Appendix B

Best Prospects for
Agriculture and Industry Sector Exports


                                Agriculture

The GOT, in response to the 1993/94 drought, will increase
imports of cereals and other agricultural products to cover basic
food needs.  GOT estimated cereals imports in the July 1994 -
June 1995 period will reach at least $300 million, compared to a
$130 million annual average.  Higher than average cereals imports
will likely continue through 1996, because Tunisia will need to
replenish its strategic cereals reserves.

The drought has also devastated Tunisian animal fodder
production, creating opportunities for corn, barley and soya
animal feeds sales.

Other best prospects for U.S. agricultural related exports
include:

-- Cotton (Especially if Tunisia lifts a discriminatory 17%
   tariff on U.S. cotton)

-- Bull Semen

-- Lumber/Finished Wood Products

-- Grain Silos/Elevators


                                 Industry


1.  A breakdown of U.S. exports to Tunisia by product for 1993 is
not yet available.  1992 U.S. exports to Tunisia were $232.5
million and increased to $363.2 million in 1993.  This is the
biggest annual increase recorded.

Leading U.S. exports to Tunisia in 1992 (in $ millions) were as
follows:

Mechanical Equipment                          57.6
(Turboreactors, Pumps,
Compressors,
Filtering Equipment,
Earthmoving Equipment,
Data Processing)

Cereals                                       45.7
(Wheat, Corn)

Vegetable Oils                                36.5
(Soya Bean Oil)

Aircraft                                      28.2

Electrical Equipment                          17.4
(Transmission Equipment)

Optical, Photographic                         13.8
(Navigational Apparatus)

Iron and Steel Articles                       10.8
(Pipes and Tubing)

This breakdown is fairly consistent with the structure of U.S.
exports to Tunisia in previous years and distribution per sector
for 1993 is likely to be similar.

Since early 1993, we have been actively promoting the sale of
medical, dental, hotel and agricultural equipment via visits of
Tunisian delegations to U.S. trade shows and we expect the
success of this to be reflected in U.S. exports to Tunisia from
1993.

Apart from these sectors, heavy equipment and telecommunications
equipment look to be the best prospects for U.S. sales in
Tunisia.