Jordan Times
Wednesday, December 22, 1999
'Khatib's visit to Iraq 'strictly economic'
By Tareq Ayyoub
AMMAN — Foreign Minister Abdul Ilah Khatib's visit to Baghdad, which began on Tuesday, is strictly economic in nature and is not aimed at inviting Iraq to join the Middle East peace process, Deputy Prime Minister Ayman Majali said on Tuesday.
Khatib's visit to Iraq, the first by a foreign minister since the 1991 Gulf War, is focused on boosting trade and resolving differences between Amman and Baghdad over the renewal of the annual oil protocol between the two countries, Majali, who is also information minister, said. During his two-day visit, Khatib will deliver a message from His Majesty King Abdullah to Iraqi President Saddam Hussein, Majali added without elaborating.
“The visit is purely economic in nature. The minister will try to convince the Iraqis to renew the oil protocol, enhance trade with Jordan and discuss bilateral relations,” Majali told the Jordan Times.
“What concerns us most is to renew the oil deal with Iraq and ensure the flow of Iraqi oil to the Kingdom,” the minister said. “It has nothing to do with the peace process nor anything else,” Majali added.
A U.S. embassy official, who asked not to be named, denied recent speculation that Washington had asked Amman to undertake the visit to “convince” the Iraqi leadership to join the peace process.
During his visit to Baghdad, Khatib is expected to meet with his Iraqi counterpart Said Sahhaf and other officials.
Earlier this month, Jordanian and Iraqi officials failed to reach an agreement to renew the annual $500 million oil protocol after a two-day meeting which was chaired by Minister of Energy and Mineral Resources Suleiman Abu Aleem and Amir Rasheed, Iraq's oil minister.
Informed sources said Iraq has asked $19 a barrel for the oil it supplies to the Kingdom, a request that was rejected by Jordanian officials who said Jordan can pay only $15 per barrel. Following the increase of oil prices in the world markets, Iraq has demanded a review of the prices it extends to Jordan for its oil.
Since the 1990-91 Gulf War, Iraq became Jordan's only supplier of all its needs of oil and oil derivatives, which was given to the Kingdom at concessional prices below market.
According to the bilateral protocol, Iraq is to supply Jordan with almost 90,000 barrels of oil and crude oil daily.