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Script is copyright Reuters Limited. All rights reserved

Background: Tunisia's President Habib Bourguiba, on Saturday (30 October)received members of the new government formed on Friday by Prime Minister Hedi Nouira. The President had asked Mr. Nouira to form anew government, only hours after the Prime Minister had presented his year-old government's resignation on Tuesday.

Observers in Tunis said the move was intended to form a "cohesive government" to implement sweeping reforms outlined in the Destourien Socialist Party Congress earlier this month.

Speaking to members of the new government, President Bourguiba said that when Mr. Nouira became Prime Minister a year ago, he found the Tunisian state bankrupt. Now, the deficit has been wiped out and Tunisia has been able to honour 73 per cent of its foreign engagements.