The Middle East: An Energy Conflict

The hidden conflict between Syria and Lebanon | The role of Jordan in the reconvertion of Middle East | Turkey and Israel strategic alliance

The role of Jordan in the reconvertion of Middle East

The last report that was analyzing how the facts accounted in Lebanon and Syria in the past months were not casual and are linked with a more complex strategic plan agreed by Israel and United States in order to reconvert the Middle East region from the strategic and economic point of view. The invasion of Iraq was the starting point of that strategy that counted on provoking a chain reaction effect in the neighbouring countries that will allow to follow this new strategic plan based mainly in a document called the *Clean Break Document created in 1996 that is suggesting how can be directed this change in the Middle East with the help of USA efforts, economy and troops. Among the main porpoises described in that document were to assure a new economy in the region controlled by Israel and USA that will debilitate the stronger Arabic’s countries that are playing a decisive role in economical terms mainly in oil industry and it derivates in Middle East. Basically the economical reconvention is focused in controlling the energetic resources in the area and propitiating the creation of a free trade area market based in Free Trade Agreements signed by the allies’ countries and the defeated ones with both US and Israel that will assure the complete control of the Gulf Region and increase the economical power of US in the global economy. [more about that document in the past report The hidden conflict between Syria and Lebanon ]

Talia Delgado
Romania - 23/11/2005
  Most of those point contained in the Clean Break document (CBD) were later on added to the National Security Strategy plan of USA for the year 2002,that propitiate the complete assumption and inclusion in the US Foreign Policy of the key points described on the CBD.

In order to achieve those objectives as the CBD described the first need was to create a risky situation, a threat that will justify and allow a military intervention and destabilization of the area in the traditional distribution of powers. But in parallel were a preparation of strategic alliance with traditionally friend’s countries of both US and Israel. This alliance were based in economic propositions of self-development by aid granted by USA but also as offering part of the benefits on the countries that will be controlled, monetary injections as well as military equipment destined to protect that countries against the possible extension of the conflict. Also this network of alliances will benefit US by propitiating the free use of the allied countries territory to proceed in the invasion or troops positions in order to keep the borders controlled.
In this new report will be analyzed the role of Jordan in the reconvention of Middle East region.

Building and alliance

In the clean break document is a whole chapter [source ], describing the strategic movements required in order to prepare the change in the balance of powers in the Middle East region. First of all was creating strong ties with geographical strategic countries in the area. The two candidates chosen were Turkey and Jordan. The principal argument used to convince them, was not only an important future politic and economic role in the area in case the strategy will succeed but also unconditional economical support and agreements in order to develop their national economies first and after that to be part of the allies side and benefits derivates from defeating the signaled countries that will be invaded and also the possibility to act against historically enemies countries of both of them in this case Syria and Iran.

The three main strategies to put into practice in the region in order to accomplish the porpoises of the US and Israel plan where focused in:
1. Eliminate economically and military the stronger countries in the area, as Syria, Iran and Iraq, by military actions or as strangled their economies and links with the rest of countries in the area creating the isolation of these countries.
2. Create strategic links for the economic and geographic point of view with the countries that in the past has been involved in conflicts with those countries, by supporting their national economies and their military power.
3. Creating friend’s government once those countries will be conquered that will serve to the objectives of a new Middle East map. Mainly this would be achieved by economical aids, support to tribal clans that in a future can be used as destabilization forces in other Arabic countries or as supporters of the plan.

Jordan’s dependency of Oil

Jordan is one of the few countries situated in the Gulf Region that does not have a large number of petrol yields. The energetic necessities of petrol have been covered by exporting from Iraq and Saudi Arabia, (Trans-Arabian Pipeline (Tapline)), both countries took advantages of that situation by increasing the prices of the petrol exported to Jordan and damaging deeply its economy. Especially during the main conflict in the region as Iraq-Iran war and the first Gulf War when the instability in the area cut the transactions and raise the prices in the market and by addition to Jordan.

At the end of 80,s Jordan discover after more that twenty years of searching, three oil wells located in the Wadi al Azraq region west of Amman, but they were not enough to supply all the petrol needed. Later on Jordan also discovered oil from a field near the Iraqi-Saudi Arabian border. During the Iraq-Iran conflict, Jordan tried to negotiate an agreement to build a pipeline that will supply petrol from Iraq to Jordan, this project was the Al-Qaba pipeline but negotiations failed mainly among others due to the Iraq concerns of an Israeli attack to the pipeline. [source A ] [source B ] [source C ] [more information in The hidden conflict between Syria and Lebanon ]

The discovery of that petrol gave hopes of self-sufficiency to Jordan but immediately appears doubts that long term exploitation will be possible. Immediately the Jordanian government tried to look for western companies that could be interested in direct prospecting in the area.

But the difficult economical situation in Jordan is not only coming for the lack of petrol resources. Jordan's distance from other markets makes its exports less competitive outside the region, and political disputes among its traditional trading partners--Iraq, Saudi Arabia, and the Gulf states--frequently restrict regional trade and development Jordan also suffered economic consequences from the 1990-91 Gulf War when the Gulf states decided to limit economic ties with Jordan reducing in that way its, traditional export markets, a secure supply of oil. UN sanctions against Iraq caused harder damages. Finally, absorbing around 300,000 returnees from the Gulf countries increased the unemployment levels of the country.

Jordan’s economical growth as key factor

All this facts together will come to the conclusion that after the recent invasion of Iraq the Jordan economy survives was in danger, but the circumstances are going to an opposite direction. Since 1994 the economy of Jordan has grow really fast and has experimented not only a spectacular recovering but also Jordan has became one of the main exporters of goods in the Middle East region. The question coming is how is possible such a change of position in such a short period of time. The answer is related once more with the Clean Break document and also cannot be taken apart of the global strategy of energy sources control in the Middle East initiated by US after the 11-S.

In the CBD is a clear objective described, to insolate Syria and Iran by using strategic alliance with Jordan and Turkey. The starting point was to take out from power Sadam Hussein, fact that will propitiate the social and political climax needed to go ahead with the rest of the strategy. The procedure suggested regarding the idea to gain Jordan support was "visiting Jordan as the first official state visit, even before a visit to the United States, of the new Netanyahu government; supporting King Hussein by providing him with some tangible security measures to protect his regime against Syrian subversion; encouraging - through influence in the U.S. business community - investment in Jordan to structurally shift Jordan’s economy away from dependence on Iraq"

Following this plan the US Government started to increase since 1997 the economical aids designated to Jordan (significant increase comparing the contribution paid to Jordanians since 1991 as palliative for the damages caused by the Gulf War).This aids were addressed first to military training and equipment and also as monetary injections that will help the Government to rebuild their economy by developing the main industrial sectors needed for fixing the Jordan Economic Situation.

After the signing of the peace treaty with Israel, make a concession of 700 millions dollars in debt relief concept to the Kingdom of Jordan.

In 1997, the American Congress increased aid to Jordan significantly to reach its present levels of $150 million in economic aid and $75 million in military aid.

During 1999/2000, Congress added an additional $200 million in military assistance and $100 million in economic assistance (The U.S. has given Jordan additional assistance in the form of wheat grants since 1999).

During 2003 the US aids to Jordan grows to $300 million under the auspices of the U.S. Agency for International Development (USAID) (200 of that were allocated to economic assistance and 100 to military assistance) [see FY 2003 Foreign Aid Bill ]

As a direct requirement of the president Bush in this year were approved 700$ millions as emergency assistance to Jordan as consequence of the Iraq war over the Jordan economy, this extra amount was in addition of the already calculated prevision of the 300$ millions allocated to Jordan for the Fiscal Year 2003.

In June of last year the US government and Jordan signed and agreement of two grants
Under the first grant agreement, the US government provided $39.58 million to dedicate to water resources management and development. The second grant provided funds of $32.85 millions to support the education, health and governance sectors.

Making and approximate calculation in the last ten years the US economic assistance to the Jordan can be estimated in more then $2.3 billion.

The foreign aid budget is normally including economic and military assistance of US in foreign countries. The increasing of funds for FY 2003 asked for the President Bush was justified as necessary to help Jordan to reinforce it security capacity mainly addressed to increase the border controls in order to avoid any kind of weapons flow including Mass Destruction Weapons and to develop its economy by supporting some financial programs. In the text of the document is encouraging Jordan to continuous reforming its economy and enhancing their security measures especially in the border control. Also is encouraging the Administration to keep assisting Jordan in economic and security areas.

The QIZ and FTA

The pack of economical aid from US to Jordan was completed with several measures, addressed to create the necessary infrastructure to develop the free trade agreements between Jordan and US. In 1996 the US Congress adjudicated the creation of the Qualified Industrial Zones (QIZ), industrial parks in Jordan and Israel from which goods can be exported duty free to the United States. The QIZ initiative's advantage is that it provides duty-free access to the United States market. In addition, there are currently no U.S. import quotas on clothes or textiles manufactured in Jordan.

The United States Government designated ten industrial parks in Jordan as QIZS: the Gateway QIZ on the northern Jordan-Israel border; the Al-Hassan Industrial Estate in Irbid; the Al-Tajamouat Industrial Estate in Amman; the Ad-Dulayl Industrial Park near Zarqa, the Kerak Industrial Estate, Aqaba Industrial Estate, Jordan Cyber City in Irbid, Al-Qastal Industrial Zone in Amman, Mushatta International Complexin Amman, and El-Zai Readywear Manufacturing Co. in Zarqa.

Two more QIZ zones were approved during the Mundial Economic Forum meeting celebrated in the Dead Sea area in 2003.

The reason alleged for the US Government to create these areas was to support the peace process in the Middle East .After the Peace Agreement signed for Israel and Jordan in 1994 was created by US the Enterprises Regional Council which main objective was to propitiate encounters among Jordanian, Israeli and Palestinian entrepreneurs in order to develop future business projects in the area. The idea followed with these meetings where to help to support the peace process and stability in the area by fomenting trade agreements and projects between the communities directly involved in the conflict region.

On this sense the rules applied to acquired the license for a duty free treatment of the goods generating and later exported to US market, established that the product must be a "substantially transformed" good, with at least 35 percent of its value added in Israel, a Jordanian QIZ or the West Bank/Gaza. Of that 35 percent, a minimum of 11.7 percent must be added in a Jordanian QIZ, eight percent in Israel, and the remaining 15.3 percent can come from either from Jordanian QIZ, Israel, the West Bank/Gaza or United States. In order to receive approval, the product should be produced or manufactured in the QIZ, or should be a commercially innovative, or different item as a result of cultivation, production or manufacture in the QIZ Currently, firms qualified in the QIZ are producing garments, luggage and textiles. Some of the industries that have been located in the QIZ in the last period have included computer chip assembly, software development, cosmetics, pharmaceuticals, house wares, and footwear manufacturers. [source A ] [source B ] [source C ]

As a continuation of their economical agreements in 1997 Jordan and United States signed a Treaty concerning the Encouragement and Reciprocal Protection of Investment, the Treaty allows national treatment to investors in the partner countries, ensuring that U.S. companies in Jordan and Jordanian companies in the United States are treated as favorably as their competitors. [source ] [View the U.S - Jordan Bilateral Investment Treaty ]

In 1999 the United States Embassy in Amman published a document called” Jordan’s Commercial Country Guide in which were described the main existing opportunities in the country regarding different areas of exploitation as petrol and natural gas excavations, uranium extractions and the construction of infrastructures such as railways or telecommunications. The document was also making some mentions about the most important and unlimited industrial fields susceptible of American Investments as agro alimentary industries, pharmaceutical products, textiles among others. [U.S. State Department Country Commercial Guide - Jordan ].

A new agreement was signed in the economical field by 2000, the Free Trade Agreement .

The FTA aims at establishing a free trade area between the two countries within period of ten years through liberalizing trade in goods and services, facilitating the movement of products and natural persons. The FTA has as main objective to serve as opportunity to investors from all around the world by free market access for goods, via a progressive elimination of tariffs over period of (10) years. Goods include industrial and agricultural products. The Rules of Origin similar to the ones created for the QIZ has been established in the following terms:

1. 35% Jordanian content + 65% content from any other region
2. 20% Jordanian content + 15% U.S. content + 65% content from any other region Eliminating all barriers affecting market access for services and its providers.

Before the agreement was signed, the US propitiated the inclusion of Jordan in the World Trade Organization (WTO) which bring also to Jordan the possibility to increase their commercial partners as well as bring new investors from other parts of the world to Jordan reinforcing in that way all the already mentioned elements of strong Jordanian economy in the area as well as a leading role in the economy of the Middle East. [Joint Statement on WTO Issues ]

In order to apply effectively all this measures were necessary regarding the internal situation of the enterprises in Jordan, most of the controlled by the State, to carry on a strict program of privatization of the main industrial companies which created as well and open corridor to the foreign investor capital to participate the enterprises.

The effects of the monetary US aids thought different governmental programs and Institutions as well as the economic reform in terms of free trade agreements, Qualified Investment Zones and internal reform had and immediately effect in the growth of the Jordan economy. Since 1999 until 2004 the trade operations among US and Jordan has increased from $US31 million to more than $US 1 billion. Export growth over this time coincides with the establishment of the Qualified Investment Zones.

Military cooperation of Jordan

The support of US government to Jordan was not limited just to the economy. In The aids approved for Jordan since 1991 is a part of the budget allocated to the military equipment but also to a training and cooperation in Intelligence and Military Operations. The Clean Break document is containing in some paragraphs a short reference to this military aid. The paper is making some references before to argument about the important role of the US investors in taking away the dependency of Jordan economy for Iraq and other countries in the region. Concretely is making a mention to the fact of what useful will be to offer, Jordan some military equipments that will allow the country to defend for a possible Syrian attack. Also in this idea is implicit the fact that, a well armed Jordan, will help to the allies troops in case of a future military intervention. On this sense in 2003 Jordan received some more military goods as 16 F-16 jet fighters, troop carriers, attack helicopters and other military gear, such as night vision goggles. Those were delivered to Muafaq al-Salti Air Force Base in Azraq a desert air base at 250 kilometers (155 miles) west of the Iraqi frontier.

Also subjacent is the interest of Israel of having protected the aerial space between Jordan and Israel due to the fact that during the Gulf War in 1991, Iraq launched some Scud missiles to Israel that violated the aerial space of Jordan. So in order to prevent a similar attack is in his own benefit as well to suggest and increase their petitions to US to assure a good military equipment to Jordan (one of the latest petition of Jordan for the 2003 military equipment pack were an anti-missile battery.

Jordan has had close military cooperation with the United States for decades. That includes an active yearly calendar of joint exercises, training of Jordanian army and security personnel and assistance. Annual US economic and military aid to cash-strapped Jordan is expected to grow by US$100 million to US$450 million this year. [source A ] [source B ] [source C ] [source D ] [source E ]

Creating a new Kingdom

The Clean Break Document make a subtle reference to an issue regarding the possibility of an extension of Jordan Kingdom by including Iraq once this will be under the control of US. Concretely the text is referring to this possibility in the terms of promoting the creation of a Hashemite Kingdom of Iraq and Jordan

"Since Iraq's future could affect the strategic balance in the Middle East profoundly, it would be understandable that Israel has an interest in supporting the Hashemite in their efforts to redefine Iraq" (...)

The main porpoise contemplated was just simply transform Iraq in a province of Jordan, the plan was considering to unify the shuni provinces of Iraq under the government of Jordan. This suggestion included in the Clean Break Document as many other points in this text was assumed by US and in 2002 the Secretary of Defense Paul Wolfowitz (one of the writer of the Clean Break Document and the Vice President Dick Cheney discussed the project in a meeting that took place in London in July 2002 with the prince Hassan of Jordan and a group of Iraqi Sunni opposition members. The power over the new region will be concede to the brother of the actual king of Jordan Prince Hassan. The report says this will be done if Iraqi Sunni leaders "appeal to King Abdullah with such a request, which has a weak but still legally valid justification, as Abdullah is the second cousin of the last Iraqi king, Faisal II, who was overthrown in 1958". The report said that the plan will bring strategic benefits to the US, Israel and Jordan. [source A ] [source B ] [source C ]

Another idea was consider by some of the authors of the Clean Break Paper regarding the importance of Jordan boarders in the Israel-Palestinian Conflict. The idea suggested the transfer of the Palestinian living between the Mediterranean Coast and the Jordan River should be transferred to Jordan territory, which would be renamed Palestine. This plan was commented and till the moment is not being applied. From the point of view of Jordan this idea is part of a long term fear to Israel plans and its restrictive measures to force the Palestinian to emigrate to Jordan, this fear has make Jordan react in the last years by reinforcing the migration laws and borders control in order to avoid a massive exodus of Palestinian to Jordan territory. [source ] [Middle East Report Online ] [more about this subject in articles referred to "Redrawn Map of the Middle East" ]


Note: All external links were checked at the moment of publishing. Brainstorming or the author of this article does not respond for any changes that appear over time due to the respective websites management.

Talia Delgado | Romania |

The hidden conflict between Syria and Lebanon | The role of Jordan in the reconvertion of Middle East | Turkey and Israel strategic alliance