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U.S. Policy Toward Algeria

Statement by Robert H. Pelletreau, Assistant Secretary for Near Eastern Affairs, before the Subcommittee on Near Eastern and South Asian Affairs of the Senate Foreign Relations Committee, Washington, DC, April 16, 1996.

Good morning, Mr. Chairman, and distinguished members of the subcommittee. I am pleased to have this opportunity to discuss with you my recent visit to Algeria and United States policy toward that important North African nation.

Algeria is the second-largest nation in Africa and plays a leadership role in North Africa, the Middle East, and the greater Mediterranean region. Algeria supports the Middle East peace process and is important for regional efforts to enhance security, stability, and peace. Beyond a geopolitical interest in regional stability, U.S. interests also include sizable public and private investment in Algeria's hydrocarbon sector. Algeria currently chairs the Organization of Petroleum Exporting Countries--OPEC.

Algeria has been a country of acute international concern ever since the army intervened in January 1992 to abort legislative elections the Islamic Salvation Front--FIS--seemed poised to win. The ensuing three years saw a succession of narrowly based governments facing a radicalized Islamist movement and a spreading insurgency. Last August, the Algerian Government announced plans for presidential elections in November. It remained an open question whether credible elections could be held in a climate of violence and political uncertainty. But on November 16, 1995, Algerians voted in large numbers to elect incumbent President Zeroual with 60% of the vote in Algeria's first multi-party presidential election. Although some opposition parties called for a boycott of this election, we interpret the large turn-out and the fact that there were no major incidents disrupting the election to mean that a majority of Algerians wanted peace, stability, and development.

President Zeroual's avowed mandate is national reconciliation. In his inaugural speech, he promised amnesty for those willing to give up armed insurgency and offered reconciliation with all--including Islamists-- who rejected violence and accepted the rule of law. Although he quickly freed a group of some 600 political prisoners held in a desert detention camp, a far greater number remain in jail. President Zeroual has already named a new government that includes several representatives of parties which participated in the presidential elections. He has charged his government with preparing the ground for legislative and municipal elections and pursuing economic reform. Algeria's economy grew in 1995 for the first time in many years. Still, much remains to be done to attract private-sector investment and spur employment and growth to underpin the nascent political program.

The Prime Minister and the President have underlined their determination to deregulate and liberalize the economy and give the private sector a far bigger role, including privatization of many state enterprises. We have supported such reforms in the IMF and World Bank and recently signed a second bilateral debt rescheduling.

Regrettably, Algeria remains plagued by a high degree of violence. Terrorist bombings, assassinations, and kidnapings by extremists of the Armed Islamic Group--GIA--and government human rights abuses are characterized in detail in our annual Country Reports on Human Rights Practices. During my recent visit, a car bomb--the 14th of the year--killed six Algerians and wounded 20 in the city of Tizi-Ouzou. There has been a constant pattern of attacks by insurgents against security forces and civilians. The GIA has also specifically threatened to kill Algerian and foreign workers in the hydrocarbon sector.

This ongoing violence is discouraging much-needed private investment except at remote desert oilfields, where major new contracts in Algeria's hydrocarbon sector have been signed between Algerian and foreign firms, including several U.S. companies. Sustained economic recovery will require a political solution to Algeria's problems.

In the wake of the presidential election, we believe that political and economic liberalization holds promise for stabilizing the situation over time. The Algerians have shown a strong preference for ballots over bullets. But the progress toward political open- ness must be real. Words, however positive, will not be enough; actions are required. We believe that current developments warrant cautious optimism. President Clinton wrote to President Zeroual last December that the United States would support him as he takes steps to build on his election by broad-ening and accelerating the process of reconciliation and by continuing economic reform.

I reiterated the President's message on my visit to Algiers in March, and I was encouraged to hear President Zeroual reaffirm his commitment to national reconciliation through dialogue. I also met with a range of opposition political leaders. Shortly after my visit, President Zeroual began a national dialogue with politicians and party leaders to move forward on national reconciliation and prepare for follow-on elections. The parties which boycotted the presidential elections last November have expressed a willingness to join in elaborating a party law and an electoral code.

We are hopeful that these political and economic initiatives will be perceived by Algerians as responsive to their expectations for peaceful political change, economic opportunity, and good governance. We believe that reconciliation among all Algerians who reject violence and accept the rule of law, be they secular or Islamist, offers the best hope for democratic pluralism in Algeria. We also recognize that economic reform is difficult, but believe liberalization and an enhanced role for the private sector will offer a better future for all Algerians and will anchor political progress.

The United States has an important stake in seeing that progress actually occurs along the lines President Zeroual has described. We will be following the situation closely to determine whether the forthcoming elections are credible, open, and democratic. While it is not for us to set specifics in advance of discussion among Algerian political leaders, we can suggest the kinds of questions they will need answers for: Will political parties be free to hold meetings and campaign? Will the Algerian press be free to print articles without intimidation by terrorists? Will the government continue to censure and seize newspapers?

Let me conclude by noting that the Administration welcomed Algerian participation in the summit of the peacemakers at Sharm el-Sheikh. We look forward to Algeria's continued support for the peace process and for broadened international cooperation against terrorism.

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