US embassy cable - 05RABAT1061

UNCLAS SECTION 01 OF 02 RABAT 001061 
 
SIPDIS 
 
DEPT FOR NEA/MAG, NEA/PI AND INL/AAE 
DEPT ALSO FOR EB/TPP, EB/IFD AND DRL/IL 
STATE PASS USTR FOR DOUG BELL 
STATE PASS USAID FOR SARA BORODIN 
USDOC ITA/MAC/ANESA FOR DAVID ROTH 
USDOC FOR FSC/OIO AND CLDP 
USDOL FOR ILAB, NAO AND KARESH 
PARIS FOR ZEYA 
LONDON FOR GOLDRICH 
ROME FOR ROSE 
 
E.O. 12958: N/A 
TAGS: ECON, PBTS, EPET, ENRG, ELTN, MO, MOROCCO ECONOMIC HIGHLIGHTS 
SUBJECT: MOROCCO ECONOMIC HIGHLIGHTS 
 
 
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Border Opening Soon? 
-------------------- 
 
1.  A flurry of construction near key Morocco-Algeria border 
points is leading to speculation that the border will be 
opened as early as the end of May.  Algerian Minister of 
Agriculture Said Barkat paid an official visit to Morocco 
last month, visiting Morocco's locust control center in 
Agadir and discussing cooperative strategies for combating 
the scourge that affected West and North Africa last year. 
He also traveled to Touroudant in the anti-Atlas to tour a 
fresh vegetable and fruit production center.  Algeria hopes 
to profit from Moroccan expertise in growing and preparing 
temperate fruits, citrus, and vegetables for export. 
 
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Two U.S. Oil Companies Get Drilling License in Morocco 
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2.  Morocco granted onshore oil drilling licenses to two 
U.S. companies last month to conduct evaluation of the oil 
potential in the northeastern coastal region of Asilah- 
Tissa.  The contract was signed between the Moroccan 
National Office of Hydrocarbons and Mines (ONHYM) and 
"Direct Petroleum Morocco Inc" and "Anschutz Morocco 
Corporation" of the United States, giving the two firms 
exclusive onshore drilling rights in Asilah-Tissa region 
during the 12-month duration of the contract.  Morocco has 
so far signed 15 offshore and onshore drilling contracts 
with foreign companies, including with other U.S. firms, 
though no major deposits have been found. 
 
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Tourist Arrivals up, But Not Among Americans 
-------------------------------------------- 
 
3.  The number of foreign tourists coming to Morocco rose by 
six percent in the first quarter of 2005 compared to the 
same period in 2004.  Most tourists came from western 
Europe, with the French leading the pack with 280,000 
arrivals, followed by Spaniards (80,000), Britons (40,000), 
Germans (37,000), Belgians and Italians (27,000 each). 
Meanwhile, the number of American arrivals fell by three 
percent over the same period.  Morocco received 5.2 million 
tourists in 2004, 16 percent more than the year previous. 
Marrakech was the most chosen destination, followed by 
Agadir, Casablanca, Fes and Rabat. 
 
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Remittances up 24 percent 
------------------------- 
 
4.  Remittances from Moroccan expatriates jumped by 25 
percent in the first quarter of 2005 to reach nearly $1 
billion.  The average recorded during the period 2000-2004 
for first quarter remittances was $820.  Remittances are the 
nation's top foreign exchange earner. 
 
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GOM Raises Fuel Prices 
---------------------- 
 
5.  The state-set price of gasoline and other petroleum 
products was increased nationwide on May 16.  Prices rose 
between five and 24 percent, depending on the product. 
Gasoline went up 5.3 percent to $1.12 per liter, and diesel 
rose eight percent to $0.73 a liter.  The GOM said the move 
was due to persistent high world oil prices.  Morocco 
imported $530 million worth of oil in the first quarter of 
2005, a 51 percent increase over the same period last year. 
Though the increase wasn't all due to prices, as the volume 
of Morocco's crude oil imports increased by 15.4 percent. 
The high cost of crude is expected to worsen the 
government's budget deficit this year by $740 million. 
Morocco has no appreciable oil resources and satisfies most 
of its needs through imports.  In 2004, the country imported 
six million tons of crude oil for $1.7 billion. 
 
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GOM to Cancel Debt of 100,000 Farmers 
------------------------------------- 
 
6.  The GOM will cancel the outstanding debt of some 100,000 
small farmers amounting to $350 million.  The debt 
cancellation is intended to mitigate the effects of the 
current poor agricultural season.  Tarik Sijelmassi, 
chairman of the executive board of "Crdit Agricole du 
Maroc," said only small farmers are eligible for debt 
cancellation, while other farmers hit by the bad season will 
benefit from cancellation of overdue interest payback and 
various fines. 
 
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Under the Knife 
--------------- 
 
7.  Plastic surgery is attracting a growing number of 
foreign clientele to Morocco, a TV magazine reported. 
According to "Echoeco," which interviewed European women who 
came to Morocco to be operated on, cosmetic surgery is 
attracting foreigners through a competitive package of good 
post-operation care and competent practitioners.  There are 
40 plastic surgeons in Morocco, performing an annual average 
of 80 to 100 operations each.  Eighty percent of their 
clients are women.  Most of the operations performed in 
Morocco are relatively minor ones that do not require a long 
post-operation follow-up, such as mammoplasty, liposuction 
and hair transplant.