ALGIERS MEDIA REACTION TO USTR PAUL BURKHEAD'S

UNCLAS SECTION 01 OF 02 ALGIERS 000903

SIPDIS
SENSITIVE

STATE PASS TO USTR PBURKHEAD

E.O. 12958: N/A
TAGS: ECON EFIN ETRD PGOV PREL AG US KPAO
SUBJECT: ALGIERS MEDIA REACTION TO USTR PAUL BURKHEAD'S
VISIT

REF: A) ALGIERS 887 B) ALGIERS 888 C) ALGIERS 889 D)
ALGIERS 890 E) ALGIERS 900

ALGIERS 00000903 001.4 OF 002


SUMMARY
--------------

1. (U) On September 27-28, Paul Burkhead, Director of
European and Middle Eastern Trade Affairs at the Office of
the U.S. Trade Representative, visited Algiers to meet with
senior officials in the GOA and key private sector
stakeholders to explore areas of potential cooperation in
international trade agreements. Coverage of Burkhead's press
conference at the end of his visit was extensive, largely
factual, and consistent with both his statements and previous
USG positions on the Algerian commercial climate, despite
some inflammatory headlines. Government owned newspapers
lauded the strong U.S./Algerian business partnership.
Typically conservative Arabic papers noted USG support for
Algeria's accession to the WTO, and Algeria's importance to
the U.S. as a trading partner. A few editorials denounced
his criticisms as interference in Algerian internal affairs.
Coverage highlighted the concerns of U.S. companies and
deficiencies in the Algerian business climate, urging the GOA
to conform to international standards to attract more foreign
investment. They also underscored that the USG was joining
the chorus of criticism already started by mostly European
investors, diplomats, and trading partners. What critical
coverage there was grew out of acute Algerian sensitivity to
the perception of foreign interference in Algerian policy.
END SUMMARY

PRESS CONFERENCE
--------------

2. (U) On September 27-28, Paul Burkhead, Director of
European and Middle Eastern Trade Affairs at the Office of
the U.S. Trade Representative, visited Algiers to meet with
senior officials in the GOA and key private sector
stakeholders to discuss U.S.-Algerian trade and investment
relations and the effect of recent Algerian legislation on
U.S. trade and investment. The Embassy hosted a press
conference at the end of his visit; nine major Algerian media
outlets were invited, including the Algerian Press Service
(APS). At the conference, Burkhead emphasized the desire of
the USG to expand commercial ties with Algeria, and discussed
the many potential benefits for Algeria in accession to the
WTO. He expressed concerns over some provisions in the
recent Complementary Finance Law 2009 (CFL2009),but said
that Algerian officials had been very supportive of further
constructive dialog to address the needs of the business
community, and to foster growth and stronger trade between
our nations. (Burkhead's official discussions reported septel
notal)

COVERAGE
--------------

3. (U) Press coverage was extensive, largely factual, and
consistent with both Burkhead's statements and previous USG
positions on the Algerian commercial climate, despite some
inflammatory headlines. While the private newspapers
Liberte, El Watan, and El Khabar highlighted the concerns of
U.S. companies about the CFL2009, most picked up the report
released by the APS, which addressed a comprehensive range of
issues discussed during the conference and adopted a more
balanced position underscoring:
-USG willingness to maintain and develop U.S.-Algerian
business ties;
-Significant Algerian investment opportunities;
-U.S. companies' concerns about the CFL2009;
-USG support for Algeria's accession to the WTO; and
-The importance of the Maghreb's integration into the
global economy.


4. (U) The government-owned newspapers, El Massa and El
Moudjahid, lauded the strong U.S.-Algerian business
partnership. This positive line reflects what has generally
been a tendency of government-owned papers to highlight the
fundamental strength of the U.S.-Algerian relationship.


5. (U) Ironically, the frequently anti-American,
Islamic-leaning paper Echourouk El Youmi, which has the
largest circulation of any newspaper in Algeria, focused on
Burkhead's statements about Algeria's economic promise, while
other typically conservative Arabic papers emphasized USG

ALGIERS 00000903 002.4 OF 002


support for Algeria's accession to the WTO, and Algeria's
importance to the U.S. as a trading partner.


6. (U) Editorials in Liberte and El Watan denounced
Burkhead's criticisms, leading with such headlines as,
"WashingtonQ,s Reproaches" (Liberte),"Westerners Apply
Pressure," (El Watan) and, "Sovereignty Put to the Test"
(insert name of paper). Some accused the USG of "insolence"
and interfering in Algeria's affairs (in concert with
Europeans) and neglecting non-hydrocarbon sectors of the
Algerian economy. These editorials reflected an acute
sensitivity to the idea of foreign powers attempting to
influence Algerian decisions. The editorials objected less
to the content of Burkhead's statements than to the notion of
U.S. officials commenting on Algerian policy, as if such
comments in and of themselves constituted interference.
However, they also used the USTR visit to criticize what they
see as weak leadership in the GOA, hailing Burkhead's candor
on the CFL2009: "At least he (Burkhead) was clear." (El
Watan)


7. (SBU) Liberte is owned by Issad Rebrab, an Algerian
businessman who has been a vocal supporter of the CFL2009.
Embassy sources inside the paper inform us that they were
pressured to condemn the USG position. In a private
conversation with another journalist from a leading
French-language paper, we were told that the Finance Ministry
had refused to comment on Burkhead's statements.


8. (U) Other papers, such as l'Expression, Algerie News, and
Le Soir d'Algerie, chose to focus on deficiencies in the
Algerian business climate and urged the GOA to conform to
international standards to attract more foreign direct
investment. It should be noted that the majority of
commentaries emphasized the idea that the USG was joining the
chorus of criticism already started by mostly European
investors, diplomats, and trading partners. By the third day
following Burkhead's visit, the story had all but disappeared
from the Algerian press, except for Workers Party leader
Louisa HanounQ,s denunciation of Western "blackmail".

COMMENT
--------------

9. (SBU) The Algerian government and public tend to bridle
quickly at any perceived foreign criticism of Algerian
policy, so a degree of negative and inflammatory coverage was
no surprise. Some of the press obviously chose to use
selected statements from Burkhead to advance their own
editorial agendas. By contrast, it is also worth noting that
some publications, especially those closest to the
government, made an equally obvious choice not to
overdramatize BurkheadQ,s remarks. The Algerian press itself
has generally and consistently complained of a serious
malaise afflicting the local economy in the wake of the
CFL2009, reflecting the sentiments of many ordinary
Algerians, in addition to domestic and foreign businesses.
END COMMENT


10. (U) Tripoli minimized considered.
PEARCE