AMBASSADOR'S FAREWELL CALL ON THE FOREIGN MINISTER

C O N F I D E N T I A L TUNIS 000498

SIPDIS

E.O. 12958: DECL: 07/17/2019
TAGS: PREL ASCH PGOV TS US
SUBJECT: AMBASSADOR'S FAREWELL CALL ON THE FOREIGN MINISTER

REF: A. TUNIS 473

B. TUNIS 469

C. TUNIS 461

D. TUNIS 455

E. WHITE HOUSE 080726Z JULY 09

F. TUNIS 447

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

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Summary
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1. (C) During a July 17 farewell call on Foreign Minister
Abdelwaheb Abdallah, the Ambassador

--reviewed accomplishments between the two countries in
recent years;

--discussed President Obama's letter of the previous week to
President Ben Ali about Middle East peace and encouraged a
positive response (refs D and E);

--pointed out USG concerns with the lack of information
sharing from the GOT about the reported plot against US
military personnel that recently appeared in the press (refs
B and F); and

--discussed at length our growing anger about the Ministry of
Finance's action to reimpose a 9.1 million dinar tax bill on
the American Cooperative School in Tunis (ACST) and the GOT
lack of response to multiple attempts to conclude a
comprehensive bilateral accord to resolve the issue (refs A
and C).


2. (C) In reply, the Minister

--spoke favorably of the evolution in relations between the
two countries, specifically citing the creation of the
Tunisia caucus in the US Congress and increased military
assistance;

--said that the GOT was studying President Obama's letter and
would reply as quickly as possible. He praised the US
commitment to advance Middle East peace;

--took note of the Ambassador's comments on information
sharing but provided no substantive comment; and

--initially called the USG position on ACST illogical saying
that we should not link actions by separate ministries. He
then took a more conciliatory approach stating that he would
try to exercise influence on the Ministries of Finance and
Public Land. End Summary



3. (C) The Ambassador paid his farewell call on Foreign
Minister Abdelwaheb Abdallah July 17. After opening
pleasantries, the Ambassador reviewed bilateral
accomplishments between the United States and Tunisia over
the last few years, including various high-level visits (e.g.
by members of Congress),the increase in trade and investment
between the two countries and our security assistance. The
Foreign Minister responded that he was particularly pleased
with the creation of a Tunisia caucus on Capitol Hill, and
noted the help that the caucus had provided in aid to
Tunisia. He also welcomed the increase in military aid.
Abdallah praised the quality of his dialogue with the
Ambassador.

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President Obama's Letter to Ben Ali
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4. (C) The Ambassador raised the letter of the previous week
from President Obama to President Ben Ali. The Ambassador
said that the United States would welcome any reaction to the
requests contained in the letter or other thoughts from the
GOT on how to move the peace process forward. Abdallah
acknowledged the letter and said that the Tunisians are
studying the proposals contained in it and would reply as
soon as possible. In that context, the Ambassador thanked
the Foreign Minister for the kind words about the US' role in
the Middle East Peace Process that the Minister delivered at
the Non-Aligned Movement Summit. The Minister replied that
Tunisia appreciates very much the efforts of President Obama
and his Administration to advance peace and that President
Ben Ali wants to salute and underline those efforts in his
speeches. While the GOT acknowledges that peace will not be
easy, there is the clear sense that the United States has the
will to make advances and that all parts of the US Government
are speaking with the same voice. Abdallah added that he
said so to the Swedish (EU President) representative at the
NAM Summit. Almost everyone is speaking with the same voice
and ideas on how to bring about peace, and that now is the
time to seize the moment. Abdallah added that there may not
be success but the attempt must be made.

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Need for Better Information Sharing
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5. (C) The Ambassador raised press reports about a plot by
nine people, including two Tunisian air force officers, to
attack US military personnel. The Ambassador noted that he
had received assurances that there was no current danger from
the Minister of Defense (ref. B),but that the United States
should not have learned of the potential threat from the
press. Washington was concerned. This incident is an
example of the need for better communication and information
sharing and that we should know in advance of such matters.
Abdallah replied that he had only seen the press reports and
that he had no additional information on the matter.

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American Cooperative School of Tunis
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6. (C) The Ambassador told the Minister that is should be
possible to find a good faith solution, but unfortunately
there are still problems. Washington is focused on the
matter and is discussing the future of military aid and other
cooperation as a result. Ambassador Mansour can be expected
to be convoked soon by a senior Department official.
Although we have an accord in principle on the tax questions,
earlier that week at the behest of the Ministry of Finance, a
court reimposed the 9.1 million dinar tax finding against the
school raising again the possibility of the school's
bankruptcy. The Minister replied that he had heard that the
tribunal had rendered a decision on July 14 and then express
wonder as to why the matter was before the tribunal at all.
The Ambassador reviewed the attempt by the Ministry of
Finance the previous week to force the school to sign a
document with no opportunity to review it, refusing to
provide a copy, and demanding a payment of some one million
dinars in 24 hours. The Ambassador noted that the school has
no one from its board in Tunisia currently and the money
could not be made available that quickly.


7. (C) The Minister replied that from his point of view
there are two issues: one is the taxes and the second is the
property rent. He said that the issues did not fall under
the same authority and he questioned why the United States
was linking the two subjects. He stated, and repeated more
than once, that it would be as if he refused to pay his rent
to his landlord because he had tax problems; the landlord
would say that was ridiculous. He also said that we were
asking the tax authorities "to provide a house" as a
precondition for paying taxes due.


8. (C) The Ambassador pointed out that the financial
viability of the school is at stake. In addition, all the
issues stem from the actions of the one Government of
Tunisia. The Minister still said from his point of view
there were two separate issues at stake that were not the
same. Since the tax issue is resolved, he said he would try
to use his influence with the Ministry of Public Land.


9. (C) The Ambassador urged that the MFA review the draft we
delivered July 10 since it could solve the problem. Multiple
documents could be signed in the end, but they had to
represent a concurrent global solution not unlike the accords
with the Italians and the French. He noted that the school
has had an exchange of letters with the Ministry of Public
Land that may help resolve the land lease issue. Another
possibility is that the Ministry of Finance be told to be
patient on insisting on collecting taxes until the rest of
the issues are resolved.


10. (C) The FM asserted that the Tunisians do have patience,
adding that he would have responded in more detail but did
not know the topic would arise since he had just returned
from the NAM summit. He said he thought the tax issues had
been resolved. The Ambassador replied that the current
situation is not necessary. The Prime Minister had called it
a "grain of sand", but it was becoming very serious. The
Minister replied that the work of diplomats is to solve
problems and that he would attempt to exert influence with
the two other ministries. He described them as not easy to
deal with and very technical. He closed with a discourse on
the need to simplify Tunisian bureaucracy.


11. (C) Separately, the Minister's senior aide (Charge de
Mission) Ben Rehouma was told that the court decision opened
the possibility of seizures by the Ministry of Finance, and
that any such seizures would effectively close the school,
especially since the school's American bank might then freeze
the school's cash assets. The aide expressed his "personal
opinion" that there would be no such seizure but took the
message on board.

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Good Relations with Asia
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12. (C) Abdallah told the Ambassador that he had traveled
recently to Japan, the ROK and China. He said that in Tokyo
he was received by the Prime Minister, with whom he had
contact when the latter had been Foreign Minister. Abdallah
described the conversations as very warm and spoke positively
about an upcoming Japanese investment in Gafsa to build car
parts that he said would create 3000 jobs. (Note: The
Japanese DCM told us that in his meeting with the Japanese
Foreign Minister, Abdallah was told of Japanese unhappiness
about the treatment of their companies. Abdallah did make
private comments the Japanese appreciated about North Korea,
although they have previously sought a public position from
the Tunisians.) Abdallah added that the Republic of Korea is
also making a business investment in Kairouan. Abdallah said
that relations with China goes well and commented that he was
amazed with the pace of change he saw there in just the two
years since his previous visit.

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Political Freedom
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13. (C) The Ambassador also noted that he hoped to see
progress in Tunisia on freedom of expression and association.
The Foreign Minister did not reply specifically to the point.

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Comment
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14. (C) Middle East Peace: As has been the case in previous
encounters since the advent of the Obama Administration,
Abdallah's comments on the peace process were generally
positive. When he asserted that there is a broad consensus
about the future of the Middle East, he noticeably left out
Israel from his list of like-minded countries with a goal for
peace, consistent with the doubts he has expressed in other
meetings about the current Israeli Government's intentions.


15. (C) ACST: While Abdallah closed the school conversation
on a conciliatory note, stating that he would intervene with
the two other ministries, whether that will have any effect
is unclear. We found it interesting that while claiming not
to be briefed on the topic, he knew the date of the court
action without the Ambassador having mentioned it and our not
having raised it with the MFA before the two met. By septel,
we report on the Ambassador's discussions on ACST with
Mutamed Sakr el Materi.


16. (C) Overall, the tone of the meeting was friendly, but
with direct and frank discussion of ACST and information
sharing on security. The Foreign Minister was clearly tired,
no doubt from his extensive recent travels.

Godec