SWISS-LIBYAN RELATIONS: SWITZERLAND IN REBUFF

S E C R E T BERN 000104


DEPT FOR NEA, INR, AND EUR/CE (Y.SAINT-ANDRE)

E.O. 12958: DECL: 03/06/2029
TAGS: PHUM PREL PGOV SZ
SUBJECT: SWISS-LIBYAN RELATIONS: SWITZERLAND IN REBUFF
MODE; SAIF GADDAFI NOT SEEKING ASYLUM

REF: TRIPOLI 208


Classified By: CHARGE D'AFFAIRES A.I. LEIGH G. CARTER;
REASONS 1.4(B) A ND (D).



1. (S) Summary: In a March 10 meeting, the Swiss MFA
Director for Security Policy, Ambassador Jacques Pitteloud,
updated Charge on the status of the ongoing crisis in
Swiss-Libyan relations triggered last July when Geneva
cantonal police temporarily arrested Hannibal Gaddafi, son of
Libyan leader Muammar Gaddafi, along with Hannibal's wife for
brutally assaulting two of Hannibal's domestic staff in a
Geneva hotel. Pitteloud said that the Swiss Federal
Department of Foreign Affairs (EDA) twice has been led to
believe by Libyan interlocutors that it had reached a deal
with the Libyan government regarding modalities to defuse the
crisis, only to be let down subsequently by the Libyan
government. Having been led along twice by the Libyans,
Pitteloud said that Switzerland now is rebuffing purported
overtures by Tripoli. Pitteloud said that the Libyan
government seemed less haughty in its dealing with
Switzerland in recent days. He attributed this apparent
change in attitude to the humbling effect on Libya of falling
oil prices in the context of the global financial crisis.
Nevertheless, given Libya's past behavior, Switzerland is
content for the time being to keep Tripoli at arms length.
Pitteloud categorically denied "rumors" that Saif Gaddafi,
second eldest son of Muammar Gaddafi, had sought asylum in
Switzerland. Pitteloud said that there was absolutely no
substance behind such rumors and that the Swiss government
would certainly inform the USG, if Saif Gaddafi were to make
such an application. End Summary.

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SWITZERLAND IN REBUFF MODE
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2. (S) Pitteloud provided Charge an update on the ongoing
crisis in Swiss-Libyan relations triggered last July when
Geneva cantonal police temporarily arrested Hannibal Gaddafi,
son of Libyan leader Muammar Gaddafi, along with Hannibal's
wife for brutally assaulting two of Hannibal's domestic staff
in a Geneva hotel. According to Pitteloud, the Swiss Federal
Department of Foreign Affairs (EDA) twice has been led to
believe by Libyan interlocutors that it had reached a deal
with the Libyan government regarding modalities to defuse the
crisis. One of the key terms of these deals was that the
Swiss government would express "regret" for the incident.
(Note: The GOS already has publicly expressed some criticism
of the way in which the arrests of Hannibal and his wife were
conducted. End Note) Pitteloud said that in each case the
Libyan government subsequently did not uphold its end of the
deals. He underlined that the Swiss government -- having
been led along twice by the Libyans -- now is rebuffing
purported overtures by Tripoli. Pitteloud did not elaborate
on the details of such overtures, but suggested that none of
the "daily" communications by Libyan officials were
compelling enough to elicit a favorable Swiss response, in
light of Libyan behavior in the affair thus far. In this
context, he commented that Foreign Minister Calmy-Rey had
refused an offer for a meeting from the Libyan Prime Minister.


3. (S) Pitteloud said that the Libyan government seemed less
haughty in its dealing with Switzerland in recent days. He
attributed this apparent change in attitude to the humbling
effect on Libya of falling oil prices in the context of the
global financial crisis. Pitteloud observed that this was
hardly a time when Libya could afford to further alienate
potential investment partners. Nevertheless, given Libya's
past behavior, Switzerland is content for the time being to
keep Tripoli at arms length. Pitteloud said that most Swiss
companies doing business in Libya had rewired their
activities via affiliates in other European countries. The
main concern of the Swiss government at this point is the
welfare of two Swiss businessmen who the Libyan authorities
have refused to allow to leave Libya. Pitteloud intimated
that, were it not for its abiding concern about those two
Swiss citizens, Switzerland would be prepared to let its
relations with Libya atrophy indefinitely. In any case,
Switzerland plans to reduce its embassy staff in Tripoli to
minimal levels starting in April.


4. (S) According to recent press reports, the Libyan
government plans to lodge a legal complaint in a Geneva court
against Geneva cantonal officials for their alleged
mistreatment of Hannibal Gaddafi and his wife. Pitteloud
said that the Swiss government all along had told the Libyans
that filing such a complaint was an option, but the Libyans
up until now had avoided that route. Pitteloud observed that
"Switzerland is a rule of law country, and has nothing to
fear from such a legal proceeding."

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SAIF GADDAFI NOT SEEKING ASYLUM
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5. (S) The diplomatic advisor to Swiss President Merz, Andrea
Rauber Saxer, told Charge March 6 that Saif Gaddafi, second
eldest son of Libyan leader Muammar Gaddafi, was unable to
return from Europe to Libya, suggesting this was due to
tensions between Saif and his father. Saif Gaddafi, perhaps
best known in Europe for his role as chairman of the Gaddafi
International Charity and Development Foundation (GICDF),
attended the World Economic Forum (WEF) in Davos, Switzerland
in late January. On the margins of the WEF, Said Gaddafi met
with FM Calmy-Rey in an effort to mediate a resolution to the
Swiss-Libyan crisis. That mediation effort was unsuccessful.
In addition to the comments by President Merz's diplomatic
advisor to Charge, post DAO recently was approached by an
Austrian Embassy counterpart asking whether the USG had heard
anything about Saif Gaddafi seeking asylum in Switzerland.
The Austrian embassy counterpart referred to February press
articles reporting that Saif Gaddafi was a victim of "clan
warfare" within the Gaddafi family.


6. (S) Charge asked Pitteloud whether Said Gaddafi has, in
fact, applied for asylum in Switzerland. Pitteloud
categorically denied such "rumors," saying that there was
absolutely no substance behind them and that the Swiss
government would certainly inform the USG, if Saif Gaddafi
were to make such an application. Pitteloud noted that the
GOS had seen the reports of Saif Gaddafi allegedly having
trouble with his family, but also had indications that he
might have returned home at least once, since the WEF.
Pitteloud underlined that the Swiss government could not
confirm this, since it does not keep tabs on Saif Gaddafi's
whereabouts and Saif Gaddafi has a Swiss visa and therefore
can travel to and from Switzerland as he pleases.


7. (U) Tripoli Minimize Considered.


CARTER