VZCZCXYZ0001
PP RUEHWEB

DE RUEHTU #0040/01 0191718
ZNR UUUUU ZZH
P 191718Z JAN 10
FM AMEMBASSY TUNIS
TO RUEHC/SECSTATE WASHDC PRIORITY 7168
INFO RUCNMGH/MAGHREB COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS TUNIS 000040 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EEB/IFD/OMA, EEB/EPPD, AND NEA/MAG 
USDOC FOR ITA/MAC/ONE (MASON) 
CASABLANCA FOR FCS (KITSON) 
 
E.O. 12958: N/A 
TAGS: ECON EAIR EFIN EINV ETRD TS
SUBJECT: MINISTER OF TRANSPORTATION ON OPEN SKIES, MARITIME 
TREATY, AND FINANCING 
 
REF: A. 09 TUNIS 890 
     ¶B. 09 TUNIS 829 
 
Sensitive but unclassified; please protect accordingly. 
 
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Summary 
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¶1. (SBU) In a January 19 courtesy call by the Ambassador, 
Minister of Transportation Abderrahim Zouari confirmed 
Tunisia's willingness to negotiate an Open Skies Agreement, 
proposed signing a bilateral maritime cooperation agreement, 
and agreed in principle to host a port visit by the U.S. 
Coast Guard.  Zouari, accompanied by the Directors General of 
Maritime Transport, Civil Aviation, Financing, and External 
Relations, lauded past cooperation between the U.S. and 
Tunisia on transportation issues.  Zouari mentioned the 
Enfidha sea and airport projects and reiterated his vision of 
Tunisia as a regional transport hub for the Mediterranean. 
End summary. 
 
--------------------------------------------- --------------- 
Maritime Issues:  USCG Visit, Maritime Cooperation Agreement 
--------------------------------------------- --------------- 
 
¶2. (SBU) Minister of Transportation Abderrahim Zouari, in a 
January 19 courtesy call by the Ambassador, lauded the 
longtime cooperation between the United States and Tunisia. 
He referenced many successful visits of U.S. delegations, 
including a United States Coast Guard (USCG) visit in January 
2005 and a U.S. Trade and Development Agency visit in 
November 2008.  (Note:  the USTDA visit was to be the initial 
step toward a port feasibility study for a Tunisian port 
infrastructure project.  The project fell through when the 
Government of Tunisia pulled the plug shortly after the USTDA 
visit.  End note.)  Zouari described in length the Enfidha 
airport and seaport projects, and noted that the airport was 
already operational and that two companies were set to begin 
construction on the deep water sea port (ref a) shortly. 
 
¶3. (SBU) The Ambassador referred to several diplomatic notes 
sent by the Embassy regarding a port visit by the USCG under 
the auspices of the 2002 Maritime Transportation Security 
Act.  To date, the GOT has not responded to the request for a 
visit, despite notification that non-responsiveness will 
eventually result in Tunisia's placement on the Port Advisory 
List -- a move that would subject any vessel having visited 
Tunisia during its last five ports of call to additional 
scrutiny.  Zouari, as well as the Director General of the 
Merchant Marine and Ports, Mokhtar Rachdi, noted they would 
welcome a USCG visit and would be in touch about details. 
Zouari also noted he would like Tunisians to visit U.S. ports 
as well.  In November-December 2008, a Tunisian National 
Commission conducted port visits and inspections and they 
went well, added the Minister. 
 
¶4. (SBU) Minister Zouari said it was Tunisia's wish to 
negotiate a bilateral maritime cooperation agreement. 
Tunisia has such agreements with 25 countries, including 
eight European countries, and is looking to take advantage of 
its strategic position on the Mediterranean to become a 
regional transshipment hub and direct competitor to Tangiers. 
 Rachdi added they were looking to attract Asian and American 
vessel traffic to the Enfidha deep water port (to be built 
next to the existing Enfidha International Airport).  The 
agreement, according to Rachdi, would comprise ports, 
security, and ecological issues.  The Minister said a draft 
text of such an agreement would be forthcoming. 
 
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Ben Ali's Wish for Open Skies 
----------------------------- 
 
¶5. (SBU) Zouari said President Ben Ali wanted Tunisia to have 
fully open skies by 2011, and that the GOT was currently 
negotiating with the EU and Canada in this respect.  He said 
the "decision had been taken" on Open Skies with the United 
States as well.  Hamadi Ben Khalifa, Director General of 
Civil Aviation, was also present at the meeting.  He 
acknowledged the receipt of the model Open Skies agreement 
sent by the Embassy in September 2009, and said the GOT was 
in the process of reviewing it.  Zouari added that a New 
York-Tunis-Rome route would be profitable for the tourism 
sector.  He also noted Tunisair was going to take delivery of 
new aircraft in 2012 that would be used to fly this route. 
 
 
¶6. (SBU) Ben Khalifa also took the opportunity to highlight 
Tunisia's strides in civil aviation.  He said Tunisia sat on 
the council of the International Civil Aviation Organization 
(ICAO), which had conducted its last inspection in Tunisia in 
November 2008.  He said Tunisia fared well in the inspection, 
and worked closely with ICAO on issues of national security 
and terrorism.  He noted the GOT held regular interagency 
meetings under the auspices of the National Security and 
Safety Commission, headed by the Minister of Transport. 
 
¶7. (SBU) Zouari said the aeronautical industry was a growing 
sector in Tunisia, with over 46 companies currently 
manufacturing components here.  He noted the opening of the 
Airbus plant and said Boeing was also identifying land for 
purchase to build a factory.  (Note:  Boeing's Middle East 
and Africa Sales Executive denies the company has any plans 
to build a factory in Tunisia.  End note).  Zouari identified 
Morocco as the biggest competitor in this sector, and added 
that a Boeing investment would be an important signal in 
attracting other companies to Tunisia. 
 
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EU and Asian Financing 
---------------------- 
 
¶8. (SBU) Also present at the meeting was the Ministry of 
Transport's Financial Affairs Director, who is in charge of 
coordinating credits, preferential financing, and grants for 
the transport sector.  He noted most financing came from 
France, Spain, and Japan, at favorable terms such as 0.2 
percent interest with a 7-10 year grace period.  For 2010 in 
the railway sector alone, Tunisia had received close to $700 
million.  He asked why the U.S. was not able to grant 
commensurate support, adding that it could have benefits for 
companies furnishing materials, such as General Motors.  He 
characterized Tunisia as an "emerging economy" that relies on 
such preferential financing schemes to consolidate the 
transport sector. 
 
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Comment 
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¶9. (SBU) The courtesy call on the Ministry of Transport was 
attended by the highest Tunisian officials in charge of sea, 
air, and land transport.  This provided an opportunity to 
discuss the Coast Guard visit and the Open Skies agreement 
directly.  There was a disconnect between praise for the 2005 
USCG visit and the Ambassador's need to raise the visit 
requests deflected since last year; we will continue to 
follow-up.  On Open Skies, the good news is that the GOT says 
it is willing to sign an agreement, but the lack of details 
only confirms a vague timeline of one to two years for 
negotiations to begin.  This is the first we have heard about 
a proposed Maritime Cooperation Agreement, and we look 
forward to seeing the GOT's draft text.  End comment. 
GRAY