AMBASSADOR CALLS ON SAKHER EL-MATERI

C O N F I D E N T I A L TUNIS 000790 SIPDIS E.O. 12958: DECL: 10/23/2019 TAGS: PGOV PREL PINS EFIN TS SUBJECT: AMBASSADOR CALLS ON SAKHER EL-MATERI REF: A. TUNIS 523 ¶B. TUNIS 516 ¶C. TUNIS 338 ¶D. TUNIS 108 ¶E. 08 TUNIS 847 Classified by Ambassador Gordon Gray for reasons 1.4 (b) and (d). ¶1. (C) Summary: Mohamed Sakher El-Materi (President Ben Ali's son-in-law, businessman, and emerging politician) received the Ambassador at the headquarters of his Princess Holding Group company October 22. El-Materi started reaching out to the Embassy earlier this year and appears to want to continue the relationship. He struck the Ambassador as a natural politician with an easy manner, good English skills, and obvious political ambitions. During the meeting El-Materi offered to help further on the American Cooperative School of Tunis (ACST) and discussed both his business empire (including his very popular Islamic radio station) and his ambitions to bring McDonald's to Tunisia. End summary. ¶2. (C) El-Materi asked the Ambassador about the status of ACST and seemed genuinely surprised when the Ambassador told him the final agreement was still at the Ministry of Foreign Affairs pending signature. (Note: The Embassy believes El-Materi's intervention prompted President Ben Ali to intervene and break the stalemate over the school earlier this year (refs a and b). End Note.) El-Materi said he would try to move the process forward, appearently trying to show the Ambassador that he could be helpful. ¶3. (C) El-Materi also discussed his business holdings and expressed, as he has in the past, his interest in bringing American franchises, particularly McDonald's, to Tunisia. The Ambassador responded by noting that franchises are good employment generators and could be good for the Tunisian economy; however, Tunisia has yet to implement a franchise law. El-Materi then showed the Ambassador a plan to expand the La Goulette commercial port in Tunis, pointing out the exact building that he, "had given to a friend for the McDonald's franchise." He thanked the Ambassador for the interview he gave recently to his As Sabah newspaper and explained that he had bought the newspaper because the previous ownership "was not acting responsibly," meaning in a business sense. ¶4. (C) Discussing his Zaituna radio station which broadcasts the Qu'ran and Islamic programs, he explained that it was the first or second most popular radio station in the country. (Note: All of the radio stations in Tunisia are either government controlled or owned by Ben-Ali family members and affiliates. End Note). He stressed that Zaituna radio broadcasts a moderate Islamic message and was a necessary counterweight to the influence of more extremist Islamic messages broadcast on international satellite stations. ¶5. (C) El-Materi's style was congenial and low-key. He had an informal business manner more typical of Americans than Tunisians. He came out of his office to greet the Ambassador and shook hands with the Ambassador's body guard as well. He interacted with his own staff in a collegial rather than directive way. His English was workable and good enough that he resorted to French only occasionally throughout the meeting. While he was generally attentive, his attention span was short when he himself was not speaking. GRAY