Excerpt from document
(S/NF) Summary: The Swiss Charge in Tripoli, Stefano
Lazarrotto, expressed cautious optimism that the bilateral
crisis with Libya had seen measured improvements. On December
15, the GOL issued a visa to a Swiss diplomat assigned to work
in Tripoli, and in exchange, Switzerland issued a visa to a
Libyan diplomat assigned to work in Bern, as part of a "deal"
struck between the Charge and Libyan MFA.

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INFO RUEHSW/AMEMBASSY BERN PRIORITY 0065
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RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUEHTRO/AMEMBASSY TRIPOLI 6164
Content
S E C R E T SECTION 01 OF 02 TRIPOLI 001024

NOFORN
SIPDIS

DEPARTMENT FOR NEA/MAG

E.O. 12958: DECL: 12/21/2019
TAGS: PREL, PHUM, SZ, LY
SUBJECT: HINTS OF MINOR PROGRESS IN THE SWISS-LIBYA STANDOFF

REF: TRIPOLI 942

TRIPOLI 00001024 001.2 OF 002

CLASSIFIED BY: Gene Cretz, Ambassador, U.S. Embassy Tripoli,
U.S. Department of State.
REASON: 1.4 (b), (d)
1. (S/NF) Summary: The Swiss Charge in Tripoli, Stefano
Lazarrotto, expressed cautious optimism that the bilateral
crisis with Libya had seen measured improvements. On December
15, the GOL issued a visa to a Swiss diplomat assigned to work
in Tripoli, and in exchange, Switzerland issued a visa to a
Libyan diplomat assigned to work in Bern, as part of a "deal"
struck between the Charge and Libyan MFA. Lazarrotto told us
that Switzerland was now pursuing a dual-track approach in an
attempt to resolve the crisis, a bilateral MFA dialogue based in
Bern and a new Tripoli-based dialogue with the Qadhafi
Development Foundation. The Libyan Government insists that a
third party (Austria, Germany, France, or Spain) mediate
discussions in both tracks. Although Lazarrotto no longer
expressed an immediate fear that he would be declared persona
non grata, he maintained his December 1 request that the Embassy
support the detained Swiss in the event that Swiss officials are
asked to leave the country. End summary.

POSITIVE SIGN BUT REQUEST FOR SUPPORT STANDS

2. (C) Swiss Charge Stefano Lazarrotto said that the GOL had
granted a visa to a Swiss diplomat who will be assigned to Libya
to serve as "Head of Chancery" (the equivalent of a Management
Officer). The diplomat arrived on December 19. Simultaneously,
the Swiss Government issued a visa to a Libyan diplomat assigned
to work at the Libyan Embassy in Bern. Lazarrotto said the
"deal" was struck after three weeks of negotiation on the issue.

3. (S/NF) Due to this positive development, Lazarrotto said the
Swiss were less concerned than they were a few weeks ago about
the possibility that the Charge would be asked to leave the
country for allowing the detained Swiss citizens, now sentenced
in a Libyan court, to continue to reside at the Swiss Embassy
(reftel). However, Lazarrotto noted that the request still
stands for possible U.S. assistance in providing food to the
detained Swiss in the event that the Swiss diplomats are
declared persona non grata. Lazarrotto also said the Swiss
Embassy had stockpiled food and water for the detainees, which
somewhat lessened the need for humanitarian assistance in the
event of further political difficulties. He said that he had
made the request for humanitarian assistance to several
embassies but that none had responded yet. Separately, the UK
Embassy told us on December 16 that they had received the Swiss
request but had not responded, and indicated that the UK
Government was unlikely to respond positively.

SWISS PURSUE DUAL TRACK STRATEGY

4. (C) Lazarrotto confirmed that an appeals trial was still
scheduled to take place on December 22 in the immigration court.
The Libyan lawyer working on the case is trying to clarify
whether the two men have to be present for the trial to take
place. Separately, the hearings before the "economic court,"
which handles tax issues and other matters, have been pushed
back to January 2, 2010 for Max Goeldi and to January 3, 2010
for Rashid Hamdani. The Swiss do not plan to attend. The
lawyer is still trying to obtain in writing the list of specific
charges.

5. (S/NF) The Swiss are now proceeding along two tracks to
negotiate a solution to the situation. The first track, being
led by the Swiss Government in Bern, consists of bilateral MFA
talks to reopen discussions on political reconciliation.
Lazarrotto reported that a Libyan MFA representative (the name
of whom he could not remember) traveled to Bern last week for
informal discussions of how to move forward. Libya is now
insisting that any formal discussions include a third country
"mediator." Bern agreed to allow Austria, Germany, France, or
Spain to serve as the third party, as those countries had
previously agreed to facilitate negotiations on behalf of the
Swiss.

6. (S/NF) The Swiss have initiated a second track recently,
through Saif al-Islam al-Qadhafi's Qadhafi Development
Foundation (QDF). Lazarrotto explained that the Libyan lawyer
representing the detained businessmen had approached the QDF to
intervene with the GOL on the issue, and that the QDF had also
insisted that a third party be involved in the discussions
(namely, one of the countries mentioned above). According to
Lazarrotto, Human Rights Watch met with the Swiss during the
group's recent visit to Tripoli and noted that in previous
discussions they had had with Saif al-Islam in London, Saif had
articulated his interested in "solving" the Swiss issue soon.

SWITZERLAND CONTINUES TO APPLY VETO POWER

TRIPOLI 00001024 002.2 OF 002

7. (S/NF) Lazarrotto said that he had faced pressure recently
from "a few EU embassies," regarding Switzerland's decision to
veto the issuance of Schengen visas to Qadhafi family members.
He specified that the Portuguese Ambassador (strictly protect)
had been particularly vocal in accusing Switzerland of abusing
its veto power. Lazarrotto defended his nation's stance,
stating "Imagine that this situation were to happen to another
Qadhafi family member? Switzerland could not afford that. It
is better that we take precautions." Lazarrotto stressed that
the veto policy was only being applied to Libyan officials and
Qadhafi family members -- "average Libyan citizens are still
able to apply for Swiss visas in Cairo," he said.

8. (S/NF) Comment: Lazarrotto's previous fears regarding his
status seem to have been greatly allayed by the GOL's issuance
of a visa for a Swiss diplomat assigned to work at the Swiss
Embassy. The introduction of EU mediating parties and a new
negotiating track under the auspices of the Qadhafi Development
Foundation strike us as positive developments though the Swiss
remain angered and frustrated by the Libyan refusal to state
what they truly want to settle the dispute once and for all. .
End comment.
CRETZ