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### Viewing cable 06BERN898, SWITZERLAND & LIECHTENSTEIN: ASSESSING OUR \

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
06BERN898 | 2006-05-05 15:15 | 2011-02-22 00:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Bern
Appears in these articles: http://www.letemps.ch/swiss_papers

`

    VZCZCXYZ0020
    RR RUEHWEB

    DE RUEHSW #0898/01 1251515
    ZNR UUUUU ZZH
    R 051515Z MAY 06
    FM AMEMBASSY BERN
    TO RUEHC/SECSTATE WASHDC 2217
    INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
    RHEFHLC/DEPT OF HOMELAND SECURITY WASHINGTON DC
    RUEABND/DRUG ENFORCEMENT ADMIN HQ WASHINGTON DC
    RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
    RUEATRS/DEPT OF TREASURY WASHINGTON DC
    RHMFIUU/DEPT OF JUSTICE WASHINGTON DC
    RHMFIUU/DEPT OF ENERGY WASHINGTON DC
    RUEHGV/USMISSION GENEVA 2519
    RUEKJCS/SECDEF WASHINGTON DC
    RHMFIUU/FBI WASHINGTON DC
    RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC

` `

    2006-05-05 15:15:00	06BERN898	Embassy Bern	UNCLASSIFIED//FOR OFFICIAL USE ONLY		VZCZCXYZ0020\
    RR RUEHWEB\
    \
    DE RUEHSW #0898/01 1251515\
    ZNR UUUUU ZZH\
    R 051515Z MAY 06\
    FM AMEMBASSY BERN\
    TO RUEHC/SECSTATE WASHDC 2217\
    INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE\
    RHEFHLC/DEPT OF HOMELAND SECURITY WASHINGTON DC\
    RUEABND/DRUG ENFORCEMENT ADMIN HQ WASHINGTON DC\
    RUCPDOC/DEPT OF COMMERCE WASHINGTON DC\
    RUEATRS/DEPT OF TREASURY WASHINGTON DC\
    RHMFIUU/DEPT OF JUSTICE WASHINGTON DC\
    RHMFIUU/DEPT OF ENERGY WASHINGTON DC\
    RUEHGV/USMISSION GENEVA 2519\
    RUEKJCS/SECDEF WASHINGTON DC\
    RHMFIUU/FBI WASHINGTON DC\
    RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC\
    	UNCLAS BERN 000898 \
     \
    SIPDIS \
     \
    SIPDIS \
     \
    SENSITIVE \
     \
    STATE ALSO FOR USTR \
     \
    E.O. 12958: N/A \
    TAGS: PREL ETRD SZ VE
    SUBJECT: SWITZERLAND & LIECHTENSTEIN: ASSESSING OUR \
    BILATERAL RELATIONSHIPS \
     \
    FROM AMBASSADOR PAMELA P. WILLEFORD \
     \
    1.(U) Introduction:  As I prepare to leave Embassy Bern \
    after two and a half years, I would like to share some \
    observations and insights I gained during my tenure here.  I \
    hope these thoughts will be helpful to those dealing with \
    Switzerland and Liechtenstein, and Europe in general. \
     \
    ----------- \
    Big Picture \
    ----------- \
     \
    2.(SBU) Switzerland and Liechtenstein are niche players in \
    the world and we must be creative in how we challenge them \
    to contribute to our shared goals.  Our three new agreements \
    with Switzerland -- covering political cooperation, trade \
    and investment, and counterterrorism cooperation -- are \
    modest achievements in and of themselves, but must be filled \
    with good content to be truly useful.  We should not be \
    afraid to ask our partners for assistance, mindful that \
    there are constraints on how active these traditionally \
    neutral countries can be.  In anything we do, personal \
    relationships will be key.  We should not be fooled that the \
    engineer-like Swiss are impervious to relationships - this \
    is how we get things done.  We encourage Washington to \
    cultivate and use these relationships, just as we have done \
    in Bern. \
     \
    3.(SBU) A word on Davos.  The World Economic Forum's Annual \
    Meeting is the premier event of its kind.  The USG can use \
    this platform to spread our message.  Indeed, if we are \
    early enough with our ideas, we can work with WEF organizers \
    to fashion sessions and programs important to us.  A high- \
    level USG presence is noticed by the global community.  We \
    encourage Washington to begin thinking now about this coming \
    January's meeting. \
     \
    ------------------------- \
    State of the Partnerships \
    ------------------------- \
     \
    4.(SBU) Switzerland and Liechtenstein can be valuable \
    partners for the United States, provided we are creative in \
    identifying areas of cooperation that take into account \
    their own limitations.  Though neither is a member of the EU \
    or NATO, each play a role larger than their size would \
    suggest.  Switzerland and Liechtenstein, as international \
    financial centers, are important to the struggle against \
    terrorist finance, money laundering, and narcotics assets. \
    Economically, Switzerland is the world's 16th largest \
    economy, 12th largest aid donor, 6th largest direct investor \
    in the United States, and "manager" of 40 percent of the \
    world's privately held savings.  Switzerland is a \
    participant in all relevant export control and non- \
    proliferation regimes.  In political affairs, Switzerland \
    plays above its size in the United Nations.  It has used its \
    neutral status to our benefit along the Korean DMZ and as \
    our protecting power in Iran and Cuba.  As depository of the \
    Geneva Conventions, Switzerland has recently played a key \
    role in hosting a diplomatic conference passing the Third \
    Additional Protocol to the Third Geneva Convention. \
    Switzerland's tentative steps toward peacekeeping in the \
    Balkans, engagement in NATO's Partnership for Peace, and \
    even tiny presence with ISAF in Afghanistan, reflects a \
    country reconsidering its role in global security - though \
    with trepidation. \
     \
    5.(SBU) Our greatest challenge has been prying more \
    cooperation out of the often provincial and isolationist \
    sectors of the societies.  Bank secrecy laws entail that \
    host country financial institutions are substantially self- \
    policing - not an entirely comforting situation. \
    Agricultural protectionism shattered Swiss efforts to pursue \
    a free trade agreement with the United States.  Both the \
    federal structure of Switzerland and acute concerns about \
    sovereignty mean that information sharing on terrorism, \
    proliferation, and other crimes is less than optimal.  The \
     \
    Swiss military is barred from participation in peace \
    enforcement (as opposed to peacekeeping) activities.  Media \
    has been critical of the war in Iraq and the broader war on \
    terrorism - particularly with respect to Guantanamo, \
    renditions, and travel/visa restrictions.  Bad feelings \
    derived from the Holocaust Assets scandal still redounds \
    against us. \
     \
    6.(SBU) Facing these challenges, Embassy Bern has worked \
    with sympathetic counterparts within the host governments to \
    fashion ways of improving coordination and avoiding \
    friction.  Among the measures we have taken are several \
    agreements designed to ease cooperation on political \
    affairs, trade, and law enforcement.  The Federal Council \
    approved three this week, and should address the customs \
    agreement this summer: \
     \
    -- Framework for Intensified Cooperation, to ease \
    collaboration on multilateral democracy and security \
    building.  Thus far, this has reaped Swiss membership in, \
    and million dollar donation to, the Foundation for the \
    Future, as well as Swiss financial support for disarmament \
    in Ukraine, election monitoring in Afghanistan, and the \
    NATO/EAPC trust fund in Iraq. \
     \
    -- Trade and Investment Cooperation Forum (the Forum) for \
    discussion and resolution of minor trade and investment \
    disputes and discussion of common efforts to, for example, \
    strengthen intellectual property rights.  The Forum will \
    complement other non-trade related economic discussions \
    under the auspices of the Joint Economic Commission \
    established in 2002. \
     \
    -- Operative Working Arrangement (OWA) to enable information \
    sharing and possible joint investigations in terrorism \
    cases. \
     \
    -- Customs Mutual Assistance Agreement (CMAA), addressing \
    offenses against customs laws that are prejudicial to the \
    economic, fiscal, and commercial interests of both \
    countries, due for finalization this summer. \
     \
    7.(U) In addition to these agreements, the Embassy worked \
    successfully with OBO and local Swiss officials to finalize \
    a lease on a new chancery, which we should occupy in 2008. \
     \
    ----------------------------------- \
    Regional Stability, Democracy & Aid \
    ----------------------------------- \
     \
    8.(SBU) Switzerland's traditional neutrality has, in the \
    past, severely restricted its involvement in world affairs \
    outside of the humanitarian and economic spheres.  We have \
    worked hard to bring the Swiss around toward fostering \
    regional stability and democracy.  In May 2005, the Federal \
    Council (cabinet) voted to enhance our bilateral \
    relationship.  As a first gesture, they contributed $250 \
    thousand to the NATO/PfP trust fund for Iraq, $350 thousand \
    to dismantling conventional weapons in Ukraine, $300 \
    thousand for election observation in Afghanistan (among the \
    largest OSCE donations), and added short-term training \
    courses for Iraqi and Afghan security officials.  The Swiss \
    also made a significant commitment to fostering democracy in \
    the broader Middle East and North Africa by joining the \
    Forum for the Future and pledging $1 million to the \
    Foundation for the Future. \
     \
    9.(U) Progress on the diplomatic front was also impressive, \
    as the Swiss fulfilled their obligation as depository state \
    for the Geneva Conventions by hosting a diplomatic \
    conference to approve the Third Additional Protocol, which \
    in turn will allow the Red Cross/Red Crescent Movement to \
    recognize the Israeli Star-of-David emblem.  Embassy (with \
    Mission Geneva) invested a great deal of effort in steeling \
    the spines of our Swiss counterparts, efforts crucial to \
    ensuring a successful diplomatic conference. \
     \
    10.(SBU) For the future, we want the Swiss to maintain their \
    220-strong peacekeeping force deployed to Kosovo and Bosnia, \
    to expand their small presence in Afghanistan, and to \
    broaden their NATO-partnership activities outside of Europe. \
    We want Swiss Army reform currently underway to succeed in \
    transforming the Swiss military into a lighter, deployment- \
    oriented force available for peace support operations.  We \
    also wish to maintain our defense procurement relationship \
    with the Swiss military.  We also hope to see the Swiss \
    enlarge their broader security assistance to include police \
    and border security assistance.  Likewise, in the aftermath \
    of the Kashmir earthquake and Indian Ocean Tsunami, we might \
    encourage the Swiss to explore a potential PfP coordinating \
    role for the use of military assets in humanitarian relief - \
    an area that might appeal to the pacifist as well as \
    internationalist sectors of the populace. \
     \
    -------------------- \
    Trade & Investment \
    ------------------ \
     \
    11.(U) A major outcome of the May 2005 Federal Council \
    decision was the Swiss proposal to explore a free trade \
    agreement with the United States.  Unfortunately, needed \
    agricultural tariff reforms were too large a pill for many \
    Swiss to swallow.  USTR's fallback position was to initiate \
    a bilateral Trade and Investment Cooperation Forum, mandated \
    to address small, yet sensitive issues such as strengthening \
    intellectual property rights cooperation, removing Non- \
    Tariff Barriers to trade and investment, and beef and wine \
    exports. \
     \
    12.(U) Another potentially useful tool for the Mission is \
    the U.S.-Swiss Joint Economic Commission (JEC), whose \
    meetings in Washington, Bern, and at the World Economic \
    Forum in Davos have served as fora for discussion and \
    resolution of bilateral misunderstandings.  Through the JEC, \
    the Swiss-American Chamber of Commerce, and intensive \
    outreach efforts with Swiss and Liechtenstein media, the \
    Mission has alleviated business concern about U.S. post-9/11 \
    security measures such as passenger name recognition laws, \
    food security, aviation cargo regulations, and the financial \
    provisions of the Patriot Act.  Working proactively, we \
    averted a potential crisis on Zurich Airport's FAA \
    certification.  FCS's intervention also turned back Swiss \
    Health Office attempts to disadvantage U.S. pharmaceuticals. \
     \
    -------------------- \
    World Economic Forum \
    -------------------- \
     \
    13.(U) The WEF Annual Meeting in January is the premier \
    international event of its kind.  Our Embassy's presence \
    supports senior cabinet and congressional participation (six \
    cabinet members and seven legislators last year; presidents \
    and vice presidents in recent years).  Our consultations \
    with WEF organizers ensure that USG officials have a \
    platform to our present policies.  This year, for the first \
    time, the Mission established a "Shared Logistics Platform" \
    that provided airport and security liaison assistance, as \
    well as logistical support in the run-up to and during the \
    WEF on a cost-sharing basis.  Washington remains an \
    important partner for the Mission in WEF support, as we seek \
    to regularize this practice and improve support for high- \
    level USG WEF attendees. \
     \
    ---------------------------------- \
    Counterterrorism & Law Enforcement \
    ---------------------------------- \
     \
    14.(U) The FBI, Homeland Security, and the Drug Enforcement \
    Administration are all represented at post, while other law \
    enforcement agencies are represented by regional offices. \
    We are working with Washington and the Swiss Government to \
    grant the RSO law enforcement status as well. \
     \
    15.(SBU) Cooperation with Swiss law enforcement agencies has \
     \
    improved "glacially" over recent years.  We are hoping some \
    changes will speed this process along.  We have recently \
    agreed on new language for an updated bilateral Operative \
    Working Agreement (OWA) allowing joint investigations under \
    certain narrow circumstances.  Swiss Justice Minister \
    Blocher will now present to Parliament.  Direct cooperation \
    with cantonal and municipal police is severely restricted. \
    We are also hopeful that a new OWA will lead to greater \
    information sharing between the Swiss and Embassy law \
    enforcement representatives, including at the cantonal \
    level. \
     \
    16.(SBU) Given the absence of direct attacks in their \
    territory, public complacency is a big problem.  The level \
    of risk is impossible to establish, absent the ability to \
    investigate leads.  High-profile terrorist suspects arrested \
    here - primarily support-personnel for the Madrid and Riyadh \
    bombings - have been provisionally freed for lack of hard \
    evidence.  One Salafist terrorist was deported to Spain, \
    though only after a leak to the Spanish media revealed his \
    presence in the country. \
     \
    17.(SBU) On terrorist finance, the Swiss continue to freeze \
    over $25 million in al Qaeda/Taliban assets.  Switzerland \
    holds about $130 million in Iraqi assets, whose turnover has \
    been delayed by UN bureaucracy.  Liechtenstein, for its \
    part, is cooperating on the U.N. lists and is looking for \
    ways to be helpful in USG efforts against North Korean \
    assets.  We will continue to press both countries to ensure \
    that financial institutions exercise due diligence with \
    their clients and for authorities vigorously to investigate \
    suspicious transaction reports. \
     \
    18.(SBU) Liechtenstein was a model of cooperation for the \
    mission's law enforcement agencies, offering legal \
    assistance on important investigations of money laundering \
    and child pornography.  The principality continues to be in \
    full compliance with the Financial Action Task Force \
    requirements.  It recently returned a high-profile Iraqi \
    asset, Saddam's former executive jet, to the new government \
    there.  Post ensured that media was aware of all these \
    successes. \
     \
    19.(SBU) One area where we have been effective in \
    encouraging better coordination is in combating trafficking \
    in persons (TIP).  USG pressure, especially the downgrading \
    of Switzerland in 2004 to "tier two," has spurred the Swiss \
    Federal Government to communicate better with cantons on \
    ways to protect trafficking victims and to identify areas of \
    prosecution.  As the Swiss move to introduce new legislation \
    and enlarge data collection, we will look for ways to \
    encourage and support them. \
     \
    --------------------------------------------- --------- \
    Non-proliferation of Weapons of Mass Destruction \
    --------------------------------------------- --- \
     \
    20.(SBU) The Swiss are members of all relevant non- \
    proliferation agreements and regimes and reliably report \
    requests for controlled items.  Traditionally, in the gray \
    area of dual-use items, the Swiss have been less diligent. \
    However, we have recently witnessed a greater openness on \
    the part of export control officials to share information, \
    due in large measure to Embassy outreach and Washington's \
    agreement to supply leads on investigations.  Given the \
    growing threat from Iran and North Korea, this is very \
    important.  Swiss officials have taken part in PSI exercises \
    and are on-board for using existing law robustly against \
    proliferators.  The Mission hopes that a broadened OWA will \
    also foster joint investigations in the area of non- \
    proliferation connected with terrorism. \
     \
    21.(SBU) The Swiss co-hosted with the USG two major \
    conferences on WMD - one a workshop for 80 representatives \
    of Eurasian countries on the bio-terrorism threat and \
    another with 60 participants on supporting a US Department \
    of Energy effort to eliminate plutonium-producing plants in \
     \
    Russia.  Pledges on the latter project have been \
    forthcoming.  Follow-on conferences on both themes are \
    expected in the coming 12 months.  In addition, under \
    Partnership for Peace, the Swiss sponsor annual \
    international conferences on critical infrastructure \
    protection - an effort for which we hope to recruit USG \
    experts. \
     \
    -------- \
    Consular \
    -------- \
     \
    22.(U) This year, our Consular Section has taken on \
    additional burdens in assisting neighboring consular \
    districts in Italy and France, where governments have failed \
    to adopt machine-readable passports by the USG's deadline. \
    These efforts are in addition to the usual portfolio, which \
    also includes close coordination with the Swiss Protecting \
    Power in Tehran.  Notwithstanding these challenges, Consular \
    has achieved remarkable success in reducing visa applicant \
    waiting times and improving customer service.  Washington \
    was helpful in providing us with a needed fourth consular \
    officer. \
     \
    23.(U) The Embassy also increased public outreach to clarify \
    visa and passport regulations and procedures and provide a \
    human face to the application process.  Our Homeland \
    Security, Foreign Commercial Service, Consular, and Public \
    Affairs sections initiated and implemented a program of \
    travel trade promotions and outreach to the press and the \
    Swiss travel industry that has contributed to a significant \
    improvement in the Swiss public perception of travel to the \
    U.S.  Other factors contributing to the improved perception \
    are the implementation of a Swiss pilot program for \
    biometric passports and a growing public appreciation for \
    security measures.  Positive public perception combined with \
    favorable economic factors made the U.S. the leading long- \
    haul destination for Swiss travelers.  The annual number of \
    Swiss travelers to the U.S. increased from 235 thousand in \
    2003 to 270 thousand in 2005, with an annual 300 thousand \
    expected by 2007. \
     \
    24.(U) Swiss students studying in the U.S. contribute \
    approximately USD 60 million to the U.S. economy on an \
    annual basis.  To promote graduate studies in the U.S., the \
    Commercial, Public Affairs and Consular sections joined \
    forces to support the annual MBA Fair in Zurich.  In 2005, a \
    total of 4,656 students enrolled in U.S. higher education \
    programs, a 13 percent boost from the previous year. \
     \
    ------------------ \
    Public Diplomacy \
    ---------------- \
     \
    25.(U) On all the above substantive goals, official Swiss \
    reluctance to engage more deeply with the United States \
    stems largely from public suspicion of USG actions. \
    Generally, the Swiss public is not energized about the \
    terrorist threat; those who are tend to believe that \
    association with America might only increase Switzerland's \
    exposure.  Some Swiss do "get it," however.  Mission's task \
    is to work with these partners to spread the message that \
    terrorism threatens us all and that spreading freedom and \
    prosperity to the region is a long-term means to tackle the \
    threat.  The large majority who opposed the war in Iraq must \
    be reminded that we share a common interest in a successful \
    new Iraq.  Those media outlets that have exaggerated USG \
    faults have had their over-reaching exposed.  We will seek \
    ways to help those sympathetic to our goals get the word \
    out. \
     \
    ------------- \
    Post Security \
    ------------- \
     \
    26.(SBU) As noted in the law enforcement section, it has \
    been an uphill struggle to convince many Swiss authorities \
     \
    of the gravity of the current threat.  For many years, the \
    Canton of Bern refused our requests to operate a \
    surveillance detection (SD) team.  We have succeeded in \
    reversing their decision and we should have an SD program in \
    place shortly.  As noted, we are working to have our \
    diplomatic security agents recognized as law enforcement \
    under our bilateral agreements.  The coming years will offer \
    a particular challenge as we relocate the Embassy to a new \
    chancery. \
     \
    ---------------------------------------- \
    Management: Relocation to a New Chancery \
    ---------------------------------------- \
     \
    27.(U) Among the most satisfying accomplishments of the past \
    years has been the identification and securing of a new \
    chancery.  In 2005, we signed a lease for a more secure and \
    centrally located Chancery building and executed a contract \
    to sell the existing building.  We are completing the permit \
    process.  Renovation on the new site should begin mid-2006, \
    and we should be prepared to relocate in early FY 2008. \
    Until that time, tremendous efforts will still be necessary \
    to overcome challenges, both expected and unexpected. \
    Washington's continued support will be key. \
     \
    ---------- \
    Final note \
    ---------- \
     \
    28.(U) I would like to thank everyone in Washington and Bern \
    for their wonderful support during my time here.  I have had \
    the privilege of working with tremendously talented people \
    who are dedicated to serving their country.  Representing my \
    country as U.S. Ambassador to Switzerland and Liechtenstein \
    has been one of the highlights of my life. \
    WILLEFORD \

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