FRENCH CLAIM FRANCE-ALGERIA RELATIONS "NOT

C O N F I D E N T I A L PARIS 001341 SIPDIS E.O. 12958: DECL: 09/30/2019 TAGS: PGOV PREL AG FR SUBJECT: FRENCH CLAIM FRANCE-ALGERIA RELATIONS "NOT STRAINED" Classified By: Political Counselor Andrew R. Young for reasons 1.4 (b), (d). ¶1. (C) French-Algerian relations are "not strained," despite recent press reports to the contrary and despite repeated delays of the state visit of Algerian President Bouteflika, insisted MFA Algeria Desk Officer Anne-Claire Legendre on September 29. Legendre told poloff that internal political inertia on the Algerian side has created the appearance of increased tensions between the two countries. The Algerian political elites currently "take a long time to reach conclusions and act," Legendre said, explaining why the Algerian officials had not yet decided when President Bouteflika will visit Paris, and why they have refused to agree on a date for French Immigration Minister Besson to travel to Algiers. Besson seeks to discuss with the Algerians a French plan to amend the bilateral immigration agreement first enshrined in the Evian Accords of 1962. Legendre admitted this move will meet resistance in Algiers, where "visa issues are a primary concern," but she noted that France has already amended the agreement three times in order to restrict Algerian immigration into France -- twice in the 1980s and, most recently, in 2001. Ultimately, she said, this issue will be decided by Presidents Sarkozy and Bouteflika. ¶2. (C) From the French perspective, the new Algerian Financial Law has developed into a major irritation in bilateral relations, Legendre admitted. Since the law went into effect on July 5, she said, French exports to Algeria have decreased by 60 percent compared to the same period last year. The new law contains many structural barriers to investment in and trade with Algeria. Legendre cited, as an example, the auto industry, where the French company Renault has suffered significant losses: the new law requires the Renault Director in Algeria personally to register each imported car with customs, at the port, the day it arrives. Moreover, foreign cars can no longer enter Algeria through the major port in Algiers; they must now enter through the small port of Mostaganem, according to Legendre. ¶3. (C) The French believe these moves stem from a growing paranoia of indebtedness among the Algerian elite, particularly Bouteflika, whom, Legendre claimed, interprets the economic turmoil of the 1980s as the root cause of the civil war in the 1990s. By limiting Algeria's current account deficit, Bouteflika seems to believe he can create political stability. EU and French officials have repeatedly protested, to no avail, the slow closure of the Algerian economy to foreign trade and investment. Legendre noted the French have discussed this and other challenges with USG representatives on the ground in Algiers, where she said the French and U.S. Embassies enjoy particularly good communication and coordination. RIVKIN