VZCZCXYZ0000
PP RUEHWEB

DE RUEHTU #0461/01 1941458
ZNY CCCCC ZZH
P 131458Z JUL 09
FM AMEMBASSY TUNIS
TO RUEHC/SECSTATE WASHDC PRIORITY 6529
INFO RUCNMGH/MAGHREB COLLECTIVE PRIORITY

C O N F I D E N T I A L TUNIS 000461 
 
NOFORN 
SIPDIS 
 
NEA/FO AND NEA/MAG (SWILLIAMS, MHAYES) 
 
E.O. 12958: DECL: 07/10/2019 
TAGS: PGOV PREL ASCH TS
SUBJECT: PM GHANNOUCHI ON MIDDLE EAST PEACE, ACST, AND THE 
REPORTED PLOT 
 
REF: A. TUNIS 456 
     ¶B. TUNIS 455 
     ¶C. TUNIS 447 
     ¶D. TUNIS 339 AND PREVIOUS 
     ¶E. TUNIS 243 
 
Classified By: Ambassador Robert F. Godec for reasons 1.4 (b) and (d) 
 
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Summary 
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¶1. (C) During a farewell call by the Ambassador on July 10, 
Tunisian Prime Minister Mohamed Ghannouchi: 
-- dismissed the reported plot against US military personnel 
as &banal8; 
-- welcomed the new policies of President Obama and offered 
Tunisian support on efforts for Middle East peace; 
-- pressed for the American Cooperative School of Tunis 
(ACST) to sign the Ministry of Finance,s tax agreement and 
leave other issues for future resolution; and, 
-- thanked the Ambassador for his contributions to bilateral 
relations. 
 
¶2. (C) The Ambassador: 
-- asked the GOT to do more to support US efforts to achieve 
peace in the Middle East, noting President Obama,s letter to 
President Ben Ali; 
-- made clear the US Government wants a global resolution 
soon of the issues regarding ACST; 
-- urged the GOT to do more to open up the political process, 
including strengthening freedom of expression and 
association, in advance of the upcoming elections; and 
-- thanked the Prime Minister for his friendship and 
assistance. 
End Summary. 
 
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Farewell Call 
------------- 
 
¶3. (C) On July 10, the Ambassador paid his farewell call on 
Prime Minister Mohamed Ghannouchi.  The Prime Minister was 
accompanied by his international affairs advisor, Diplomatic 
Counselor Youssef MeKaddem.  The Ambassador was accompanied 
by acting Pol/Econ Counselor Laura Byergo (notetaker). 
 
--------------------------------------------- ---- 
Reported Plot Against the US Military Not Serious 
--------------------------------------------- ---- 
 
¶4. (C) The Ambassador asked for information regarding the 
reported plot to attack US military personnel (Ref C). 
Ghannouchi said the case was "banal," suggesting it posed no 
real threat.  The group had nothing to do with Al-Qa'ida in 
the Islamic Maghreb, he added.  Ghannouchi said the Middle 
East region needs more security and praised the Obama 
administration for improving the political atmosphere and 
thereby reducing the ability of extremists to recruit. 
 
 
--------------------------------------------- -------------- 
Middle East Peace: PM Welcomes Obama Administration Efforts 
--------------------------------------------- -------------- 
 
¶5. (C) The Ambassador stressed the importance of progress on 
Middle East peace and the other challenges in the region.  He 
underscored that President Obama began his efforts for peace 
on his first full day in office and asked for the Prime 
Minister,s impressions of the Cairo speech.  The Ambassador 
noted, too, that he had delivered to Minister of State Ben 
Dhia July 9 a letter from President Obama to President Ben 
Ali on the peace process (Ref B). He stressed that the United 
States cannot bring peace alone, and asked for Tunisia,s 
support and assistance. 
 
¶6. (C) Ghannouchi praised President Obama and his policies, 
noting the Cairo speech had changed political rhetoric in the 
region.  The speech, he said, had brought hope.  Ghannouchi 
welcomed Senator Mitchell's efforts, and referred to the good 
meeting the two held in April (Ref E).  He expressed 
appreciation for the Administration's clear support for a two 
state solution, its pragmatic approach to Iran, and its focus 
on the Taliban in Afghanistan.  All, he said, need to be 
pushed forward.  Now the Administration needs concrete 
achievements, he stressed.  Finally, Ghannouchi emphasized 
that the United States can count on the GOT to work with it 
for peace in the region.  Support for peace and for US 
efforts to advance it are integral parts of GOT policy, he 
 
said. 
 
------------------------------------------- 
ACST: Be Flexible, Accept the Tax Agreement 
------------------------------------------- 
 
¶7. (C) Ghannouchi raised ACST and asked for the US Government 
and the school to be flexible and settle the tax dispute 
immediately.  Then, he said, other issues (land and status) 
could be settled, implying that the resolution would be 
favorable.  He referred to the ACST issues as a "grain of 
sand" in our relations.  The Ambassador stressed that the 
United States and ACST have agreed, in principle, to the tax 
settlement.  Nevertheless, the land and status questions 
remain open and the United States prefers a global 
resolution.  He stressed that the school is fully prepared to 
pay just, fair and reasonable taxes going forward.  The 
Ambassador pointed out that because both the tax and land 
issues involved money, it is best both be settled together. 
He noted the Embassy had sent a draft bilateral agreement to 
the MFA and expressed hope an agreement could be concluded 
soon. 
 
¶8. (C) The Prime Minister repeated, using several 
formulations, his request for ACST and the US Government to 
separate the tax issue from other questions and to proceed to 
settlement.  The Ambassador pointed out that the Ministry of 
Finance was asking the impossible by refusing to provide ACST 
with a copy of the tax agreement and demanding that it simply 
be signed on the spot.  Many school board members are out of 
the country and no member who is here has the authority to 
sign any agreement.  For someone to be given such authority, 
ACST needs a copy of the proposed agreement and an 
opportunity for the board and Department of State lawyers to 
review it.  Finally, the Ambassador said the Ministry of 
Finance,s demand that the school produce a check for one 
million dinar in 24 hours was also unrealistic and could not 
be met.  The Ambassador noted that ACST,s US bank had 
blocked much of the school,s account in response to the 
GOT,s action and it would take time to unblock it. 
 
¶9. (C) Ghannouchi expressed surprise that the school had not 
received the tax document but continued to press for the US 
Government to accept a piecemeal approach to solving the 
problem.  The Ambassador finally said he would convey the 
message to Washington; but noted again that while multiple 
ministries may be involved, ACST needs to know its full 
obligations to the GOT before it could agree to anything. 
The Ambassador asked why the GOT was unwilling to conclude a 
global school agreement with the United States as it had with 
France and Italy.  The Prime Minister demurred, suggesting 
the cases were different. 
 
--------------------------------------------- ------ 
Bilateral Relations: More Political Progress Needed 
--------------------------------------------- ------ 
 
¶10. (C) The Ambassador expressed appreciation for 
Ghannouchi's friendship and all he had done to advance 
US-Tunisian relations.  He gave the GOT credit for the 
significant economic and social progress it has made but said 
more could be done in the political arena.  He noted the 
opportunity presented by the upcoming presidential and 
legislative elections, saying progress was specifically 
needed on freedom of expression and association.  The Prime 
Minister said that when a country makes progress in some 
areas, more is always asked of it. 
 
¶11. (C) The Ambassador also highlighted the progress that has 
been made in the past three years on US-Tunisian military 
cooperation (notably in increased US assistance), relations 
between Congress and the Chamber of Deputies, and on cultural 
programming, including increased English-language 
instruction.  The Ambassador noted the Mission,s 
considerable efforts to deepen economic and commercial 
cooperation.  Ghannouchi seconded the successes in developing 
and diversifying the relationship, specifically emphasized 
the security relationship.  He added, it is always possible 
to do more, expressing a desire for deepening economic 
relations.  He said as Tunisia is dealing with the financial 
crisis, efforts on the economic side to encourage business 
contacts and foreign investment are key.  He hoped that the 
increased interest shown by US companies in the last year 
would lead to tangible results.  The Prime Minister expressed 
appreciation for all the Ambassador had done for Tunisia and 
for US-Tunisian relations. 
 
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Comment 
 
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¶12. (C) PM Ghannouchi is one of Tunisia,s brightest and most 
effective officials.  He justifiably receives much of the 
credit for the country,s generally good economic governance. 
 He is untainted by rumors of personal corruption.  The Prime 
Minister,s commitment that the GOT will work with the United 
States on Middle East peace, and his praise for President 
Obama, were welcome even if not new.  The Prime Minister 
clearly understood that the new US Administration has created 
a unique opportunity for peace.  Nevertheless, the GOT is 
always slow to take actions that may pose a risk.  We should 
continue to ask them to take concrete steps to back up their 
promises of support. 
 
¶13. (C) The Prime Minister,s repeated efforts to persuade 
the Ambassador to separate the ACST tax deal from other 
issues was notable.  Ghannounchi clearly understood the 
Ambassador,s explanation of the ACST and USG position, but 
pressed for the school to sign the tax deal now.  We continue 
to believe it is essential for ACST to have a global deal 
before signing specific agreements, however.  The good news 
is that we have the attention of the GOT,s highest officials 
and they say they want to reach a resolution.  We need to 
continue to make clear our position at all available 
opportunities.  If we do, we may be able to conclude a deal. 
 
Godec