Excerpt from document summary
(S/NF) In back-to-back meetings at the Foreign Ministry
today the Ambassador was given a letter from Foreign Minister
Abdallah to NEA AA/S Feltman offering negotiations to resolve
the American Cooperative School in Tunis (ACST) tax issue.
The letter emphasized that the GOT wants to maintain friendly
relations with the United States and views the school tax
issue as a technical, fiscal matter.

Full Document
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OO RUEHDBU RUEHFL RUEHKW RUEHLA RUEHNP RUEHROV RUEHTRO
DE RUEHTU #0223/01 0981949
ZNY SSSSS ZZH
O 081949Z APR 09
FM AMEMBASSY TUNIS
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6188
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
RUCNMGH/MAGHREB COLLECTIVE PRIORITY
RUEHOT/AMEMBASSY OTTAWA PRIORITY 0231
Content
S E C R E T SECTION 01 OF 03 TUNIS 000223

NOFORN
SIPDIS

STATE FOR NEA/FO - HUDSON; NEA/MAG; NEA/SCA/EX;
STATE ALSO FOR A/OPR/OS - CAMERON

E.O. 12958: DECL: 04/08/2019
TAGS: ASCH, OFDP, PREL, TS
SUBJECT: GOT OFFERS NEGOTIATIONS ON AMERICAN SCHOOL, BUT
SLAPS AMBASSADOR'S WRIST FOR "POLITICIZING" THE ISSUE

REF: TUNIS 217 AND PREVIOUS

Classified By: Ambassador Robert F. Godec for reasons 1.4 (b) and (d)

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Summary
-------

1. (S/NF) In back-to-back meetings at the Foreign Ministry
today the Ambassador was given a letter from Foreign Minister
Abdallah to NEA AA/S Feltman offering negotiations to resolve
the American Cooperative School in Tunis (ACST) tax issue.
The letter emphasized that the GOT wants to maintain friendly
relations with the United States and views the school tax
issue as a technical, fiscal matter. The Ambassador welcomed
this opening and the prospect of negotiations, but asked the
MOF to rescind the final tax decree to prevent the school's
closure. His Tunisian interlocutors were dismissive about
the looming May 23 deadline for payment, saying, "No one
wants to close the school." On his way back to the Embassy,
the Ambassador was asked to return to the Ministry. The
Minister's Special Assistant, Mohamed Lessir, who had been in
the first meeting, reprimanded the Ambassador for having
politicized the issue by contacting several third parties,
including the African Development Bank and European
Ambassadors. Lessir also took issue that GRPO had raised the
ACST matter with its security contacts. The Ambassador
firmly rejected the assertion that it was the United States
that had politicized the issue. He explained that his
contacts with key stakeholders were only natural, given the
schools impending forced closure. The content of these
meetings represents the first clear indication that the GOT
is ready to negotiate. We should take them up on their
offer, and quickly. We have forwarded to NEA/MAG a draft
text for Acting A/S Feltman. End Summary.

----------------------------------
FM Response to AA/S Feltman Letter
----------------------------------

2. (C) Ministry of Foreign Affairs Chief of Staff Mahmoud
Khemiri summoned the Ambassador for the second day in a row
to discuss the ACST issue. Once again accompanied by Special
Assistant to the Minister and Director General for Europe
Mohamed Lessir, as well as Elyes Kasri, Director General for
the Americas and Asia, Khemiri presented a letter from
Foreign Minister Abdallah to AA/S Feltman, responding to AA/S
Feltman's April 6 letter to Appointed Ambassador Mansour in
Washington. The text of the original Arabic letter, along
with Embassy's unofficial translation, have been emailed to
NEA/MAG. The FM's letter :

-- emphasized the over 200 years of friendly relations the
United States and Tunisia have enjoyed and noted that the GOT
is keen on that friendship continuing;

-- argued that the tax matter faced by ACST is a fiscal and
"purely technical" issue with no political aspect, and noted
surprise that AA/S Feltman's letter alluded to possible
impacts on bilateral relations, which "cannot be impacted by
these technical issues";

-- expressed the readiness of the GOT to receive fiscal and
legal experts from the United States as soon as possible for
discussions with Tunisian fiscal authorities about the ACST
issue; and

-- confirmed that the GOT is ready for dialogue to search for
a solution concerning the fiscal status of the school and the
lease contract in the framework of an agreement that
clarifies the rights and duties of all parties.

---------------
Let's Negotiate
---------------

3. (C) The Ambassador thanked the Chief of Staff for the
response, noting that he would transmit it to Washington. He
reiterated that the United States stands ready to take part
in negotiations with the GOT to resolve the issue. He
emphasized, however, that such negotiations should take place
in the context of discussions to clarify the school's status,
and with an appreciation of 50 years of diplomatic exchanges
and practice regarding the school. In addition, the Finance
Ministry should, as a preliminary step, rescind its
unilateral final tax decree. All of these issues could be

TUNIS 00000223 002 OF 003

taken up -- and resolved amicably -- in the context of
bilateral negations.

--------------
What Deadline?
--------------

4. (C) Lessir asked whether ACST planned to exercise its
right to sue the GOT. The Ambassador demurred, noting that
the school is still weighing its options. The Ambassador
reiterated though, that ACST will not be able to come up with
even the approximately 4 million Tunisian Dinars that the MOF
has said is not subject to deferment in the case of a legal
suit. Lessir was dismissive about the looming deadline,
noting that there are "several weeks" before May 23. The
Ambassador pointed out that the GOT would have the legal
authority to padlock the property and seize any valuables in
the case of non-payment beginning on May 23.

-------
Take II
-------

5. (S/NF) As the Ambassador was on his way back to the
Embassy, he received an urgent phone call to return to the
Ministry for a meeting with the Foreign Minister. As it
turned out, the second meeting was with Lessir, who was
clearly performing on instruction from the Minister. Lessir,
adopting a very serious tone, said that information had "come
to the Ministry's attention" suggesting that the Ambassador
had been in contact with the African Development Bank, other
Ambassadors, and parents of ACST schoolchildren. He
reprimanded the Ambassador for these contacts, noting that
the German Ambassador had already called him to make an
"urgent" intervention on this issue. Lessir also expressed
displeasure over the fact that GRPO had raised the ACST issue
with security contacts. These acts were unfortunate, Lessir
said, and constituted politicization of what was a "purely
technical" issue. This should have been a last resort, he
said, and we're not yet at the point of last resort. The
GOT's doors were always open, he continued. "We would have
preferred to have kept these discussions between us."

-----------
Why? Why??
-----------

6. (C) Lessir said he couldn't understand why the United
States take the discussion to third parties "Just tell me
why," Lessir implored, dramatically. The Ambassador turned
the tables on Lessir, saying, "Just tell me why, when there
are so many communications between the Embassy and the GOT on
the school, including a 1984 MFA diplomatic note specifying
that teachers' salaries are not subject to tax, why does
this mean nothing?"

-------------
No Blame Here
-------------

7. (C) The Ambassador was unapologetic for his consultations
with key stakeholders in ACST. He reminded Lessir that the
school was facing imminent forced closure, due to its
inability to pay even the down payment of the assessed
arrears by May 23. In the face of this sword of Damocles,
the school -- and the USG -- had no choice but to prepare for
the worst case scenario -- the forced closure of the school.
It would have been irresponsible to have not consulted with
key stakeholders. The Ambassador advised Lessir that
consultations with parents have not yet taken place, but that
many are already aware of the situation; a general meeting is
planned for Friday, April 17. The Ambassador also rejected
Lessir's assertion that the United States had politicized the
issue. Notwithstanding the GOT's protestations that tax
issue was a technical matter, it jeopardized the very
existence of ACST, which made it a political matter for us.
The Ambassador pointed out that throughout the build-up of
this crisis, he had repeatedly made clear to his Tunisian
interlocutors that they were provoking a crisis.

-----------------------------
Briefing European Ambassadors
-----------------------------

8. (C) After the MFA meetings, the Ambassador informed the
German and several other EU Ambassadors of the new

TUNIS 00000223 003 OF 003

developments. All welcomed the possibility of progress, but
agreed that we need (collectively) to keep the pressure on
the GOT to resolve the ACST issue once and for all.

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Comment
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9. (C) Lessir's theatrical performance, while tedious, is
evidence that our actions in Washington and Tunis have
finally gotten the GOT's attention. Moreover, as the
Ambassador noted in his second meeting with Lessir,
Abdallah's letter represents the first clear indication that
the GOT is willing to negotiate with the goal of resolving
this matter in a mutually agreeable fashion. We should take
them up on this offer, but stick to the condition that the
MOF first rescind the final tax decree. Post will transmit
to NEA/MAG recommended language for a response to the
Abdallah letter. End Comment.

Please visit Embassy Tunis' Classified Website at:
http://www.state.sgov.gov/p/nea/tunis/index.c fm
Godec