This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS SECTION 01 OF 02 RABAT 002139 
 
SIPDIS 
 
DEPT FOR NEA/MAG, NEA/OFI AND INL/AAE 
DEPT ALSO FOR EB/TPP, EB/IFD AND DRL/IL 
STATE PASS USTR FOR DOUG BELL 
STATE PASS USAID FOR JENNIFER RAGLAND 
USDOC ITA/MAC/ANESA FOR DAVID ROTH 
USDOC FOR FSC/OIO AND CLDP 
USDOL FOR ILAB 
PARIS FOR ZEYA 
LONDON FOR TSOU 
ROME FOR ROSE 
 
E.O. 12958: N/A 
TAGS: ECON EWWT PTER KTEX EAGR EAIR ETRD MO SOCI
SUBJECT: MOROCCO ECONOMIC HIGHLIGHTS 
 
 
--------------------------------- 
Poverty Rate Decreases in Morocco 
--------------------------------- 
 
¶1.  Ahmed Lahlimi, High Commissioner for Planning announced 
during an October 4 press briefing on the 2004 census 
results that the poverty rate in Morocco in 2004 stood at 
14.2%, 2.3% lower than in 1994.  The census showed 
improvement in both urban (2.5% decrease) and rural areas 
(1% decrease).  Lahlimi attributed improved drinking water, 
electricity, and road building programs and the National 
Initiative for Human Development.  Recently, Minister of 
Social Development Harouchi announced a poverty rate of 
13.7% (defined as Moroccans living on less than one dollar 
per day).  Harouchi noted that 25% of Moroccans are on the 
verge of poverty and nearly 40% could be defined as poor 
under international standards.  Highest percentage is 
concentrated in the East of the Atlas Mountains. 
 
--------------------------- 
Safi Port Security Upgrades 
--------------------------- 
 
¶2.  The Port of Safi, Morocco's Atlantic coast 250 
kilometers south of Casablanca, completed a USD 600 thousand 
security upgrade, including a containment wall with 600 
meter setback, and new local customs and police posts on 
site at the port.  Khalid Mansour, Safi's Port Director said 
that a new signaled access point will better control traffic 
in and out of the port.  The next phase of the project - a 
USD 60 thousand effort to reequip and redesign the fishery 
harbor at the port - will take place in 2006.  More than 600 
commercial ships carrying five million tons of cargo and 
commodities (two thirds for export) are served in Safi each 
year. 
 
 
---------------------------------------- 
Textile Association Spinning and Weaving 
---------------------------------------- 
 
¶3.  Karin Tazi, Chief of the Moroccan textile association 
AMITH said reports of the death of the Moroccan industry 
have been much exaggerated.   "Those who had forecast the 
collapse of Moroccan textile production" with the end of the 
Multi-Fibre Accord and the China's WTO accession will be 
disappointed, he told journalists.  Tazi admitted a 10 
percent drop in exports in the first quarter of 2005, but 
optimistically reported that the situation is "redressing 
itself."  AMITH looks forward to a Moroccan government 
program, expected to be launched on October 17, that will 
help it be "competitive with its Euro Mediterranean rivals." 
 
------------------------------------------ 
Better Late than Never: Land Leases Issued 
------------------------------------------ 
 
¶4.  Although delayed by several months, over 127,000 acres 
of state-owned agricultural land was leased in an open 
auction by government agencies SODEA and SOGETA.  According 
to press reports, selection of the winning private 
candidates was based on experience, investment plan, number 
of jobs created and rental value.  Over 157 candidates were 
selected, including 21 of which were foreign. The winning 
bids include several relatively small Moroccan farmers, well- 
established large farmers seeking to increase their market 
share, food processors, agricultural cooperatives and other 
"reputable" investors.  Large concession was awarded to an 
agro-industrial conglomerate controlled by a prominent 
Moroccan agricultural family. 
 
--------------------------------------------- --- 
Not the Enterprise Center:  SME Training Program 
--------------------------------------------- --- 
 
¶5.  The Federation of Small and Medium Enterprises signed an 
agreement with Al Akhawayne University (AUI) this week to 
establish a training institute for directors of small and 
medium sized companies.  AUI will contribute the facilities 
of its Casablanca-based Executive Education center.  The 
training sessions will last six to twelve months and cover 
the entire life cycle of a small company.  This announcement 
corresponds with recent efforts by the GOM to finance and 
develop (also in collaboration with AUI) a G-8/Broader 
Middle East and North Africa (BMENA) initiated Center for 
Entrepreneurial Excellence. 
 
 
--------------------------------- 
More than Four Million Passengers 
--------------------------------- 
 
¶6.  National carrier Royal Air Maroc (RAM) posted a record 
volume in the first nine months of 2005.  Flagship RAM and 
its low-cost regional subsidiary Atlas Blue carried over 4.1 
million passengers from January through September, a 21 
percent increase over the same period in 2004.  African 
routes enjoyed the largest gains, rising 71 percent in terms 
of passenger numbers.  RAM officials proudly note the 
sixteen additional destinations added during 2005.  Emboffs 
note that Morocco is a steadfast Boeing client:  RAM has 
only a few Airbus aircraft in its fleet, Atlas Blue flies 
exclusively Boeing planes. 
 
RILEY