Habib Bourguiba Bourguiba met with Libyan leader Muammar Gaddafi in Jerba. This one introduced him the idea of a union between Libya and Tunisia. At the end of the interview, the Tunisian minister of Foreign Affairs, Mohamed Masmoudi stated: "The two countries will form a single republic, the Arab Islamic Republic, with a single constitution, one flag, one president, one army and the same executive, legislative and judicial. A referendum will be organized on January 18, 1974". At the airport, Bourguiba declared to journalists: However, due to opposition inside the country and abroad, Bourguiba was forced to abandon the project, claiming the
Habib Bourguiba August, declared: "I am for the review of the Constitution so that all candidates who wish can run for office freely". Bourguiba carried out his promises with the legalization of two new political parties, on 19 November 1983: The Movement of Socialist Democrats and the Popular Unity Party, former allies of Ben Salah. A fall in the price of oil towards the end of 1983 reduced the revenue of the Tunisian state, which was already struggling to meet rising expenses. President Bourguiba agreed to seek a loan from the International Monetary Fund (IMF). The IMF loan was conditional on government