US embassy cable - 04ROME3911

C O N F I D E N T I A L  ROME 003911 
 
SIPDIS 
 
 
E.O. 12958: DECL: 10/07/2009 
TAGS: IT, KIRF, LY, PHUM, PREL 
SUBJECT: ITALY: LIBYAN JEWISH COMMUNITY TO DISCUSS 
COMPENSATION IN TRIPOLI 
 
Classified By: AMBASSADOR SEMBLER FOR REASONS 1.5(B)(D) 
 
 1.  (C) SUMMARY:  A delegation of Italian Jews, expelled 
from Libya in 1970 and now Italian citizens, has accepted an 
offer to visit Tripoli October 10-14.  The will discuss 
possible compensation for property and monies seized when 
Jews were expelled after 1967.  Qadhafi's son Sa'adi offered 
the invitation, and the visit is being coordinated by former 
Libyan Ambassador to Rome Al-Obeidi, now a member of 
Qadhafi's personal office.  The Italian MFA is fully informed 
but will not accompany the group on what it calls an historic 
but private, exploratory mission. "Frankly, we don't know 
what to expect," said one delegation member "but if we don't 
go it will give Qadhafi an excuse to drop the issue of 
compensation."  They promised the Italian government U.S. and 
Israeli Ambassadors a read-out of the trip.  End Summary. 
 
2.  (C)  Ambassador met October 5 with a delegation from the 
Italian-Libyan Jewish community that outlined an October 
10-14 trip to Tripoli to discuss possible compensation for 
property and monies seized when Libya expelled its Jewish 
community beginning in 1967.  The traveling delegation, 
composed of six men and one woman who are all Italian 
citizens born in Libya, will represent the 6,000 member 
Italian-Libyan community in talks with the Libyans.  The 
group estimates there are another approximately 1,000 Libyan 
Jews living in Israel, France, the UK and the U.S.  Upon 
leaving, the group left passport data, "just in case."  The 
list includes:  Scialom Tesciuba, Angelo Mantin, Claudia 
Fellus, Sansone Guetta, Hai Vito Arbib and Shalom Zarrugh. 
 
Background 
---------- 
 
3.  (C)  The current Libyan initiative has been building 
since the beginning of the year. Community leaders have been 
meeting with Ambassador al-Obeidi, who began in January 
proposing a possible visit to Tripoli.  Al-Obeidi invited the 
group to Libyan National Day.  At the same time the group 
noted Colonel Qadhafi's specific mention of possible 
compensation for Italian-Libyan Jews in his national day 
speech.  The proposal drew criticism from the Arab League, 
which said it could create difficulties for other Arab states 
that had also expelled Jews. In response, the Libyans began 
to back off, and the group was concerned the visit offer 
would be withdrawn.  They noted there was a previous failed 
initiative (sponsored by Rafello Fellah, according to this 
group a now discredited member of the Italian community) 
during the 1990's that ended badly when Libyan imams visiting 
Israel were sent home after criticizing Israeli policy 
towards the Palestinians. After a discussion with Ambassador 
al-Obeidi, Italian FM Frattini suggested the initiative 
proceed, but on a private, confidential basis. 
 
4.  (C)  Several weeks ago, the group met with Sa'adi Qadhafi 
in Perugia.  Not realizing the delegation spoke Arabic, he 
brought an English interpreter.  Privately, delegation 
members described Sa'adi as a playboy with a wild reputation; 
they clearly preferred dealing with Ambassador al-Obeidi. 
But they said Sa'adi was open and cordial, telling the 
delegation that he remembered what happened to Jews in Libya 
but they should now feel as if the country was open for their 
return.  He offered to give back their jobs and their houses. 
 Delegation member Shalom Tesciuba, speaking for the entire 
community, responded by saying this was impossible now.  He 
had a grown family in Italy, his house in Tripoli had been 
seized, his goods confiscated.  Sa'adi promised compensation 
either in Italy or in Libya, as the community preferred. 
 
5.  (C)  When Ambassador Sembler asked if the compensation 
offer applied only to Italian-Libyans or to American and 
other expelled Libyan Jews, the group was unsure.  "Frankly, 
we don't know what to expect," said one delegation member 
"but if we don't go it will give Qadhafi an excuse to drop 
the issue of compensation."  The group plans to "verify what 
compensation is being offered and to whom.  Perhaps after 
this trip, a representative of the Libyan Jews in Israel or 
the U.S. can visit."  When they return, they will brief the 
Italian government and U.S. and Israeli Ambassadors in Rome, 
report to their community and seek its mandate to proceed. 
At this point, they would prefer claims be paid on an 
individual basis, rather than in a lump sum payment that, 
given vastly different levels of claims, would be difficult 
to administer. 
 
U.S. Class-Action Suit 
---------------------- 
 
6.  (C)  The group has kept its New York counterparts fully 
briefed on the Libyan offers.  But further complicating the 
issue was a class-action lawsuit filed in the U.S. by Schlomo 
 
 
Naim against the Libyan government.  Al-Obeidi told the group 
that Libya would not respond to the lawsuit.  The Libyan 
government's position was that the Jews had been expelled by 
King Idris, not by Qadhafi.  Naim attempted to get a visa, 
first from the Libyan Permrep in New York and then from 
al-Obeidi in Rome; both efforts failed.  The group is still 
awaiting an answer for another visa request for Naim but were 
not optimistic.  The Italians have established a committee to 
review compensation offers but, sensing the Libyans were wary 
of legal arguments, specifically will not send their lawyer 
to Tripoli for this first meeting. 
 
 
"Everything is directed towards you" 
------------------------------------ 
 
7.  (C)  Interestingly, the Libyans have not raised with the 
group the issue of Italy paying reparations for colonial-era 
damages.  The group believes the Libyan initiative is 
directly solely at the United States in an attempt to improve 
Libya's image and the prospects for trade with the U.S.  Even 
Libyan cooperation on Italy's effort to reduce the flow of 
illegal immigrants was "aimed at an American, not an Italian, 
audience."  Sa'adi specifically asked the delegation about 
its level of access to the media but the Italians would 
prefer to keep the initiative private and do not plan any 
press.  However, Italian daily Corriere della Sera reported 
the visit on October 7. 
 
8.  (C)  When asked for his opinion on the merits of the 
visit, Ambassador Sembler responded that he wasn't surprised 
that Libya was trying to improve its image through this 
initiative, but it had a long way to go to win international 
acceptance.  Perhaps Qadhafi's sons, who had more exposure to 
the world outside of Libya, were influencing their father. 
Given Libya's history, however, he cautioned the group to 
keep a wait and see attitude.  Libya has made significant 
efforts to give up its WMD program but the U.S. continues to 
have concerns about Libyan support for terrorism and its 
human rights record.  One member of the group noted that 
Libya harbors a terrorist the Italian government convicted in 
abstensia for the death of a child during a 1982 attack on an 
Italian synagogue. 
 
9.  (C)  Comment:  The group was a bit awed by the prospect 
of participating in an "historic opportunity" and a bit 
nervous about what to expect from the Libyan government. 
They expect it will take months if not years for the 
initiative to bear fruit.  So far, they have not asked for 
U.S. assistance but would certainly welcome U.S. recognition 
that the Libyans are serious about redress for its abuse of 
the Libyan Jewish community. 
 
 
SEMBLER 
 
 
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 2004ROME03911 - Classification: CONFIDENTIAL