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Viewing cable 06DAMASCUS844, FACTS ON US BUSINESS ACTIVITY IN SYRIA

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Reference ID Created Released Classification Origin
06DAMASCUS844 2006-03-01 12:32 2011-08-24 01:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Damascus
VZCZCXRO3277
OO RUEHBC RUEHDE RUEHKUK RUEHMOS
DE RUEHDM #0844 0601232
ZNR UUUUU ZZH
O 011232Z MAR 06
FM AMEMBASSY DAMASCUS
TO RUEHC/SECSTATE WASHDC IMMEDIATE 7391
INFO RUEHEE/ARAB LEAGUE COLLECTIVE PRIORITY
RUEHTV/AMEMBASSY TEL AVIV PRIORITY 0822
RUEHC/SECSTATE WASHDC PRIORITY 7392
RHEHNSC/NSC WASHDC PRIORITY
RUMICEA/USCENTCOM INTEL CEN MACDILL AFB FL PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RHEHAAA/WHITE HOUSE WASHDC PRIORITY
RUCNDT/USMISSION USUN NEW YORK PRIORITY 0067
UNCLAS DAMASCUS 000844 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT PLEASE PASS TO EU MEMBER STATES COLLECTIVE IMMEDIATE 
NEA/ELA 
NSC FOR ABRAMS/DORAN/SINGH 
TREASURY FOR GLASER/LEBENSON 
EB/ESC/TFS FOR SALOOM 
 
E.O. 12958: N/A 
TAGS: ECON EFIN EINV SY
SUBJECT: FACTS ON US BUSINESS ACTIVITY IN SYRIA 
 
REF: A. LONDON 1459 
 
     B. DAMASCUS 641 
     C. DAMASCUS 196 
 
1.  (SBU) The following information is offered for EU posts, 
consideration and reference when discussing aligning EU and 
USG policy vis--vis the SARG (ref A).  Two discrepancies 
between USG and EU economic policy are apparent from 
Damascus: EU missions continue to promote business investment 
in Syria, including visits by trade missions from EU memeber 
states, and development assistance continues to flow from 
Europe.  Though the EIB loans arguably have the highest 
profile, EU member states also have on-going bilateral 
development assistance programs with the SARG.  This is in 
contrast to USAID, which closed its mission in Syria in 1983 
following Syria's designation as a state sponsor of terrorism. 
 
2.  (U) Unlike governments of EU countries, the USG does not 
promote US business activity in Syria.  We do, in fact, 
discourage US companies that consult with us from investing 
in Syria at this time.  In spite of this, the SARG has been 
using its control of domestic media to imply there is 
significant new American business interest in Syria.  While 
this is not/not the case, it is part of a larger campaign the 
Syrian regime has been pursuing to hype foreign direct 
investment to reassure a worried public and subvert its 
international political isolation (ref B). 
 
3.  (U) Though a ban on all US business activity is one of 
the six options available to President Bush under the Syria 
Accountability and Lebanese Sovereignty Restoration Act, 
which he signed into law in May 2004, it has not yet been 
implemented.  In spite of that, most US companies have either 
divested or are in the process of divesting their business 
interests in Syria (ref C).  We are not aware of any large US 
companies that are either pursuing existing business 
enterprises or exploring new opportunities in Syria.  The 
only US companies we are aware of that are still pursuing 
business in Syria are either small companies privately owned 
by Syrian-Americans or small independent oil companies.  US 
exports to Syria are banned, with the exception of food and 
medecine, but Exxon-Mobil and ConocoPhillips both have 
contracts to import oil from Syria.  US imports from Syria 
did increase by roughly 20 percent last year (to USD 324 
million total in imports), which could be largely 
attributable to the increased price of oil. 
SECHE