INDIA ENHANCING TIES WITH LIBYA

C O N F I D E N T I A L NEW DELHI 002722 SIPDIS SIPDIS E.O. 12958: DECL: 06/08/2017 TAGS: PREL PGOV IN LY ENRG KPET ECON SUBJECT: INDIA ENHANCING TIES WITH LIBYA Classified By: Political Counselor Ted Osius for reasons 1.4 (b and d) ¶1. (C) SUMMARY: The Ministry of External Affairs Director for West Africa and North Africa N.J. Gangte characterized External Affairs Minister (EAM) Pranab Mukherjee's 26-28 May visit to Tripoli as "a political blessing to the bilateral economic activity." Mukherjee and Libyan FM Abul Rehman Shalgem signed a Bilateral Investment Promotion and Protection Agreement (BIPA) that provides a framework for increased Indian investment in the oil and petroleum, information technology, and small and medium enterprise sectors of Libya's economy. They also signed a cultural agreement that will facilitate a Cultural Exchange Program pact in the near future, Gangte reported. In addition, Mukherjee met with Col. Gaddafi and Prime Minister Baghdadi Mahmudi and briefed them on developments in the South Asian Association for Regional Cooperation (SAARC) forum, the India-Pakistan Composite Dialogue, India-China relations, and the trilateral India-Russia-China dialogue. According to Gangte and press reports, Col. Gaddafi signaled Libyan support for India's permanent membership on an expanded United Nations Security Council (UNSC). END SUMMARY -------------- "The sky is the limit" -------------- ¶2. (C) MEA summarized EAM Mukherjee's visit to Libya as a resounding success. According to MEA Director N.J. Gangte, BIPA is fundamental to Indian investment expansion in Libya, as it provides the legal parameters for joint ventures, profit repatriation, and the ground rules for foreign direct investment. He said that, in addition to enlarging India's presence in the oil and petroleum sectors of the Libyan economy, India envisions providing manpower to expand Libya's information technology and business sectors. Col. Gaddafi embraces India and Libya's complementarities exclaiming that, "The sky is the limit for cooperation between the two countries," according to the Indian news portal "Rediff." -------------- "Education will become a key part of the relationship" -------------- ¶3. (C) The GOI envisions education as an integral part of future bilateral relations with Libya, Gangte said. He emphasized that the cultural agreement signed by Mukherjee and FM Shalgem was important because it enabled the two countries to elevate bilateral exchanges in the education field. "We can really contribute to education and capacity building in Libya," he commented, "as Libya's education focus is squarely on the United Kingdom and India." Libya can also benefit from India's expertise in economic reform, and small and medium-sized entrepreneurial endeavors, he opined. Gangte observed that India needs to expand education programs with Libya as approximately three hundred Libyans are studying in India while over three thousand are studying in the United Kingdom. -------------- Libyan support for Indian permanent membership on the UNSC -------------- ¶4. (C) The MEA's official statement regarding the visit noted that Mukherjee briefed Col. Gadaffi on SAARC, the India-Pakistan Composite Dialogue, India-China relations, and the India-Russia-China trilateral dialogue. While Gangte did not provide details on the discussions, he did confirm press reports that Col. Gadaffi fully supports UN reform and India's candidacy as a permanent member of the UNSC as an integral part of the reform. ¶5. (C) COMMENT: Mukherjee's visit to Libya was the highest level visit by an Indian official since PM Indira Gandhi's 1984 trip. The visit does provided a stamp of approval for an economic relationship that has increased from sixteen million in bilateral trade in 2001-2002 to over 180 million in 2005-2006. MEA estimates that there are over 10,000 Indians living in Libya, so no doubt Delhi has welcomed U.S. rapprochement with Tripoli. With Libya off the international blacklist, it will be full steam ahead for India in its engagement with Tripoli. END COMMENT. MULFORD