US embassy cable - 05TUNIS1456

C O N F I D E N T I A L SECTION 01 OF 02 TUNIS 001456 
 
SIPDIS 
 
STATE FOR EB, NEA/PI (FRANCESKI), AND NEA/MAG (LAWRENCE) 
COMMERCE FOR CLDP (MARC TEJTEL), ITA/MAC/ONE (DAVID ROTH), 
AND ADVOCACY CENTER (CHRIS JAMES) 
CASABLANCA FOR FCS (GAIL DEL ROSAL) 
STATE PLEASE PASS USTR (DOUG BELL) AND USAID (METZGER) 
 
E.O. 12958: DECL: 07/01/2015 
TAGS: PREL, ECON, EINV, EAID, TS 
SUBJECT: AMBASSADOR REACHES OUT TO TUNISIA'S SECOND CITY - 
SFAX - THE ECONOMIC ENGINE 
 
Classified By: Ambassador William J. Hudson; Reasons: 1.4(b),(d) 
 
1. (U) Summary.  Ambassador and Econoff traveled June 27 to 
Sfax, Tunisia's second largest city and the economic hub, to 
deliver messages on USG economic and political reform 
policies, on our latest development under our trade and 
investment dialogue, and to survey USG assistance to Sfax's 
high-tech industry.  Econoff also met with Chamber 
representative to discuss possible collaboration on a 
workshop on E-commerce to stimulate potential for additional 
U.S. trade and investment and modernization of Tunisia's 
services sector.  End Summary. 
 
Ambassador Encourages Political Reform in Tunisia 
--------------------------------------------- ---- 
2. (U) In his first meeting with recently appointed Governor 
of Sfax, Ali Ksiksi, the Ambassador drew Ksiksi's attention 
to Secretary Rice's recent speech in Cairo to emphasize that 
democratic movements are reshaping the region and that USG 
support of political and economic reforms are paramount 
policy priorities.  The Ambassador also emphasized key points 
from President Bush's second inaugural address that "America 
will not impose our style of government on the unwilling. 
Our goal instead is to help others find their own voice, to 
attain their own freedom, and to make their own way." 
 
3. (U) Ksiksi reacted by noting that Tunisia is a country 
that has drawn on diversity throughout the millennia from 
Phoenician, Carthaginian, Roman, Muslim, and Berber 
civilizations, among others, and that Tunisians are "calm 
people" who avoid sudden or dramatic political shifts. 
Ksiksi did, however, concede that he expected to see "new 
faces" emerging out of this coming weekend's elections that 
will create a second house in Parliament, the Chamber of 
Counselors (septel).  Ksiksi, portraying Tunisia as a 
meritocracy, also noted his own humble origins, coming from a 
modest family of seven children, making his way through 
diligent study to become a medical doctor and then a 
government official (see more in bio note below). 
 
Sfax Chamber of Commerce and Update on Trade and Investment 
--------------------------------------------- -------------- 
4. (U) The Ambassador also addressed a luncheon hosted by the 
Sfax Chamber of Commerce in which he updated approximately 
thirty-five members of Sfax's business and governmental 
community on the recent Trade and Investment Framework 
Agreement (TIFA) Council held in Tunis, June 15, led by 
Assistant U.S. Trade Representative Catherine Novelli and her 
counterpart Minister Jouini (reported reftel).  Questions 
from the luncheon centered on how Tunisian interests could be 
served from a Free Trade Agreement with the U.S., what 
products would find welcome markets in the U.S., and how 
greater trade with the U.S. would impact local economic 
conditions, especially unemployment. 
 
5. (C) Interlocutors in Sfax spoke frankly with the 
Ambassador in side-meetings, noting that they are 
increasingly frustrated with the current state of doing 
business in Tunisia.  (Note: Comments reinforce a growing 
perception that corruption, influence from Presidential 
in-laws, and administrative difficulties continue to make 
doing business ever-more complicated. End note.) 
 
Tunisia's Technological Aspirations 
----------------------------------- 
6. (U) Following lunch, University of Sfax representatives 
presented one of the proposed sites for installation of 
USAID-funded Sun Microsystems computer equipment and 
accompanying software and training.  The facilities are 
nearing construction completion and should be finished in 
several months in time for fall courses.  Kim Jefferson, an 
independent program review analyst for USAID, also 
accompanied the Ambassador.  Jefferson noted the key 
integration of concepts learned during a prior USAID-funded 
information technology study tour for members of Sfax 
technology community to Baltimore, Md. in spring 2004. That 
tour aimed to introduce how information technology research 
centers and training labs are preparing university students 
for gainful employment and job-creating industries. 
 
7. (U) The Ambassador also visited the Sfax Technology Park, 
which received USAID funding for its design study for the 
Park,  and its technology incubator.  The Sfax Tech Park has 
been developing in accordance with the USAID plan, with the 
incubator nearing completion and nearly ready for occupancy. 
USAID is providing a last tranche of assistance for a 
business plan that will aim to bring private sector 
technology companies and research institutions to the Tech 
Park. 
 
8. (U) On July 28, Econoff met with Sfax Chamber of Commerce 
and Junior Chamber of Gremda representatives to discuss plans 
to conduct a Department of Commerce Business Facilitation 
Incentive Fund (BFIF) workshop on E-Commerce in September 
2005.  We believe that Sfax, with a vibrant Chamber and 
notable entrepreneurial flair, will offer a receptive 
audience for the workshop, which will aim to share technical 
expertise and foster a more open services sector.  Key will 
be reinforcing the potential for job creation, Tunisia's top 
domestic issue, and more open access to information. 
 
Comment 
------- 
9. (SBU/NF) Our interlocutors in Sfax, a southeastern port 
city of over half a million, are notably less jaded than some 
of our GOT-connected contacts in Tunis; they were receptive 
and eager to exchange thoughts about the prospects of a Free 
Trade Agreement and other bilateral issues, including reform. 
 We found that reaching out to this important but 
lesser-visited area of Tunisia offered a fruitful opportunity 
to engage local leaders who are potentially less subject to 
the political constraints, control, and monitoring from 
Carthage and the RCD machine.  We also feel that continued 
U.S. funded assistance, whether under MEPI, remaining USAID 
mechanisms, or newly-developing OES initiatives results in 
better U.S. public diplomacy outreach for areas that have 
scant U.S. presence, but which by our first-hand accounts are 
much more willing to receive and acknowledge our overtures. 
 
Biographical Note:  Sfax Governor Ali Ksiksi 
-------------------------------------------- 
10. (U) Ksiksi (DOB: 28 Nov 1954) became governor in November 
2004 following October 2004 national elections and 
appointment reshufflings.  Ksiksi previously served as 
governor of the governorates of Tozeur and Jendouba, and as 
Mayor of Medennine.  Ksiksi is a medical doctor and spent 
seven years studying in the former Soviet Union.  Ksiksi 
speaks fluent French and some English, is married, and has 
three children. 
HUDSON