349. Telegram From the Department of State to the Embassy in Tunisia1
SUBJECT
- Foreign Minister’s Correspondence With Secretary Shultz.
Ref:
- 85 State 398326.2
1. In January 27 meeting with Deputy Secretary Whitehead, Tunisian Ambassador Ben Yahia transmitted response to Secretary Shultz’ December letter to Tunisian Foreign Minister Mabrouk. Following is text of letter:
2. Begin text.
Mr. Secretary:
I have received your message regarding the assistance that the United States Government is prepared to furnish Tunisia during fiscal 1987.
I thank you for your consideration, indicative of the excellence of our political relations, and while I do not consider myself qualified to evaluate in any way the choice of the American Government, I find it comforting “that the reduction imposed by Congress on the budget submitted by President Reagan should be equitably distributed among the various chapters of the federal budget.”
For it would be, in my view, in the interests of the United States to restore the cooperative programs administered by the Department of State to a level that will confirm the reputed economic solidity of the United States and its leading role in the international arena. We will, therefore, work in close cooperation to make the most judicious determination of how amounts already approved will be used and, at a time when the government of President Bourguiba is courageously striving to implement its plan of economic structural adjustment, I believe it necessary to work together so that the assistance of the United States Government for the current fiscal year will contribute substantially to the success of that plan.
Tunisia is the first country in the world to conclude with the United States a new PL 480 agreement (Title I–Section 108 and 1063 for the promotion of the Tunisian private sector). In addition, it has always committed U.S. financial assistance well before the September 30 deadline. Thus, I feel that additional assistance under the Economic Support and Food Aid Fund (PL 480, Section 416) would express, in practice, the political willingness of the high American authorities to support my country’s efforts to restructure and develop its economy.
And, while I thank you on behalf of President Bourguiba for the quality of the military assistance and your gesture in illustration thereof for fiscal 1987, I must draw your attention to the fact that the military debt is exerting ever-increasing pressure on our balance of payments [Page 726] and that it would be highly desirable to envision relief for those contracts already concluded under our military cooperation program.
Such cooperation, which assures Tunisia of America’s firm commitment to its security, in accordance with the wishes of President Bourguiba, could be improved in terms of both volume and quality by the granting of fully concessional FMS credits.
I look forward to meeting with you whenever you are available, and assure you, Mr. Secretary, of my highest consideration.
Hedi Mabrouk.
End text.
- Source: Department of State, Central Foreign Policy File, Electronic Telegrams, D870072–0385. Limited Official Use; Immediate. Drafted by Rosemary O’Neill (NEA/AFN); cleared for information by Ian Peters (AID/MENA), Denis Kiely (PM), Robert Bauerlein (T), and Gene Griffiths (NEA/ECON), cleared by Quinn, Zweifel, and Robert Downey (S/S–O); approved by Ussery.↩
- Reference is in error. The reference should read “86 State 398326.” See Document 347.↩
- Title I–Section 106 permits the proceeds to be used for economic development. Section 108 allows repayment in local currencies. The United States could then put the proceeds in accounts in international financial institutions, which would then re-lend the money to the private sector in the recipient nation.↩