Excerpt from document
(S/NF) Summary: During a January 27 meeting with the
Ambassador, Dr. Ali Gashut, Head of the Libyan Atomic Energy
Establishment, reiterated the GOL's keen interest in seeing the
regional Nuclear Medicine Center (NMC) project completed.

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S E C R E T SECTION 01 OF 02 TRIPOLI 000096

NOFORN
SIPDIS

STATE FOR NEA/MAG AND ISN/CTR K. INSLEY AND DA BROWN; LONDON AND
PARIS FOR NEA WATCHERS

E.O. 12958: DECL: 2/3/2020
TAGS: KNNP, AORC, IAEA, PGOV, LY
SUBJECT: LIBYAN ATOMIC ENERGY HEAD ELABORATES ON FUNDING REQUEST FOR
NUCLEAR MEDICINE CENTER

REF: 09 TRIPOLI 886

TRIPOLI 00000096 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: During a January 27 meeting with the
Ambassador, Dr. Ali Gashut, Head of the Libyan Atomic Energy
Establishment, reiterated the GOL's keen interest in seeing the
regional Nuclear Medicine Center (NMC) project completed.
Recognizing the Department's funding constraints and
acknowledging the GOL's long-standing commitment to
cost-sharing, Gashut agreed to provide a letter quantifying GOL
contributions to the project to-date. Gashut emphasized the
progress on the NMC was important to the bilateral relationship,
stating that that the Libyan Cabinet, MFA, and other government
bodies were focused on the project and wanted to see it come to
fruition as a model of bilateral engagement, a point we have
heard repeatedly from senior officials, including Libyan leader
Muammar al-Qadhafi. Progress on the NMC could help jumpstart
the relationship after months of crises. We urge the Department
to consider alternative USG funding sources for the construction
phase. End summary.

2. (C) On January 27, the Ambassador (accompanied by ISN/CTR
Katherine Insley, P/E chief and econoff) met with Dr. Ali
Gashut, Head of the Libyan Atomic Energy Establishment, who was
accompanied by his deputy, Dr. Mohamed Ennami, to discuss
bilateral engagement on scientist redirection programs and the
establishment of a Regional Nuclear Medicine Center. At the
outset, Gashut, the Embassy's primary point of contact on
scientist engagement activities, said the Libyans were not happy
with the lack of progress on the regional Nuclear Medicine
Center (NMC), a project that he and his staff had been working
on for the last five years. However, he sensed that the
Ambassador and the USG were acting in goodwill to move the
project forward and characterized the NMC as the "fruit of the
good work we have been doing together for the last five years,"
beginning with the signing of the "Sister Lab" agreement in
2006. Gashut stated that in working together "as one team," we
can overcome the problem of funding that was standing in the way
of progress, and pledged, "We will find a way to help you come
up with the money necessary to begin to implement the project."

3. (C) The Ambassador told Gashut that in order for the USG to
authorize the USG-funded Architecture and Engineering (A&E)
design work to begin, a letter from the Libyan side was
necessary, outlining Libya's commitment to work in partnership
on the NMC and quantifying the Libyan contributions to the
project. He said that the letter Gashut sent to ISN/CTR in
December 2009, which reiterated Libya's expectation that the
U.S. would fully fund the NMC as a "reward" for Libya's decision
to give ups its WMD program had been unhelpful and only served
to stall progress on the project. Gashut said he understood the
U.S. position and indicated that the language was included for
"political" reasons.

4. (C) Referring to his meeting the previous day with ISN/CTR
visiting officials (septel), Gashut recognized ISN's funding
limitations and indicated Libya would agree to a cost-sharing
approach, which took into account the monetary value of the
contributions that Libya had already made to the project.
Gashut said that "It's always been understood that we have a
part to play; we want to show the Libyan people and the
international community that we have benefited from this WMD
decision by completing this program." He agreed to provide a
letter reiterating Libya's commitment to work in partnership
with the United States to build the NMC and to quantify in that
letter the in-kind contributions that Libya had already invested
in the project, such as the costs of land, staff salaries,
office space and the conversion of lab facilities for NMC
functions. Gashut noted that the GOL had designated 1.5
hectares of land (approximately 5 acres) in a prime location,
close to the Tripoli International Airport, for the NMC site.

5. (C) Gashut characterized the Libyan side as "extremely
energetic" about completing the project, stating that "everyone
in the Cabinet, MFA and government" were committed to moving
forward on the NMC in partnership with the U.S. Gashut
emphasized that the Libyan leadership was very focused on the
NMC. He said that, "The MFA sees this project as an opportunity
to open new doors of cooperation. The Cabinet feels this
project will show real intent and will on the U.S.-side to move
forward with cooperation." The NMC would also serve as a model
for other countries, which were still hesitant about giving up
their WMD programs. It would be a convincing tool to promote
nuclear nonproliferation and the spread of civilian nuclear
programs.

TRIPOLI 00000096 002.2 OF 002

6. (C) In Gashut's view, some progress on building the NMC --
such as beginning A&E design work -- will make a huge, positive
impact on the bilateral relationship and will change for the
better the approach that Libyan leadership has had toward us.
He noted that many government officials were arguing for deeper
engagement with the U.S., and they wanted the NMC project to be
a foundation for their argument to win out over the views of the
skeptics: "In Libya at least 4,000 people have graduated from
U.S. universities, and many of them are in influential
positions. This is a big plus for bilateral relations."

7. (S/NF) The Ambassador reaffirmed the U.S. desire to increase
engagement in all areas of the bilateral relationship, including
moving forward on the NMC project. Acknowledging that we have
had problems over the last year that set back the relationship
-- including the GOL's unexpected delay on shipment of Libya's
highly enriched uranium spent nuclear fuel, in which Gashut had
been involved -- the Ambassador expressed his intention to
devote the second year of his tenure developing stronger
relationships with Libyan leadership, so that when crises arise,
both sides could work together to move past them. He listed the
current freeze on visas for official U.S. travelers among the
crises that we were currently facing, which must be resolved in
order to put the bilateral relationship back on a steady path.
By contrast, the Ambassador highlighted the positive momentum of
the NMC project, which offered an opportunity to jumpstart the
normalization process with Libya.

8. (C) In addition to the NMC project, Gashut expressed GOL
interest in signing a bilateral cooperative agreement on the
peaceful applications of nuclear energy. He reviewed two
approaches the Libyans had made to the USG on this proposal,
first in 2008 prior to the visit of then-Secretary of State
Condoleezza Rice, and then during National Security Advisor
Muatassim al-Qadhafi's April 2009 visit to Washington, when the
Libyan Embassy submitted a draft agreement to the Department.
Gashut said that Libya sought U.S. support for its plans to
build the first nuclear power plant in the country: "We need
your assistance so that both sides can benefit from these
developments."

9. (S/NF) Comment: Post sees great value in moving ahead quickly
on the Nuclear Medicine Center project. Senior Libyan officials
-- including Libyan leader Muammar al-Qadhafi and Foreign
Minister Musa Kusa -- have repeatedly raised the issue, hinting
that the perceived lack of progress has threatened continued
normalization of the bilateral relationship. From the Libyans'
perspective, progress on the project -- including new USG
funding arrangements that go beyond the initial A&E design phase
-- would be a tangible sign of the U.S. commitment to bilateral
engagement that could help jumpstart the relationship after
several months of crisis. The GOL will not give Gashut's team
the funds to pay for construction of the NMC. We strongly urge
the Department to explore alternative USG funding sources to
support those construction costs. End comment.
CRETZ