Foreign Relations of the United States, 1964–1968, Volume XXIV, Africa

149. Paper Prepared in the Department of State¹

Washington, April 27, 1965.

U.S. ASSISTANCE TO TUNISIAN ECONOMIC DEVELOPMENT

It is suggested that in your meeting with the Tunisian Minister of Foreign Affairs, Habib Bourguiba, Jr., you include the following points on U.S. assistance to Tunisian economic development.

Talking Points:

1. Tunisia is one of the seven countries in the world to which the United States Government will continue to provide major support under its economic assistance program. Further, the United States Government affirms its support of Tunisia’s economic development within the context of the new Four Year Plan. The unutilized portion (roughly $80 million) of the past U.S. commitment of $180 million will continue to be available in connection with Tunisia’s development efforts.

2. In addition to major support from the United States, the successful execution of Tunisia’s development program and the realization of an adequate long-run rate of growth, will involve (1) Tunisia’s association with the EEC; (2) increased self-help measures; and (3) greater participation by other aid donors.

3. We are encouraged by the recent report that the EEC Council has indicated its willingness to open formal negotiations with Tunisia and that a negotiating mandate is to be prepared by June. Early association with the EEC should enable Tunisia to develop a more viable economy and an expanded volume of trade with Western Europe.

4. The United States will support the World Bank in its efforts to take a more active role in strengthening the Consultative Group and will encourage the individual member nations to enlarge their participation in Tunisia’s development efforts. This we believe to be in conformance with the desires and interest of your Government and we hope that you would pursue a similar course.

5. The review of the Four Year Plan and the strengthening of the Consultative Group will take time. We recognize that the Tunisian balance of payments situation may require the provision of interim assistance. The United States Government is prepared to provide such assistance as a supplement to the foreign exchange resources that Tunisia can obtain through additional drawings from the IMF. After a review of the Four Year Plan, including the current state of the Tunisian economy, with Minister Ben Salah next month, the requirements for interim assistance can be determined.

1. Source: Department of State, Central Files, POL 7 TUN. Secret. Drafted by Charles J. Nelson, Director of the Office of Mediterranean Affairs in AID’s Bureau for Africa, on April 24. The source text was attached to an April 27 briefing memorandum Williams sent to Rusk prior to Rusk’s meeting with Foreign Minister Habib Bourguiba, Jr. on April 28. The memorandum of conversation of their meeting is ibid., POL TUN–US.