VZCZCXRO7169
PP RUEHBC RUEHDE RUEHDH RUEHKUK RUEHROV
DE RUEHTRO #1043/01 3631425
ZNR UUUUU ZZH
P 291425Z DEC 09
FM AMEMBASSY TRIPOLI
TO RUEHC/SECSTATE WASHDC PRIORITY 5633
INFO RUEHEE/ARAB LEAGUE COLLECTIVE
RUEHVT/AMEMBASSY VALLETTA PRIORITY 0471
RUEHRO/AMEMBASSY ROME PRIORITY 0668
RUEHAS/AMEMBASSY ALGIERS PRIORITY 0975
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RHMFISS/DEPT OF ENERGY WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RHEHAAA/NSC WASHINGTON DC
RUEHTRO/AMEMBASSY TRIPOLI 6184

UNCLAS SECTION 01 OF 02 TRIPOLI 001043 
 
SENSITIVE 
SIPDIS 
 
STATE PLEASE PASS USTR; STATE FOR NEA MAG; ENERGY FOR G. ERICKSON; COMMERCE FOR ITA: NATE MASON; COMMERCE FOR CLDP: MARAM TALAAT 
 
E.O. 12958: N/A 
TAGS: LY ECON EAGR EPET EFIN PGOV ETRD
SUBJECT: LIBYAN MINISTER OF ECONOMY WELCOMES U.S. TRADE MISSION 
 
REF: A) TRIPOLI 258; B) TRIPOLI 485 
 
TRIPOLI 00001043  001.2 OF 002 
 
 
¶1.  (SBU)  Summary: The Ambassador met with Mohammad Ali 
al-Hweij, Minister of Economy-equivalent, on December 29 to 
brief him on the U.S. Trade Mission planned for February, a 
mission that would further our shared goal of attracting more 
U.S. companies to Libya.  Al-Hweij said he welcomed the 
delegation and would work on securing visas for the group. 
Al-Hweij said that a recent edict requiring foreign companies to 
have Libyan general managers had been revised to require that 
only representative offices of foreign companies must have 
Libyan managers.  However, companies with Libyan branch managers 
would receive preferential licensing terms.  Al-Hweij also 
reported that negotiations for a partnership between U.S. heavy 
machinery firm Caterpillar and the Economic and Social 
Development Fund were almost completed.  The Ambassador noted 
that a Trade and Investment Framework Agreement (TIFA) would 
provide a useful framework for resolving similar disputes, 
adding that Libya's revised draft of the TIFA was with USTR for 
review.  Al-Hweij was pleased to hear a U.S. federal judge will 
visit Libya next week to conduct a workshop for judges on 
international commercial arbitration.  End summary. 
 
¶2.  (SBU)  The Ambassador met with Mohammad Ali al-Hweij, the 
Secretary of the General People's Committee for Industry, 
Economy and Trade (Economy ministry-equivalent) on December 29 
to brief him on the upcoming U.S. Trade Mission (February 20-22, 
2010) and to seek al-Hweij's support for the delegation.  The 
Ambassador said this trade mission would build on the U.S. and 
Libya's shared goal of attracting more American companies, in 
diverse fields, to Libya.  He also emphasized that the companies 
are major Fortune 500 firms and cannot be left wondering whether 
they will receive their visas until the last minute.  Secretary 
al-Hweij said he welcomed the delegation and would work on 
securing visas for the group.  He also said he would personally 
meet with the delegation and would provide a schedule of site 
visits and meetings for them.  The Ambassador also highlighted 
the need to secure visa approvals for several Department of 
Commerce employees who will come to Libya in advance of the 
delegation in order to prepare the schedule and make other 
logistical arrangements.  Al-Hweij said he would direct his 
staff to follow-up with the Embassy to ensure the visas were 
approved on time. 
 
¶3.  (SBU)  The Ambassador noted that U.S. companies had 
expressed serious concerns with a recent edict that requires 
foreign companies to hire Libyan general managers.  Al-Hweij 
said he had reached an agreement with Prime Minister al-Baghdadi 
al-Mahmoudi that the edict would be revised and only 
representative offices of foreign companies would be required to 
have Libyan managers.  He said that managers of branch offices 
of foreign companies could be of any nationality but that if the 
manager were Libyan, the company's Libyan license would be valid 
for five years.  If the manager were foreign, the license would 
be valid for only three years. 
 
¶4.  (SBU)  As for U.S. heavy machinery firm Caterpillar's 
efforts to resolve its status in Libya (Ref A), al-Hweij said 
negotiations for the joint venture partnership with the Economic 
and Social Development Fund (ESDF) were almost completed.  He 
said that even before the agreement is signed, however, 
Caterpillar may continue to import machinery and spare parts 
into Libya via its European agent.  The Ambassador noted that a 
Trade and Investment Framework Agreement (TIFA) would provide a 
useful system for resolving such issues in the future, and told 
al-Hweij that the Libyans' revised draft of the TIFA was with 
the U.S. Trade Representative's office for review. 
 
¶5.  (SBU)  The Ambassador informed al-Hweij that a U.S. federal 
judge from the Court of International Trade in New York will 
visit Libya next week (Jan. 3-7) to conduct a workshop for 
Libyan judges on international commercial arbitration, held in 
cooperation with the General People's Committee for Justice 
(Ministry of Justice-equivalent) (see Ref B).  Al-Hweij said he 
welcomed this initiative and he would send a representative to 
the workshop.  He also looked forward to meeting the judge 
during her visit if possible.  He noted that Libya was in the 
process of revising its commercial laws in order to streamline 
procedures for registering companies and to modernize the 
commercial code.  He said that Libya had 20 laws bearing on 
commercial matters, with some dating from 1953.  The legal 
reform is part of the current five-year plan to refurbish 
Libya's infrastructure and he hoped Libya would finish the 
 
TRIPOLI 00001043  002.2 OF 002 
 
 
program by 2013 when a new five-year plan would begin.  Al-Hweij 
said he would brief the trade mission on these and other 
developments on Libya's economic and commercial situation. 
 
¶6.  (SBU)  Comment: Hweij, like senior MFA officials who have 
been briefed on the Trade Mission, appeared to welcome to the 
initiative.  However, we continue to face severe problems in the 
issuance of Libyan visas for USG and USG-sponsored travelers. 
Continued high-level engagement likely will be required to 
ensure that visas for the delegation and support staff will be 
issued in a timely fashion.  We will continue to press the 
issue.  End comment. 
CRETZ