US embassy cable - 03TUNIS1947

C O N F I D E N T I A L  TUNIS 001947 
 
 
DEPT FOR NEA/ENA 
 
E.O. 12958: DECL: 07/23/2008 
TAGS: PREL, PGOV, TS 
SUBJECT: AMBASSADOR'S FAREWELL CALL ON PRIME MINISTER 
GHANNOUCHI 
 
Classified By: Ambassador Rust M. Deming, Embassy Tunis 
Reason:  1.5 (B) and (C) 
 
1. (C) Summary:  Ambassador, accompanied by DCM, paid a 
farewell call July 22 on Tunisian Prime Minister Mohamed 
Ghannouchi.  In a wide-ranging review of US-Tunisian 
bilateral relations, the Ambassador encouraged the GOT to 
build on its impressive record of economic and social 
development and to continue efforts to integrate Tunisia and 
its regional partners into the global economic and political 
system.  PM Ghannouchi noted the historic ties between the 
two countries, and expressed appreciation for US economic and 
development assistance dating from the earliest days of 
Tunisian independence.  The PM said that Tunisia continued to 
place great value on its relationship with the United States, 
even if it disagreed at times with US policies in the region. 
 He agreed that a consensus existed in Tunisia on the need to 
build a more democratic society, but argued that this must be 
undertaken at a measured pace to avoid "mistakes."  The GOT 
looked forward to the first Trade and Investment Framework 
Agreement (TIFA) roundtable in Washington in the fall, and 
said the Minister of Development and International 
Cooperation would likely lead the Tunisian delegation to the 
talks.  On regional issues, the PM underlined the need for 
continued US engagement in efforts to resolve the 
Israeli-Palestinian conflict and urged the US to put Q place 
an interim Iraqi government and proceed quickly with the 
reconstruction of the country and the reintegration of Iraq 
into the global economy.  End summary. 
 
2. (C) Ambassador paid a farewell call on Tunisian Prime 
Minister Ghannouchi on July 22.  During his tenure as Prime 
Minister, Ghannouchi has served as the coordinator of GOT 
economic policy and the conversation focused on economic 
issues.  The Ambassador expressed optimism about the state of 
US-Tunisian relations, and noted that even during periods of 
disagreement on regional issues, Tunisians kept their longer 
term interests in mind and maintained an open channel of 
communication with US officials.  The PM replied that 
US-Tunisian ties were longstanding, and he expressed deep 
appreciation for the historic role of the United States in 
assisting Tunisian development from the earliest days of the 
country's independence.  Noting the role of USAID and other 
USG agencies in Tunisia, the PM said these infrastructure and 
development projects had made the Tunisian economy "better 
armed" to face the increasing demands of globalization.  The 
PM added that the GOT remained concerned about the future, 
particularly in view of the world economic downturn, but his 
government was committed to staying the course on support for 
education, infrastructure development and private sector 
reform. 
 
3. (C) In response to the Ambassador's comment that there 
appeared to be a large consensus within the Tunisian 
political class on the need to build a more open political 
and economic system and a more democratic society, the PM 
said the only point of contention was on the speed of reform. 
 Agreeing that there was "no debate" in Tunisia on the need 
to safeguard the country's achievements in the social and 
economic sectors (particularly with regard to the rights of 
women), the PM stated that the GOT did "not have the freedom 
to make mistakes," and "must remain vigilant" to the threat 
from the secular extremists on the left and the religious 
extremists on the right.  PM Ghannouchi added that the GOT 
was committed to maintaining the "tolerant, moderate and 
progressive" character of the Tunisian state, but that this 
required a gradual approach.  Appealing for understanding 
from the west about the measured pace of political opening in 
Tunisia, the PM joked that "even in the US you have speed 
limits on your highways!" 
 
4. (C) On the economic front, the Ambassador said that he 
hoped to see increased US investment in Tunisia, and that in 
this regard, it would be important to resolve 
Algerian-Moroccan bilateral differences over the Western 
Sahara in order to reinvigorate the moribund Arab Maghreb 
Union (UMA, in French).  The PM agreed that the slow pace of 
regional economic integration placed Tunisia and its partners 
at a disadvantage, but he expressed the hope that UMA could 
be revived and that Tunisia would attract increased foreign 
direct investment, particularly from US companies.  Reviewing 
Tunisia's efforts to build a "larger economic space," 
Ghannouchi reitrated the GOT commitment to the Barcelona 
Process, the 5 plus 5 dialogue, and the expansion of free 
trade agreements between Europe and North Africa. 
 
5. (C) Turning to other bilateral and regional issues, the PM 
said that Tunisia looked forward to the first TIFA roundtable 
in Washington in the fall, and confirmed that the Minister of 
Development and International Cooperation would likely lead 
the GOT delegation.  On the Israeli-Palestinian conflict, 
Ghannouchi said the success of the process hinged on 
continued US engagement.  On Iraq, the PM underlined the 
importance for Tunisia and the rest of the Arab world of the 
establishment of an interim government headed by Iraqis, 
adding that the reconstruction of Iraq and the reintegration 
of the country into the world economy were equally critical. 
 
6. (C) Comment:  There are rumors rampant of a significant 
government reshuffle following the ruling RCD party congress 
next week, so the Prime Minister may be replaced, along with 
many members of his government.  Despite this, we expect the 
broad lines of Tunisian domestic and foreign policy to remain 
constant.  Tunisia places a high value on its bilateral 
relationship with the United States, and before the conflict 
in Iraq, senior GOT interlocutors assured us that the 
relationship would weather the storm.  This has proven to be 
the case, and Ghannouchi's comments reflect the broad view 
within the GOT that it is important to move quickly to resume 
business as usual.  The Tunisians see the upcoming TIFA 
discussions as part of this, and the GOT looks forward to an 
enriched bilateral dialogue on a range of issues. 
 
 
DEMING