TUNIS AMERICAN SCHOOL UPDATE

C O N F I D E N T I A L SECTION 01 OF 02 TUNIS 000339

SIPDIS

STATE FOR NEA/FO, NEA/MAG, NEA/SCA/EX;
STATE ALSO FOR A/OPR/OS, DS/OFM, L/DL

E.O. 12958: DECL: 06/02/2019
TAGS: ASCH OFDP PREL TS
SUBJECT: TUNIS AMERICAN SCHOOL UPDATE

REF: TUNIS 305 AND PREVIOUS

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

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


1. (C) In a meeting with the Ambassador, the Minister of
State Properties and Real Estate emphasized that it should be
easy to reach a solution at the working level to the American
Cooperative School of Tunis (ACST) lease issue. There has
been no other explicit reaction from the GOT in the two weeks
since the Ambassador delivered the non-paper outlining the
agreement in principle on tax and status pending resolution
of the lease issue. In the meantime, ACST celebrated its
50th anniversary with a strong show support from the US
Mission, international community and the African Development
Bank (AfDB) but the noticeable absence of any the Tunisian
officials invited. The school has also announced a 22
percent tuition hike and other fee increases in preparation
for the proposed July 1 implementation date of the new fiscal
regime. End summary.

--------------
MINISTER OF STATE PROPERTIES AND REAL ESTATE
--------------


2. (C) In response to a request pending for several weeks,
the Ambassador met on June 3 with Minister of State
Properties and Real Estate Ridha Grira. Minister Grira is a
highly-qualified technocrat trained in France who served for
ten years as Secretary General of the Government, overseeing
financial transactions and budget allocations to all the
ministries. He has been Minister since 2002 and remained in
place after the 2008 cabinet reshuffle.


3. (C) The meeting between the Ambassador, accompanied by
the ACST Board President, and Minister Grira was amiable and
relaxed. After the usual pleasantries, the Ambassador raised
the issue of the school's lease which had been called into
question in a letter in the Minister's name. The Minister
appeared not to be aware of the details of the GOT-USG
negotiations or the non-paper. In his comments, the
Ambassador emphasized the importance of the school to the USG
and the community at large, noting that over 40 Tunisians and
the nationals of 67 other countriers attend the school. The
school, he said, is an important asset for Tunisia. The
Minister downplayed his letter as a "certainly not an affair
of state," but rather one of many such routine reviews. At
the Minister's suggestion, the ACST Board President will seek
a meeting with the Director General responsible for the
dossier.


4. (C) The Ambassador also raised the question of a donation
or symbolic sale of the land to the school. While not
dismissing the notion out of hand, the Minister said he was
unsure whether the legal framework would allow such as
transaction, but he would look into it. The meeting ended
cordially with the Minister walking the Ambassador to the
street.

--------------
SHOW OF SUPPORT FOR ACST'S 50TH
--------------


5. (C) ACST's 50th anniversary celebration on May 28 drew
about 500 people from the school community plus returning
alumni and former staff. There was a strong showing from the
diplomatic corps with about a dozen chiefs of mission or
deputies including Canada, Germany, the UK, Romania, Poland,
Finland, Iraq, Saudi Arabia, the Arab League, and UNICEF.
While the Ministers of Foreign Affairs, Finance, Education
and Public Lands were invited along with lower-level MFA and
MOF officials, there was no GOT representation. Ambassador
Godec, the German Ambassador and the Special Assistant to the
President of the AfDB all delivered strong messages of
support for the school and its importance to the USG, the
diplomatic and international community and international
organizations like the AfDB. There was a small press
presence but no coverage has been noted to date.

--------------
ACST RAISES TUITION AND FEES
--------------


6. (SBU) ACST's Board of Governors finalized early last
week a plan to implement a combination of cost-cutting

TUNIS 00000339 002 OF 002


measures and increased fees to adapt to the proposed new
fiscal status due to take effect on July 1. Applied without
any cost-cutting measures, the implementation of the new
fiscal regime would have resulted in a 37 percent increase in
operating expenses. On May 29, ACST's Director and Board
President briefed visibly relieved faculty and staff on the
impact of the plan on them: canceling a planned raise,
limited layoffs through attrition, general cuts in
operational and capital spending and scaling back some
programs.


7. (SBU) Also on May 29, a letter went out to all parents
describing the steps taken and the new fee schedule. Under
the plan, annual tuition for high school will increase from
$16,380 to $19,985 (22 percent),the annual capital fee will
increase from $805 to $1,600 (99 percent) and the one-time
registration fee for new students will increase from $5,500
to $9,600 (75 percent). The combined net increase (tuition
and capital fee) for a current high school student will
$4,400 per year. The increase in the capital fee and a
portion of the registration fee will more cover the one-time
settlement of tax arrears, payable over five years without
interest. The entire tuition increase and most of the
registration fee increase will go to fund new operating
costs, mostly increased salaries and benefits in order to
maintain the same net pay to employees under the new tax
regime. Despite the increases, fees remain comparable to
other American schools in the region.


9. (SBU) As expected, some parents have reacted strongly to
the increase in fees, especially some AfDB parents who pay 20
percent of school fees and those who pay 100 percent
out-of-pocket. Most parents, however, seem resigned to the
fact that there is no alternative to raising fees and moving
forward. Enrollment numbers for next year remain at a record
high of 580 students. The upcoming regularly scheduled June
9 meeting of the ACST Board, the last such meeting of the
academic year, will provide an opportunity to gauge the
strength of parent reaction.
Godec