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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

` `

    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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