Cable Viewer

Currently released so far... 3891 / 251,287

### Articles

Brazil Sri Lanka United Kingdom Sweden Editorial United States Latin America Egypt Yemen Jordan

### Browse latest releases

2010/11 2010/12 2011/01 2011/02
2010/11/28 2010/11/29 2010/11/30
2010/12/01 2010/12/02 2010/12/03 2010/12/04 2010/12/05 2010/12/06 2010/12/07 2010/12/08 2010/12/09 2010/12/10 2010/12/11 2010/12/12 2010/12/13 2010/12/14 2010/12/15 2010/12/16 2010/12/17 2010/12/18 2010/12/19 2010/12/20 2010/12/21 2010/12/22 2010/12/23 2010/12/24 2010/12/25 2010/12/26 2010/12/27 2010/12/28 2010/12/29 2010/12/30
2011/01/01 2011/01/02 2011/01/04 2011/01/05 2011/01/07 2011/01/09 2011/01/10 2011/01/11 2011/01/12 2011/01/13 2011/01/14 2011/01/15 2011/01/16 2011/01/17 2011/01/18 2011/01/19 2011/01/20 2011/01/21 2011/01/22 2011/01/23 2011/01/24 2011/01/25 2011/01/26 2011/01/27 2011/01/28 2011/01/29 2011/01/30 2011/01/31
2011/02/01 2011/02/02 2011/02/03 2011/02/04 2011/02/05 2011/02/06 2011/02/07 2011/02/08 2011/02/09

### Browse by creation date

66 72 73 75 79 86 88 89 90 00 01 02 03 04 05 06 07 08 09 10
1966/12
1972/02 1972/08
1973/04
1975/03
1979/08
1986/05
1988/01
1989/12
1990/01 1990/07 1990/08
2000/06 2000/09 2000/11
2001/02 2001/03 2001/07 2001/10
2002/02 2002/03 2002/11
2003/03 2003/04 2003/05 2003/06 2003/07 2003/08 2003/09 2003/10 2003/11 2003/12
2004/01 2004/02 2004/03 2004/04 2004/05 2004/06 2004/07 2004/08 2004/09 2004/10 2004/11 2004/12
2005/01 2005/02 2005/03 2005/04 2005/05 2005/06 2005/07 2005/08 2005/09 2005/10 2005/11 2005/12
2006/01 2006/02 2006/03 2006/04 2006/05 2006/06 2006/07 2006/08 2006/09 2006/10 2006/11 2006/12
2007/01 2007/02 2007/03 2007/04 2007/05 2007/06 2007/07 2007/08 2007/09 2007/10 2007/11 2007/12
2008/01 2008/02 2008/03 2008/04 2008/05 2008/06 2008/07 2008/08 2008/09 2008/10 2008/11 2008/12
2009/01 2009/02 2009/03 2009/04 2009/05 2009/06 2009/07 2009/08 2009/09 2009/10 2009/11 2009/12
2010/01 2010/02

### Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z
Embassy Athens Embassy Asuncion Embassy Astana Embassy Asmara Embassy Ashgabat Embassy Ankara Embassy Amman Embassy Algiers Embassy Addis Ababa Embassy Accra Embassy Abuja Embassy Abu Dhabi Embassy Abidjan Consulate Amsterdam American Institute Taiwan, Taipei
Embassy Bujumbura Embassy Buenos Aires Embassy Budapest Embassy Bucharest Embassy Brussels Embassy Bridgetown Embassy Bratislava Embassy Brasilia Embassy Bogota Embassy Bishkek Embassy Bern Embassy Berlin Embassy Belgrade Embassy Beirut Embassy Beijing Embassy Banjul Embassy Bangkok Embassy Bandar Seri Begawan Embassy Bamako Embassy Baku Embassy Baghdad Consulate Barcelona
Embassy Copenhagen Embassy Conakry Embassy Colombo Embassy Chisinau Embassy Caracas Embassy Canberra Embassy Cairo Consulate Curacao Consulate Casablanca Consulate Cape Town
Embassy Dushanbe Embassy Dublin Embassy Doha Embassy Djibouti Embassy Dhaka Embassy Dar Es Salaam Embassy Damascus Embassy Dakar Consulate Dubai
Embassy Freetown
Embassy Guatemala Embassy Gaborone
Embassy Harare Embassy Hanoi Consulate Hamburg
Iran RPO Dubai Embassy Islamabad Consulate Istanbul
Embassy Jakarta Consulate Jerusalem Consulate Jeddah
Embassy Kyiv Embassy Kuwait Embassy Kuala Lumpur Embassy Kinshasa Embassy Kigali Embassy Khartoum Embassy Kampala Embassy Kabul
Embassy Luxembourg Embassy Luanda Embassy London Embassy Lisbon Embassy Lima Embassy Lilongwe Embassy La Paz Consulate Lagos
Mission USNATO Embassy Muscat Embassy Moscow Embassy Montevideo Embassy Monrovia Embassy Minsk Embassy Mexico Embassy Maputo Embassy Manama Embassy Managua Embassy Madrid Consulate Munich Consulate Montreal Consulate Monterrey
Embassy New Delhi Embassy Nassau Embassy Nairobi Consulate Naples
Embassy Ouagadougou Embassy Ottawa Embassy Oslo
Embassy Pristina Embassy Pretoria Embassy Prague Embassy Port Au Prince Embassy Phnom Penh Embassy Paris Embassy Paramaribo Embassy Panama Consulate Peshawar
Embassy Quito
REO Basrah Embassy Rome Embassy Riyadh Embassy Riga Embassy Reykjavik Embassy Rangoon Embassy Rabat Consulate Rio De Janeiro Consulate Recife
Secretary of State Embassy Stockholm Embassy Sofia Embassy Skopje Embassy Singapore Embassy Seoul Embassy Sarajevo Embassy Santo Domingo Embassy Santiago Embassy Sanaa Embassy San Salvador Embassy San Jose Consulate Strasbourg Consulate Shenyang Consulate Shanghai Consulate Sao Paulo
Embassy Tunis Embassy Tripoli Embassy Tokyo Embassy The Hague Embassy Tel Aviv Embassy Tehran Embassy Tegucigalpa Embassy Tbilisi Embassy Tashkent Embassy Tallinn
USUN New York USEU Brussels US Mission Geneva US Interests Section Havana US Delegation, Secretary UNVIE Embassy Ulaanbaatar
Embassy Vilnius Embassy Vienna Embassy Vatican Consulate Vladivostok
Embassy Windhoek Embassy Wellington Embassy Warsaw
Embassy Yerevan Embassy Yaounde
Embassy Zagreb

### Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
AF ASEC AE AR AG AJ AFIN AU AM APER ABUD ATRN AORC AEMR AMGT ACOA AEC AO AX AMED ADCO AODE AFFAIRS AC AS AL ASIG ABLD AA AFU ASUP AROC ATFN AGMT
BU BR BL BO BM BE BH BTIO BEXP BIDEN BK BY BA BG BF BB BC BBSR BRUSSELS BILAT BX
CJAN CH CU CASC CVIS CMGT CO CI CLINTON CIA CG CF CN CS CAN COUNTER CIS CA CBW CM CE CONDOLEEZZA COE CR CY CD CTM COUNTRY CLEARANCE CPAS CWC CT CKGR CB CACS COM CDG CJUS CARSON COUNTERTERRORISM CACM CDB CV
DR DA DHS DOE DEA DK DJ DISENGAGEMENT DS DOD DEAX
EU EFIN EG ETTC EINV ENRG EI ECPS EINT ECON EIND ETRD EPET EUN EZ EMIN ELAB EAID EAGR ET EC EAIR ENVR ES ECA EWWT ER ELTN EFIS EN EXTERNAL ECIN EINVETC ENIV EINN ENGR EUR ESA ENERG ELECTIONS ECUN EINVEFIN ECIP EINDETRD EUC EREL
FR FINR FAO FTAA FREEDOM FI FARC FBI FJ FMLN
GM GG GH GE GV GT GR GTIP GOI GCC GAZA GZ GA GTMO
HA HILLARY HR HUMAN HO HYMPSK HU HURI HK
IR IZ IS IT INRB IRAJ IN INRA INRO IO IC ID IIP IAEA ITPHUM IV IPR IWC IQ ICTY ISRAELI IRAQI ICRC ICAO IMO IF ILC IEFIN INTELSAT IL IA IBRD IMF ITALY ITALIAN INTERPOL
JO JA JOSEPH JP JOHNNIE JUS JAMES
KE KTFN KDEM KJUS KNNP KGHG KZ KIPR KWBG KIRF KPAO KDRG KHLS KCRM KSCA KPAL KISL KG KACT KN KS KGIC KRAD KU KCOM KBIO KMCA KCOR KV KHDP KTIP KVPR KDEV KWMN KSPR KTIA KHIV KPRP KAWC KOLY KCIP KCFE KOCI KMDR KPKO KTDB KMRS KFRD KLIG KBCT KICC KGIT KSTC KUNR KPAK KNEI KSEP KPOA KFLU KNUP KNNPMNUC KOMC KAWK KO KTER KSUM KHUM KRFD KBTR KDDG KWWMN KFLO KSAF KBTS KPRV KMPI KNPP KNAR KWMM KERG KFIN KTBT KCRS KRVC KR KPWR KWAC KMIG KSEC KIFR KDEMAF KGCC KPIN KNUC KPLS KIRC
LE LY LU LG LH LI LO LOG LT
MARR MOPS MU MASS MY MNUC MCAP MA MO MTCRE MG MASC MX MCC MZ ML MK MTRE MP MIL MDC MTCR MAR MEPI MRCRE MI MT MR MQADHAFI MD MAPS MUCN MPOS MEPP MOPPS MAPP
NATO NIPP NL NO NG NI NPT NE NS NAR NZ NU NPG NK NSG NA NT NASA NGO NATIONAL
OFDP OVIP OPRC OREP OIIP ODIP OTRA OSCE OAS OPIC OPDC OEXC OECD OPCW OSCI OTR OVP OFFICIALS OSAC
PGOV PREL PINR PO PINS PTER PK PHUM PARM PL PE PREF PHSA PBTS PGOF PROP PARMS PA PM PMIL PTERE POL PF PALESTINIAN PY PGGV PNR POV PAK PAO PFOR PHALANAGE PARTY PNAT PROV PEL POLITICS PEPR PSI PINT PSOE PU POLITICAL PARTIES PBIO PECON POGOV PINL PKFK
QA
RS RU RW RP RIGHTS RICE RO ROBERT RF RFE REGION
SU SA SY SP SNAR SENV SCUL SW SOCI SF SO SR SG SMIG SL SN SHUM SZ SYR ST SANC SC SAN SIPRS SK SH SI STEINBERG
TI TIP TBIO TR TX TU TSPA TS TRGY TH TT TW TERRORISM TO TFIN TD TSPL TZ TPHY TK TNGD TC
UK UNSC UG US UZ UP UNO UNMIK UY UN UNGA UE UNESCO UAE UNEP USTR UNHCR UNDP UNHRC USAID UNCHS UNAUS USUN USEU UV
VZ VE VT VM VTPREL VN
WA WI WMO WTRO WTRQ WHO WWARD WB WBG WTO
XA XT XM XY XG XC XH XL XF XZ XW XR XD XS XK
YM YI YE
ZI ZP ZK ZF ZB ZANU ZOELLICK ZR ZU ZA

### Browse by classification

CONFIDENTIAL CONFIDENTIAL//NOFORN SECRET SECRET//NOFORN UNCLASSIFIED UNCLASSIFIED//FOR OFFICIAL USE ONLY

### Community resources

Follow us on Twitter Check our Reddit Twitter this Digg this page Contact us on IRC

courage is contagious

### Viewing cable 09TRIPOLI618,

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:

- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.

To understand the justification used for the classification of each cable, please use this WikiSource article as reference.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #09TRIPOLI618.

Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
09TRIPOLI618 | 2009-08-03 14:02 | 2011-01-31 21:09 | CONFIDENTIAL//NOFORN | Embassy Tripoli

`

    VZCZCXRO3348
    PP RUEHBC RUEHDE RUEHDH RUEHKUK RUEHROV
    DE RUEHTRO #0618/01 2151414
    ZNY CCCCC ZZH
    P R 031414Z AUG 09
    FM AMEMBASSY TRIPOLI
    TO RUEHC/SECSTATE WASHDC PRIORITY 5095
    INFO RUEHTRO/AMEMBASSY TRIPOLI 5635
    RUEHEE/ARAB LEAGUE COLLECTIVE
    RUEHLO/AMEMBASSY LONDON 1094
    RUEHFR/AMEMBASSY PARIS 0769
    RUEHVT/AMEMBASSY VALLETTA 0424
    RUEHRO/AMEMBASSY ROME 0539
    RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
    RUEATRS/DEPT OF TREASURY WASHINGTON DC
    RHEHAAA/NSC WASHINGTON DC

` `

    C O N F I D E N T I A L SECTION 01 OF 03 TRIPOLI 000618

    NOFORN
    SIPDIS

    STATE FOR NEA/MAG; STATE PLEASE PASS TO USTR PAUL BURKHEAD; COMMERCE FOR ITA NATE MASON; COMMERCE FOR THE ADVOCACY CENTER; ENERG

    E.O. 12958: DECL:  8/3/2019
    TAGS: ETRD ECON PGOV EPET LY

    1.(C) Summary: As of a few months ago, it appeared the Government of Libya (GOL) was committed to allowing the U.S. firm Caterpillar's ("CAT") heavy machinery and spare parts to enter Libya. However, recent talks with the GOL have stalled due to the mandate that CAT work only with the state-owned Economic and Social Development Fund for its dealership in Tripoli. GOL implicitly threatened to reinstate a previous ban on CAT imports. As a result, CAT is considering pulling out of Libya altogether, which would jeopardize millions, if not billions, of dollars of infrastructure projects due to be completed by September 1 for the 40th Anniversary of Qadhafi's coup. The situation is illogical from a business standpoint, but as with most prestigious and potentially lucrative deals in Libya, the decision-making in the CAT negotiations appears to be happening at the highest levels of the regime xxxxxxxxxxxx (See septel for latest developments.) End summary.

    BACK WHERE WE STARTED

    2.(C) As previously reported in Ref A, as of a few months ago, it appeared the GOL was committed to allowing Caterpillar ("CAT") heavy machinery and spare parts to enter Libya. Until now, CAT products have been entering the country, but recent events indicate that a previous ban on CAT imports may be reinstated. Previously, as a condition of lifting the ban, CAT had severed all business ties with its Libyan agent (Sahil Company). CAT was forced to take this step in order to overcome accusations made by the Secretary of Industry, Economy and Trade (Ministry of Economy-equivalent) that the CAT dealership was operating illegally and corruptly, as its Libyan partners were the sons of current government officials. The Secretary referenced Article 5 of the General People's Committee Decision No. 315 of 2008 on Regulations Regarding Commercial Agencies (distributorships), which prohibit distributors to partner with government officials. Once CAT severed its ties to the Sahil Company, the GOL lifted the ban on May 3, and CAT equipment was once again allowed to flow into Libya. Even though the GOL said it would not tell CAT who its partner must be, the GOL rejected CAT's proposed new partner and has mandated that CAT's dealer in Tripoli be the state-owned Economic and Social Development Fund (ESDF). CAT agreed to allow the ESDF to hold a 40 percent share in the dealership, but the ESDF, promptly rejecting CAT's offer, insisted on 100 percent ownership. CAT representatives traveled to Tripoli the week of July 12 to meet with GOL officials and negotiate a settlement before the July 15 deadline imposed by the GOL. While the July 15 deadline has come and gone without GOL-imposition of a new ban, negotiations have reached an impasse, and a ban may be reimposed at any time and without notice.

    PERSPECTIVE OF CAT'S TUNISIAN REPRESENTATIVE: PARENIN

    3.(C/NF) On July 12, Mohamed El Fadhel Khalil, the Tunis-based Managing Director of Parenin Company, CAT's partner in North Africa, briefed the Ambassador on CAT's efforts to quickly renegotiate its representation in Libya, particularly in light of the July 15 deadline. After severing its relationship with the Libyan company, Sahil, CAT asked the GPC for Industry, Economy and Trade (GPCIET) for a short-list of possible new partners. Secretary Mohammed Ali al-Hweij declined to give a list, saying it would constitute an act of "corruption." CAT then contacted other Libyan businessmen and negotiated with one of them to manage the Tripoli dealership and for another to manage the dealership in Benghazi. The GOL rejected the proposal, recommending instead that ESDF be the sole owner of the Tripoli dealership, while a private company could manage the Benghazi dealership. Khalil noted that while CAT would prefer to work only with the private sector, it would accept a deal in which ESDF held a portion of the dealership (up to 40 percent) but not 100 percent. ESDF rejected CAT's counter-offer.

    4.(C/NF) ESDF's interest in the CAT dealership remains unclear. Khalil said CAT's annual sales in 2008 (prior to the import ban) amounted to 38 million USD. He suspects that the ESDF incorrectly believes CAT's sales figures to be much higher, on the order of 300 million USD. xxxxxxxxxxxx Khalil asked the Ambassador to raise the CAT issue with the Qadafhi TRIPOLI 00000618 002.2 OF 003 sons, particularly with Muatassim in his capacity as a government official. xxxxxxxxxxxx Khalil said CAT's competitors, such as the Koreans, Chinese, British, etc., are allowed to sell their products in Libya with few problems. However, in his view, they do not provide the same level of customer service as CAT provides. He was not aware of any other cases of the ESDF owning a 100 percent stake in a similar dealership. [Note: In a separate conversation with the Volkswagen dealer in Tripoli - a private, Libyan-owned company - Econoff learned that the ESDF moved about a year and a half ago to take 30 percent of the shares of private automobile dealerships operating in Libya, for the ostensible purpose of redistributing those shares to poor Libyan families. The companies refused and have not been approached again. However, the Libyan Stock Exchange is moving forward in implementing a program in which poor Libyan families will receive stocks in ESDF-owned companies as part of a government program to widen ownership in government companies (Ref B). End note.]

    CAT MEETS WITH ECONOMY AND TRADE OFFICIALS...

    5.(C) During a July 13 meeting with Andrew Sheridan, of CAT's Middle East regional office, and Acting Senior Commercial Officer Nate Mason, GPCIET Secretary Mohammed Ali al-Hweij explained that partners from Tunisia, Malta, Egypt or Saudi Arabia were unacceptable in any potential CAT dealership even as managers or agents but that "European and American" partners were acceptable. He also said CAT could work with ESDF on the Tripoli dealership and partner with other Libyan entities on the Benghazi portion. [Note: CAT has told us this would likely be a non-starter as the company expects the Benghazi dealership to outperform an ESDF-connected Tripoli dealership, simply based on projected sales; if this happened, the GOL would most likely shut down the Benghazi operation. End note.] Hweij claimed that the ESDF is a private sector company, "100 percent" unrelated to the GOL, and that CAT could negotiate with ESDF like it would with any other private firm. [Note: The ESDF answers directly to the General People's Committee which is the Libyan equivalent of the prime minister's cabinet and is clearly a government entity. End note.]

    ...AND GETS STONE-WALLED BY THE ECONOMIC AND SOCIAL DEVELOPMENT FUND

    6.(C) On July 14, Sheridan met with Hamed Hoderi, Head of ESDF. Hoderi reiterated ESDF's insistence on 100 percent ownership of the CAT dealership without negotiation. According to Hoderi, the European "partners" mentioned by Hweij would be limited to management functions with no ownership rights. Hoderi indicated that the GOL and ESDF planned to use the CAT deal as a template for all other heavy equipment and auto dealerships. Hoderi repeatedly pressed CAT for a quick decision, which Sheridan understood to be an implied threat to reinstate the ban on CAT imports.

    THROWING THE RAILROAD PROJECT INTO THE MIX

    7.(C) If a ban is reinstated, CAT stands to lose as much as 40 million USD. CAT has negotiated a 30 million USD deal with Russian Railways Company to provide equipment for their railroad construction project along the coast from Sirte to Benghazi, a deal that hinges on a guarantee that CAT equipment is allowed to enter the country. CAT is also expecting orders totaling 7-8 million USD to enter Libya over the next few months. On July 20, Sheridan reported that the GPCIET official Dia Hammouda, told him the only way to guarantee this would be to conclude the deal with ESDF - another indication of the GOL's reinstatement of the import ban. Barring a compromise by ESDF to allow for a true partnership, CAT expects to have to exit the Libyan market, at which point CAT expects the GOL to reinstate the import ban. CAT is now planning to change its strategy from negotiating a solution to one of damage control in response to a potential import ban.

    8.(C) Comment: At this juncture, it appears that CAT will pull out of Libya altogether, and the GOL is likely to reimpose its TRIPOLI 00000618 003.2 OF 003 previous ban on CAT imports. While the USG may not be able to influence the outcome of CAT's negotiations on a dealership, we can make the GOL aware of the multitude of problems that would result from the imposition of discriminatory market access barriers. Moreover, a decision to ban CAT equipment will go against GOL interests - many construction companies (of various nationalities) are depending on CAT equipment to complete infrastructure projects on time, particularly in the lead up to pageantry planned for the 40th Anniversary of Qadhafi's coup September 1. However, as we have seen in this most recent series of meetings in Tripoli, the decisions affecting CAT's future are clearly being made several levels above the Secretary of Industry, Economy and Trade, perhaps by the Qadhafi sons. The GOL's treatment of CAT demonstrates why a TIFA is badly needed to defend the rights and interests of the private sector in Libya. End comment. CRETZ

`