current Arab-Israeli peace process inaugurated during the George H.
W. Bush Administration in late 1991. Negotiations gathered momentum in 1993, with the
signature on September 13 by Jordanian and Israeli representatives of a “common agenda”
for further negotiations with the stated goal of achieving a “just, lasting and comprehensive
peace.” In 1994, Jordan and Israel reached two milestone agreements: a Declaration of
Non-Belligerency signed in Washington on July 25, followed by a full- fledged peace treaty
signed on October 26 at a ceremony on the Israeli-Jordanian border attended by President
Clinton. The peace treaty provides for recognition by each party of the other’s sovereignty,
borders, and political independence; demarcation of borders; full diplomatic relations;
agreement on water sharing; and cooperation in economic, scientific, and cultural fields.
Implementation and Normalization. After the treaty was signed on October 26,
1994, the two countries exchanged ambassadors; Israel returned approximately 131 square
miles of territory near the Rift Valley to Jordan; the Jordanian parliament repealed laws
banning contacts with Israel; and the two countries signed a number of bilateral agreements
between 1994 and 1996 to normalize economic and cultural links. Water sharing, a recurring
problem, was partially resolved in May 1997 when the two countries reached an interim
arrangement under which Israel began pumping 72,000 cubic meters of water to Jordan per
day (equivalent to 26.3 million cubic meters per year–a little over half the target amount
envisioned in an annex to the peace treaty).
An important vehicle for commercial cooperation has been the establishment of
“Qualifying Industrial Zones” (QIZs), under which goods produced with specified levels of
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Jordanian and Israeli input can enter the United States duty free, under the provisions of P.L.
104-234. (This act amended previous legislation so as to grant the President authority to
extend the U.S.-Israel free trade area to cover products from QIZs between Israel and Jordan
or between Israel and Egypt.) Since 1998, the United States has designated ten industrial
parks in Jordan as QIZs. At least four of these are currently operational and, according to
conservative estimates, have created 8,500 jobs and attracted $85 million in foreign direct
investment (some estimates are as high as 24,000 jobs and $186 million).
King Abdullah’s efforts to normalize relations with Israel have faced significant
resistance within Jordan, particularly among Islamic fundamentalist groups, parts of the
Palestinian community, and influential trade and professional organizations representing
some 80,000-100,000 engineers, doctors, lawyers, journalists, and writers. Opponents of
normalization have repeatedly called on Jordanians to boycott contacts with Israel, and
activists among them have compiled two “black lists” of Jordanian individuals and
companies that deal with Israel. In January 2001, Prime Minister Ali Abu Raghab warned
that such lists harm Jordan’s investor-friendly image Police subsequently arrested seven
union leaders on charges of belonging to an illegal organization (apparently, a 24-member
umbrella committee which had been in the forefront of the black list campaign). Among
many mainstream Jordanians, there is some disappointment that peace with Israel has not
brought more tangible economic benefits to them so far.
Further Arab-Israeli Negotiations. Like his father, King Abdullah has tried to help
facilitate Israeli-Palestinian and Israeli-Syrian negotiations. Jordan, like Egypt, has resisted
pressures from some Arab states to sever relations with Israel since the outbreak of Israeli-
Palestinian clashes in September 2000, but the Jordanian government has deferred sending
a new ambassador to Israel, because of what Jordan regards as an excessive Israeli response
to the Palestinian uprising. On May 24, 2001, Jordan’s official news agency announced that
King Abdullah and visiting Palestinian leader Yasir Arafat supported the recommendations
of a fact-finding team led by former U.S. Senator George Mitchell aimed at halting Israeli-
Palestinian strife. At an Arab summit conference on March 27-28, 2002, Jordan backed a
peace initiative by the Crown Prince of Saudi Arabia calling, among other things, for Israeli
withdrawal from territories occupied since 1967, a “just solution to the Palestinian refugees,”
and establishment of normal relations between Arab states and Israel. According to the
press, the Jordanian Prime Minister told attendees at the conference that this initiative
“constitutes a corner-stone of a comprehensive peace in the region.”
Jordanian officials expressed serious concerns over the escalation in Israeli-Palestinian
tensions in March 2002, particularly after a series of Israeli incursions into Palestinian self-
rule areas beginning on March 29. According to the Jordanian press, during the visit of Vice
President Dick Cheney to Jordan on March 13, the King “reiterated the urgent need to
overcome the current Palestinian-Israeli crisis, paving the way for resumption of
negotiations...” During April, King Abdullah and other Jordanian officials urged the United
States and the world community to press for Israel’s withdrawal from the Palestinian self-
rule areas and for termination of the siege imposed by Israeli forces on Arafat at his
headquarters in the West Bank town of Ramallah. On May 8, during a visit to President
Bush, King Abdullah asked for U.S. support in finding a road map “to bring Israelis and
Palestinians the peace that they deserve.” He added in a speech on May 13 that “[o]nly the
United States has the political and moral authority to bring people together to take the risks
that peace requires.”
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In a press release by the Jordanian Embassy in Washington, Jordan welcomed President
Bush’s speech of June 24 dealing with the Israeli-Palestinian conflict. The press release
stated that “[t]he call for a Palestinian state as the outcome of the Palestinian right to freedom
is a needed and welcomed development.” The Jordanian statement did not mention President
Bush’s call for a new Palestinian leadership, and in an interview with a Kuwaiti newspaper
on June 29, King Abdullah said that the future of Palestinian leader Yasir Arafat is an issue
that “no party has the right to decide on except the Palestinian people.” Earlier, however, in
an interview published on June 21, the King expressed doubts that Arafat is still capable of
controlling “Palestinian public sentiment and extremism.”
The West Bank and East Jerusalem. The Jordanian-Israeli peace treaty does not
address the status of the West Bank territory, which was annexed by Jordan in 1950 but
occupied by Israel in 1967, nor does it address the status of East Jerusalem (except as noted
below); both issues are subjects of Israeli-Palestinian rather than Israeli-Jordanian
negotiations. Although King Hussein severed Jordanian ties with the West Bank in 1988,
Jordan remains involved in Palestinian issues for several reasons: Jordan’s large Palestinian
population, its continuing involvement in supporting some West Bank institutions, the
preference on the part of some Israeli leaders for a Jordanian role in a future Palestinian
settlement, and Jordan’s continued role in protecting and maintaining the Islamic holy places
in East Jerusalem. Also, the Jordanian government provides humanitarian, educational, and
social services to Palestinian refugees residing in refugee camps in Jordan, estimated by a
Jordanian official at $400 million in 2001.
Palestinian leaders have taken exception to Article 9 of the 1994 Israeli-Jordanian
treaty, which states that Israel “respects the historical role of the Hashemite Kingdom [of
Jordan] in the mosques of Jerusalem” and “will give high priority to the Jordanian historic
role in these shrines.” Palestinian leader Arafat has asserted that “sovereignty over Jerusalem
and supervision of Jerusalem is for Palestinians.” The late King Hussein has said that Jordan
will continue its role in protecting and maintaining the Islamic holy places in Jerusalem to
assure that there is no vacuum in Muslim control of these sites. On April 23, 2000, King
Abdullah told Israeli television: “I believe that on the political level, Jerusalem has enough
room for a Palestinian and an Israeli capital .... On the religious side, I believe that Jerusalem
should be a city for all of us, an open city.” He commented in an interview on April 11,
2001, that a solution to the Israeli-Palestinian conflict must give Palestinians hope they can
have a state encompassing the West Bank and Gaza with East Jerusalem as its capital. In a
speech to a Washington audience on May 13, 2002, King Abdullah said that under a peace
deal that he envisions, “[t]he Jerusalem question would be answered, by providing for a
shared open city to all faiths.”
Hamas and Rejectionist Groups. According to the U.S. State Department’s most
recent annual report on patterns of global terrorism (April 2001), the Jordanian government
has remained vigilant in opposing terrorism. On August 30, 1999, Jordanian security forces
closed offices used by the fundamentalist Palestinian organization Hamas, which the late
King Hussein had tolerated to some degree, on the grounds that the offices were registered
as businesses but were conducting illegal political activity. In November 1999, authorities
announced that the Hamas offices would be closed permanently. On October 9, 2001, after
the terrorist attacks on the United States, the Jordanian government issued an amendment to
terrorism laws banning any banking operations “linked to terrorism activities”, along with
banning border infiltration and attacks on industry, shipping, telecommunications, and
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computer systems. On April 24, 2002, news articles reported that Jordan had arrested five
members of an illegal Islamic fundamentalist organization known as Tahrir (Liberation),
which has demanded that Jordan send troops to support Palestinians in the West Bank.
Enforcement of Sanctions Against Iraq
Course of Jordanian-Iraqi Relations. Jordan’s earlier ties with Iraq, a major
irritant in U.S.-Jordanian relations, have cooled considerably since the 1990-1991 Gulf crisis
and its immediate aftermath. Since 1994, Jordan has tightened enforcement of U.N.
economic sanctions against Iraq, allowed an Iraqi opposition group to establish an office in
Jordan, and permitted a two-month deployment of U.S. fighter aircraft to Jordan in the spring
of 1996 to train with Jordanian air crews and help enforce a no-fly zone over southern Iraq.
Jordan has also criticized Iraqi government policies including Iraq’s failure to observe the
terms of U.N. Security Council resolutions. Nevertheless, long-standing economic ties and
popular sympathy among many Jordanians for the Iraqi people have combined to prevent a
complete rupture between the two countries, and there have been periodic warming trends
in their bilateral relations.
Jordanian officials have voiced opposition to the use of force against Iraq, and suggested
that lifting sanctions could alleviate suffering by the Iraqi people. In an interview of May 2,
2002, the King said that an attack on Iraq “would be catastrophic throughout the whole of
the Middle East” at a time when emotions are already aroused over the crisis in the West
Bank. Following several press reports in early July that U.S. troops are preparing to conduct
military operations against Iraq from bases or locations in Jordan, the Jordanian Minister of
Information told reporters on July 8, 2002, that “we refuse to be a launching pad or arena for
any act against our brotherly state Iraq or to use our soil and airspace to attain this objective.”
On July 9, The New York Times carried a similar report that U.S. military planners are
considering Jordan as a staging area for air and commando raids on Iraq; however, the same
article quoted the Jordanian Foreign Minister as telling reporters that “Jordan will not be
used as a launching pad, and we do not have any U.S. forces in Jordan.” A U.S. National
Security Council spokesman said the Administration would not comment on war planning.
Commercial Ties. Jordan has continued to import oil from Iraq at discounted prices,
pointing out to the U.N. Sanctions Committee that it has had no other source of affordable
oil since the cessation of Saudi oil shipments in 1990. Sources quote somewhat varying
figures, ranging from 70,000 to 80,000 bpd of crude oil and additional amounts of oil
products (fuel oil, gas oil, lubrication oil), with maximum estimates of 96,000 bpd of crude
oil and oil products combined. During a visit to Iraq by five Jordanian cabinet ministers on
August 24, 2001, Jordan’s Minister of Trade and Industry said work would begin soon on
a 750-kilometer (450-mile) oil pipeline linking Iraq and Jordan. The pipeline, projected to
cost $350 million, could provide an alternative to the currently costly and less efficient oil
shipments by truck. Jordanian and Iraqi representatives reaffirmed their intention to start
building the pipeline during a meeting in December.
On December 23, 2001, the two countries renewed an annual trade accord, under which
Jordan will import approximately four million tons of crude oil and one million tons of oil
products from Iraq during 2002. According to the Jordanian Minister of Energy, the pricing
formula is figured on a base price of $20 per barrel, with a discount of 40% for any increase
in price over $20 (presumably in the event that oil prices go up). In addition, there is a
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special discount for Jordan of $3 per barrel, regardless of the current price of oil. Actual
payments are reportedly made in commodities rather than cash, through shipments of
humanitarian goods from Jordan to Iraq. Under the trade accord, Jordan will export an
estimated $260 million worth of commodities to Iraq during 2002, as compared with $450
million in 2001. According to the Iraqi Trade Minister, this reduction is due to a decline in
oil prices since mid-2001, inasmuch as the value of Jordanian exports to Iraq under the trade
accord is linked to the price of oil. The Iraqi minister pointed out that the projected $260
million in Jordanian exports could increase if oil prices should return to their earlier higher
levels.
Since 1991, annual U.S. foreign assistance appropriations acts have contained
restrictions on U.S. assistance to any country not in compliance with U.N. Security Council
sanctions against Iraq. According to the State Department, the U.N. Sanctions Committee
has “taken note of” Jordan’s imports of Iraqi oil and its lack of economically viable
alternatives. The U.S. Administration has issued annual waivers of the above restrictions on
U.S. assistance to Jordan on grounds of national interest but continues to encourage Jordan
to seek alternative energy sources. (See discussion of U.S. aid to Jordan, below.)
There are conflicting interpretations over whether U.N. Security Council Resolution 760
bans commercial air flights to Iraq, as the United States asserts, or whether it only requires
verification that any cargo carried to or from Iraq contains no forbidden items. Since August
2000, more than ten countries including Jordan have sent flights to Iraq carrying
humanitarian supplies as well as government officials and private sector representatives. On
June 5, 2001, Jordan’s Minister of Industry and Trade told reporters that Royal Jordanian
Airlines will operate regular twice-weekly flights to Baghdad on Tuesdays and Fridays. Then
on August 12, 2001, Jordan’s Transport Minister said these flights would be increased to four
per week starting in September. Meanwhile, on December 4, 2000, the Iraqi Foreign
Minister said Jordan had agreed to return Iraqi airliners impounded in Jordan since the 1990-
1991 Gulf war (reportedly four Boeing 727s and two 707s). Jordanian aviation sources were
unaware of any decision to return the planes to Iraq and expressed doubt that Jordan has the
necessary facilities to conduct needed repairs on the planes. According to a more recent
report carried by the Iraqi News Agency on August 25, 2001, the Iraqi Minister of Transport
asked his Jordanian counterpart to return the Iraqi planes; however, the latter reportedly has
said such a decision would depend on a U.N. Security Council decision.
During February 2001, U.S. officials expressed concern over reports that Jordan and
Iraq have been discussing a possible free trade agreement. In a letter to various Members of
Congress, the Jordanian Ambassador to the United States has said that such an agreement
would be limited to reducing tariffs on commodities permitted by the U.N. Sanctions
Committee and that any expansion of the terms of such a treaty would have to wait until
sanctions were lifted. At a meeting in Washington on June 11, Jordanian business
representatives said commerce conducted under this agreement is conducted under the U.N.-
approved oil-for-food program.
Relations with Other Regional States. Jordan’s somewhat cooler relations with
Iraq have led to a warming trend between Jordan and its former Gulf allies, who had been
alienated by Jordan’s tilt toward Iraq during the 1990-1991 Gulf crisis. An important
milestone was Jordan’s reconciliation with Saudi Arabia, culminating in a visit by King
Hussein to Saudi King Fahd on August 12, 1996. According to Jordanian officials, Saudi
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Arabia is willing to resume oil shipments (which amounted to 40,000 barrels per day before
being cut off in 1990), but at market prices, which would be significantly higher than
discounted prices charged by Iraq. Jordan has reestablished good relations with other Gulf
states, including most recently Kuwait, which agreed to the reopening of the Jordanian
Embassy on March 3, 1999 and to the return of a resident Jordanian Ambassador on August
30, followed with a visit to the Emir of Kuwait by King Abdullah on September 6-7. A
subsequent visit by King Abdullah to Kuwait on May 22, 2001 led to revival of several
Jordanian-Kuwaiti economic accords suspended since 1990.
Another reconciliation took place with Syria, which was frequently at odds with Jordan
in the past. In 1999, the two countries agreed to build a joint dam on the Yarmouk River.
Syria undertook to give Jordan eight million cubic meters of water on a one-time basis to
ease a water shortage in the summer of 1999, followed by 3.5 million cubic meters of water
during the summer of 2000, and additional water again during July and August of 2001.
U.S. Aid Issues
Aid, Funding Levels, and Trade
Previous and Recent Aid. The United States has provided economic and military
aid, respectively to Jordan since 1951 and 1957. Total U.S. aid to Jordan through 1997 is
approximately $3.9 billion, including $2.1 billion in economic aid and $1.8 billion in military
aid. Levels of aid have fluctuated, increasing in response to threats faced by Jordan and
decreasing during periods of political differences or worldwide curbs on aid funding.
U.S. aid to Jordan since 1990 reflects actions taken by the Administration and Congress
during the Persian Gulf crisis of 1990-1991 and subsequent developments in the Arab-Israeli
peace process. Because of Jordanian sympathy for Iraq during the Gulf crisis, Congress
suspended FY1991 aid to Jordan in April 1991 (Section 502, P.L. 102-27). President Bush
exercised waiver authority later in 1991, but the Administration agreed with Congress to
maintain an informal hold on FY1991 and FY1992 funds for Jordan (except for food and
military training) until 1993. The FY1993, aid appropriation acts required the President to
certify that aid to Jordan was in U.S. national interest (FY1993), that Jordan supported the
Arab-Israeli peace process (FY1993), and that Jordan was in compliance with U.N. sanctions
against Iraq, and special congressional notification requirements applied to expenditure of
aid funds for Jordan in FY1994. President Clinton issued the requisite waivers to permit
release of funds for these fiscal years. Stipulations on aid to Jordan in annual appropriations
were removed after Jordan signed a peace treaty with Israel and distanced itself from Iraq.
(As explained above, annual appropriations acts continue to place restrictions on U.S.
assistance to any country not in compliance with U.N. sanctions against Iraq, with provision
for a presidential waiver on grounds of U.S. national interest.) Table 2 on the last page
shows annual aid figures for Jordan, together with pertinent presidential waivers, since 1990.
Middle East Peace and Stability Fund. As part of a 5-year “Middle East Peace
and Stability Fund” announced by the Clinton Administration in June 1997, Egypt and Israel
agreed to the diversion of $50 million from each of their respective aid programs in FY1997
and again in FY1998 to augment economic aid funds available to Jordan. These two
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diversions brought U.S. economic aid for Jordan to $112 million in FY1997 and $150
million in FY1998, and total U.S. aid for Jordan to $152 million and $228 million in FY1997
and FY1998, respectively. (See Table 2.) Funds were not diverted from the Egyptian or
Israeli programs in FY1999; however, according to the State Department, both Egypt and
Israel fully supported continued economic aid to Jordan at the $150 million level, and both
countries have agreed to some phased reductions in their own economic aid programs. In
FY1999, Jordan received $150 million in economic support funds, $45 million in foreign
military financing, and $25 million in drawdown authority from U.S. military stocks.
FY2000 Assistance. The Administration requested $150 million in economic
assistance, $75 million in foreign military financing, and $1.6 million in international
military education and training for Jordan in FY2000. S. 1234, the foreign operations
appropriation bill, contained $150 million in economic assistance and $75 million in military
assistance for Jordan in FY2000. The Senate passed S. 1234 by 97 to 2 (roll call #192) on
June 30, 1999. The House version of the foreign operations appropriation bill (H.R. 2606)
did not contain earmarks for Jordan, but in its report language (H.Rept. 106-254, July 23,
1999), the House Appropriations Committee recommended the same amounts that appeared
in the Senate bill. The House passed H.R. 2606 on August 3, 1999, by 385-35 (roll call
#362. The conference report included the earmarks contained in the Senate bill. On October
18, President Clinton vetoed H.R. 2606 (see below); however, successor bills (H.R. 3196 and
H.R. 3422) contained these funds for Jordan. On November 29, President Clinton signed
H.R. 3194, the Consolidated Appropriations Act for FY2000 (P.L. 106-113), which passed
H.R. 3422 by reference.
FY2001 Assistance. The President has included the following amounts for Jordan
in his FY2001 budget request: $150 million in economic support funds (ESF), $75 million
in foreign military financing (FMF), and $1.7 million in international military education and
training (IMET). The same ESF and FMF amounts for Jordan were included in S. 2522, the
Foreign Operations Appropriation bill for FY2001, which was reported by the Senate
Committee on Appropriations on May 9, 2000. The Senate passed a companion bill, H.R.
4811, on July 18 by unanimous consent, after substituting the text of S. 2522. Meanwhile,
on July 13, the House passed another version of H.R. 4811, which did not contain earmarks
for Jordan, by 239-185 (Roll No. 400); however, in accompanying report language (H.Rept.
106-720, July 10, 2000), the Committee on Appropriations recommended the same amounts
contained in the Senate bill for Jordan. The conference report (H.Rept. 106-997, October 25,
2000), which contained the Senate earmarks for Jordan, was passed by both houses on
October 25 and signed into law by the President as P.L. 106-429 on November 6, 2000.
On November 14, 2000, President Clinton submitted a request to Congress for
supplemental aid to address emergency needs for several Middle Eastern countries. For
Jordan, he requested $50 million in ESF to help compensate for lost tourism and higher oil
prices and $25 million in FMF to promote border security and military modernization. These
funds apparently are in addition to amounts specified in P.L. 106-429, above. The 106th
Congress did not act on this supplemental request.
FY2002 Assistance. The Bush Administration requested $150 million in ESF and
$75 million in FMF, as well as $1.8 million in IMET for Jordan in FY2002. The House
version of the Foreign Operations Appropriations bill for FY2002, H.R. 2506, did not
contain specific allocations for Jordan; however, in report language (H.Rept. 107-142, July
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17, 2001) the House Appropriations Committee expressed “its continued strong support for
Jordan’s constructive and critical role in the region” and recommended the same levels of
ESF and FMF contained in the President’s budget request. The House passed H.R. 2506 on
July 24, 2001, by 381 to 46 (Roll no. 266). The Senate version, passed on October 24, 2001,
by 96 to 2 (Record Vote No. 312), did contain the amounts requested by the President for
Jordan. The conference report (H.Rept. 107-345, December 19, 2001) included the amounts
contained in the Senate version ($150 million in ESF and $75 million in FMF). The House
agreed to the conference report by 357-66 (Roll no. 505) on December 19 and the Senate
agreed to the report by unanimous consent on December 20.
As part of its campaign against terrorism in the aftermath of the September 11 attacks,
the Bush Administration has requested supplemental funding in FY2002 for a number of
countries that are playing a role in supporting the U.S. effort. Under supplemental funds
proposed by the Administration, Jordan would receive an additional $125 million in U.S.
assistance, consisting of $100 million in budget support and $25 million to finance
equipment for border security and special operations forces. Respective versions of a
supplemental bill (H.R. 4775) passed by the House on May 24 and the Senate on June 7 do
not specifically earmark these funds for Jordan; however, both bills provide a $420 million
fund for payments to Jordan, Pakistan, and other cooperating nations for logistical support
provided to U.S. military operations in connection with the war on terrorism.
FY2003 Assistance. The Bush Administration is seeking to double U.S. aid to
Jordan in FY2003, in view of Jordanian support to the campaign against terrorism. The
Administration’s budget request contains a total of $448 million for Jordan in FY2003,
including $250 million in economic assistance and $198 million in military assistance. A
spokesman for the Office of Management and Budget was quoted as saying the increased aid
will be used to improve border controls and interdiction of illegal weapons flow, to support
financial training, trade, and investment, and to strengthen educational opportunities.
Wye River Funds. In addition to these annual aid funds, at the request of the Clinton
Administration, Jordan received $300 million as part of a special package to support the Wye
River agreement, a U.S.-sponsored Israeli-Palestinian agreement that the late King Hussein
had helped negotiate in 1998. Of the $300 million in Wye River funds provided to Jordan,
$100 million ($50 million in ESF and $50 million in FMF) were included in a supplementary
appropriations bill for FY1999 (P.L. 106-31, May 21, 1999). The remaining $200 million
($50 million in ESF and $150 million in FMF) were included in H.R. 3422, the Foreign
Operations Appropriations bill for FY2000, which was passed by reference in the
Consolidated Appropriations Act for FY2000 (P.L. 106-113, November 29, 1999). (See
Table 2.)
Free Trade Agreement. On October 24, 2000, President Clinton and King Abdullah
witnessed the signing of a U.S.-Jordanian Free Trade Agreement, which will eliminate duties
and commercial barriers to bilateral trade in goods and services originating in the two
countries. Earlier, in a report released on September 26, the U.S. International Trade
Commission concluded that a U.S.-Jordan Free Trade Agreement would have no measurable
impact on total U.S. imports or exports, U.S. production, or U.S. employment. Under the
agreement, the two countries agreed to enforce existing laws concerning worker rights and
environmental protection. On January 6, 2001, then President Clinton transmitted to the
107th Congress a proposal to implement the Free Trade Agreement. On July 23, U.S. Trade
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Representative Zoellick and Jordanian Ambassador Marwan Muashir exchanged letters
pledging that the two sides would “make every effort” to resolve disputes without recourse
to sanctions and other formal procedures. These letters were designed to allay concerns on
the part of some Republican Members over the possible use of sanctions to enforce labor and
environmental provisions of the treaty.
Meanwhile, similar bills were introduced in both houses of Congress to implement the
U.S.-Jordanian FTA: S. 643 (Baucus, introduced on March 28, 2001), H.R. 1484 (Levin,
introduced on April 4, 2001), and H.R. 2603 (Thomas, introduced on July 24, 2001). On
July 26, the Senate Finance Committee and the House Ways and Means Committee approved
S. 643 and H.R. 2603, respectively, by voice votes. On July 31, the House passed H.R. 2603
by voice vote, and the Senate passed the bill by voice vote on September 24. President Bush
signed the bill as P.L. 107-43 on September 28, during King Abdullah’s visit to Washington.
For additional information, see CRS Report RL30652, U.S.-Jordan Free Trade Agreement.
Debt Relief
In mid-1994, President Clinton promised King Hussein to seek forgiveness of Jordan’s
debt to the United States, which at the time amounted to $702.3 million (including $309.9
million in military loans). Following the Jordanian-Israeli Declaration of Non-Belligerency
on July 25, 1994, Congress included a subsidy appropriation of $99 million in FY1994
supplemental funds under Title VI of H.R. 4426, the Foreign Operations Act for FY1995,
to forgive approximately $220 million of Jordan’s debt. President Clinton signed H.R. 4426
as P.L. 103-306 on August 24, 1994. The conference report on H.R. 4426 stated that
additional steps by Jordan—a final peace with Israel, abrogation of the Arab boycott, and
compliance with sanctions against Iraq—would be considered in further debt forgiveness.
After Jordan and Israel signed their peace treaty on October 26, 1994, the Administration
moved to accelerate forgiveness of Jordan’s remaining debt, which included the military
loans. After some debate over the amount to be forgiven and the proper legislative vehicle,
Congress included a subsidy of $275 million in a revised supplemental appropriations and
rescissions act (P.L. 104-19, July 27, 1995) to forgive the remainder of approximately $480
million.
On March 6, 1996, however, Administration officials told a congressional
subcommittee that Jordan’s debt had not been fully forgiven, because of changing interest
rates which required a recalculation of the necessary subsidy appropriation. According to
this recalculation, an additional $25 million subsidy (later revised to $27 million) would be
needed to forgive Jordan’s remaining indebtedness of $63 million. In the conference report
on H.R. 3610 (the Omnibus Appropriation bill for FY1997), conferees agreed to include $27
million, to be provided over two years, to fill this shortfall. President Clinton signed the bill
on September 30, 1996, as P.L. 104-208. (The provision is contained in Title II—Bilateral
Economic Assistance, Debt Restructuring.) (Subsidy appropriations and approximate
amounts forgiven are summarized in Table 1, below.) Not covered under the previous debt
forgiveness package are certain loan guarantees, Commodity Credit Corporation loans, and
other special categories estimated at $389 million at the end of 1998. (The Central Bank of
Jordan carries a slightly higher figure of $396.1 million as of 2001.) In seeking U.S. debt
forgiveness, Jordanian officials hoped to obtain a three-fold benefit: to foster popular support
for peace with Israel by creating a climate favorable for foreign investment with
accompanying economic benefits; to demonstrate the credibility of U.S. commitments to
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domestic and regional opponents of the peace process; and to encourage Jordan’s other
international creditors to follow suit in providing debt relief.
Table 1. U.S. Debt Forgiveness for Jordan
($ in millions)
Act
Fiscal Year Funds
Amount of Subsidy
Approximate
Amount Forgiven
P.L. 103-306
1994
99
220
P.L. 104-19
1995
275
419
P.L. 104-208
1997-1998
27*
63
Subsidy split as follows: $15 million in FY1997 funds, $12 million in FY1998 funds.
Though willing to ease payment terms, Jordan’s creditors (other than the United States)
have been largely unwilling to forgive debts, and Jordan’s total indebtedness changed little
between 2000 ($6.76 billion) and 2001 ($6.69 billion). (These figures do not include certain
types of bonds and undisbursed loans.) Among major creditors, Jordan owes $1.56 billion
to Japan, $1.0 billion to the World Bank, and $2.01 billion to three major European
countries: Germany, France, and Britain. Jordan did succeed in easing repayment pressures
by rescheduling $400 million of its debt to Paris Club creditors in 1997 and another $800
million in 1999; as of early 2002, Jordan was seeking to restructure $3.8 billion in external
debt. Earlier, on April 4, 2000, Jordan signed a $123 million aid agreement with the
European Union, of which about two thirds was to be used to alleviate poverty in Jordan’s
burgeoning cities and shanty towns.
Armed Forces Modernization
Military Equipment. A continuing priority on the part of Jordan’s leaders is the
modernization of the armed forces. Though well-trained and disciplined, the Jordan Armed
Forces are outgunned and outnumbered by the armed forces of each of Jordan’s neighbors
and military units face serious equipment shortages. After Jordan began to tighten trade
restrictions against Iraq and moved to sign peace agreements with Israel, the United States
undertook to assist Jordan with a limited program of military modernization designed to
support a lighter, more mobile organization focused primarily on border and internal security,
and followed with a $300 million package announced in 1996.
The 1996 Drawdown. The first component of the package consisted of assorted
ground, naval, and air force equipment: 50 M60A3 tanks (an older model than the M1A2
tanks Jordan was seeking); 18 UH-1H utility helicopters; one C-130H transport aircraft; two
40-foot personnel boats; one 65-foot rescue boat; and assorted vehicles, night vision devices,
radios, ammunition, and support equipment. This equipment is designed to enhance Jordan’s
ability to maintain border security and implement terms of the peace treaty with Israel. To
fund this equipment, the Administration used a special one-time authority granted in Section
572 of the FY1996 Foreign Assistance Operations Act (P.L. 104-107, February 12, 1996) to
provide Jordan with up to $100 million in military equipment from U.S. stocks. This
measure, known as a “drawdown,” represents a special one-time drawdown authority over
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and above the provisions of Section 506 of the Foreign Assistance Act of 1961, which sets
a worldwide ceiling of $75 million for such drawdowns in any one fiscal year. This
equipment was delivered in late 1996 and early 1997. Subsequent $25 million drawdowns
were included in appropriation acts for FY1998 and FY1999, as noted in Table 2.
The F-16 Aircraft Package. The second component consisted of 12 F-16A and 4
F-16B fighter aircraft then in storage. The F-16As were leased to Jordan at no cost, because
they had exceeded 75% of their service life; the F-16Bs were leased at a low cost ($7
million). In addition to the lease, ancillary costs (preparation, engine and structural upgrades,
supporting equipment, spares, and services) resulted in a total cost to the United States of
$200 million (later revised to $220 million). Jordan agreed to cover an additional $80
million in construction of needed airfield facilities from its own funds. Deliveries of the F-
16s were completed in early 1998. At the time of the agreement, title to the aircraft was
expected to pass to Jordan after five years, and on May 1, 2000, the U.S. Defense Department
notified the House International Relations Committee that it was proceeding with the planned
transfer of title.
The Administration used Jordan’s $30 million FMF allocations in FY1996 and FY1997
and allocations of $45 million in both FY1998 and FY1999 to finance $150 million of the
$220 million F-16 package. The FY1996 omnibus continuing appropriation bill (P.L.
104-134, April 26, 1996) contained $70 million in additional foreign military financing funds
for Jordan, to cover the balance and to enable the Administration to obligate sufficient funds
to begin deliveries on schedule. (For more information, see CRS Report 96-309, Jordan:
U.S. Military Assistance and Cooperation.) Some of the $25 million drawdown authorized
in FY1998 funds, according to press reports, is buying AIM-9 Sidewinder air-to-air missiles,
anti-radar AIM-7M Sparrow missiles to equip the F-16s delivered to Jordan, and vehicles
equipped with TOW antitank missiles.
Further Requests. In his request for supplemental funding for Jordan and other
Middle East countries in FY2001, President Clinton noted that the military assistance portion
of the package would be used to upgrade armored personnel carriers, air defense radar, and
other systems in Jordanian Armed Forces inventories. Jordanian Armed Forces leaders are
hoping ultimately continue modernizing their tank fleet and to obtain three or four more
squadrons of F-16 fighters (70-80 planes), enabling them to replace older model French
Mirage F-1 and U.S. F-5 fighters. Under a March 1999 agreement, Jordan is receiving a total
of 288 Challenger-1 tanks (which mount a 120-mm gun) from Britain; deliveries are nearing
completion.
Military Cooperation. A U.S.-Jordanian Joint Military Commission has functioned
since 1974. Combined training exercises by U.S. and Jordanian military units continue to
take place in Jordan, at least on an annual basis and sometimes more often. These have
included fairly large scale training activities involving special forces, air defense,
communications, fighter aircraft, and other military units, together with an annual month-
long exercise with U.S. Navy and Marine units called “Infinite Moonlight.” In mid-1996,
U.S. fighter aircraft deployed to Jordan to conduct combined training with Jordanian crews
and to assist in enforcing a no-fly zone over southern Iraq imposed by the United States and
its allies in 1992. (Jordanian pilots and aircraft did not actually participate in overflights of
Iraq, and U.S. aircraft overflying Iraq approached indirectly through the airspace of a third
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country.) Jordan has been active in supporting peacekeeping operations, notably in East
Timor, Sierra Leone, Kosovo, and, most recently, Afghanistan.
Under the provisions of Section 517 of the Foreign Assistance Act of 1961 as amended,
President Clinton designated Jordan as a major non-NATO ally of the United States,
effective on November 13, 1996. According to a State Department spokesman, this status
“makes Jordan eligible for priority consideration for transfer of excess defense articles, the
use of already appropriated military assistance funds for procurement through commercial
leases, the stockpiling of U.S. military material, and the purchase of depleted uranium
munitions.”
Alternatives and Implications
In the aftermath of the Gulf war and the peace treaty with Israel, several alternative
scenarios could develop in Jordan. The first would be continued movement toward
democracy under the present regime. There is much evidence that the late King favored this
course, and some speculate that his U.S. and British trained successor will do likewise. The
political experience since the parliamentary elections of 1989 and 1993 has been generally
positive, although the 1997 elections were marred by a boycott by much of the opposition.
During his reign, King Hussein succeeded in opening the political system to a wide spectrum
of Jordanian opinion while restraining extreme steps by the religious right or the nationalist
left. Externally, Jordan has survived major diplomatic isolation and economic loss brought
on by the Gulf crisis, and conditions have improved on both fronts. The process of
normalizing relations with Israel and fluctuating relations with Iraq will continue to confront
the King with sensitive decisions, in seeking to accommodate opposition groups within the
Jordanian political system.
Under a second scenario, Jordan might return to a more restrictive political system. In
addition to his commitment to fostering democracy, the late King was long dedicated to
preserving the basic integrity and institutional character of the state that his grandfather built.
On at least two occasions — when threatened by a radical nationalist coup d’etat in 1957 and
by a potential takeover of the country by armed Palestinian guerrillas in 1970 — the late
King, backed by the armed forces, moved decisively to reestablish order at the expense of
democratic experiments previously under way. It is arguable that the country’s institutions
today are stronger, more durable, and more able to absorb political pressures than they were
in 1957 or 1970 and that the current situation is far less threatening. On the other hand, the
combination of domestic economic hardships, an uncertain peace process opposed by many
Jordanians, and a strong and aggressive Islamist movement could create new challenges that
the new King might feel compelled to preempt through returning to a more autocratic system
of government.
A third scenario would involve a fundamental change in the character of the Jordanian
state. This could come about in a number of ways: emergence of a strongly Islamist
government that would exclude other groups from participation in national political life; a
close alliance with a neighboring patron (Iraq or Syria) that would exert control over
Jordanian policies; disappearance of the monarchy; or replacement of the present Jordanian
state with a Palestinian entity. These developments, though not likely in the short term,
could become more plausible if the country’s governmental, economic, and military
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institutions should suffer serious erosion. Radical changes in the character or configuration
of Jordan would be of concern to U.S. policy makers. Almost any successor to the Jordanian
state as it is now constituted would present the United States and its allies with a less stable
and more threatening regional environment.
Table 2. Annual U.S. Aid to Jordan since the Gulf Crisis
($ in millions)
Economic Assistance
Military Assistance
Fiscal Year
(FY)
EconSpt
Food
Devel
PeaceCp
FMF*
IMET**
Totals
1991
35.0a
0
0
0
20.0a
1.3
56.30
1992
30.0b
20.0
0
0
20.0b
.6
70.60
1993c
5.0
30.0
0
0
9.0
.5
44.50
1994d
9.0
15.0
4.0
0
9.0
.8
37.80
1995
7.2
15.0
6.7
0
7.3
1.0
37.20
1996
7.2
21.0
7.9
0
200.0e
1.2
237.30
1997f
112.2
2.6
4.5
1.1
30.0
1.7
152.10
1998f
150.0
0
0
1.2
75.0g
1.6
227.80
1999
150.0
0
0
1.4
70.0g
1.6
223.00
1999 (Wye)
50.0
0
0
0
50.0
0
100.00
2000
150.0
0
0
1.7
75.0
1.6
228.30
2000 (Wye)
50.0
0
0
0
150.0
0
200.00h
2001
150.0
0
0
1.7
75.0
1.7
228.40
2002
150.0
0
0
1.4
75.0
1.8
228.20
2003I
250.0
0
0
***
198.0
***
448.00
*Foreign Military Financing
**International Military Education and Training Program
***To be determined
a. Suspended in April 1991 under P.L. 102-27; released in early 1993.
b. Released in late July 1993.
c. Restrictions on FY1993 funds waived by Presidential Determination (PD) 93-39, Sept. 17, 1993.
d. FY1994 funds released by PD 94-11, Jan. 13, 1994, waiving restrictions under P.L. 103-87.
e. Three components: $30 million (Administration’s original request); $70 million in additional FMF under
FY1996 appropriation (P.L. 104-134) to cover balance of F-16 aircraft package; and $100 million in
special drawdown authority (P.L. 104-107).
f. These figures include $100 million in economic assistance under the President’s Middle East Peace and
Stability Fund ($100 million in FY1997, $116 million in FY1998).
g. For each of these two years, FMF figure includes $25 million in drawdown authority.
h. Some of these funds to be obligated in later years (FY2001or 2002).
i. Administration’s request for FY2003.
Note: These figures do not include debt relief subsidy appropriations listed in Table 1 or small amounts for
de-mining assistance. Nor do they include supplemental funding requested by the Clinton Administration in
FY2001 (never acted upon by Congress) or supplemental funding requested by the Bush Administration in
FY2002.
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