LIBYAN HEAD OF FACILITIES AND INFRASTRUCTURE WELCOMES U.S.

C O N F I D E N T I A L SECTION 01 OF 02 TRIPOLI 000057 SIPDIS STATE FOR NEA/MAG, ISN, OES (WILLIAM LAWRENCE). STATE PLEASE PASS TO COMMERCE ITA (NATE MASON). E.O. 12958: DECL: 1/20/2020 TAGS: ECON EAGR EPET EFIN PGOV ETRD LY SUBJECT: LIBYAN HEAD OF FACILITIES AND INFRASTRUCTURE WELCOMES U.S. BUSINESS TRIPOLI 00000057 001.2 OF 002 CLASSIFIED BY: Gene A. Cretz, Ambassador, U.S. Embassy Tripoli, Department of State. REASON: 1.4 (b),(d) ¶1. (C) Summary: In a recent meeting with the Ambassador, the head of the Libyan equivalent to a Ministry of Infrastructure reiterated Libya's past complaints that it had not been properly compensated for giving up Weapons of Mass Destruction and indicated that the "current environment" in the United States put Libya in an "embarrassing position." At the same time, he said that Libya looked to the future and would welcome more American companies that could share new technologies, particularly in the fields of agriculture, alternative energy and water. Matuq looked forward to the upcoming U.S. Department of Commerce-led Trade Mission next month and said he stood ready to brief them on business opportunities in Libya. With his past experience as a leading figure in Libya's efforts to dismantle its WMD program and former Libyan diplomat, as well as his connections to Muammar al-Qadhafi, Matuq is an example of a Libyan figure whose title on paper does not necessarily reflect his real capacity to get things done in the opaque Jamahiriya system. End summary. ¶2. (C) On January 19, the Ambassador met with the Secretary of the General People's Committee for Facilities and Infrastructure, Matuq Mohammed Matuq, accompanied by Pol/Econ Chief and Econoff. The Ambassador requested the meeting to brief Matuq on the upcoming U.S. Department of Commerce-led Trade Mission to Libya, scheduled for February 20-23. Matuq was cordial and welcoming but quickly launched into the familiar Libyan lament that Libya has not been properly compensated for giving up its Weapons of Mass Destruction (WMD). He said the Libyans felt they had been unfairly treated, and that, "put into the context with what is happening now in the United States," Libya was in "an embarrassing position" (Matuq was presumably referring to Libya's inclusion on the Transportation Security Administration's list of countries of "special interest"). He argued to the Ambassador that "you and your colleagues at [the State Department] know this well and should move to put some things into place on what we agreed to in 2003 and what we have �00A;been promised." He continued, "everyone wonders why our (nuclear) equipment did not come back to Libya." Arguing that Libya had paid significant sums of money to develop the nuclear material and equipment that it had agreed to give up, he suggested that the Libyan people were demanding that Libya be compensated. The U.S. could ameliorate the situation by compensating Libya in some way that would benefit the Libyan people. For example, the U.S. could provide full-scholarships for Libyan students to attend U.S. universities. Matuq noted the expensive tuition bills that Libyan students face when studying in the United States and remarked that full-scholarships to Libyans from the USG would be seen as a "positive gesture." ¶3. (C) Addressing Matuq's complaints, the Ambassador highlighted the milestones in the bilateral relationship over the past year, including moving forward in such areas as military cooperation, consular operations (over 3,000 NIV's issued since re-opening the visa section),the start of a human rights dialogue, and high-level engagement and visits on both sides. At the same time, he said, we have not been able to progress as much as both sides wanted and had faced some major stumbling blocks in the last year -- such as Libyan reluctance to transfer highly enriched uranium spent fuel. The Ambassador thanked Matuq for his engagement on that issue -- that challenge had posed a significant threat to the relationship and through cooperation and communication, we were able to solve the problem and move past it. Remarking that the USG had heard the litany of Libyan complaints regarding WMD compensation from the highest levels of the GOL, the Ambassador noted that we were in a good place to move forward in the relationship rather than remain hostages of the past cycle of crisis and strong response. ¶4. (C) Matuq agreed that the present time was ripe for building lasting, binding cooperation in areas of mutual interest and for the benefit of both nations. He characterized Libya as open to U.S. business, particularly in agriculture, water, education, and construction. Highlighting American companies already working in Libya's energy, construction, consulting, and service sectors, he believed that U.S. business was succeeding in Libya. Matuq explained his personal concern for the environment, particularly the degradation of oil fields, spoiling of the desert and the depletion of water resources. He recalled the visits of U.S. delegations in 2004 and 2005 to discuss Libya's future water needs and the protection of water as a scarce resource. Matuq had met the delegation in his previous role as Head of the National Committee for Scientific Research. During those visits, the delegations' discussions of TRIPOLI 00000057 002.2 OF 002 new U.S. technology for pumping fresh water from oil fields had intrigued him, and this continued to be an area in which the Libyan government sought to cooperate with the United States. Likewise, the Libyans were interested in finding out more information about U.S. advances in agriculture. Specifically, Matuq discussed U.S. development of seeds for plants that are able to sustain droughts and to survive in spite of Libya's highly saline soil. ¶5. (C) Matuq was also interested in exploring strategies for creating sustainability within the oil and gas industry. He considered Libya as capable of producing enough energy, through traditional and new, alternative energy sources, to meet its own needs and to export the rest. He also saw opportunities elsewhere in the energy sector including in downstream activities (pipelines, power plants, etc.) and solar energy. He wondered why there were not more American companies in North Africa, given the need for new technologies in energy production. ¶6. (SBU) The Ambassador emphasized that U.S. companies were interested in coming to Libya, as evidenced by the upcoming U.S. Trade Mission to Libya (February 20-23) and the fact that we were in the final stages of negotiating a Trade and Investment Framework Agreement (TIFA). The Ambassador noted that the Trade Mission would cover nearly all of the priority sectors for Libya mentioned by Matuq: energy, agriculture, water, education, healthcare and construction. He stressed that the delegation would be led by a high level official of the Department of Commerce and would include the representatives of many Fortune 500 companies. A successful trade mission for Libya would have a ripple effect throughout the American business community and would signal that Libya truly welcomed U.S. firms. However, he explained that current visa problems are preventing U.S. businesses and trade officials from coming to Libya. Recent bilateral interactions seemed to indicate an official Libyan policy not to issue visas to Americans, both private citizens and officials. He asked Matuq to help resolve the issue. Matuq replied that all U.S. visitors that he had hosted over the years, either in his current position or previously, had not had any problems securing their visas for Libya. Matuq suggested the Embassy work closely on the visa requests with the Secretary of the Economy (Minister of Economy-equivalent). He said he would welcome the delegation and would help to brief them on doing business in Libya. ¶7. (C) Bio Note and Comment: Matuq is a key figure in the U.S.-Libya bilateral relationship, as he oversaw the internal negotiations that led to the dismantlement of Libya's WMD as head of the National Committee for Scientific Research. Prior to becoming Secretary of the General People's Committee (GPC) for Facilities and Infrastructure in March 2009, he was in charge of the GPC for Manpower, Training and Employment. In this position, he oversaw labor policies that affected many foreign companies. Matuq is known to be well-connected within the Libyan regime, including a connection to Muammar al-Qadhafi. Matuq infamously served as a diplomat to the Libyan Embassy in London at the time of the fatal shooting of British guard Yvonne Fletcher. Matuq's colorful past, rumored relationships, and seeming influence remind us that, in Libya, one's job title does not necessarily reflect one's ability to get things done in the opaque bureaucracy that is the Jamahiriya. End comment. CRETZ