(S) DEMARCHE DELIVERED: CHEMICAL WEAPONS DESTRUCTION

S E C R E T SECTION 01 OF 02 TRIPOLI 000626

SIPDIS

STATE FOR NEA/MAG GAVITO, OES/STC FOR SENSENEY, DSWMDR KEN WARD

E.O. 12958: DECL: 11/1/2016
TAGS: PARM PREL OPCW CWC LY
SUBJECT: (S) DEMARCHE DELIVERED: CHEMICAL WEAPONS DESTRUCTION
ASSISTANCE TO LIBYA

REF: STATE 176372

CLASSIFIED BY: Elizabeth Fritschle, Pol/Econ Chief, United
States Embassy, DOS.
REASON: 1.4 (b),(d)

1. (SBU) SUMMARY: Charge discussed Reftel points (concerning
U.S. Chemical Weapons Destruction Assistance to Libya) with
senior Qadhafi advisor and General People's Committee for
Foreign Liaison and International Cooperation (GPCFLIC)
Secretary Abdulati al-Obeidi October 31. Their discussion

SIPDIS
followed Embassy ESTH officer's delivery of the points in
non-paper form to Colonel Ahmed AbulHuda and the new GPCFLIC POC
for OPCW matters, Adem Talah. Obeidi said the Libyans are
examining the Embassy's revised Arabic translation of the
contract, and planned to provide feedback before the OPCW
meeting in the Hague. He reviewed ongoing Libyan objections to
the termination notice section, as well as appropriations and
foreign assistance-related restrictions on the program. The
previous day Colonel AbulHuda stayed only for a moment, and left
Talah and ESTH officer to continue discussions. (ESTH officer
spoke with Colonel Huda on the phone earlier in the week and
discussed the general issues outlined in reftel) Talah provided
no official response, but received the points, and stated that
he understood the contractual/financial issues associated with
the November deadline for conclusion of the contract
discussions. END SUMMARY.


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Obeidi Reviews Concerns
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2. (C) Following ESTH officer's delivery of the Arabic
translation of the contract and Reftel points, (see below),
Charge reiterated to Obeidi the need for an expeditious reply
(preferably before the November 6-10 OPCW meeting at the Hague)
and highlighted the November 25 contract bid expiration date.
Obeidi responded that he would discuss our response with General
Ahmed Mahmoud Ali Al-Zwayy November 1 and the Libyans would try
to get back to us on our draft before the November 6 OPCW
meeting, but reiterated that the Libyans have been unhappy since
the early September discussions in Tripoli about three issues:

- Their perception that the U.S. committed to a 45 million
dollar effort, but can only sign for $24,600,000. "This hampers
our ability to budget and to provide proper assurance to the
OPCW," Obeidi said. (Note: As in previous discussions Obeidi
was not receptive to an explanation of the US appropriations
process. End Note.)

- The removal of the equipment from Libya after conclusion of
the contract; and

- The 30-day cancellation clause.

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Upcoming Executive Council Meeting in The Hague
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3. (U) ESTH officer discussed the U.S. desire to conclude
contract negotiations, if possible, during the upcoming
executive council session of the OPCW in The Hague. Talah and
Colonel AbulHuda agreed that this would be a good opportunity as
Talah and Dr. Ahmed Hesnawi would both be in attendance.
(Background: Dr. Hesnawi is the Libyan lead technical
representative in the discussions, and due to his proficiency in
English, Arabic and the technical aspects of the munitions and
precursors involved, is the de facto lead negotiator when
General al-Azwaay is not in the room.) Although they understood
this to be an opportunity to conclude negotiations, neither
provided a solid commitment or deadline for completion.

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COMMENT
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4. (S) While the GOL is certainly committed to fulfilling
their obligations with respect to the OPCW, there is still some
resistance to complete the contractual negotiations. They
understand what items/deliverables they need to provide to
satisfy the U.S. government, but continue to drag their feet.
Talah said plainly that the pace of the negotiations was moving
along as fast as the Libyans "desired." Interestingly, the GOL
sent Talah to Rome the week of October 22-28 to attend a
conference on OPCW obligations to give him an insight into the
organization's precepts, showing a continued desire to
understand and adhere to their obligations. While the delay in
part reflects the specific three concerns outlined by Obeidi, it
also reflects the Libyans ongoing calls for a signficant
"reward" that the government can show as the benefit of having
renounced its WMD programs. They often complain that they gave
up hundreds of millions of dollars to the U.S., and in return
they expect that the U.S. will reward them with projects and
equipment.

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Next Steps:
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5. (SBU) OES A/S Claudia McMurray plans to visit Tripoli on
November 11-13 2006, and will have a chance to meet with Dr.
El-Waer of the LEA. This will provide an opportunity to ask
El-Waer for a definitive answer to Libyan interest in hazardous
waste disposal, and what interest remains, if any, in retaining
the incinerator/neutralization equipment after the destruction
process. If the GOL does not provide its suggested language
changes before the upcoming meeting in The Hague, the U.S.
delegation will have an additional opportunity to press for the
requested items, and/or the issues slowing negotiations.
GOLDRICH