VZCZCXYZ0000
PP RUEHWEB

DE RUEHTU #0698/01 1781650
ZNR UUUUU ZZH
P 261650Z JUN 08
FM AMEMBASSY TUNIS
TO RUEHC/SECSTATE WASHDC PRIORITY 5245
INFO RUEHAS/AMEMBASSY ALGIERS PRIORITY 7690

UNCLAS TUNIS 000698 
 
SENSITIVE 
SIPDIS 
 
STATE FOR NEA/MAG (NARDI AND STEWART) 
STATE ALSO FOR H - PLEASE PASS CODEL MCCOLLUM 
 
E.O. 12958: N/A 
TAGS: OREP PGOV PREL ECON PTER TS
SUBJECT: SCENESETTER FOR CODEL MCCOLLUM 
 
¶1. (U) Embassy Tunis warmly welcomes CODEL McCollum and 
accompanying members to Tunis from July 1 - 5, 2008.  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 importance of the bilateral 
relationship has been manifested in several recent high-level 
visits: Congressional visits include CODELs Boehner and 
Cramer in 2008; and CODELs Tanner, Costello, Jackson-Lee, and 
Inouye in 2007.  AUSTR Shaun Donnelly, the State 
Department,s Coordinator for Counterterrorism Dell Dailey, 
Assistant Secretary of State C. David Welch, and General 
William Ward also all visited 
Tunisia in 2008. 
 
---------------------- 
Socio-Economic Context 
---------------------- 
 
¶3. (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 women 
enjoy more rights and opportunities than in any other Arab 
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. 
 
¶4. (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 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 $3,578.  The United States and 
Tunisia signed a Trade and Investment Framework Agreement 
(TIFA) in 2002 to strengthen bilateral economic engagement. 
The third TIFA Council meeting took place in Tunis on March 
10-11. 
 
------------------ 
Political Overview 
------------------ 
 
¶5. (SBU) Tunisia is a constitutional republic with a 
population of just over 10 million, dominated by a single 
political party, the Democratic Constitutional Rally (RCD). 
Zine El Abidine Ben Ali has been President since 1987, when 
he removed President Bourguiba.  Although the GOT has many of 
the institutions of democracy, it is not a democracy.  Three 
opposition parties fielded candidates in the October 2004 
presidential election, official results indicated that 
President Ben Ali won approximately 95 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 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 next be held in 
¶2009. 
 
¶6.  (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 and 
lifting a form of censorship 
for print media), civil society and human rights groups 
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 2007 Reporters Without Borders 
Worldwide Press Freedom Index, Tunisia was ranked 
145 out of 169 countries. 
 
------------------ 
Security Situation 
------------------ 
 
¶7. (SBU) There is a threat of terrorism in Tunisia, 
particularly in light of the establishment of al-Qaeda in the 
Islamic Maghreb (AQIM).  AQIM claimed it abducted two 
Austrian tourists in Tunisia on February 22.  The kidnappers 
are reportedly asking for five million euros and the release 
of several prisoners being held in Algeria and Tunisia in 
exchange for the hostages.  In January 2007, 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 and personnel in Tunis were 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.  This attack, in which 20 
victims were killed, was the first al-Qaeda related terrorist 
attack after September 11, 2001. 
 
¶8. (SBU) The Government of Tunisia remains concerned about 
signs of increasing Islamic extremism and considers national 
security 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 in FY-09 to possibly as low as US $2 
million, which will make any significant recapitalization of 
the Tunisian Armed Forces 
problematic, unless additional third-country or other 
financing is secured.  In addition to FMF, the Mission has 
just received $9.98 million in Section 1206 funding for 
Tunisia's military in FY-08. 
 
¶9. (SBU) That said, Tunisia has been and remains an active 
participant in United Nations peacekeeping missions, 
including in the Democratic Republic of the Congo (DROC), 
Ethiopia and Eritrea.  The GOT is cooperative on certain 
military issues, and takes part in NATO seminars and 
activities, and is extremely appreciative of US assistance 
(which includes IMET, USEUCOM Humanitarian Assistance, 
counterterrorism-related seminars, and other activities).  In 
fact, the GOT reciprocated the USG's past generosity with a 
symbolic gesture of two C-130 loads -- some 20 tons -- of 
humanitarian assistance in the wake of Hurricane 
Katrina. 
GODEC