BEN ALI'S INDEPENDENCE DAY SPEECH FOCUSES ON

C O N F I D E N T I A L TUNIS 000666

SIPDIS

SIPDIS

STATE FOR EB AND NEA/MAG - LAWRENCE
COMMERCE FOR ITA/MAC/ONE (ROTH) AND CLDP (TEJTEL)
PASS TO USTR (D.BELL)
PASS TO USPTO (M.ADLIN)
CASABLANCA FOR FCS (R.ORTIZ)

E.O. 12958: DECL: 03/20/2016
TAGS: PGOV ECON ELAB KDEM PREL TS
SUBJECT: BEN ALI'S INDEPENDENCE DAY SPEECH FOCUSES ON
ECONOMIC DEVELOPMENT

REF: A. TUNIS 645

B. TUNIS 622

Classified By: AMBASSADOR WILLIAM HUDSON FOR REASONS 1.4 (b) AND (d)


1. (SBU) SUMMARY: On the occasion of the fiftieth anniversary
of Tunisia's independence, President Ben Ali delivered a
major speech that outlined Tunisia's achievements and set
clear and lofty goals for economic achievement in the next
ten years. In addition to several new tax proposals, Ben Ali
highlighted ten year plans to increase employment and per
capita income. Ben Ali also noted political, social and
economic achievements that have been made under his
leadership. END SUMMARY.


2. (U) Cities around the country were adorned with Tunisian
flags and banners celebrating the fiftieth anniversary of
Tunisia's independence from France on March 20, 1956.
President Zine el Abidine Ben Ali, accompanied by his wife,
Leila, presided over a number of celebrations around the
country to commemorate the event. On March 19, Ben Ali
visited the grave of Tunisia's first president, Habib
Bourguiba, in Monastir. On March 21, Ben Ali invited heads
of the diplomatic corps to a large parade outside of Tunis
that included a military review and a commemoration of
Tunisian history. These events were capped by a March 20
Presidential speech to a large group of politicians and
citizens in a stadium in the southern Tunis suburb of Rades.


3. (SBU) While addressing the wide range of Tunisia's
political, social and economic achievements since
independence, the President's speech focused on economic
goals - particularly employment - through 2016. Ben Ali
began by announcing, "We have set for our country an
ambitious objective...joining the ranks of developed
countries." Ben Ali said he would aim to double per capita
income by 2016 and reduce unemployment from its current
official level of fourteen percent to ten percent by 2010.
Ben Ali also sought to allay those who fear privatization
will lead to increased unemployment by stressing his
commitment to the protection of labor rights. He also
announced a series of changes to tax policies, including
those that target companies and private citizens. The
corporate tax rate will be decreased from 35 to 30 percent
and the value-added tax on certain goods will be eliminated.
Ben Ali also announced a general fiscal amnesty that will
cancel tax fines and interest accrued under TD 100 (USD 75)
and a fifty percent reduction for higher amounts. (NOTE: As
few private Tunisians pay income taxes, many are in arrears
and could benefit from this amnesty. END NOTE.)


4. (SBU) Ben Ali also used the speech to highlight his
personal achievements as leader, noting that the "Change of
November 7, 1987" was undertaken to "safeguard the country's
gains" and "to save it from the...decline to which it had
fallen." (NOTE: The "Blessed Change" is commonly used to
refer to Ben Ali's removal of then President Bourguiba. END
NOTE.) He added, "Since the Change, we have undertaken deep
reforms...building a society embracing democracy, pluralism
and human rights." Noticeably, Ben Ali gave scant attention
to the celebration's official theme, "Loyalty to the
Republic," which had been emphasized by senior officials (Ref
B) in the week leading up to the holiday.


5. (SBU) In addition to the political and economic focus, Ben
Ali also praised women's role in Tunisia's achievements and
the importance of "their active role in ensuring the progress
of the country." Other topics Ben Ali covered in his speech
included providing opportunities to youth, increasing state
benefits to veterans of the independence, and reiterating
Tunisia's foreign policies related to the Palestinian issue,
Iraq, the Arab Maghreb Union and the Organization of Islamic
Conference.


6. (C) COMMENT: Creating jobs has always been a main focus of
the Ben Ali regime, particularly given its inherent
relationship to stability. GOT efforts to spur economic
development are more pressing today, considering growth rates

of over six percent are needed to provide jobs for the more
than 500,000 university graduates that will seek to enter the
work force by 2010 (Ref A). While public expressions of
commitment are common, it remains unclear if the GOT is
prepared to liberalize its economic and investment policies
in order to increase employment and become truly integrated
into the world economy. END COMMENT.
HUDSON