320. Letter From Secretary of Defense Weinberger to Secretary of State Shultz1
(S) We have just completed the fourth US-Tunisian Joint Military Commission meeting.2 During our two days of discussions, Tunisian Minister of Defense Baly made a strong plea for increased US military and economic assistance for FY 86. He stressed Tunisia’s increasingly severe internal economic problems and the rising external military [Page 665] threat from Libya. I am very sympathetic to Tunisia’s situation, and believe that more should be done for Tunisia in terms of economic aid.
(S) Recent analyses of Tunisia’s economic situation appear to support this view.3 Tunisia’s external debt situation has been worsening as markets declined sharply for Tunisia’s principal foreign exchange earners—petroleum, phosphates and tourism. Tunisia’s debt service ratio was pushed to 18.5 percent in 1983 and it is expected to be higher, closer to 25% in 1984 (not counting the military debt to the US). In addition, our unspoken, but well-recognized concern for Tunisia’s stability is based on the deteriorating health of Tunisian President Bourguiba and the uncertainty that in his declining health he, or his designated successor, will be able to maintain stability in Tunisia.
(C) Currently, the FY 86 integrated budget with OMB pegs $54 million for FMS—half at concessional rates, $16 million MAP and $15 million ESF. Perhaps we together could suggest a greater ratio of concessional credits.
(S) In addition, I would like to ask you to consider an increase in the FY 86 ESF request for Tunisia from $15 million to $30 million. The additional $15 million would allow us to initiate a four-year, $40 million program to establish a security belt—a series of “kibbutz-like” agriculture settlements for nomadic tribes in southeastern Tunisia along the Libyan border. Minister Baly raised this idea in discussions with me on the first day of the JMC. While I made no commitments to him on this proposal, it makes a lot of sense both from an economic and a security standpoint.
(C) Tunisia’s case is a serious one. I hope that together we can explore every opportunity to assist Tunisia and aid in some measure the stability in the Maghreb.
Sincerely,
- Source: Washington National Records Center, OSD Files, FRC 330–86–0048, 1984 Official Records (Secret & Below) of the Secretary and Deputy Secretary of Defense, and the Executive Secretary to the Secretary and Deputy Secretary of Defense, Box 9, Tunisia (Nov–Dec). Secret.↩
- No minutes of the meeting have been found.↩
- Not found and not further identified.↩