C O N F I D E N T I A L SECTION 01 OF 02 ROME 005337

SIPDIS

E.O. 12958: DECL: 10/30/2012
TAGS: ECON ENRG ITALY'>IT LY ENRG ITALY'>IT LY PREL UN
SUBJECT: ITALY-LIBYA: PM BERLUSCONI'S OCT. 28 VISIT TO
TRIPOLI

REF: A. FBIS RESTON 282336ZOCT02

B. STATE 211463

C. ROME 5185

CLASSIFIED BY: POL MC THOMAS COUNTRYMAN, FOR REASONS 1/5 (B) AND (D)


1. (C) SUMMARY: ITALIAN MFA SAYS THAT PM BERLUSCONI CONVEYED
TO QADHAFI, AT OUR REQUEST, A STRONG MESSAGE ON THE NEED FOR
LIBYA TO COMPLY FULLY WITH THE SECURITY COUNCIL RESOLUTIONS
REGARDING LOCKERBIE. THE TWO SIDES FAILED TO REACH AGREEMENT
ON A "COMPENSATION" PACKAGE THAT WOULD MAKE LIBYA DROP ITS
COMPLAINTS ABOUT COLONIAL ITALIAN "CRIMES" AGAINST LIBYA.
THE ATMOSPHERE WAS VERY POSITIVE, THOUGH FEW SPECIFIC
AGREEMENTS WERE REACHED IN THE MANY AREAS OF COOPERATION
DISCUSSED. THE ITALIAN DELEGATION FOUND QADHAFI CALM AND
MODERATE IN HIS DISCUSSION OF IRAQ AND THE
ISRAELI-PALESTINIAN ISSUE. END SUMMARY


2. (U) PRIME MINISTER BERLUSCONI'S OCTOBER 28 ONE-DAY VISIT
TO LIBYA WAS ONLY THE THIRD BY AN ITALIAN PRIME MINISTER
SINCE QADHAFI CAME TO POWER. UNLIKE PM D'ALEMA IN 1999, WHO
WAS FORCED TO TOUR THE NATIONAL MUSEUM FOR THREE HOURS UNTIL
QADHAFI WAS READY TO RECEIVE HIM, BERLUSCONI HAD A SMOOTH
VISIT, INCLUDING TWO MEETINGS WITH QADHAFI AT BAB AL AZIZIA
BARRACKS, AND A WORKING LUNCH WITH PRIME MINISTER MUBARAK
SHAMAKH. REF A CONTAINS THE TEXT OF THE JOINT COMMUNIQUE
RELEASED BY THE TWO SIDES.

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3. (C) THE MFA'S NORTH AFRICA OFFICE DIRECTOR, ANTONIO
BELLAVIA (WHO WENT ON THE TRIP BUT WAS NOT IN THE TWO
MEETINGS WITH QADHAFI) BRIEFED POL MINCOUNS ON OCTOBER 30.
BELLAVIA SAID THAT BERLUSCONI HAD PRESSED THE LIBYAN LEADER
ON THE NEED TO COMPLY FULLY WITH THE UN RESOLUTIONS, AS
REQUESTED REF B. BERLUSCONI HAD TRIED TO SPIN THIS
POSITIVELY WITH QADHAFI, EMPHASIZING THE POSITIVE RETURN TO
TRIPOLI FROM BEING ABLE TO NORMALIZE ITS RELATIONS NOT ONLY
WITH EUROPE, BUT WITH THE US. ACCORDING TO BELLAVIA, THE
LIBYAN LEADER WAS RECEPTIVE TO THE MESSAGE AND EMPHASIZED HIS
READINESS TO MEET ALL OF LIBYA'S OBLIGATIONS AND PUT
LOCKERBIE BEHIND THEM. THE ITALIAN DELEGAT

ION GOT THE
IMPRESSION THAT THE ISSUE OF COMPENSATION WAS FAR LESS
DIFFICULT FOR THE GOL THAN THE ACKNOWLEDGMENT OF
RESPONSIBILITY. FINDING THE RIGHT FORMULATION, BELLAVIA
COMMENTED, WOULD REQUIRE REAL ART, BUT THIS WAS NOT DISCUSSED
WITH THE LIBYANS. POL MC ASKED ABOUT THE ITALIAN PRESS
REPORTS THAT BERLUSCONI HAD OFFERED HIS GOOD OFFICES WITH THE
USG. BELLAVIA SAID THIS WAS A PRESS INVENTION.


4. (C) AS NOTED REF C, THE GOI HAD HOPED THAT DURING THIS
VISIT IT COULD FINALLY CLOSE LIBYA'S LONG-STANDING DEMAND FOR
"COMPENSATION" FOR COLONIAL-ERA WRONGS BY ANNOUNCING THE
FUNDING OF AN ORTHOPEDIC TREATMENT AND RESEARCH HOSPITAL IN
BENGHAZI. HOWEVER, THE LIBYAN SIDE RESURRECTED ITS
PREFERENCE FOR A MORE EXPENSIVE PROJECT, A 60-MILLION EURO
NORTH-SOUTH HIGHWAY. THE TWO SIDES AGREED TO CONTINUE TO
STUDY BOTH PROJECTS. BELLAVIA SAID THE ITALIANS WILL
PROBABLY KEEP THEIR PREFERENCE FOR THE HOSPITAL AS LESS
EXPENSIVE AND MORE USEFUL.

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PAGE 04 ROME 05337 01 OF 02 310953Z

5. (C) BERLUSCONI ASKED QADHAFI ABOUT HIS INTENTION TO
WITHDRAW FROM THE ARAB LEAGUE. QADHAFI RESPONDED WITH A
LITANY OF THE LEAGUE'S FAILURES TO ADDRESS THE REAL PROBLEMS
OF THE REGION, FROM PALESTINE TO IRAQ. THE ITALIAN
DELEGATION FOUND QADHAFI'S RHETORIC TO BE CALMER THAN IN THE
PAST. FOR EXAMPLE, WHILE CRITICAL OF THE US INTENTION TO USE
FORCE AGAINST IRAQ, HE MADE NO APOLOGIES FOR SADDAM AND
INSISTED THAT BAGHDAD HAD NO CHOICE BUT TO COMPLY FULLY WITH
THE DISARMAMENT RESOLUTIONS. QADHAFI WAS ALSO CRITICAL OF
THE BARCELONA PROCESS, SAYING THAT THIS DIALOGUE BETWEEN THE
EU AND NORTH AFRICAN STATES DISTRACTED FROM WHAT HE
CONSIDERED A MORE IMPORTANT DIALOGUE, THAT BETWEEN THE EU AND
THE OAU. STILL, HE AGREED THAT THE "5 ON 5" DIALOGUE COULD
BE USEFUL FOR BUILDING COOPERATION AGAINST TERRORISM,
ORGANIZED CRIME, AND ILLEGAL IMMIGRATION. BELLAVIA SAID THAT
THESE LAST ISSUES WERE DISCUSSED IN GENERAL TERMS, BUT NO
SPECIFIC AGREEMENT WAS REACHED. (NOTE: SOME MEMBERS OF
PARLIAMENT HAD PUBLICLY URGED BERLUSCONI BEFORE HIS TRIP TO
PRESS LIBYA TO PROMISE TO ACT AGAINST ALIEN SMUGGLERS
OPERATING FROM LIBYAN PORTS, WHO HAVE BECOME A MUCH GREATER
PROBLEM FOR ITALY THAN THOSE OPERATING FROM THE ALBANIAN
SHORE.)


6. (C) BELLAVIA SAID THE OVERALL ATMOSPHERE WAS VERY WARM
BETWEEN THE TWO LEADERS. BERLUSCONI WENT OUT OF HIS WAY WITH
THE PRESS TO PRAISE QADHAFI'S EXPERIENCE AND THE POTENTIAL
FOR IMPROVED ECONOMIC AND POLITICAL COOPERATION. THE TWO

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CONFIDENTIAL PTQ2477

PAGE 01 ROME 05337 02 OF 02 310953Z
ACTION EUR-00

INFO LOG-00 NP-00 AGRE-00 AID-00 AMAD-00 CEA-01 CIAE-00
COME-00 CTME-00 DINT-00 DODE-00 DOEE-00 DOTE-00 SRPP-00
DS-00 EAP-00 EB-00 EXIM-01 E-00 FAAE-00 FBIE-00
VC-00 FRB-00 H-01 TEDE-00 INR-00 IO-00 ITC-01
LAB-01 L-00 VCE-00 AC-01 NEA-00 NSAE-00 NSCE-00
OES-01 OIC-02 OMB-01 OPIC-01 PA-00 PM-00 PRS-00
ACE-00 P-00 SCT-00 SP-00 SSO-00 SS-00 STR-00
TRSE-00 T-00 USIE-00 EPAE-00 PMB-00 DSCC-00 PRM-00
DRL-02 G-00 NFAT-00 SAS-00 /013W
-------------- 013970 310953Z /38
O 310848Z OCT 02
FM AMEMBASSY ROME
TO SECSTATE WASHDC IMMEDIATE 6689
INFO AMEMBASSY ALGIERS
AMEMBASSY CAIRO
AMEMBASSY LONDON
AMEMBASSY TUNIS
AMCONSUL FLORENCE
AMCONSUL MILAN
AMCONSUL NAPLES
USMISSION USUN NEW YORK

C O N F I D E N T I A L SECTION 02 OF 02 ROME 005337

SIPDIS

E.O. 12958: DECL: 10/30/2012
TAGS: ECON ENRG IT LY ENRG IT LY PREL UN
SUBJECT: ITALY-LIBYA: PM BERLUSCONI'S OCT. 28 VISIT TO
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PAGE 02 ROME 05337 02 OF 02 310953Z
TRIPOLI

SIDES AGREED TO STUDY THE POSSIBILITY OF SIGNING A
"FRIENDSHIP TREATY". BELLAVIA SAID THIS IS STILL JUST A
STUDY; NEITHER SIDE HAD PROPOSED A TEXT OR EVEN ELEMENTS OF A
TREATY. DESPITE THE POSITIVE SPIN, PRESS REPORTS SPECULATE
THAT THE ITALIAN SIDE WAS DEEPLY DISAPPOINTED BY THE FAILURE
TO REACH AGREEMENT ON THE "COMPENSATION" PACKAGE.


7. (U) PRESS ACCOUNTS ADD A FEW FACTOIDS TO THOSE PROVIDED BY
THE MFA:
-- NICE PRESENTS: BERLUSCONI PROMISED TO RETURN TO LIBYA IN
THE IMMEDIATE FUTURE AN ANCIENT ROMAN STATUE, THE "VENUS OF
CYRENE" TAKEN BY ITALIAN FASCIST TROOPS. QADHAFI GAVE HIM AN
ITALIAN MUSKET CAPTURED BY THE LIBYANS IN 1924.
-- NO SPECIFIC AGREEMENTS, BUT MUCH DISCUSSION OF LIBYA
UNBLOCKING CREDITS WORTH APPROXIMATELY 877 MILLION EUROS FOR
ITALIAN COMPANIES DOING BUSINESS IN LIBYA, AND ADDITIONAL
ITALIAN TECHNICAL HELP IN DEMINING IN LIBYA.
-- BERLUSCONI REPORTEDLY STATED THAT ITALY DEPENDS ON LIBYA
FOR SOME 25 PERCENT OF ITS ENERGY NEEDS, AND ADDED THAT THIS
WOULD INCREASE TO AROUND 30 PERCENT ONCE A LIBYA-ITALY GAS
PIPELINE COMES INTO OPERATION IN 2004.
-- QADHAFI REPORTEDLY PROMISED TO GRANT VISAS TO THOSE
ITALIANS WHO HE HAD EXPELLED IN 1970. (COMMENT: THESE
PARTICULAR ITALIAN CITIZENS ARE FEELING THE IRONY OF THE
DIFFICULTY THEY NOW HAVE IN GETTING US VISAS BECAUSE OF THEIR
BIRTH IN LIBYA. WE RECENTLY MET WITH ONE JEWISH-ITALIAN BORN
IN LIBYA WHO WAS RECENTLY ALLOWED TO VISIT TRIPOLI AND A
GREAT-AUNT WHO HE THOUGHT WAS VIRTUALLY THE LAST JEWISH
PERSON RESIDING IN LIBYA).
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8. (U) EMBASSY EXPECTS TO GET A MORE DIRECT READOUT OF THE
BILATERAL MEETING FROM HIGHER-RANKING PARTICIPANTS IN THE MFA
AND PM'S OFFICE, AND WILL REPORT.
SKODON

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2002ROME05337 - Classification: CONFIDENTIAL