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Brooke F Adams  08/07/2006 02:32:16 PM  From  DB/Inbox:  Brooke F Adams

Cable 
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C O N F I D E N T I A L        TRIPOLI 00361

SIPDIS
CXCAIRO:
    ACTION: ECON
    INFO:   PA POL IPS FCS FAS DCM AMB AID MGT

DISSEMINATION: ECON
CHARGE: PROG

VZCZCCRO244
RR RUEHEG
DE RUEHTRO #0361/01 2061223
ZNY CCCCC ZZH
R 251223Z JUL 06
FM AMEMBASSY TRIPOLI
TO RUEHC/SECSTATE WASHDC 1030
INFO RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEAUSA/DEPT OF HHS WASHINGTON DC
RUEHAM/AMEMBASSY AMMAN 0011
RUEHEG/AMEMBASSY CAIRO 0378
RUEHTRO/AMEMBASSY TRIPOLI 1157

C O N F I D E N T I A L SECTION 01 OF 02 TRIPOLI 000361 
 
SIPDIS 
 
STATE FOR NEA/MAG, NEA/PPR, T, G, OES, 
 
E.O. 12958: DECL:  7/25/2016 
TAGS: ETRD ETTC EINT LY
SUBJECT: LIBYAN ECONOMY AND TRADE OFFICIALS REVIEW BILATERAL 
COOPERATION WITH COMMERCE DEPUTY SECRETARY SAMPSON 
 
 
CLASSIFIED BY: Greg Berry, Charge d'Affaires, USLO, State. 
REASON: 1.4 (b), (d) 
 
 
 
CLASSIFIED BY: Greg Berry, CDA, EMBASSY TRIPOLI, Department of 
State. 
REASON: 1.4 (B) (D) 
 
¶1.  (C)  SUMMARY:  On July 11, 2006, Deputy Secretary of 
Commerce David Sampson, accompanied by DCM met with Taher 
Sarkez, the Under Secretary of the General People's Committee 
for Economy and Trade (Economics Ministry).   Looking forward, 
Sarkez hoped that more U.S. companies would register in Libya, 
especially in the healthcare and infrastructure development 
fields.   Overall, Libya requested more training and technical 
assistance.  Referring to his own fondly-remembered travel 
experiences in the U.S., he called for more exchange visits and 
increased tourism on both sides, especially professional and 
educational exchanges.  His staff also shared information about 
the new commercial agency law and company registration process. 
  END SUMMARY. 
 
------------- 
LIBYA'S REFORM PLANS 
------------- 
 
¶2.  (U)    Under Secretary for the General People's Committee 
for Economy and Trade (Economics Ministry), Taher Sarkez, 
welcomed Deputy Secretary of Commerce David Sampson to Libya and 
presented a broad overview of Libya's economic strategy. He said 
the General People's Committee for Economy and Trade (GPCET) had 
pursued improved relations between our two countries for a long 
time and now hoped to stress trade opportunities.  He said Libya 
was trying to develop its private sector and attract foreign 
investment, adding that a free trade zone was announced this 
year, the stock market was in the planning stages and an export 
board was operational.  He claimed that Libya was in the final 
stages of preparing a memorandum requesting WTO membership. 
Looking forward, he hoped that more U.S. companies would 
register in Libya, especially in the healthcare and 
infrastructure development fields.   Overall, Libya requested 
more training and technical assistance.  Referring to his own 
fondly-remembered travel experiences in the U.S., he called for 
more exchange visits and increased tourism on both sides, 
especially professional and educational exchanges. 
 
------------- 
U.S. CALLS FOR OPENNESS AND TRANSPARENCY 
------------- 
 
¶3.  (C) Deputy Secretary Sampson said he would focus on 
demonstrable activities resulting from the meetings.  He thanked 
Libya for its strategic, significant steps and hoped that his 
visit would lead to expanded prosperity for both countries. 
Noting the Libyan aim to diversify beyond the oil sector, Deputy 
Secretary Sampson called for more commercial and legal 
 
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transparency in the Libyan system that would be conducive to 
attracting investment and expanding opportunity.   He described 
small business expansion as the engine of growth for the U.S. 
economy and advised the Libyans that business incubators and 
government contracting access for small business were important 
programs.  He called for resolution of any difficulties with 
visa issuances on both sides to help open new markets. 
 
¶4.  (C)  Since the free flow of trade and investment is critical 
to economic development, Deputy Secretary Sampson offered 
cooperation on Libya's planned WTO accession and noted that 
export controls would gradually be eased.   At the same time, he 
urged Libya to remove any prohibitive boycott language from 
contracts.  He also announced that export licenses were granted 
for Boeing aircraft purchased by Buraq Air, and that he hoped to 
see more purchases of U.S. aircraft by Libya in the future. 
 
¶5.  (U)  The head of the Libyan Foreign Investment Board, Rajab 
Shigbalu, reviewed some of the many agreements Libya signed with 
other countries.  Referring to the proposed OPIC agreement 
pending since last year, he said any proposed agreements offer 
reciprocal treatment to both parties.  Pointing out that the 
OPIC draft did not offer any protection for Libyan funds in the 
U.S., he did not offer any indication that the proposal might 
move forward. 
 
¶6.  (U)  A representative of the Libyan Export Promotion Board, 
established one month ago, struck a positive note saying, "our 
first call was from a businessman exporting to the U.S." 
Emphasizing that Libya needed to export more than oil to gain 
hard currency he said, "Libya suffers from Dutch Disease," and 
that he sought contact with the U.S. Department of Commerce to 
plan joint events or sign a cooperative memorandum.  He also 
requested training and technical assistance.  Deputy Secretary 
Sampson advised that the U.S. National Export Strategy might 
serve as a helpful template for new Board's efforts. 
¶7.  (U)  Encouraging more U.S. businesses to open in Libya, the 
commercial registration manager said that all citizens could 
start companies, as opposed to former practices that limited 
fields of activity.  Mr. Daouki said that 620 foreign companies 
were registered in Libya specializing in construction, oil, 
communications, and medical services.  He claimed that 
registration files could be processed in ten days.  In addition, 
he said the new commercial agencies law, for which implementing 
regulations are being determined by the General People's 
Congress, was meant to expand opportunity.  Giving more detail, 
he said 60 percent of the companies could be owned by the 
"founders" while 40 percent of the company had to be open to 
public participation.  The goal was to broaden participation by 
all Libyans in commercial activities since there was a 
perception that some people with special connections dominated 
the import market in the past.  "Companies requiring significant 
capital to build showrooms, warehouses, workshops, and equipment 
must provide a way for all Libyans to invest in the 
enterprises," said Daouki.  Libya doesn't want individuals to 
import expensive equipment without ensuring the associated 
agency can provide support and maintenance over the long-term. 
In the GPCET analysis, company registrations were low because 
people didn't have the capital required.   It is trying to put 
in place legislative mechanisms and regulations to distribute 
work and opportunity equally.  Daouki noted that there was a 
"grace period" until August 17 for existing agents to legalize 
their operations under the new regulations.  "During the 
sanctions period," Daouki said, "non-Libyans, especially 
Egyptians, Tunisians, and Maltese exercised agency control and 
this is now prohibited under Libyan law." 
 
¶8.  (U)  Deputy Secretary Sampson agreed to return to the GPCET 
on July 13 for an informal question and answer session with the 
Libyan press to expand on plans for future cooperation.    He 
also invited Under Secretary Sarkez for a reciprocal visit at 
the Department of Commerce in the U.S. 
 
¶9.  (U)  The U.S. meeting participants included: 
 
Dr. David Sampson, Deputy Secretary of the Department of Commerce 
Ms. Aimee Strudwick, Chief of Staff to the Deputy Secretary of 
Commerce 
Ethan Goldrich, DCM 
Elizabeth Fritschle, Pol/Econ Chief 
 
The Libyan Participants included: 
 
Taher Sarkez, Under Secretary of the General People's Committee 
for Economy and Trade 
Milaud Daouki, Manager of Commercial Registration 
Mohammed Hassan Ayyab, Americas Desk Officer at the General 
People's Committee for Foreign Liaison 
Rajab Shiglabu, Secretary of the Libyan Foreign Investment Board 
Ali Asawi, General Director of the Export Promotion Board 
Faraj al Masdur, Chief of Financial Administration 
Jumaa al-Humaa, Head of the Foreign Trade Department 
BERRY