Foreign Relations of the United States, 1958–1960, Arab-Israeli Dispute; United Arab Republic; North Africa, Volume XIII

416. Telegram From the Department of State to the Embassy in Tunisia¹

Washington, January 20, 1960—6:19 p.m.

914. Joint message. While Dept and ICA fully sympathetic problems Tun unemployment and pressing political, economic and social issues these present GOT, proposals contained Embtel 950² cause us serious concern from standpoint their financial implications. This change also most unfortunate in light Executive Branch decision (contained Icato 391)³ seek legislation to broaden Title II to allow its use for economic development.

Unilateral GOT decision re program this magnitude in light already high level U.S. assistance and requests here by Ambassador Slim finance $3.6 million in Tunisian university construction “outside” regular aid level leads us to believe Tunisians have commenced major push to increase U.S. aid level and subject U.S. to intense pressures in near future.

Approve your manner dealing with Ladgham’s presentation Tun request additional assistance, particularly point 4.⁴ We realize Bourguiba’s tendency become frustrated when confronted delays in achieving objectives in shortest possible time. Therefore, believe raising detailed reservations work relief proposal with him would be counterproductive this time. Instead believe you should use occasion your meeting with Bourguiba raise issue of general direction GOT’s political, social and economic planning. We would also hope that you could obtain information as to role Bourguiba intends other foreign powers to play in assisting GOT in economic field.

If Bourguiba makes specific request for assistance, we believe you should for time being take line similar to that taken with Ladgham bearing in mind FY 60 contingency funds extremely limited and highly unlikely any additional sum over present $20 million SA will be available.

In summary, believe best strategy in your discussions with Bourguiba to avoid detailed comments or commitments, but attempt explore broad course GOT proposes follow in meeting its increasing requirements for foreign assistance. At same time you can indicate willingness U.S. study expanded work relief program in cooperation with appropriate Tun ministries and in context present U.S. and other outside resources available GOT.

Separate message containing detailed comments expanded work relief program follows for guidance lower level discussions relative expanded program.⁵

FYI—USOM airgram promised reftel not yet received. End FYI.

Herter

1. Source: Department of State, Central Files, 611.72/1–960. Confidential; Priority. Drafted by Porter and Donald MacPhail, Assistant Deputy Director for Operations, ICA, and approved and signed for Herter by Porter.
2. Telegram 950, January 9, reported that Ladgham had requested U.S. assistance in financing a new program to relieve unemployment. Walmsley noted that Bourguiba intended to discuss these plans with him, and requested any Department of State observations on them in advance of their meeting. (Ibid.)
3. Not found.
4. Telegram 950 reported that the Embassy “followed a line of inquiry rather than argument in the discussion” of the proposed unemployment program. Point 4 asked whether the Tunisian Government had considered reshuffling its resources and economic plans.
5. Not found.