Cablegate: Libya: Section 565 Waiver of Prohibition Against Contracting with Firms Complying with Al Boycott

VZCZCXRO1024
PP RUEHBC RUEHDH RUEHKUK RUEHROV
DE RUEHTRO #0006 0051612
ZNR UUUUU ZZH
P 051612Z JAN 10
FM AMEMBASSY TRIPOLI
TO RUEHC/SECSTATE WASHDC PRIORITY 5648
INFO RUEHEE/ARAB LEAGUE COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RHEHAAA/NSC WASHINGTON DC
RUEHTRO/AMEMBASSY TRIPOLI 6199

UNCLAS TRIPOLI 000006

SENSITIVE SIPDIS

DEPT FOR NEA/MAG AND NEA/RA; STATE PLEASE PASS TO USTR E.O. 12958: N/A

TAGS: KBCT ABLD PHUM AL ECON AMGT ASUP AFIN LY

SUBJECT: LIBYA: SECTION 565 WAIVER OF PROHIBITION AGAINST CONTRACTING WITH FIRMS COMPLYING WITH AL BOYCOTT REF: STATE 128056

1.(U) The Government of Libya (GOL) does not maintain diplomatic relations with Israel. Local firms are required by national law to comply with the Arab League (AL) boycott, and would therefore not be able to sign the required U.S. certification without exposing themselves to civil and/or criminal penalties. Post accordingly requests a waiver of the AL boycott certification.

2. (SBU) In 2007, the Ministry of Trade and Economy informed Post that the GOL does not enforce the boycott; however, the government continues to use the boycott as a means by which to selectively sanction foreign corporations and boycott language continues to appear in contracts. Bills of lading and customs declarations for imports cannot indicate trade with Israel, and shippers are legally required to certify that no goods are of Israeli origin. Libya continues to enforce a travel ban for passports containing Israeli visas or entry/exit stamps.

3. (SBU) Embassy Tripoli has reviewed the contractor certification requirements and determined that without such a waiver it would be unable to obtain essential supplies and services in-country. This is particularly critical as we re-establish our diplomatic presence in Tripoli, including consolidating Embassy operations in one location. CRETZ

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