VZCZCXYZ0000
OO RUEHWEB

DE RUEHTU #0498/01 2011603
ZNY CCCCC ZZH
O 201603Z JUL 09
FM AMEMBASSY TUNIS
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6576
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUCNMGH/MAGHREB COLLECTIVE
RUEHUL/AMEMBASSY SEOUL 0055
RUEHKO/AMEMBASSY TOKYO 0172

C O N F I D E N T I A L TUNIS 000498 
 
SIPDIS 
 
E.O. 12958: DECL: 07/17/2019 
TAGS: PREL ASCH PGOV TS US
SUBJECT: AMBASSADOR'S FAREWELL CALL ON THE FOREIGN MINISTER 
 
REF: A. TUNIS 473 
     ¶B. TUNIS 469 
     ¶C. TUNIS 461 
     ¶D. TUNIS 455 
     ¶E. WHITE HOUSE 080726Z JULY 09 
     ¶F. TUNIS 447 
 
Classified By: Ambassador Robert F. Godec, reason 1.4 (b) and (d) 
 
------- 
Summary 
------- 
 
¶1.  (C) During a July 17 farewell call on Foreign Minister 
Abdelwaheb Abdallah, the Ambassador 
 
--reviewed accomplishments between the two countries in 
recent years; 
 
--discussed President Obama's letter of the previous week to 
President Ben Ali about Middle East peace and encouraged a 
positive response (refs D and E); 
 
--pointed out USG concerns with the lack of information 
sharing from the GOT about the reported plot against US 
military personnel that recently appeared in the press (refs 
B and F); and 
 
--discussed at length our growing anger about the Ministry of 
Finance's action to reimpose a 9.1 million dinar tax bill on 
the American Cooperative School in Tunis (ACST) and the GOT 
lack of response to multiple attempts to conclude a 
comprehensive bilateral accord to resolve the issue (refs A 
and C). 
 
¶2.  (C) In reply, the Minister 
 
--spoke favorably of the evolution in relations between the 
two countries, specifically citing the creation of the 
Tunisia caucus in the US Congress and increased military 
assistance; 
 
--said that the GOT was studying President Obama's letter and 
would reply as quickly as possible.  He praised the US 
commitment to advance Middle East peace; 
 
--took note of the Ambassador's comments on information 
sharing but provided no substantive comment; and 
 
--initially called the USG position on ACST illogical saying 
that we should not link actions by separate ministries.  He 
then took a more conciliatory approach stating that he would 
try to exercise influence on the Ministries of Finance and 
Public Land.  End Summary 
 
 
¶3.  (C) The Ambassador paid his farewell call on Foreign 
Minister Abdelwaheb Abdallah July 17.  After opening 
pleasantries, the Ambassador reviewed bilateral 
accomplishments between the United States and Tunisia over 
the last few years, including various high-level visits (e.g. 
by members of Congress), the increase in trade and investment 
between the two countries and our security assistance.  The 
Foreign Minister responded that he was particularly pleased 
with the creation of a Tunisia caucus on Capitol Hill, and 
noted the help that the caucus had provided in aid to 
Tunisia.  He also welcomed the increase in military aid. 
Abdallah praised the quality of his dialogue with the 
Ambassador. 
 
----------------------------------- 
President Obama's Letter to Ben Ali 
----------------------------------- 
 
¶4.  (C) The Ambassador raised the letter of the previous week 
from President Obama to President Ben Ali.  The Ambassador 
said that the United States would welcome any reaction to the 
requests contained in the letter or other thoughts from the 
GOT on how to move the peace process forward.  Abdallah 
acknowledged the letter and said that the Tunisians are 
studying the proposals contained in it and would reply as 
soon as possible.  In that context, the Ambassador thanked 
the Foreign Minister for the kind words about the US' role in 
the Middle East Peace Process that the Minister delivered at 
the Non-Aligned Movement Summit.  The Minister replied that 
Tunisia appreciates very much the efforts of President Obama 
and his Administration to advance peace and that President 
Ben Ali wants to salute and underline those efforts in his 
speeches.  While the GOT acknowledges that peace will not be 
easy, there is the clear sense that the United States has the 
will to make advances and that all parts of the US Government 
are speaking with the same voice.  Abdallah added that he 
said so to the Swedish (EU President) representative at the 
NAM Summit.  Almost everyone is speaking with the same voice 
and ideas on how to bring about peace, and that now is the 
time to seize the moment.  Abdallah added that there may not 
be success but the attempt must be made. 
 
----------------------------------- 
Need for Better Information Sharing 
----------------------------------- 
 
¶5.  (C) The Ambassador raised press reports about a plot by 
nine people, including two Tunisian air force officers, to 
attack US military personnel.  The Ambassador noted that he 
had received assurances that there was no current danger from 
the Minister of Defense (ref. B), but that the United States 
should not have learned of the potential threat from the 
press.  Washington was concerned.  This incident is an 
example of the need for better communication and information 
sharing and that we should know in advance of such matters. 
Abdallah replied that he had only seen the press reports and 
that he had no additional information on the matter. 
 
------------------------------------ 
American Cooperative School of Tunis 
------------------------------------ 
 
¶6.  (C) The Ambassador told the Minister that is should be 
possible to find a good faith solution, but unfortunately 
there are still problems.  Washington is focused on the 
matter and is discussing the future of military aid and other 
cooperation as a result.  Ambassador Mansour can be expected 
to be convoked soon by a senior Department official. 
Although we have an accord in principle on the tax questions, 
earlier that week at the behest of the Ministry of Finance, a 
court reimposed the 9.1 million dinar tax finding against the 
school raising again the possibility of the school's 
bankruptcy.  The Minister replied that he had heard that the 
tribunal had rendered a decision on July 14 and then express 
wonder as to why the matter was before the tribunal at all. 
The Ambassador reviewed the attempt by the Ministry of 
Finance the previous week to force the school to sign a 
document with no opportunity to review it, refusing to 
provide a copy, and demanding a payment of some one million 
dinars in 24 hours.  The Ambassador noted that the school has 
no one from its board in Tunisia currently and the money 
could not be made available that quickly. 
 
¶7.  (C) The Minister replied that from his point of view 
there are two issues: one is the taxes and the second is the 
property rent.  He said that the issues did not fall under 
the same authority and he questioned why the United States 
was linking the two subjects.  He stated, and repeated more 
than once, that it would be as if he refused to pay his rent 
to his landlord because he had tax problems; the landlord 
would say that was ridiculous.  He also said that we were 
asking the tax authorities "to provide a house" as a 
precondition for paying taxes due. 
 
¶8.  (C) The Ambassador pointed out that the financial 
viability of the school is at stake.  In addition, all the 
issues stem from the actions of the one Government of 
Tunisia.  The Minister still said from his point of view 
there were two separate issues at stake that were not the 
same.  Since the tax issue is resolved, he said he would try 
to use his influence with the Ministry of Public Land. 
 
¶9.  (C) The Ambassador urged that the MFA review the draft we 
delivered July 10 since it could solve the problem.  Multiple 
documents could be signed in the end, but they had to 
represent a concurrent global solution not unlike the accords 
with the Italians and the French.  He noted that the school 
has had an exchange of letters with the Ministry of Public 
Land that may help resolve the land lease issue.  Another 
possibility is that the Ministry of Finance be told to be 
patient on insisting on collecting taxes until the rest of 
the issues are resolved. 
 
¶10.  (C) The FM asserted that the Tunisians do have patience, 
adding that he would have responded in more detail but did 
not know the topic would arise since he had just returned 
from the NAM summit.  He said he thought the tax issues had 
been resolved.  The Ambassador replied that the current 
situation is not necessary.  The Prime Minister had called it 
a "grain of sand", but it was becoming very serious.  The 
Minister replied that the work of diplomats is to solve 
problems and that he would attempt to exert influence with 
the two other ministries.  He described them as not easy to 
deal with and very technical.  He closed with a discourse on 
the need to simplify Tunisian bureaucracy. 
 
¶11.  (C) Separately, the Minister's senior aide (Charge de 
Mission) Ben Rehouma was told that the court decision opened 
the possibility of seizures by the Ministry of Finance, and 
that any such seizures would effectively close the school, 
especially since the school's American bank might then freeze 
the school's cash assets.  The aide expressed his "personal 
opinion" that there would be no such seizure but took the 
message on board. 
 
------------------------ 
Good Relations with Asia 
------------------------ 
 
¶12.  (C) Abdallah told the Ambassador that he had traveled 
recently to Japan, the ROK and China.  He said that in Tokyo 
he was received by the Prime Minister, with whom he had 
contact when the latter had been Foreign Minister.  Abdallah 
described the conversations as very warm and spoke positively 
about an upcoming Japanese investment in Gafsa to build car 
parts that he said would create 3000 jobs.  (Note:  The 
Japanese DCM told us that in his meeting with the Japanese 
Foreign Minister, Abdallah was told of Japanese unhappiness 
about the treatment of their companies.  Abdallah did make 
private comments the Japanese appreciated about North Korea, 
although they have previously sought a public position from 
the Tunisians.)  Abdallah added that the Republic of Korea is 
also making a business investment in Kairouan.  Abdallah said 
that relations with China goes well and commented that he was 
amazed with the pace of change he saw there in just the two 
years since his previous visit. 
 
----------------- 
Political Freedom 
----------------- 
 
¶13.  (C) The Ambassador also noted that he hoped to see 
progress in Tunisia on freedom of expression and association. 
 The Foreign Minister did not reply specifically to the point. 
 
------- 
Comment 
------- 
 
¶14.  (C) Middle East Peace: As has been the case in previous 
encounters since the advent of the Obama Administration, 
Abdallah's comments on the peace process were generally 
positive.  When he asserted that there is a broad consensus 
about the future of the Middle East, he noticeably left out 
Israel from his list of like-minded countries with a goal for 
peace, consistent with the doubts he has expressed in other 
meetings about the current Israeli Government's intentions. 
 
¶15.  (C) ACST:  While Abdallah closed the school conversation 
on a conciliatory note, stating that he would intervene with 
the two other ministries, whether that will have any effect 
is unclear.  We found it interesting that while claiming not 
to be briefed on the topic, he knew the date of the court 
action without the Ambassador having mentioned it and our not 
having raised it with the MFA before the two met.  By septel, 
we report on the Ambassador's discussions on ACST with 
Mutamed Sakr el Materi. 
 
¶16.  (C) Overall, the tone of the meeting was friendly, but 
with direct and frank discussion of ACST and information 
sharing on security.  The Foreign Minister was clearly tired, 
no doubt from his extensive recent travels. 
 
Godec