US embassy cable - 04ROME4406

C O N F I D E N T I A L  ROME 004406 
 
SIPDIS 
 
 
E.O. 12958: DECL: 11/16/2009 
TAGS: PREL, PREF, PHUM, LI, IT, EUN 
SUBJECT: CODEL LANTOS MEETINGS IN ROME ON LIBYA 
 
REF: (A) ROME 3911 (B) ROME 4059 
 
Classified By: Pol Mincoun Tom Countryman for reasons 1.4 (b)(d). 
 
1.  (C)  Summary.  En route to Tripoli, Congressman Lantos 
met with Italian officials responsible for Libya, the 
Italo-Libyan Jewish community, and the Israeli Ambassador to 
Rome.  Italians reaffirmed their commitment to abide by the 
EU code of conduct in selling equipment to Italy and 
expressed concern that Italian reparations issues not be 
forgotten as the U.S. and EU proceed with normalization and 
settlement of outstanding human rights/terrorism questions. 
Lantos advised the Italo-Libyan community to create a united 
organization of Libyan Jews from Italy, the U.S., Israel and 
Europe before proceeding with compensation negotiations and 
suggested it may be more realistic to discuss restoration of 
communal properties before tackling the subject of 
compensation for private properties seized after 1967.  The 
success of the compensation negotiations, he stressed, would 
depend on progress in U.S.-Libyan and Israel-Libyan 
relations.  End Summary. 
 
2. (C)  During a visit to Rome November 5-7, Congressman Tom 
Lantos attended a dinner hosted by Israel Ambassador Ehud Gol 
and had meetings with Ambassador-designate to tripoli 
Francesco Trupiano, MFA Deputy Secretary General Giuilo 
Terzi, Berlusconi Diplomatic Advisor Paolo Dionisi, and two 
groups of the Italo-Libyan Jewish community.  Lantos was 
accompanied by Chief of Staff Bob King and HIRC Staffer Alan 
Makovsky. 
 
3.  (C)  During the dinner with the Israeli Ambassador, Gol 
expressed skepticism that the Italo-Libyan Jews would succeed 
in negotiating a compensation agreement with Qadhafi because 
they were amateur negotiators.  He discussed the split in the 
Italo-Libyan community and questioned the motives of one 
leader, Raffaelo Fellah, who had begun discussions with 
Qadhafi as far back as 1993.  Gol did say that a member of 
the Israeli-Libyan Jewish community would meet November 9 in 
Amman with a member of the Libyan government to discuss a 
possible visit and/or compensation. He hinted that another 
meeting with representatives of the American-Libyan Jewish 
community would also take place but was vague on details. 
 
4.  (C)  Ambassador-Designate Trupiano, who is now Diplomatic 
Advisor to Defense Minister Martino, shared with Lantos and 
Ambassador Sembler his perspective on Italian-Libyan 
relations.  Qadhafi has failed at his major initiatives--pan 
Arabism, pan-Africanism and now pan-colonialism.  Despite his 
apparent control, Qadhafi has faced historic opposition from 
religious fundamentalists and his nightmare is that domestic 
fundamentalists will connect with those in Algeria or Sudan. 
Trupiano believes that Qadhafi's latest opening to the West 
occurred because he realized that to survive he must improve 
the economic situation of his people.  Trupiano noted that 
there had been some changes on the economic front--the 
Italian press had reported that the number of private 
companies in Libya had increased from 300 to 3,000 after 
Qadhafi lifted restrictions on commercial activity.  Despite 
these positive economic steps, however, Trupiano said it was 
important to remember history.  Libya had expelled both 
20,000 Italians and the entire Jewish community; to date, it 
continues to refuse to recognize Israel. Congressman Lantos 
related his story of an exchange with Qadhafi who admitted, 
in private, that it was wrong for Libya to have prevented 
Israeli chess players from attending a championship in 
Tripoli.  Trupiano respond that this was a good sign, but it 
indicated that Qadhafi was indeed still subject to internal 
pressure against change. 
 
5.  (C)  Trupiano also noted that Qadhafi remains fixated on 
personal memories, be it stories of colonial-era atrocities 
or the Reagan-era attack which killed his daughter.  Lantos 
agreed saying that it was the first thing that Qadhafi raised 
in their first meeting.  Trupiano agreed also that the 
influence of Saif and the Prime Minister have played a major 
role in moving Qadhafi along to face current realities.  But 
Trupiano urged caution, saying that the opening had occurred 
very quickly and we need to maintain pressure on Tripoli. 
First, there was the issue of the Bulgarian nurses--Qadhafi 
has boxed himself into an untenable position and appears to 
be looking for a way out.  Lantos agreed, noting that Qadhafi 
had persisted in asserting the nurses' culpability despite 
assurances from Saif that his father understood they were 
innocent.  Trupiano credited Saudi Arabia's long-standing 
hostility and financing of opposition groups as motives for 
Qadhafi's alleged involvement in an assassination plot 
against CP Abdullah.  He suggested, however, that it was now 
ironic that Libya and Saudi Arabia were on the same 
"pro-western" side. 
 
6.  (C)  For Italy, Trupiano asserted, reparations remain the 
number one problem with Libya.  There has been good economic 
cooperation, especially with ENI in the oil and gas sector, 
and growing cooperation to combat the waves of illegal 
immigration flowing to Italy from Libyan ports.  However, 
Libya has renewed its demand that Italy pay for a new 
Tunisia-Egypt highway as compensation for atrocities 
committed during the colonial and fascist eras.  Trupiano 
admitted there had been human rights violations but noted 
that Italy had already paid compensation and had invested in 
Libya since 1912.  He noted the irony that Italy had united 
Libya in its battle against colonialism.  Qadhafi continues 
to push the envelope on reparations issues, and it would be 
very difficult for Italy if the West settled all of its 
outstanding concerns on WMD, human rights and terrorism 
leaving Italian reparations as the only unresolved issue. 
This would leave Italy in an uncomfortable position. 
Trupiano noted that Deputy PM Gianfranco Fini, who may be 
taking the FM portfolio now that Frattini is moving to 
Brussels, is close to the Italians who were expelled from 
Libya. Also, the first delegation of Italians expelled from 
Libya is scheduled to return November 17 for a "touristic" 
visit.  (Note: this initiative complements Qadhafi's outreach 
to the Italo-Libyan Jewish community.) Asked what steps were 
needed to encourage continued Libyan reform, Trupiano 
suggested pushing Tripoli to participate in the Barcelona 
Process, the NATO Euro-Med Dialogue and other fora that will 
increase Western influence on the Libyan government. 
 
7.  (C)  During a lunch hosted by Ambassador Sembler, MFA 
Deputy Secretary-General Terzi and Berlusconi advisor Dionisi 
both stressed that Italy would abide by the EU code of 
conduct when reviewing Libya's request for equipment to 
improve immigrant/border controls.  Italy will also continue 
to press to lift the death sentence of the Bulgarian nurses. 
Terzi said that Qadhafi had told Berlusconi that all exiled 
Italians could return and, in a small sign of change, Qadhafi 
changed the name of the October 7 anti-colonialism holiday 
from the Day of Vengeance to the Day of Friendship.  Both 
Terzi and Dionisi credited the U.S. invasion of Iraq with 
pressuring Qadhafi; Dionisi noted that Qadhafi called 
Berlusconi repeatedly on the eve of the invasion to offer 
cooperation.  On the succession question, Terzi said that 
Saif was the front-runner but that the Qadhafi's security 
chief and the MFA chief were still in the running.  It was 
premature to make predictions.  Both agreed that the overture 
to the Libyan Jews had PR value for Qadhafi but neither 
wanted to speculate on the likelihood that Libya would pay 
compensation. 
 
8.  (C)  Lantos held separate meetings with two estranged 
groups in the Italo-Libyan Jewish community.  One group, led 
by Raffaelo Fellah, stressed the importance of holding 
Qadhafi to his pledge to compensate Jews for assets seized 
after 1967.  Fellah met with Qadhafi in 1993 and claims an 
ongoing initiative, although he is not supported by the 
entire Italian community.  The other group, led by Shalom 
Tesciuba, visited Tripoli in October at the invitation of 
Sa'adi Qadhafi (reftels).  Lantos told both groups that they 
should first create a united front with Tripoli by forming 
one organization to represent expelled Libyan Jews from 
Italy, Israel, the U.S. and Europe.  Next, they should 
consider focusing on restoration of communal assets such as 
synagogues and cemeteries as the historical record of Arab 
regimes compensating Jews for lost properties was not 
encouraging. If they pursued personal compensation, they 
should focus on those Libyan Jews who were needy (Note: the 
groups which met with Lantos were clearly wealthy.)  Finally, 
he noted that the success of their initiative would depend on 
progress made in restoring U.S.-Libya and Israel-Libya ties. 
Representatives in the second group responded that they were 
forming a Steering Committee to include Libyan Jews 
worldwide; Rami Cahoun (sp?) would represent the Israeli 
community.  The next meeting with the Libyans will take place 
this month, perhaps November 20-22, and contacts by phone are 
now ongoing. 
 
9.  (U)  Congressman Lantos did not have an opportuntiy to 
clear this cable. 
 
TRIPOLI MINIMIZE CONSIDERED 
 
 
SEMBLER 
 
 
NOTE:  POSSIBLE MISSING CODEL CAPTION. 
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 2004ROME04406 - Classification: CONFIDENTIAL