US embassy cable - 04DJIBOUTI713

UNCLAS DJIBOUTI 000713 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL, EFIN, DJ, LY 
SUBJECT: LIBYAN SANCTIONS: DJIBOUTIAN COMPANY REQUESTS 
RELEASE OF ASSETS 
 
REF: SECSTATE 95015 
 
1. (U) This is an action message. 
 
2. (U)  Following the announcement ending most commercial 
sanctions against Libya, the Banque Indosuez Mer Rouge 
branch located in Djibouti sent Embassy Djibouti a letter 
requesting assistance, on behalf of SVAMC SARL DJIBOUTI, 
in recovering assets frozen by Citibank New York under ILSA. 
The assets frozen were $74,000 USD in payment for the 
purchase by the Libyan Embassy in Addis Ababa, Ethiopia 
of four Suzuki vehicles from SVAMC SARL DJIBOUTI.  Embassy 
requests Department's assistance in resolving this 
long-standing issue. 
 
3. (U) Following is a brief outline of key dates in the 
SVAMC SARL DJIBOUTI case: 
--September 18, 2001: Libyan Embassy in Ethiopia 
purchases four Suzuki vehicles from SVAMC SARL DJIBOUTI 
for a total of $74,000 USD. 
--November 19, 2001: Gianni Rizzo, owner of SVAMC SARL, asks 
Banque Indosuez Mer Rouge (BCIMR) to inquire into the delay 
in payment for the Suzuki purchase. 
--December 4, 2001: Commercial Bank of Ethiopia informs BCIMR 
that the request was made to transfer funds to the SVAMC SARL 
account at Citibank New York, however the funds transfer had 
been blocked due to sanctions against Libya. 
--March 5, 2002: BCIMR requests Embassy assistance in 
resolving the issue of blocked funds. 
--March 6, 2002: SVAMC SARL DJIBOUTI files application to 
OFAC for a release of funds. 
--May 6, 2002: Department of Treasury sends notification of 
receipt of SVAMC SARL's request to release funds. 
--May 20, 2002: BCIMR requests Embassy assistance a second 
time to intervene due to SVAMC SARL's decision to bring the 
matter to the Djiboutian Courts. (It is unclear what, if any, 
Embassy action was taken at that time.) 
--May 3, 2004: BCIMR again requests Embassy's assistance in 
unblocking funds transfer for the SVAMC SARL transaction. 
 
4. (U) Embassy has made available in its consular section 
information and guidance provided reftel.  We believe lifting 
of the embargo may make possible completion of the 
transaction herein described.  Post can provide copies of 
documentation received, if required. 
RAGSDALE