US embassy cable - 04ROME2371

UNCLAS  ROME 002371 
 
SIPDIS 
 
FROM US MISSION TO THE UN AGENCIES IN ROME 
 
STATE FOR A/S PRM DEWEY, MCKELVEY AND KNUDSON, NEA/ENA, A/S 
IO HOLMES AND IO/EDA BERHEND AND KOTOK 
USAID/W FOR ADMINISTRATOR NATSIOS, D/A SCHIECK, AA/DCHA 
WINTER, AA/AFR ACTING, DCHA/D/FFP LANDIS, DCHA/OFDA OWENS 
USMISSION GENEVA FOR AMBASSADOR MOLEY AND USAID/KYLOH 
BRUSSELS FOR AFRICA WATCHERS AND USAID/LERNER 
USUN FOR TAMLYN AND MLUTZ 
NSC FOR JDWORKEN AND AFRICA DIRECTORATE 
 
E.O. 12958: N/A 
TAGS: PREF, EAID, ELTN, XA, CD, SU, WFP 
SUBJECT:  Further World Food Program Discussions with 
Libya on Opening New Transportation Corridors through 
Libya to Darfur and Eastern Chad 
 
REF: (A) ROME 001781 (B) N'DJAMENA 599, (C) ROME 001677 
 
Sensitive but unclassified.  Please protect accordingly. 
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Summary 
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1. (SBU) WFP received a letter dated June 14 from Mohamed 
Fakheri El-Kreikshi, Director-General of the Economic 
Department, regarding the agreement of the Libyan Arab 
Jamahiriya with WFP's request for a waiver for all taxes and 
fees applicable to WFP cargo in transit. Libya's letter 
seeks confirmation of WFP's acceptance of revised (and 
lower) transport rates being offered by the Al-Khofrah 
Transport Union and the Benghazi Transport Union related to 
shipment of WFP commodities from Libyan ports to 
destinations in Chad and Sudan. WFP, in their response dated 
June 17, remarked favorably on the revised, more competitive 
rates being offered and confirmed its "intention to work 
with the Government of Libya and the Transport Union of Al- 
Khofrah for commodity movements from the port of Benghazi to 
destinations in Chad and Sudan," and requested further 
confirmation from Libyan port authorities on the breakdown 
of costs for stevedoring and storage as required. WFP's next 
step is to send a trial shipment soonest to Benghazi port to 
test the system and, if this is successful, consider the 
next formal step of negotiating a basic country agreement. 
End summary. 
 
2. (U) USUN-Rome's Humanitarian Attache Tim Lavelle met on 
June 17 with WFP's Director of Transport and Logistics, 
David Morton, and Gerard Rebello, a logistics officer who 
was part of the team that visited Libya April 13-20. The 
team's mission was to assess the possibility of opening new 
surface transport corridors through Libya for the delivery 
of humanitarian assistance to populations affected by the 
current conflict in the Darfur region of western Sudan and 
to Sudanese refugees in eastern Chad, in order to complement 
existing delivery corridors to the affected regions through 
Douala (Cameroon), and Port Sudan. 
 
3. (SBU) WFP confirmed receipt of a translation of a letter 
dated June 14 from Mr. Fakheri El-Kreikshi, Director-General 
of Libya's Economic Department, in the General People's 
Committee for Foreign Liaison and International Economic 
Cooperation, informing of the agreement of the Libyan Arab 
Jamahiriya to WFP's request for a waiver of all taxes and 
fees applicable to WFP cargo in transit. The letter seeks 
confirmation of WFP's acceptance of revised (and lower) 
transport rates being offered by the Al- Khofrah Transport 
Union and the Benghazi Transport Union related to transport 
of WFP commodities from Libyan ports to destinations in Chad 
and Sudan. 
 
4. (SBU) WFP, in a response letter dated June 17, 2004, 
remarked favorably on the revised, more competitive rates 
being offered and confirmed its "intention to work with the 
Government of Libya and the Transport Union of Al-Khofrah 
for commodity movements from the port of Benghazi to 
destinations in Chad and Sudan." WFP has requested further 
confirmation from Libyan port authorities on the breakdown 
of costs for stevedoring and storage as required. Note. 
Copies of both letters have been faxed to Richard Owens, 
DCHA/OFDA. End note. 
 
5. (SBU) As per Morton, WFP's immediate plan is to send a 
trial shipment soonest to Benghazi port to test the system 
and, if this is successful, consider the next formal step of 
negotiating a basic country agreement. Receipt of the trial 
shipment would involve posting a WFP port officer in 
Benghazi and a logistics team in Libya to ride with/track 
the shipment from the port to the final destination. 
 
6. (SBU) Finally, regarding recognition of Libya's 
contributions, WFP would like to receive directly whatever 
funds the Government of Libya would make available to 
internally subsidize transport, shipping and handling rates. 
Seven percent would be added to this amount as an indirect 
support cost (ISC) fee which WFP charges to all donors, as 
part of full cost recovery. This would permit WFP to record 
in its books the full value of the Libyan donation. If the 
Libyan government rejects this solution and payment of the 
seven percent ISC, WFP policy would not allow them to credit 
the donation and the Government of Libya would have the 
administrative burden of paying the various actors directly. 
This will have to be negotiated further and is hence not 
addressed in the WFP reply letter. 
 
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Comment from Ambassador Hall 
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7. (SBU) With the rainy season now upon us, this corridor 
presents a good option, particularly for reaching the 
refugee populations in eastern Chad. WFP is committed to 
moving quickly yet prudently as they sail into Libya's 
"uncharted" waters. I will continue working with WFP and the 
Libyan Ambassador in Rome to promote a swift and successful 
outcome to these negotiations. 
 
8. Khartoum minimize considered.  Cleverley 
 
 
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 2004ROME02371 - Classification: UNCLASSIFIED