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FM AMCONSUL CASABLANCA
TO RUEHC/SECSTATE WASHDC PRIORITY 7754
RUEHAS/AMEMBASSY ALGIERS 2903
RUEHBP/AMEMBASSY BAMAKO 0240
RUEHEG/AMEMBASSY CAIRO 0794
RUEHRY/AMEMBASSY CONAKRY 0017
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RUEHMD/AMEMBASSY MADRID 3737
RUEHNK/AMEMBASSY NOUAKCHOTT 2265
RUEHRB/AMEMBASSY RABAT 8019
RUEHTU/AMEMBASSY TUNIS 2030
RUEHFR/AMEMBASSY PARIS 0564
RUEHYD/AMEMBASSY YAOUNDE 0075

C O N F I D E N T I A L CASABLANCA 000118 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR NEA/MAG AND NEA/PI 
 
E.O. 12958: DECL: 06/28/2017 
TAGS: ECON PREL EFIN KDEM AG MO
SUBJECT: ALGERIA WEEK IN CASABLANCA PROMOTES ECONOMIC EXCHANGE, HOPE 
FOR DTENTE 
 
 
Classified By: Principal Officer Douglas Greene for reasons 1.4 (B) 
AND (D) 
 
¶1. (SBU) Summary: June 26 to July 1 marks Algeria Week in Casablanca, 
where Algeria is staging a week-long exhibition to promote business 
and investment opportunities between Morocco and Algeria.  While the 
attendance of key royal family members and senior GOM officials at a 
lavish kick-off event signaled the Moroccan leadership's keen 
interest in improved relations with Algeria, Casablanca-based 
business leaders remain skeptical that increased commercial exchange 
will help bring political rapprochement.  End Summary. 
 
------------------------------------ 
ROYALS FED RHETORIC AT LAVISH DINNER 
------------------------------------ 
 
¶2. (SBU) From June 26 to July 1, the Algerian Ministry of Commerce is 
sponsoring Algeria Week in Casablanca to promote commercial and 
cultural exchange between Morocco and Algeria.  To kick off the 
week-long event, which includes an exhibition at Casablanca's exhibit 
hall, Algerian Ambassador to Morocco Larbi Belkheir hosted a lavish 
dinner on June 26 for about 300 elite guests.  In attendance were the 
king's wife, Princess Lalla Salma, and the king's sister, Princess 
Lalla Asmaa, as well as others from the palace.  Prime Minister Driss 
Jettou and a long list of GOM officials also attended, though were 
overshadowed by the royal contingent. 
 
¶3. (SBU) Royal family members remained at the two hour dinner, which 
featured elaborate Algerian food and entertainment, including musical 
performers, a fashion show, folkloric dancers and a poet.  In 
addresses including Belkheir's remarks to Lalla Salma and a recited 
poem, the Algerians underscored the theme of brotherhood and unity in 
North Africa and touted the "deep and important friendship between 
the Moroccan and Algerian people."  Algerian dancers reemphasized the 
message during the grand finale when they held large Algerian and 
Moroccan flags side by side, eliciting thunderous applause from the 
audience. 
 
------------------------------------------- 
ALGERIA'S COMMERCIAL GOALS LESS EXTRAVAGANT 
------------------------------------------- 
 
¶4. (SBU) Despite the fanfare of the opening event for Algeria Week, 
the commercial exhibition itself is underwhelming.  Advertisements 
promise over 80 exhibitors in diverse sectors including household 
appliances, food products, pharmaceuticals, packaging, textiles, 
tourism and artisanal goods.  In reality, textiles seemed to be 
represented by one or two rug dealers, the food products consisted of 
candy and dates, and several booths were left unattended.  Compared 
to the hopping Twelfth Annual International Trade Days going on 
concurrently and taking up three-quarters of the enormous exhibition 
hall, the Algeria Week exhibit was small with few visitors. 
 
¶5. (C) While the event's stated goals are to expand business and 
partnership opportunities between Morocco and Algeria, and to boost 
economic relations, the underlying theme is that increased commercial 
exchange can help to improve political relations.  It is not clear, 
however, that Algeria Week's economic goals are realistic. An Embassy 
Algiers Foreign Commercial Service (FCS) employee, in Casablanca for 
a conference this week, noted that Algeria is weak on exports (with 
the exception of gas) and wants to expand in the region.  He could 
easily guess the limited range of products featured at the exhibition 
- foodstuffs, cosmetics - and said that even though Algerians seem 
willing and regulations seem open, trade with Algeria remains 
difficult.  Nonetheless, there is widespread recognition that 
opportunities for increased commercial exchange between Morocco and 
Algeria exist, and could benefit both countries. 
 
----------------------------- 
MOROCCANS SKEPTICAL OF CHANGE 
----------------------------- 
 
¶6. (C) From a political standpoint, the presence of high-level royal 
guests at the Algeria Week opening event certainly demonstrates 
Morocco's interest in improved relations with Algeria.  At the same 
time, many Moroccans question whether Algeria is truly ready for 
substantial change in its relationship with Morocco.  According to 
 
one GOM official who attended the opening dinner, "We want to say 
that we are ready, but know that the Algerians - deeply impacted by 
their history (i.e. French colonialism) - are still rooted in their 
past and afraid of the future."  A Casablanca businessman echoed this 
sentiment, underscoring Morocco and Algeria's historical and cultural 
differences. 
 
¶7. (C) When asked about the significance of the Algeria Week 
initiative, many Moroccan businessmen discounted it.  To begin with, 
such events are not as singular as the media would have one believe. 
A few GOM guests at the opening dinner noted that the GOM had put on 
a similar exhibition in Algiers earlier in June, also with the goal 
of improving commercial and cultural ties.  According to a 
Casablancan banker, relations between Morocco and Algeria have always 
remained cordial, despite the long-standing political issues between 
them.  In his words, Morocco views Algeria as "an adversary, not a 
true enemy," so an event such as Algeria Week is not extraordinary, 
and people should not read too much into it.  On the whole, 
businesspeople in Morocco seem to view Algeria Week as a 'nice 
gesture,' but not one that will change anything. 
 
¶8. (C) Comment: While opportunities for commercial exchange between 
Morocco and Algeria exist, the bigger question is whether expanding 
economic relations can help smooth the road to rapprochement by 
opening alternate channels of dialogue and activity.  At least in 
Casablanca, this week's Algeria Week indicates that Moroccans and 
Algerians alike are hopeful and want to invest in this process.  At 
the same time, Casablancan leaders seem mostly skeptical that such 
initiatives can spur real, long-term change. 
 
GREENE