TUNISIA AND IRAQ DEBT RELIEF: NO OFFICIAL DEBT?

C O N F I D E N T I A L TUNIS 000328

SIPDIS

SIPDIS

STATE FOR NEA/MAG (MHARRIS)

E.O. 12958: DECL: 03/09/2017
TAGS: ECON EFIN IZ TS
SUBJECT: TUNISIA AND IRAQ DEBT RELIEF: NO OFFICIAL DEBT?

REF: A. 06 STATE 184738


B. 06 STATE 181094

C. 06 TUNIS 2178

Classified By: Ambassador Robert F. Godec, for reasons 1.4 (b) and (d).


1. (SBU) Per refs A and B, Post transmitted points and
diplomatic note to the MFA November 13, 2006. The GOT has
not responded to this or several repeated follow-up requests
for information about any Iraqi debt to the GOT and/or
prospects for debt forgiveness. During a March 8 courtesy
call on Abderraouf Basti, Secretary of State for Maghreb,
Arab, and African Affairs, Ambassador reiterated the US
position on the matter. Basti responded that there were no
"official," or "state-to-state" debts. Rather, he said,
there were cases in which private companies or entities
provided material or services for which they had not been
properly compensated. Basti said that these entities were in
discussions with appropriate counterparts to resolve their
outstanding debts. Without going into further detail, he
characterized these talks as "very fruitful." (Note: Ref C
reports on the GOT's financial claims against Iraqi Airlines
for the long-term storage of four Iraqi Airways aircraft in
Tunisia. End Note.)


2. (C) Comment: We do not have 100 percent confidence in
Basti's response, which he delivered in a somewhat off-hand
manner. Basti only assumed the Secretary of State position
in late January, so he may still be getting up to speed on
the issues. Indeed, in addressing other matters in the
course of the meeting (septels),Basti did not appear to have
a good command of his portfolio. Thus, Post will continue to
seek clarification from GOT interlocutors on the status of
any Iraqi debts.
GODEC