Foreign Relations of the United States, 1977–1980, Volume XVII, Part 3, North Africa

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

Washington, September 21, 1977, 2337Z

227725. Subject: Under Secretary Habib’s Meeting With Tunisian Ambassador Hedda on September 20.

1. Hedda met with Habib September 20 after having cancelled meeting last week in order to return to Tunis for consultations.

2. Hedda briefly recounted economic situation, noting Tunisian balance of payments problems have been assuaged by 100 million dollar loan from Chase Manhattan and CitiBank. Hedda then relayed GOT’s willingness to schedule Joint Commission meeting for the spring after Prime Minister Nouira’s visit to U.S. (septel reports Hedda’s subsequent request for October timing.)² He also reiterated suggestion Tunisian Minister of Economics and the U.S. Secretary of Commerce meet in Washington during the fall to explore further avenues of increasing U.S.-Tunisian trade and investment. Habib agreed with Hedda on spring timing for Joint Commission and said the Department would assist fully in Hedda’s proposal for a fall meeting between Tunisian Economics Minister and Secretary of Commerce in Washington.

3. Hedda said GOT is still in process of deciding on purchases of FAAR and Vulcan systems, TOW missiles, and F–5’s. Habib asked whether GOT had changed its position on FMS sales since, during the last year, the GOT had pressed U.S. for increased FMS credits and now seems to be unable, or unwilling to use present FMS allocations. Hedda assured Habib that GOT expects to spend much more than present FMS credits and that final decisions on what to purchase, which are still pending, should be finalized soon.

4. Habib said he would then recommend that Tunisia receive an additional 10 million dollars in FMS credits out of unused worldwide balance for FY 1977. Habib said he would sign recommendation September 20.

5. Hedda brought up question of Menzel-Bourguiba dockyard use by the Soviets, which Deputy Assistant Secretary Veliotes had raised on September 2.³ Hedda said when he brought up question in Tunis during his consultation Nouira and other GOT officials expressed astonishment regarding U.S. concern on this strictly commercial procedure. Hedda relayed that economic conditions, especially unemployment, had required GOT to make available the repair facilities to all nations. Hedda remarked that the U.S. Sixth Fleet had previously studied possibility of using Menzel-Bourguiba dockyard facilities but never responded to GOT on outcome. He reiterated GOT strong preference for Sixth Fleet utilization of dockyard facilities instead of Soviets. Habib noted U.S. concern that Soviet fleet repairs in Menzel-Bourguiba dockyards increase Soviet capability in Mediterranean area, which is not in U.S. interest. Habib said we would look into possibility of Sixth Fleet usage of Menzel-Bourguiba facilities.

6. Regarding Nouira visit, Hedda relayed preference for January–March 1978 period. Habib said he was also in favor of this timing and would try to get an answer on request shortly.

7. Hedda then requested a briefing on the U.S. position on the Horn of Africa and the Middle East. Habib described U.S. position regarding Somalia and Ethiopia. He said Somalis had approached U.S. to replace Soviet military assistance. U.S. agreed in principle to supply Somalis with defensive arms, but, since inception of Ogaden conflict, U.S. had informed Somalia that we would not provide arms to Somalia so long as Ogaden conflict remains unresolved. Habib said U.S. had decided not to get in Ogaden dispute. At this time, therefore, we are not providing arms to either side. We do have some ongoing economic assistance programs in Ethiopia and we are preparing to have some economic assistance programs as well with Somalia.

8. Regarding Middle East conflict, Habib noted the next few weeks will be significant. U.S. is still hopeful a Geneva Conference will be held by end of year and will try to get all parties to agree.

9. Habib said Secretary would appreciate Foreign Minister Chatty’s views when they meet in New York during UNGA session.

10. Habib then thanked Hedda for GOT’s support in Committee of 24 on Puerto Rico vote.

Vance

1. Source: National Archives, RG 59, Central Foreign Policy File, D770344–0096. Confidential; Immediate. Drafted by Leggio; cleared in NEA, DOD, S/CPR, AF/E, the Department of Commerce, and PM/SAS; approved by Habib.
2. Telegram 226021 to Tunis, September 20, is in the National Archives, RG 59, Central Foreign Policy File, P800020–0663.
3. In telegram 213505 to Tunis, September 7, the Department reported on the September 2 meeting: “Veliotes noted the number of Soviet naval vessels being repaired at Menzel-Bourguiba dockyard. He said that while obviously Tunisian affair, USG hopes to be informed if this signals any change in GOT policy, and he suggested subject be discussed with Ambassador Mulcahy in Tunis. Hedda replied he unfamiliar with subject and would have to inform himself.” (National Archives, RG 59, Central Foreign Policy File, D770323–0955)