ALGERIA - Under The Umbrella Of Pax Americana.

With a visit to Washington in July 2001, Bouteflika became the first Algerian President to visit the White House since 1985. Just two months later, the events of Sept. 11 occurred and the Algerian government offered full co-operation with the US. Bouteflika visited Washington a second meeting in November 2001, indicating the growing strength in the relationship. There has been intelligence sharing since then in light of the fact that the Al Qaida network had links with the Algerian militant groups like the GIA among others. Areas of mutual concern where US-Algerian co-operation has intensified, include law enforcement and counter-terrorism.

However, it is important to note that relations between the two countries had begun to improve well before Sept. 11. They worked closely on the 2000 peace accords between Ethiopia and Eritrea, and Washington has consult with Algiers on key international and regional issues. This can be seen from the fact that the number and scope of senior-level visits has increased; for example, after a break of more than a decade, three American cabinet-level officials visited Algeria in 2000-01.

The economic angle to the relationship is highly important, with linkages rapidly deepening and broadening. US direct investment in Algeria totals $4.5 billion, most of which in the hydrocarbons sector which is dominated by US companies. The independent US company Anadarko, the largest foreign oil producer in Algeria. American companies also are active in the banking and finance, services, pharmaceuticals, medical facilities, telecommunications, aviation, and information technology sectors. An American Chamber of Commerce was established in the country in 2002, consisting of 40 members.

It is important to note in this context that Algeria is the fifth-largest market for the US in the Middle East/North African (MENA) region. Exports to Algeria from the US rose by more than 150% in 2001. Algeria exports $3 billion of petroleum products and LNG to the US, primarily to the state of New England. The US is the second biggest destination for Algerian exports and the second largest taker for imports.

In July 2001, a Trade and Investment Framework Agreement was signed between the two countries. This establishes common principles on which the economic relationship is founded. The US Eximbank has an active guarantee program in Algeria; current exposure is more than $1.9 billion, primarily for oil projects and aircraft acquisition.

Within the framework of the US-North African Economic Partnership (USNAEP), the Washington provides about $1.2 million in technical assistance to Algeria. This program is designed to support and encourage the country's economic reform program and includes backing for privatisation, implementation of intellectual property protection, WTO accession negotiations, and improving the investment climate. In addition, the US Department of Agriculture has provided Algeria credit options for the purchase of U.S. agricultural products.

The military angle is important as well. The Algerian government is also seeking to buy sophisticated military hardware from the US to combat the Islamist militants. Over the past decade, Western governments have been reluctant to sell weapons to Algeria - at least through publicised deals - in light of the regime's tough campaign against Islamic militants, which has been criticised by human rights groups for violations of civil rights. There were extensive discussions on related security issues during the visit by Bouteflika to the US in early November 2001, less than a month after the WTC/Pentagon attacks.

During his visit, Bouteflika had talks with the leaders of key US companies specialized in the aircraft and military industry. At a summit of American and African businessmen, organized in Philadelphia by the Corporate Council on Africa (CCA), he met executives of Northrop Grumman, Lockheed Martin and Raytheon. These three industrial groups are privileged partners of the Pentagon. According to an 'El Watan' report of Nov. 5, 2001, taking advantage of this "favourable" situation after Sept.11, Algiers intended to make offers to which the American companies, particularly Northrop Grumman, are not indifferent. This firm had already sold to Algeria "presidential" planes.

At the Philadelphia meeting, Bouteflika emphasized that Algeria, in order to participate effectively in the war against terrorism, "requires military means and security". He reaffirmed the support of Algeria to the US after the attacks, and recalled that the "Algerian people had to face" terrorism "alone, in absolute indifference" - a subtle hint about the fact that the country had been facing a virtual arms embargo through the 1990s.

Arms procurement by Algeria had already been discussed at length between Algerian and American officials before the Sept. 11 attacks. The subject had been raised during Bouteflika's official visit in July 2001. After that visit, a "framework agreement" on commercial promotion and investment was signed. The question of arms purchase was also tackled, at least on two occasions, by the Chief of Staff of the Algerian National People's Army, General Mohammed Lamari, during discussions he held with Admiral Charles Abot, deputy commander of the American armed forces in Europe and with Vice-Admiral Daniel Murphy, commander of the US Sixth Fleet.

This was in the context of a "process of dialogue", started in 2001, between the Algerian army and NATO leaders. According to an 'El Watan' report of Nov. 5, 2001, "the purchase of military equipment takes a prominent position in this dialogue, although officially they prefer to talk about 'consolidating cooperation'". The 'El Watan' report also pointed out that Algiers intended "to get round" European hesitations on the matter of arms supplies, hinting at the French alternative.

Algerian army officers were already attending a training programme in the US by the time Bouteflika visited in November 2001. A $200,000 per year International Military Education and Training (IMET) Programme exists for Algerian military personnel in the US. Contacts between the Algerian and U.S. militaries have accelerated since 2001. Algeria has hosted US naval warship visits and has begun to participate in a series of joint naval exercises in 2001 and early 2002. Staff exchanges between the two sides are frequent, and Algeria has hosted senior US military officials.

Visiting Algiers on Dec. 11, 2002, the top US envoy to the Middle East, Undersecretary of State for Near Eastern Affairs William Burns said: "Over the last year, the depth and the pace of our information-sharing with regard to the struggle against terrorism has increased substantially". He added that: "The United States supports ... the program of economic reforms and opening economic opportunities. It's in our mutual interest to do that". Burns said he would push US Congress to further develop military cooperation with Algeria.