FROM THE OFFICE OF PUBLIC AFFAIRS

Today, during meetings with King Abdullah, Prime Minister Rawabdneh, Deputy Prime Minister Khalaf, Finance Minister Marto and Central Bank Governor Fariz, we discussed Jordan's ongoing economic reform efforts and Jordan's bid to join the World Trade Organization. Prior to these meetings, I also met with members of the Jordanian-American Business Association to hear their concerns about the bilateral economic relationship.

The meeting with King Abdullah focused on the King's efforts to invigorate Jordan's economic reform agenda and ways in which we could improve our bilateral trade relationship

I praised King Abdullah for his leadership of Jordan on a wide array of fronts. In particular, I lauded the Government of Jordan for adhering to its 1999 budget deficit targets, even in the face of unanticipated difficulties brought on by the drought, and urged them to stay the course. I pointed to the U.S. experience, that fiscal discipline pays off. It makes possible a "virtuous cycle" where interest rates can be reduced, which spurs private investment and further economic growth.

Jordan's accession to the World Trade Organization is now at a very advanced stage. I am impressed with Jordan's commitment to accelerate reforms and pass relevant legislation for WTO accession. I commend the Government of Jordan for its recent improvement in its WTO accession offer, particularly in financial services. Moreover, the Trade and Investment Framework Agreement (TIFA), signed in May 1999, was an important step in promoting our bilateral trade relationship.

I congratulated the Government of Jordan on the United States Trade Representative's decision to designate three new Qualifying Industrial Zones, Al-Kerek

Industrial Estate, Ad-Dulayl Park and Al-Tajamouat Industrial City. These three, along with two existing QIZ's (Al-Hasan near Irbid and the Jordan Gateway Project Sheikh Hussein bridge), will help attract investment, create jobs and in some cases aid in the transfer of technology.

I also commended the Government of Jordan for its recent progress on structural reforms, particularly progress on the long-awaited privatization of Jordan Telecommunications Corporation, reorganization of the Aqaba Railway Corporation and plans for restructuring and privatizing Royal Jordanian Airlines.

Finally, we are pleased to support Jordan's structural reform efforts by placing a

Resident Debt Advisor with the Ministry of Finance. This Advisor will help Jordan create the most efficient market possible for its domestic government securities by advising on primary issuance of government debt and secondary market structure.