VZCZCXRO7320
PP RUEHAG
DE RUEHTU #1085/01 2221453
ZNR UUUUU ZZH
P 101453Z AUG 07
FM AMEMBASSY TUNIS
TO RUEHAG/AMCONSUL HAMBURG PRIORITY 0004
RUEHIT/AMCONSUL ISTANBUL PRIORITY 0063
RUEHC/SECSTATE WASHDC PRIORITY 3657
INFO RUEHAK/AMEMBASSY ANKARA PRIORITY 0326
RUEHRL/AMEMBASSY BERLIN PRIORITY 0159
RUEHRO/AMEMBASSY ROME PRIORITY 0774
RUEHVB/AMEMBASSY ZAGREB PRIORITY 0050

UNCLAS SECTION 01 OF 03 TUNIS 001085 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR NEA/MAG (HARRIS AND HOPKINS) 
STATE FOR H (SMITH AND DIGGS) - PLEASE PASS TO CODEL 
COSTELLO 
 
E.O. 12958: N/A 
TAGS: OREP EWWT TS
SUBJECT: SCENESCETTER FOR THE VISIT OF CODEL COSTELLO 
 
REF: STATE 107590 
 
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SUMMARY 
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¶1. (U) Embassy Tunis warmly welcomes Representative Jerry 
Costello and accompanying members of CODEL Costello to Tunis 
from August 18 - August 20, 2007.  Tunisia proudly -- and 
justifiably -- calls itself a "country that works."  Despite 
Tunisia's relatively small economy and lack of natural 
resources, the Tunisian government has proven itself capable 
of providing basic education, health care, housing and a 
workable infrastructure to its population.  Tunisia has the 
most diversified economy in the region and enjoys one of the 
highest standards of living on the continent.  The political 
system is dominated by a single party, the Democratic 
Constitutional Rally (RCD), and political liberties are 
tightly controlled.  This cable provides background 
information on these themes.  END SUMMARY. 
 
-------------------------- 
The Bilateral Relationship 
-------------------------- 
 
¶2. (SBU) Your visit takes place in the context of a 
long-standing and positive bilateral relationship; the United 
States was the first Western power to recognize an 
independent Tunisia in 1956.  The Embassy has requested 
meetings with President Zine El Abidine Ben Ali, Minister of 
Foreign Affairs Abdelwahab Abdullah, and Minister of 
Transport Aderrahim Zouari as well as a visit to the Rades - 
La Goulette Port.  In addition to discussing port security, 
Tunisian officials may wish to discuss the latest political, 
economic and security issues relevant to the US-Tunisian 
bilateral relationship, as well as regional issues. 
 
¶3. (SBU) Recent high-level visits include the February 2006 
visit by former Secretary of Defense Rumsfeld and a May 2006 
visit by then-Deputy Secretary of State Robert Zoellick. 
More recently, the Vice Chairman of the Joint Chiefs of Staff 
Admiral Edmund Giambastiani visited and Tunisia hosted the 
22nd US-Tunisia Joint Military Commission (JMC) meetings, 
both in May 2007.  The Government of Tunisia warmly welcomed 
CODEL Tanner during their June 2007 visit. 
 
---------------------- 
Socio-Economic Context 
---------------------- 
 
¶4. (SBU) Tunisia proudly -- and justifiably -- calls itself a 
"country that works."  Despite Tunisia's relatively small 
economy and lack of natural resources, the Tunisian 
government provides basic education, health care, housing and 
a workable infrastructure to its population.  Tunisian woman 
enjoy more rights and opportunities than in any other Arab 
Muslim country.  As a result of these policies, the majority 
of Tunisians are generally moderate and desire a government 
intent on modernizing the country and integrating it fully 
into the world economy. 
 
¶5. (U) Tunisia has the most diversified economy in the region 
and enjoys one of the highest standards of living on the 
continent.  The country does not have vast reserves of 
hydrocarbons like its neighbors Algeria and Libya but has 
prospered under long-standing government policies to develop 
manufacturing industries for export and to promote tourism. 
The Government of Tunisia also seeks to attract foreign 
direct investment and strengthen its traditional agricultural 
sector.  Thanks to these policies, Tunisia's economy has 
maintained average annual growth rates of almost five percent 
over the past ten years.  At the same time, social programs 
limit population growth, provide a high standard of 
education, and ensure a relatively decent standard of living 
for all.  Average annual per capita income is approximately 
US $3000.  The United States hopes Tunisia will be part of 
President Bush's vision of a Middle East Free Trade Area, but 
the preliminary Trade and Investment Framework Agreement 
(TIFA) has not produced tangible results, in part due to 
Tunisian concerns about the impact of rapid economic 
liberalization. 
 
 
TUNIS 00001085  002 OF 003 
 
 
------------------ 
Political Overview 
------------------ 
 
¶6. (SBU) Tunisia is a constitutional republic with a 
population of approximately 10 million, dominated by a single 
political party, the Democratic Constitutional Rally (RCD). 
Zine El Abidine Ben Ali has been the president since 1987. 
Although three opposition parties fielded candidates in the 
October 2004 presidential election, official results 
indicated that President Ben Ali won approximately 94 percent 
of the registered popular vote.  The official turnout was 
reportedly higher than 90 percent of registered voters, 
although there were indications that voter turnout figures 
were artificially inflated.  Tunisia has a bicameral 
legislature.  In addition to the Chamber of Deputies, a 
second legislative body, the Chamber of Advisors, was created 
in a 2002 referendum amending the Constitution.  The 
legislature plays a limited role as an arena for debate on 
national policy but never introduces legislation and 
virtually always passes bills presented by the Executive with 
only minor changes.  National elections - both presidential 
and legislative - will be next held in 2009. 
 
¶7.  (SBU) Political liberties remain tightly controlled and 
civil society development is stifled.  Tunisia's sluggishness 
on political reform has been a point of contention in the 
US-Tunisian relationship in recent years.  Although President 
Ben Ali has introduced some positive political reforms in the 
past two years (pardoning some political prisoners, lifting a 
form of censorship for print media, registering a new 
political party and independent media outlets), civil society 
and human rights groups remain deeply cynical and continue to 
report many instances of government harassment, intimidation, 
and limits on their activities.  Journalists reject the 
suggestion that press censorship has ended and local media 
usually lacks any meaningful coverage of domestic political 
issues.  In the 2006 Reporters Without Borders Worldwide 
Press Freedom Index, Tunisia was ranked 148 out of 168 
countries. 
 
------------------ 
Security Situation 
------------------ 
 
¶8. (SBU) There is a threat of terrorism in Tunisia, 
particularly in light of the recent establishment of al-Qaeda 
in the Islamic Maghreb (AQIM).  In January 2007, the 
Government of Tunisia announced that Tunisian security forces 
disrupted a terrorist group in December 2006/January 2007, 
killing or capturing many individuals who reportedly planned 
to carry out acts of violence in Tunisia.  The US Embassy in 
Tunis was reportedly among the group's intended targets.  In 
2002, a faction of al-Qaeda claimed responsibility for an 
attack on the Ghriba synagogue on the southern island of 
Djerba, the first al-Qaeda related terrorist attack after 
September 11. 
 
¶9. (SBU) The Government of Tunisia remains concerned about 
signs of increasing Islamic extremism and considers national 
security as one of its major priorities.  Therefore, it 
places a high value on its historic and robust 
military-military relationship with the United States. 
Unfortunately, and against the backdrop of a very limited 
national budget, new equipment is needed to match the 
evolving and common threat of transnational terrorism.  At 
present, Tunisia receives approximately US $8 million in 
Foreign Military Financing (FMF), nearly all of which is used 
for the partial maintenance of its aging fleets of US-origin 
equipment.  FMF is expected to drop dramatically in FY-08 to 
approximately US $2 million, which will make any significant 
recapitalization of the Tunisian Armed Forces problematic, 
unless additional third-country or other financing is 
secured. 
 
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Ports 
----- 
 
¶10. (SBU) Tunisia has relatively well-developed maritime 
infrastructure, including six commercial seaports, but is 
actively upgrading its port facilities and management.  The 
 
TUNIS 00001085  003 OF 003 
 
 
Government is currently conducting a feasibility study for 
construction of a deep-water port in Enfidha, an hour south 
of Tunis on the eastern coast, and is expected to launch an 
international tender for the project.  The Government has 
also launched an international tender for the supply and 
installation of Vessel Traffic Systems (VTS) to monitor 
vessel movement in and out of all six commercial ports. 
Cruise ships and ferries, primarily from Europe, represent a 
large volume of the vessel traffic in and out of Tunisian 
ports.  The majority of container traffic is also between 
Tunisia and Europe since approximately 80 percent of 
Tunisia's trade is conducted with Europe.  The level of trade 
between the United States and Tunisia remains relatively 
limited.  A January 2005 US Coast Guard assessment found 
Tunisian ports to have a robust security program with 
implementation at a level greater than required by the 
International Ship and Port Facility Security Code.  In 
Rades, Tunisia's primary container port, government policy 
dictates that 100 percent of all exported and imported 
containers be scanned. 
GODEC