9/30/2005

Almost 150 migrants land at Cirkewwa, Malta

About 150 irregular immigrants, probably from Africa, landed in Cirkewwa (Malta) yesterday aboard a fishing boat not longer than 10 metres.

The boat was first spotted at about 3.30 p.m. a few miles offshore heading inland. An armed forces patrol boat intercepted the vessel and escorted the migrants ashore.

Their nationality has not been established although the complexion of most of them suggest they probably hail from Africa. One of them told a journalist he was an Egyptian. One of the migrants, who said he was 17-years-old, told The Times they were heading for Italy. He said they left from Libya and had been at sea for seven days. Another said they left on the same day they landed in Malta. Both claims seem unlikely.

The fact that all the illegal immigrants looked fresh and in good health belied the possibility that they had been at sea for a week. Save for a few, most seemed to be clean shaven and wore relatively clean clothes.

On the other hand, given the rough sea, the size and type of the boat and the extreme load it is highly unlikely they could have made it to Malta in a day. Army sources told The Times they suspected the boat may have been towed by a larger fishing vessel for a considerable stretch of the way. "They are in too good a condition to have crossed over from Libya on that boat," an officer, who preferred not to be named, said.

Home Affairs Minister Tonio Borg said in Parliament on Monday there was clearly a criminal organisation behind the transport of migrants that made it to Malta over the past days.
The number of migrants in detention centres is close to 1,700.

Over 300 migrants will be housed in tents because the Safi facilities are full to capacity. Records, army sources explained, show that this is a peak month for immigration before the lull, which lasts roughly throughout the winter.

Source: Times of Malta

Libya seeks friendship with USA

Libyan leader Moammar Gadaffi said on 30th September 2005 that his country seeks "friendship" with the United States and that the time for confrontation with the superpower has passed, according to comments aired on official television.

"We need friendship with the US. America equally needs us and its oil companies can now work in Libya. It's time for reciprocal interests and not confrontation," Gadaffi said at an official ceremony in Sirte, 500km from Tripoli.

Last month, US Secretary of State Condoleezza Rice conferred with her Libyan counterpart, Abd al-Rahman Shalgam, in New York and said the two one-time foes were on a fast track towards better ties. "We have had a very good discussion of a path toward Libyan-US relations that will lead us to better and better relations between our people, between our governments," Rice told reporters on the sidelines of the current General Assembly session.

Diplomatic relations between Washington and Tripoli were restored in June 2004 after a 24-year rupture following the Libyan leader's surprise announcement the previous December that he was giving up the quest for weapons of mass destruction. US Assistant Secretary of State for Near-Eastern Affairs David Welch travelled to Tripoli last June 2004.On Friday, Gadaffi kept up the diplomatic momentum, calling on all Libyans to "open up to the world" and turn the page on years of international isolation.Gadaffi, who came to power in September 1969, also stressed the importance of the country's oil industry, saying that increased oil revenues are improving the living conditions of ordinary Libyans.

African Union Accuses Sudan in Darfur

The African Union accused the Sudanese government on Saturday of coordinating with Arab militias in attacks on civilians in the Darfur region, and it said all sides in the conflict were violating cease-fire agreements.

Despite peace talks and a cease-fire agreement, violence has increased over the past two weeks as rebel forces attacked a government garrison and as Arab militias known as janjaweed rampaged through a refugee camp, killing at least 32 people, the African Union said.
"We must conclude that there is neither good faith nor commitment on the part of any of the parties," Baba Gana Kingibe, head of the African Union mission in Sudan, told reporters in Khartoum.

Concerning the militia attacks on villages and refugee camps in Darfur, he said government helicopters had been seen flying in the area at the time of at least one of the attacks.
"This apparent land and air assault gives credence to the repeated claim by the rebel movements of collusion between the government of Sudan forces and the janjaweed," he said.

Mostly non-Arab Sudanese rebels took up arms against the government in early 2003 accusing them of neglect and of monopolizing power and wealth. The United Nations says the Sudanese government responded by arming Arab militia fighters, who stand accused of a widespread campaign of rape, killing and burning in non-Arab villages.
The violence, described as genocide by the USA, has killed tens of thousands of people and forced more than two million from their homes.

The Sudanese government has denied any links to the militias, but Mr. Kingibe said government forces had "considerable" influence over them.

Mr. Kingibe said aid workers had been forced to take shelter near African Union camps during the recent government attacks.

9/29/2005

Dubai Islamic Bank (DIB) looks to Libya for growt

Dubai Islamic Bank (DIB) has announced it is looking at expanding its business in Libya and will participate in an exhibition for UAE-based companies as part of its growth plans.

The bank will promote its financial packages at the "UAE in Libya" event taking place from 27-30 November 2005, when companies looking to break into re-opened markets will converge on Tripoli as part of the government-backed event.

Commenting on DIB's participation, Jassim Rasool, Senior Manager, DIB, said: "There are huge business opportunities in Libya. The Islamic financial products offered by DIB are also expected to appeal to Libyan businesses due to the strong commercial and cultural ties that exist between them and their UAE counterparts."

He added: "DIB continue to set new records as the bank consistently achieves year-on-year growth across its core businesses. These qualities have all been demonstrated as it has diversified its activities and geographic coverage through a series of strategic partnerships and alliances."

"UAE in Libya" has already attracted nearly 70 UAE-based organisations, with participating companies hailing from a diverse mix of industries and fields including manufacturing, medical and health, food and education.

The exhibition is organised by Dubai Chamber of Commerce & Industry, Jebel Ali Free Zone Authority and Dubai Department of Tourism and Commerce Marketing. It is also backed by official carrier Emirates Airline and main sponsor Arab Bank for Investment and Foreign Trade.

US-President Bush waives some arms export restrictions on Libya

US-President George W. Bush on Wednesday, 28th September 2005 waived some defense export restrictions on Libya to allow U.S. companies to participate in destroying Tripoli's chemical weapons and to refurbish eight transport planes.

It was another step in improving ties after Libya decided in December 2003 to abandon its nuclear, chemical and biological weapons programs. In a memorandum to Secretary of State Condoleezza Rice, Bush said he was waiving some restrictions under the U.S. Arms Export Control Act because it was in the national security interest of the United States. The law restricts defense exports to Libya because the State Department has designated it a state sponsor of terrorism.

Bush waived defense export restrictions "to permit U.S. companies to possibly participate in Libya's program to destroy its chemical weapons stockpile," a White House national security council spokesman said.

It also would allow for the refurbishment of eight C-130H Hercules transport planes purchased by Libya in the 1970s that never ended up in Tripoli's possession, but have been held in storage in the United States, the spokesman said.

"No decision on the disposition of the aircraft, when refurbished, has been made," he said.
It was the latest move in improving ties between the United States and Libya. Earlier this year, the United States ended a restriction barring Libyan diplomats in the United States from traveling more than 25 miles from Washington and New York.

2004, the United States of America ended its trade embargo against Libya as a reward for giving up weapons of mass destruction.

9/27/2005

Gadhafi daughter praises Iraq insurgents

Libyan leader Moammar Gaddafi`s daughter Aisha Gaddafi on Wednesday praised Iraqi insurgents fighting U.S.-led forces.

Speaking at the opening of an international conference on violation of human rights under occupation, which was organized by her own association, Aisha Gadhafi said, "Freedom is taken by force and not granted, and the rights of people are taken by their own hands."
"What is happening in Iraq cannot be ignored by any honest person ... the Iraqi land is occupied, people are dying, scientists are being assassinated and women are being raped," she said.

"We salute proudly the fighters of the Iraqi resistance who were able to break the American dream," she added.

9/25/2005

Amnesty - Libya: Releases welcome but other prisoners of conscience should also be freed

The recent release by the Libyan authorities of five long-term prisoners of conscience was an encouraging step, Amnesty International said today,and raised hopes that other long-held prisoners of conscience will also soon be freed.

The five prisoners who were released on 10 and 11 September – Ramadan Shaglouf, Tariq al-Dernawi, Tawfiq al-Jehani, Ali Be’aou and Musa al-Ziwi – had all been held since 1998. They were serving prison terms up to life after being convicted of belonging to the Islamic Alliance Movement, a banned political group, but were considered prisoners of conscience by Amnesty International. While welcoming their releases, the organization expressed concern that the five were released reportedly only after pledging that they would not undertake any political activities, and called for this restriction to be lifted.

The recent releases follow increasing speculation that the Libyan authorities are preparing to release scores of other political prisoners, including prisoners of conscience. In particular, a committee established at the behest of Libyan leader Colonel Mu’ammar al-Gaddafi reportedly concluded recently that some 85 imprisoned members of the Libyan Islamic
Group (also known as the Muslim Brothers) had neither used nor advocated violence and should be released. Many of them have been held since June 1998.

Amnesty International said it was particularly concerned about two other prisoners who are apparently held for peaceful expression of their opinions but who do not appear to be among those mooted for release, Fathi el-Jahmi and Abdurrazig al-Mansouri. Political activist Fathi el-Jahmi has been detained without trial since March 2004, when he was arrested after he criticized the Leader of the Revolution and called for political reform in international media
interviews. He is currently held at an undisclosed location understood to be a special facility of the Internal Security Agency on the outskirts of Tripoli, and there are serious concerns about the conditions and his treatment in detention.
In February 2005, he was in ill-health, suffering from diabetes and other ailments, but receiving inadequate medical treatment. Since June 2005, he has reportedly been denied any family visits or access to receive mail or reading materials. He is believed now to be awaiting trial under Articles 166 and 167 of the Penal Code, charged with seeking to overthrow the government, slandering the Leader of the Revolution and contacting foreign authorities. However, Amnesty
International considers him a prisoner of conscience and is calling for his immediate and unconditional release.

Writer and journalist Abdurrazig al-Mansouri has been detained without charge or trial since his arrest on 12 January 2005 at his home in Tobruk. After an initial period of incommunicado detention in an undisclosed location believed to be a facility of the Internal Security Agency, Abdurrazig al-Mansouri was reportedly transferred to Abu Salim Prison in Tripoli. Although Abdurrazig al-Mansouri has reportedly not been permitted access to a lawyer, nor been informed by a judicial authority of the charges against him, sources close to the authorities have indicated that he has been charged with possession of an unlicensed weapon. However, Amnesty International has noted reports that the Internal Security Agency found the weapon at Abdurrazig al-Mansouri’s house the day after his arrest, raising questions about the real reasons behind his detention.

Amnesty International is particularly concerned that Abdurrazig al-Mansouri may have been detained because of his writing on political and human rights issues, including articles critical of the Libyan authorities which appeared on the www.akhbar-libya.com website, and that he may therefore be a prisoner of conscience held solely for the non-violent exercise of his right to freedom of expression. If this is the case, Amnesty International calls on the Libyan authorities to release Abdurrazig al-Mansouri immediately and unconditionally. Amnesty International previously wrote to the Libyan authorities on 19 August 2005 to express concern that Abdurrazig al-Mansouri was being denied adequate medical care after reportedly falling from his prison bunk bed and breaking his pelvis around 7 August 2005. It is imperative that he is given immediate access to adequate medical treatment for such injuries.

Source: Amnesty International

9/24/2005

Muammar al Gaddafi and the Ugandan President Museveni continued their discussions

The Leader of the Revolution Muammar el Gaddafi and President Yuri Museveni of Uganda continued in their second meeting on 23th September 2005 their consultations and discussions of issues.

They covered in their meeting Thursday evening, which focused on the follow up of the positive outcome realized by the 5th ordinary session of the African Union (AU) held early July 2005, especially its resolutions pertaining to continuing work to implement the proposals of Libya adopted by the 4th ordinary session of the Union in Abuja (Nigeria) on the creation of African Union ministries for defense, foreign affairs, transportation, and abolishing the custom tariff among member states, and unifying means of communications as well as land, sea, air transportations, and the establishment of a unified African satellite.

In that session a presidential committee was set up, in which President Museveni is a member, to prepare the final measures for the implementation of those proposals and present them to the forthcoming session of the conference of the Union. The meeting was attended by the delegation accompanying President Museveni as well as by the Assistant Secretary of the General Peoples' Committee for Foreign Liaison and International Cooperation, and the Secretary of the Libyan People's Bureau to Uganda.

Emirate Airline to support Libya's new revitalization programme

Emirates, one of the world's fastest growing airlines, re-affirmed its commitment to Libya, with the announcement of an increase in services later this year.

From 1st October 2005, Emirates will de-link Tripoli from its current Dubai-Malta-Tripoli-Dubai routing and instead operate dedicated, non-stop flights to Tripoli using a Boeing 777-200 and, from 30th October 2005 the airline will add two extra flights per week to the Libyan capital. Operating every Monday and Wednesday, the additional flights will boost Emirates'services to Tripoli to five flights per week.

With the final lifting of sanctions, Libya is presenting U.A.E-based businesses with excellent opportunities for economic co-operation. The first in a long series of initiatives is the 'U.A.E in Libya' exhibition to be held in Tripoli from 27th-30th November. Emirates is the official airline carrier for the exhibition which is organised by Dubai Chamber of Commerce & Industry, Jebel Ali Free Zone Authority, Dubai Department of Tourism and Commerce Marketing (DTCM); and supported by the Tripoli Chamber of Commerce and the Tripoli International Fairgrounds Authority. Offering U.A.E-based companies a gateway to capitalise Libya's new era of growth and development, the exhibition will bring together oil and gas, pharmaceuticals, tourism, real estate, IT and Telecommunication companies, with Libya's most influential government bodies in a highly interactive forum.

Nasser bin Kherbash, Emirates' Senior Vice-President Commercial Operations Africa said: 'I would like to thank the Government of Libya, the Libyan Civil Aviation Authority (LYCAA) and other concerned entities for giving Emirates the opportunity to operate additional frequencies. This comes at a very appropriate time when Libya is opening up its economy and inviting foreign investment. Mr. Kherbash added: "Emirates is committed to supporting the Libyan government's programme of economic revitalization. Emirates' additional services will boost air links between the two countries and will also open up a worldwide network of 70-plus destinations to Libyan traders and businessmen, keen to find new markets for their local products and services".

Peter Sedgley, Emirates' Vice President Cargo Commercial Operations said: "Emirates SkyCargo has helped promote trade and distribution between Libya and countries in the Middle East, Europe, Far East and Australasia via the airline's hub in Dubai. The new services will offer our customers in Libya and their trading partners across our network significant additional capacity, and add momentum to the trade process."

Emirates SkyCargo carries tools, equipment and spare parts for the oil and gas industry, mobile phones and other electronic items to Tripoli, and helps export its oil-equipment and seafood. Libya is U.A.E's ninth largest market for imports. In 2003, the non-oil trade between the two countries stood at USD 426 million. Prepared foodstuff, chemical products, base metals, textiles and textile articles were the top five imports into Libya while precious and semi-precious stones, natural and cultured pearls, metals and vegetable products constituted the top five exports from Libya.

Post 30th October, Emirates will offer a total of 1426 seats and 79 tonnes per week to Tripoli, representing increases of 227 per cent and 54 per cent in passenger and cargo carrying capacity. Emirates additional flight EK747 will take off from the ultra-modern Dubai International Airport at 09:00, arriving in Tripoli at 13:40. Return flight EK 748 will depart Tripoli on the same days at 15:20, arriving in Dubai at 23:00. The additional services will be operated by an Airbus 330-200 offering 27 Business and 251 Economy class seats as well as 14 tonnes of cargo carrying capacity.

9/23/2005

Libyan Football League kicks off with 18 clubs

Libyan League kicks off on 23 th September 2005 with 18 clubs are taking part.

Here are the key matches of the first round:

Group one:
  • Rafiq vs. Al-IttihadA
  • Madina vs. Attahadi
  • Al-Ahli Tripoli vs. Addahra
  • Al-Hilal vs. Al-Mustaqbil

Group two:

  • Al-Akhdar vs. Al-Oroba
  • Alolombi vs. Alwahda
  • Al-Ahli Benghazi vs. Asswhli
  • Ashatt vs. Alwifak

Source: Jana

9/21/2005

INTERVIEW- Libya urges oil consumer nations to play their part

Producers' cartel the Organization of the Petroleum Exporting Countries has done everything it can to tame oil prices and now consumer nations must act, Libya's oil minister said on 21th September. OPEC on 20th September decided to leave its official output ceiling unchanged, but said it would make available its spare capacity of two million barrels per day (bpd) should the market need it. "We have done everything we can. This is time for the others to do what they can do," Fathi Omar Bin Shatwan told Reuters.

He said governments of consumer nations could take measures such as lowering taxes, bringing on more oil refining capacity and helping to ensure stability in oil producing nations.
"Producing countries should be safe and secure," Shatwan said. "What happened in Iraq, Iran ... and now Nigeria are examples... Producing countries need to be safe and secure."

Following the arrest of militant leader Mujahid Dokubo-Asari, Nigeria was facing the threat of unrest in its delta region, which accounts for the bulk of the OPEC member's oil output of 2.4 million bpd.

Together with news Hurricane Rita was accelerating towards oil infrastructure in the United States, the uncertainty helped support prices above $67 a barrel for U.S. light sweet crude, close to the record of $70.85.

U.S. refineries are still struggling to recover from the devastation of Hurricane Katrina that struck at the end of August, aggravating a chronic shortage of refined products, while supplies of unrefined crude are more than adequate.

"We are giving the patient the wrong medicine. The patient does not need crude oil. The patient needs products. This is the problem," Shatwan said. "Refining capacity is limited in the world. The storm is limiting even more the available refining capacity."

Prices of refined products have also been inflated by high levels of taxation, especially in Britain, whose government is making more profit from oil than OPEC countries, Shatwan said.
"Each dollar we are making from oil, the British government gains more than $3," he said.
Should high prices erode world economic growth and in turn destroy demand for oil, potentially bringing prices crashing down, the impact on Libya could be particularly severe because its economy is heavily dependent on oil. Shatwan said the nation was seeking to diversify its revenue sources by developing agriculture and tourism, for instance. It is also looking to develop its under-explored oilfields by bringing in international investors and is about to conclude its second international licensing round since the lifting of international sanctions against the country.

Bids have to be submitted by October 2 and Shatwan said the round had received a very favourable response. In the first round, awarded at the end of January, U.S.-based Occidental Petroleum was the biggest winner, but Shatwan stressed Libya would welcome bids from companies the world over. "We are talking to companies from Europe, India, Japan and Latin America," he said.

Source: Reuters

9/20/2005

OPEC debates offering extra crude

OPEC sought to reassure edgy oil markets today that crude supplies are plentiful after another storm whipped up fears that hurricane-ravaged refineries along the battered U.S. Gulf Coast could take a new hit.

Oil ministers of the Organization of Petroleum Exporting Countries were debating whether to make available 2 million extra barrels of oil a day — or boost the group’s current output ceiling of 28 million barrels a day by 500,000 barrels — to ease worries about fuel costs as the winter heating season approaches in the northern hemisphere. But both options were seen as largely symbolic. The cartel already is pumping about 28.5 million barrels a day, and making extra crude available would not change the fact that the world’s refineries can’t keep up with demand.
“There is no need for new oil on the market,” said Iran’s acting oil minister, Kazem Vaziri.
Prices soared back above $67 a barrel — a jump of more than $4 — on 19th September as Tropical Storm Rita gained strength. Heating oil surged more than 20 cents a gallon while gasoline rose nearly 26 cents a gallon. But crude oil for October 2005 delivery on the New York Mercantile Exchange fell back $1.09 to $66.30 in midday trading 20th September in Europe despite lingering worries about whether Rita could inflict more damage on U.S. refineries hit by Hurricane Katrina.

OPEC President Sheik Ahmed Fahd Al Ahmed Al Sabah, who is also Kuwait’s oil minister, said most members backed the proposal to offer 2 million extra barrels of oil a day, and that the 2 percent increase in the production ceiling also might be approved. The 2 million barrels would come from the spare capacity of OPEC members, although Saudi Arabia is the only country able to provide significant extra crude. Kuwait and the United Arab Emirates also could contribute.

The European Union asked OPEC on 20th September 2005 to provide the extra barrels. “It’s just a small step ... I don’t think it’s going to be enough to bring the oil price down,” Rupert Krietemeyer, spokesman for EU Energy Commissioner Andris Piebalgs, said in Brussels, Belgium.

Saudi Oil Minister Ali Naimi called Katrina’s impact “only a blip for the market” over the long term, but he said the oil-rich kingdom has the capacity to immediately raise its oil production from around 9.5 million barrels a day to 11 million barrels a day if needed. “The crude is available,” Naimi said. “If you want it, there it is.” He said OPEC’s aim was to “show good intent” and to emphasize that oil was available at a time when the markets are worried about supply disruptions.

“It’s tough to blame (OPEC) for higher oil prices. I think they’re doing what they can,” said Jason Schenker, an economist with Charlotte, N.C.-based Wachovia Corp., the fourth-largest U.S. bank. “The current meeting and whatever comes of it will be overshadowed by Rita,” he said. Nigeria’s oil minister, Edmund Daukoru, said OPEC was “very concerned” about Rita’s potential effects, and analysts warned that the storm had the potential to cause further problems for the oil industry.

“We really can’t afford to lose more production,” said Phil Flynn, an analyst at Alaron Trading Corp. in Chicago. “The market is much more focused on Rita,” Flynn said. “OPEC is kind of secondary concern to the market. OPEC is already pumping as much as they can, so raising or not raising the ceiling is not going to make a difference.”

Libyan Oil Minister Fathi Hamed bin Shatwan said OPEC was likely to test the market with the additional 2 million barrels a day. “Who will buy it is welcome — to test the market and to show that there is no need (for an output hike),” he said. “We say the market is well-supplied and people don’t believe us.”

Although the Saudis were pressing for a higher quota, previous OPEC increases have done little to ease market fears over supply.

Daukoru dismissed a higher output ceiling Tuesday as a meaningless “gimmick,” insisting that adding 2 million barrels a day would be “a much more pragmatic approach.” He said OPEC was worried about a possible glut of crude in the second quarter of 2006 after winter demand subsides. “That’s the period we have to watch,” he said. Most ministers maintain that the market is well supplied with crude and the problem lies with refining products.

Source: AP

Drug gang arrested in Libya

A drug-dealing gang have been arrested in Libya, the General Authority for Drug Fights has reported.

The gang used Libya as an operation ground to distribute drugs in and out of the country. The gang was about to distribute two thousands kilograms of cocaine when Police officers discovered them. Libya has recently taken concrete steps in fighting drugs. It considered drug-trafficking as horrible as Weapon Mass Destructions.

Source: Jana

Libya: Bulgaria should negotiate with HIV Kids' parents

Libya still holds its stand that Bulgaria should negotiate with the families of the HIV-infected children, as it became evident during the United Nations Summit in New York.

Bulgaria's Deputy Prime Minister and Foreign Minister Ivaylo Kalfin met there with his Libyan counterpart Foreign Minister Abdel-Rahman Shalgam, who explained that given the independence of the judicial system this was the best course of action. Shalgam pointed out that according to Islam laws the dispute could be settled if the families of the infected children drop all charges and stop claiming the medics' deaths.

Five Bulgarian nurses and a Palestinian doctor were sentenced to death in May 2004 on charges of intentionally causing an AIDS outbreak at a Benghazi children's hospital, sparkling cries of foul from Bulgaria and its allies the United States and the European Union. The court ignored world-renowned AIDS experts testimony that the outbreak started before the medics began working at the clinic.

Bulgaria's humanitarian support, along with that of the rest of the world is highly appreciated, Shalgham said, noting that such actions work for cooling off the public turmoil. Nevertheless Bulgaria's Kalfin maintained that this support has nothing to do with the court case and should not be considered as acknowledgement of guilt. Minister Kalfin added that he is satisfied with the meeting, because he managed to achieve one of his goals, namely to lead an honest and open conversation with his Libyan counterpart.

Source: SNA

Victims of September 1989 UTA Flight 772 Bombing Seek Court Ruling That Libya is Responsible for Murder of 170 Persons

A federal court in Washington, D.C. (USA) was asked in 19th September 2005 to rule that the Government of Libya and six of its intelligence agents, including the brother-in-law of Muammar Gaddafi, were guilty of carrying out the September 19, 1989 destruction of UTA Flight 772 as it flew over the North African desert toward Paris.

The UTA bombing took place nine months after the destruction of Pan Am Flight 103 over Lockerbie, Scotland, killing more than 240 persons, a terrorist attack for which Libya already has accepted responsibility.

The court filing disclosed for the first time detailed forensic evidence and testimony proving that high-ranking members of the Libyan government and intelligence services were directly responsible for planning and carrying out the placement of a suitcase bomb on the plane.
After almost three years of court proceedings, the families of the seven Americans who were among the 170 persons killed on the UTA flight have asked the federal court to immediately rule, through "summary judgment" procedures, that Libya and its agents are responsible for the bombing. If accepted by the Court, a trial will not be held and the Court would then determine the amount of damages, which could amount to more than $2 billion USD for loss of life and destruction of the DC-10 jumbo jet.

"This case is about accountability," Stuart H. Newberger, partner at Crowell & Moring and attorney for the American victims' families, said. "The government of Libya deliberately blew up a jumbo jet flying from Africa to Paris killing 170 innocent people. Libya has already taken responsibility for the Pan Am Flight 103 sabotage. To this day, they have refused to take responsibility for UTA Flight 772, even though there is no question that they planned, financed, and carried out this horrendous attack. Since they have refused to accept responsibility, it will now be for the court to hold them accountable."

The victims have submitted to the court extensive materials compiled during the investigation and resulting criminal proceedings conducted by authorities in France, headed by Magistrate Judge Jean-Louis Bruguiere, that country's leading terrorism investigator. Included are incriminating statements by former members of the Libyan intelligence agencies who have since fled Qhadaffi's regime, scientific proof directly connecting the Libyan government with the placement of a suitcase bomb on the aircraft, and evidence that Libya attempted to hide its role in the UTA bombing as the French investigators built their case.

Among the more than 40 surviving family members who have filed suit is retired U.S. Ambassador Robert Pugh, whose wife, Bonnie Pugh, was flying from Chad to Paris when the plane blew up, killing everyone on board. "I want accountability. The government of Libya murdered my wife and robbed our two children of their mother. Nothing can bring her back, but I continue to hope that the rule of law will hold them accountable for this act of international terrorism."
Also supporting the families' request is testimony from retired U.S. Ambassador Thomas E. McNamara, the former chief of Counter-Terrorism at the National Security Council and the U.S. Department of State. Ambassador McNamara successfully headed the efforts of the US, British and French governments to have the United Nations Security Council impose sanctions on Libya for its role in the Pan Am 103 and UTA 772 bombings.

A ruling on the victims' request is expected by the end of the year. More information about this case can be found online at http://www.crowell.com/UTAFlight772.

Crowell & Moring LLP is a full-service law firm with approximately 300 attorneys practicing in litigation, antitrust, government contracts, corporate, intellectual property and more than 40 other practice areas. More than two-thirds of the firm's attorneys regularly litigate disputes on behalf of international corporations, start-up businesses, and individuals. Crowell & Moring's extensive client work ranges from advising on one of the world's largest telecommunications mergers to handling complex intellectual property litigation. Based in Washington, D.C., the firm has offices in Brussels, California and London.

Author: Stuart H. Newberger

More informations: http://www.libyen-news.de/chronik_1989.htm

The 6th Italian Product Fair is kicking off at Tripoli

The 6th Italian products fair, organized by the Italian LC company specialized in organizing fairs, was inaugurated 19th September 2005 evening at Tripoli International Fair.

It is in cooperation with the General Body for Fairs and under the auspices of the General People's Committee for Economy and Trade, and the Ministry of Productive Activities in Italy.

The fair comprises many stands for machineries, production machineries, equipment related to building and architecture, food industry, transport, spare parts, infrastructure and energy.The inauguration ceremony was attended by the undersecretary at the General Peoples Committee for Economy and Trade, the acting Secretary of the Peoples Committee for Fairs, and the Italian deputy minister for trade activities , ambassador of Italy to Great Jamahiriya, economic activists, representatives of industrial companies from several Italian Provinces and chairman of LC organizing this economic event, and several those interested in economic activities as well as head and members of the political missions accredited to Great Jamahiriya.

Source. Jana

Libya's Foreign Secretary Meets on Sidelines of UN General Assembly

The Secretary of the General People's Committee for Foreign Liaison and International Cooperation met on 19th September 2005 in New York with the Foreign Minister of Morocco, Mohammed Ben Issa, on the margin of the sessions of the UN General Assembly.

At this meeting, the bi-lateral relations and the importance of activating the institutions of the Arab-Maghrib Union (AMU) were discussed, in addition to the issues presented before the General Assembly.

The Secretary also met in New York with the Foreign Minister of Mauritius where the bi-lateral relations and the means to develop them to serve the interest of the people in the two African countries. The two sides also touched upon the issue of reforming the UN and the importance of a unified African position regarding this matter.

The Secretary of the Foreign Liaison held another meeting with the Foreign Minister of North Korea where the bi-lateral ties were under discussion. On the other hand the Korean Minister affirmed his country's desire to increase cooperation and to exchange visits between the two countries.

The Secretary had another meeting in New York with the Foreign Minister of Bulgaria where the tragedy of the Libyan children, the victims who were injected with AIDS virus at the Benghazi Children Hospital , was reviewed .The Bulgarian Minister renewed his country's unlimited sympathy with the families of the Libyan victims and its keenness to solve this tragedy, stressing his country's desire to promote and develop its relations with Libya.
Source: JANA

Libya’s Gaddafi on way to Israel?

Is Libya's leader Muammar Gaddafi on his way to Israel? Sources in the Libyan press reported that "Israel and Libya have agreed on a surprise visit by Muammar Gaddafi to Israel, this following a failure to arrange a visit of Israeli Prime Minister Ariel Sharon to Tripoli."

The sources also indicated that the Libyan ruler recently relayed his wish to visit Israel to members of an American security delegation to the country. Gaddafi said he would like to take part in the process of normalizing the relations between Israel and the Muslim world.

Gaddafi is expected to hold meetings with several Arab leaders before he visits Israel, in order to obtain legitimization for the visit, one of the sources added.

In recent years Gaddafi has promoted the idea of a united state for the Israelis and Palestinians, which he calls "Isratine," as a resolution for the dispute between the two nations.

During the last Arab Nations summit held in March, Gaddafi said: "I cannot recognize either the Palestinian State or the State of Israel. The Palestinians and the Israelis are idiots. The solution must be one state. It's impossible for two states to exist."

9/19/2005

Al-Ittihad wins Libyan Super Cup

Al-Ittihad has snatched Libyan Super Cup when they defeated their rivals Al-Akhdar on 18th September 2005.

A lonely goal was enough to give Al-Ittihad the third title this year. Nabil Alhindi gave Al-Ittihad their win when he scored in a penalty in the first half. Al-Akhdar lost his chance to draw after a penalty saved by Al-Ittihad’s goal keeper to add the cup to last year’s league and cup champions.

Gaddafi meets secretaries of Basic Peoples Congresses

The Leader of the Revolution Muammar el Gaddafi met on 18th September 2005 evening with the secretaries of the basic peoples congresses in the Shabies of the Great Jamahiriya.

In the presence of the secretariats of the General Peoples Congress, and the General Peoples Committee within the framework of the preparations for the meetings of the Basic Peoples Congresses to lay down the agenda of their annual ordinary session for 2005.

Gaddafi spoke about the agenda of the Basic Peoples Congresses, comprising all Libyan people, both men and women, who reached adulthood and took the responsibility to lay down the internal and foreign policies, implement and oversee them.He stressed that the responsibility is defined, as the Basic Peoples Congress is the bases for everything, it is the base of authority and democracy in the Jamahiriya.

Source: Jana

Libya: Reports of Gaddafi planning visit to Israel

Libyan newspapers have revealed that the country's leader, Muammer al Gaddafi is planning a trip to Israel.

According to the pan-Arab website Moheet, Tripoli and Tel Aviv have reached an agreement on Gaddafi's visit to Israel following the difficulty faced by Israeli prime minister Ariel Sharon in organising a trip to Tripoli.

"The Palestinian information and communication centre reveals also that during the recent visit by an American delegation, Gaddafi expressed the desire to go to Israel to participate in person with the normalisation of ties between the Arab countries and the Jewish state," said the Moheet report. Before the visit, the Libyan leader is believed to have announced a series of meetings with the presidents and heads of state of governments in the region in order to get the approval from Arab countries for the visit.

Source: AKI

Libyan Leader Says 'Problems Abroad' Solved; Criticizes Reliance on Oil

Tripoli Great Jamahiriyah TV in Arabic at 12.43 GMT on 19 September 2005 broadcast a 72-minute recorded address by the country's leader, Mu'ammar al-Qadhafi, before secretaries of the Basic People's Congresses.

After a word of welcome by an unnamed secretary of a Basic People's Congress, Al-Qadhafi said he had decided to meet them after the announcement of the beginning of Basic People's Congresses to draw up their agendas.

He said "all grown-up Libyan people, men and women, are members of the Basic People's Congresses. That means all Libyan people." He added that the country's domestic and foreign policies are in the hands of the Basic People's Congresses. He argued that the Basic People's Congresses are responsible for their policies and decisions.

Al-Qadhafi criticized the fact that there is no industrial or agricultural production in the country and said the only thing Libyans have is oil: "Apart from oil, you have nothing else. With the exception of oil, show me what other goods are produced by Libyans and which can draw money to the country. Do not deceive yourselves, the only thing you have is oil. When there is an oil crisis, the crisis will affect us all."

Al-Qadhafi urged everyone to take part in shaping up the country's policies: "Every patriotic person and every person who has conscience must attend the Basic People's Congresses and take part in drawing up the policies, because it is for the future of their family, children, grandchildren and homeland." He argued that since 1977, the authority had been in the hands of the Basic People's Congresses.

He said Libya had solved its problems abroad: "Praise be to God we have solved our problems with the super powers and big powers and we avoided raging storms which could have struck us. Libya came out safe and we have established the African Union. We have united Africa to become like the United States, a great power like the US and Europe. But, I am not responsible. Since 1977 you have been in charge, you the people."

Al-Qadhafi urged his audience to have the country's policy clear by the beginning of the year 2006: "You have the months of October, November and December to draw up the agenda and hold meetings. There must be continuous meetings during these three months. Continuous so that you begin the year 1374 after the death of the Prophet (Muhammad) and 2006 AD with clear domestic and foreign policies."

He said the agenda should be set by all the Basic People's Congresses to draw up the Great Jamahiriyah's domestic and foreign policies. "Somebody may see the need for a new law; someone may see the need to amend an existing law. There is somebody who may propose to annul a law which is useless and outdated. Somebody would stand and raise his hand and say: The law which was issued after the revolution on such an issue, the People's Court for instance, is outdated and there is no need for it anymore. The existing courts and laws are enough and there is no need for a law which was issued in such a year. There is no need for the continuation or renewal of People's Court. My brothers, the People's Court was set up by the council of the leaders of the revolution to try men of the bygone era, since announcing the formal and false independence of Libya until the revolution. That means from 1951 to 1969. This court tries only those responsible for this era. The court should have been annulled after their trial."

Al-Qadhafi said trials should take place in different courts: "If you want to try each other set up other courts. Turn to your ordinary courts and your laws which had existed before and which may be useful. Why all these special (courts). The world, and human rights (bodies) disapprove them. They say these are special courts and this regime is a dictatorship; while we are a direct people's democracy which brings good news to the entire world. Let us say you have agreed on the end of such court. It would be in the agenda of the Basic People's Congresses. This congress has decided to annul the law on people's court. It can be presented in this way at every basic people's Congress when there are intelligent people who make that clear to the Basic People's Congresses. They would say this is right. The proposals from such a Basic People's Congress are right and we agree to them. The people have issued a law to annul the people's court."

Source: Great Jamahiriyah TV

9/18/2005

Libya opposes mooted OPEC oil output hike

Libyan Energy Secretary Fathi Hamed bin Shatwan voiced opposition to a growing consensus of OPEC ministers for raising the cartel's official crude oil output, but noted his position was unlikely to sway others.

When asked if he agreed with an anticipated decision by the Organisation of Petroleum Exporting Countries to increase its production quota to help curb searing energy prices, Shatwan said: "No, I don't." He added that whether " agree or don't agree doesn't make any difference." Many OPEC ministers scheduled to meet here Monday and Tuesday have expressed varying degrees of support for a quota increase of 500,000 barrels per day to 28.5 mln bpd, while stressing it would not curb the high cost of energy. Shatwan told reporters: "I think as all of us know the market is very well supplied now with crude oil. If there is a problem, then (it) is a problem of products and this is not OPEC business."

Many market analysts and OPEC officials say high prices for gasoline (petrol) and heating oil stem from bottlenecks caused by a lack of refining facilities, an issue highlighted by Hurricane Katrina in the United States. "I think the consumers and all the international companies should invest more in refineries because this is where the problem lies," Shatwan said.

Source. AFX

Al-Ittihad clash Al-Akhdar in Libya’s Super Cup

Al-Ittihad is meeting Al-Akhdar in the 9th edition of Libyan Super Cup match on September 18 at 11th of June stadium in Tripoli. Al-Ittihad is last year’s league and cup champions, while Al-Akhdar is the second runner in the cup tournament. Al-Akhdar will try to secure his first title and halt Al-Ittihad from what would be their 5th one. Attahadi of Benghazi won the first edition of the Super Cup in 1996-97, and Al-Mahallah won the second one in 1997-98.

US tells Libya it’s committed to closer ties

Secretary of State Condoleezza Rice told Libya on 17th September 2005 that the United States was committed to closer ties, but she stopped short of promising the diplomatic recognition long sought by Tripoli.

Rice met with her Libyan counterpart on the sidelines of the U.N. General Assembly meeting, nearly a month after the Bush administration suggested Tripoli could expect diplomatic recognition if it cleaned up its record on human rights and terrorism.

She "reaffirmed the US commitment to working to broaden and deepen the relationship between Libya and the US," according to a statement. But she also stressed the need for more progress on democratic and human rights reforms, a spokesman said.

"Good faith actions on their part will in return get good faith actions from the United States and we’ve seen that progression over the past year or so," State Department spokesman Sean McCormack said.

Libya’s Foreign Minister Abdul Rahman Shalgam reiterated his country’s promise to continue its help in the fight against terror and to renounce violence targeting civilians regardless of their views.

In March 2005, the US administration notified Congress it planned to establish full relations with the once outcast government by the end of the year, despite suspicions in Saudi Arabia that Libyan agents plotted to try to assassinate then-Crown Prince Abdullah in late 2003.

"We’re not to that point yet," McCormack said, adding issues still needed to be resolved, such as Libya’s inclusion on a State Department list of countries that sponsor terror. Rice and Shalgam also discussed reform issues, human rights and cooperation in the elimination of weapons of mass destruction. She thanked Tripoli for working to resolve the humanitarian crisis in the Sudanese region of Darfur and for its cooperation in the fight against terror.

Rice said that "as Libya continued this course, it would regain a secure and respected place among the nations of the world," according to the statement.

Diplomatic relations were severed in 1980 and US economic sanctions remain in place, costing Libya an estimated $30 million (Ð24.5 million) a year in lost business.

In June 2004, the United States opened a liaison office in Tripoli and it took steps last year toward normalizing trade and investment with Libya, allowing the import of Libyan oil.
The moves followed Muammar el Gadhafi’s decision in 2003 to pay compensation for the bombing of a Pan Am airliner over Lockerbie, Scotland, in December 1988, which killed 270 people. The same year Libya agreed to dismantle its programs for weapons of mass destruction and allow U.N., American and British inspectors to visit the facilities.

Source: AP

9/17/2005

Saudi Arabia sees end to dispute with Libya

Saudi Arabia could soon resolve a diplomatic row with Libya triggered by Riyadh's accusation that Libya plotted to kill King Abdullah, Foreign Minister Prince Saud al-Faisal was reported as saying on Saturday.

Al-Hayat newspaper said Prince Saud suggested that Saudi and Libyan ambassadors could be back at their missions in Tripoli and Riyadh in the near future. "There is nothing strange in relations returning to normal," he told the paper. Saudi Arabia asked Libya's ambassador to leave in January 2005 over an alleged plot to assassinate Abdullah in 2003, when he was crown prince, after he clashed with Libyan leader Muammar Gaddafi at an Arab summit.

Libya has denied involvement in any such plot. A week after he became king last month, Abdullah pardoned several Libyans held in relation to the alleged plot. Saudi security sources said they were about to be put on trial, a step which would have likely strained ties even further. Saudi media reports said the kingdom was holding eight Saudis and five Libyans in the case. "Relations between Saudi Arabia and Libya were not cut," Prince Saud told al-Hayat, adding that only the ambassadors were withdrawn. "Ties between the (Libyan and Saudi) people are normal".

Source: Al Hayat

Gadhafi's son to open Montreal exhibit in Canada

Seif al-Islam Gadhafi is no ordinary painter. One of the sons of Libyan Leader Moammar Gadhafi and touted as his potential successor as Libyan leader, the younger Mr. Gadhafi is arriving in Montreal at the end of the month to unveil an exhibit of his country's arts, including some of his creations.

After showings in London, Berlin and Paris, the extraordinary event arrives in Canada with the blessing of several corporate sponsors who see it as a signal of Libya's nascent opening to the international community. While opposition politicians in Ottawa voiced concerns about Libya's record on human rights, the companies supporting the event argue they want to be part of a historical opening of a long-estranged nation.

"We know the country well," said Gillian MacCormack, a vice-president for engineering giant SNC-Lavalin Group Inc. "We know it's a country in transition. . . . It's a country where we see shared values." Lavalin, which has projects in Libya, has been spearheading the exhibit, with help from the Canadian embassy, one executive said.

Mr. Gadhafi is expected in Montreal for the Sept. 26 unveiling of the exhibit, titled The Desert Is Not Silent, which will last until Oct. 16. Last year, Mr. Gadhafi mused that Canada would "pay the price" if it did not apologize for its support of United Nations embargoes against Tripoli.
Still, he is seen as the ambassador-at-large of a country normalizing its relations after taking responsibility for the 1988 Lockerbie bombing and pledging to give up on acquiring weapons of mass destruction.

"Colonel Gadhafi's son may be an able cultural ambassador but as a painter he is not even a gifted amateur," Guardian art writer Jonathan Jones reported when the event arrived in London in 2002. Asked about criticism about Libya's human-rights records or the lukewarm reception for Mr. Gadhafi's art, Ms. MacCormack declined to comment, saying that "we are engineers." Some of the sponsors of the Montreal exhibit, such as fight-simulator manufacturer CAE Inc., have no operations in Libya. Others are actively involved in that emerging market, such as Verenex Energy Inc., a Calgary oil company that clinched this year an exploration bid in Libya.

"You might view this particular trip, I think, as bridge-building with Canada," said Verenex chief executive officer Jim McFarland. "The country is certainly opening up since the UN and U.S. sanctions were lifted. It's a major push by Libya to kick-start growth." The exhibit is being staged in the Bonsecours Market in Old Montreal.

Conservative foreign affairs critic Stockwell Day said he would expect the corporate sponsors of the show to remind "Gadhafi Jr." that freedoms such as artistic expression do not exist in Libya. "His country and his father have been an enemy of freedom itself and have been destructive of human rights, personal freedoms [and] democracy."

Source: The Globe and Mail

Muammar el Gaddafi thanks world leaders

The Leader of the Revolution Muammar el Gaddafi addressed his thanks, appreciation and satisfaction to world leaders who answered his call and responded to his request to postpone the issuance of any resolution on the issue of enlarging the United Nations Security Council, that was in his letter which he addressed to them on the 29 of August, before the convening of the current 60th session of the UN General Assembly.

"Through you, reporters of news agencies, media and press stationed in the Jamahiriya, I address my thanks, gratitude and satisfaction to world leaders, who answered my call, and responded to my request in the letter I addressed to them, before the convention of the UN General Assembly, in which I had asked them to postpone the issuance of any resolution on the issue of enlarging the Security Council. So, that this issue to studied by the world, and give it enough time to study and exchange view points, because this subject is very important, serious and is related to all peoples of the world, that it is no use to address it in such a rush, because there was an orientation by the General Assembly in its 60th session to pass a resolution regarding the enlargement of the Security Council.” The Leader said in a statement.

He added that the time was not enough to study such a fundamental and important issue as this one. The Leader explained in this statement, that this request came in the last paragraph of his letter which he sent to world leaders- the UN General Assembly. “Since the matter is of utmost importance and seriousness, and related to the fate of the world in war and peace, the postponement of any decision on what is tabled for the forthcoming 60th session of the General Assembly is inevitable.”

Solar eclipses will sweep Libya October 3

An annular solar eclipse will be observed in Libya on October 3, the Libyan Centre for Space Sciences and Remote Sensing has reported.

It will last for 4 minutes and 23rd seconds, the centre added. The second solar eclipse of 2005 will cross Iberian Peninsula and stretches across the African continent. Europe, Western Asia, the Middle East, India and most of Africa will fall within the Moon's penumbral shadow.
This year’s eclipse would make October 4th, most probably, the first day of the Muslim holy month of Ramadan. It is the surest sign of the birth of a new moon, which marks the beginning of the Muslim lunar month.

Six months later Libya will cast into darkness when a total eclipse would be visible in the skies. On 29 March 2006, a total eclipse will be visible from north and central Africa, Turkey and southern Russia, ending at sunset in western Mongolia. A partial eclipse will be seen across the northern two-thirds of Africa, central Asia and Europe.

The Libyan Center for Space Sciences and Remote Sensing said it has received many applications from world researches who wish to visit Libya and study this phenomenon.
Libya’s last annular eclipse was in 29th April 1976. It lasted for six minutes and 41 seconds.
An eclipse of the sun occurs when the moon passes in front of the sun. Next year's eclipse is expected to begin at sunrise along the coast of Brazil before gradually moving to Africa. Experts believe next year's solar eclipse would be the best and the longest until 2009 and the most easily accessible in the next 10 years.

French lawyers of the six Bulgarian medics in Libya's HIV case sent an open letter to the UN general secretary Kofi Annan

Five Bulgarian nurses and a Palestinian doctor were sentenced to death in May 2004 on charges of intentionally causing an AIDS outbreak at a Benghazi children's hospital, sparkling cries of foul from Bulgaria and its allies the United States and the European Union (EU). The court ignored world-renowned AIDS experts testimony that the outbreak started before the medics began working at the clinic.

The open letter to the general secretary of the United Nations was sent by the international nongovernmental organisation "Lawyers without bonders". According to it the arrests of the Bulgarians were "brutal" and the medics were physically and mentally tortured.
The authors of the letter also bring up facts from the Libyan trial against the Bulgarian medics and the results from the professor Luc Montagnier expert report, which acquitted the medics. According to the co-discoverer of the virus the epidemics broke out due to poor hygiene at the Benghazi hospital where the incident took place. They also say that the infection spread before the nurses' arrival at the hospital.

The letter of "Lawyers without bonders" underline that many world human rights organisations have stood up against the "unfair" trial and the capital sentences.

Source: Novinite, BBC

Libya, China to enhance cooperation

The Secretary of the General Peoples Committee for Financial and Technical Control, has met in the Chinese capital Beijing with the General Auditor, chairman of Financial Control in China, Lee Jinhau.

The meeting discussed cooperation between the two countries and ways and means of its promotion especially in the field of financial and technical control. Mean time, a memorandum of understanding was signed in Beijing in the field of Financial and Technical Control, between the General Peoples Committee for Financial and Technical Control, and the Chinese Financial Control. The memorandum signed by the Secretary of the General Peoples Committee for Financial and Technical Control, and the General Auditor, chairman of Financial Control in China, Lee Jinhau. The memorandum provided for the exchange of visits, information and bulletin pertaining to control, auditing and training to upgrade staff efficiency and to make use of the experiences of the two bodies.

Comment: Libya's Days of Mourning Only in Propaganda Machine

The "official Libyan news agency JANA", the sycophant mouthpiece of Gadhafi, reported as on each occasion of an "official" Libyan day of mourning, that:"The movement of the people inside and out side their homes was completely stopped. The movement of machineries and equipment in all airports, harbors, and roads were also stopped."

Never mind that few people and few machines stopped work or sadly even gave the occasion any thought.This time the occasion for the Libyan news propaganda being in total diametric opposition to reality, was "the 74th anniversary of the martyrdom of Sheikh of the martyrs, Omar al-Mukhtar", who was a genuine national hero in leading resistance against the brutal Italian fascist occupation of Libya.

On other occasions, similar pronouncements are made each year in JANA, such as each April 15th, when "all people wear black and public vehicles are draped in black flags" in mourning of the Anglo-American attack on Libya which murdered hundreds of Libyans in their sleep in 1986. However, you would be hard pressed to find a single person or public vehicle in black on those anniversaries.

On the other hand, Black Africans you will see entering those public vehicles being sprayed by air fresheners, by racist Arab drivers, or stopped in the street by police, herded off to police stations and beaten up for having heeded Libya's "open borders" policy and ended up in that country surviving hand to mouth while dreaming of streets paved with gold in Europe.

As a result of Arab racism, lack of facilities, training and support (even the Green Book is not made available to them nor any facilitation to set up their own people's congresses), thousands of Africans die in the Mediterannean Sea each year after sinking on overloaded vessels which set sail with the connivance of corrupt Libyan officials, or being thrown overboard by the crew and told to swim ashore in rough seas.

Source: Comment from Mathaba.net

9/16/2005

Use of nuclear energy natural right of countries: Amr Moussa (Arab League)

Secretary-General of the Arab League Amr Moussa said on September 16th that peaceful use of nuclear energy is a natural right of all countries including Iran.

In a meeting with Iran's President Mahmoud Ahmadinejad on the sidelines of the 60th regular session of the UN General Assembly, Moussa stressed that Iran has the right to possess peaceful nuclear energy. He outlined Iraq developments and ties between Iranians and Arabs and voiced his concerns about insecurity in Iraq.

Ahmadinejad briefed Moussa on Iran's stance on nuclear energy issue, saying, "The Iranian nation needs no nuclear weapons because it has proved it has potentials to safeguard its security and independence without any nuclear weapons. "The Iranian nation's victory during the eight-year imposed war proved this." He added, "Based on the Supreme Leader's order, production of nuclear weapons is religiously forbidden.

"The Islamic Republic is a political and cultural power. The Iranian government will achieve its real strength by relying on the resolute will of its hard-trying nation." The Iranian president added, "The present century belongs to nations. The Islamic Republic knows such a reality. "Iran intends to gain access to nuclear fuel cycle."

Source: IRNA

Libya: Al-Qadhafi Thanks UN for Heeding Call To Delay Security Council Expansion

The brother leader of the revolution has expressed appreciation and gratitude to the world leaders who responded to his call to postpone any decision on the issue of enlarging the Security Council. This request came in the message sent to them on 29 August 2005 ahead of the ongoing 60th session of the UN General Assembly.

In a statement he gave this evening to the international media correspondents based in the Great Jamahiriyah he said: (Muammar Al-Qadhafi - recording) I would like through you, the correspondents of the news agencies, radios, TVs and press based in the Jamahiriyah to express thanks, appreciation and gratitude to the world leaders who listened to my call and responded to my request.

I sent a message to them before the UN General Assembly convened in which I asked them to postpone issuing any decision regarding the enlargement of the Security Council.
I pointed out that the issue should be postponed in order for the world to discuss it, spend enough time looking into it and exchanging views over it. That is because the issue is very important and serious. It concerns all the peoples of the world and it is not helpful to decide on it in such haste, as there was a tendency within the General Assembly in its 60th session to issue decisions regarding the enlargement of the Security Council. The time was not sufficient to examine such an important and fundamental issue.

They actually responded to the request I made to all world leaders. Thanks and appreciation are due to them because they have postponed taking a decision on this issue and left it for in-depth study.

At the end of the message I said to them: (Al-Qadhafi starts reading part of the letter) As the issue is extremely serious and relates to the fate of the world during war and peace, it is imperative to postpone taking any decision regarding the proposals presented to the forthcoming 60th session of the UN General Assembly. The issue is very serious and deserves more than a year of study and discussion, as well as the obtaining of the viewpoints of the entire world population on a matter which concerns them and nobody else. This letter relies on Article 109 of the UN Charter. Thank you.

Source: Tripoli Great Jamahiriyah TV in Arabic -- state-run television

9/15/2005

Wydad Casablanca overcome Ittihad Libya 2-1

Moroccan club Wydad managed to down Ittihad Libya club 2-1 in their first-leg in the Arab Champions League (ACL) preliminaries on September 14th.

Striker Marie Al-Ramli opened the score for Ittihad before Wydad ace Al-Saiedi Abdul-Rahman scored his side’s equalizer in the 45th minute.

Ivorian international Jean-Jacque Kousu sealed Wydad’s victory in the dying minutes of the match, taking advantage of a ten-man Ittihad after defender Nagi Al-Shoushan received his marching orders.

Ittihad Libya need to maintain a two-goal margin over Wydad in their second-leg that will take place in Casablanca on September 27th.

Libya has been invited to a leading British defense exhibition DSei

Officials said the government of Prime Minister Tony Blair invited Libya to the first major Western arms exhibition since the easing of defense sanctions by the European Union in 2004. They said major British contractors have been briefing Libya's delegation at the Defence Systems & Equipment International, or DSei exhibition, which ends on Sept 16.

"I believe that Britain, as a major importer and exporter, is well placed to understand the interests and concerns of other trading countries," British Secretary of State for Defence John Reid said. "We aim to champion the case for more open defense markets."

More than 50 countries, including Middle East states, have been invited to DSei, sponsored by the Defence Services Export Organisation, DESO. In addition to Libya, DSei has been attended by Algeria, Iraq and Saudi Arabia.

New air route between Libya and Tunisia

Libyan Airlines began running two flights per week, between Tripoli city and Sfax city in Tunisia.

A Libyan airliner arrived 13. September evening at Sfax Airport with a delegation on broad, comprising a number of specialists from Aviation Authorities, Libyan Airline Company and Tripoli International Airport. On this occasion, a celebration was organized at Sfax Airport attended by the mayor of Ttinah region in Sfax province, a number of specialists in the Tunisian Airline and the General Consul of Libya to Sfax. A number of speeches were made during the celebration praising the deep fraternal relations between the Libya and Tunisia. They underlined that opening of this air route came to further deepen the brotherly relations, facilitate the travel movement of the citizens and cement integration between both brotherly countries.

Source: JANA

Libyan Web site to protect human rights

A humanitarian group led by Libyan leader Moammar Gadhafi`s son, Seif al-Islam Gaddafi, launched a Web site to report human rights violations in the country.

The site gives all Libyans an opportunity to report past and present violations, the Gadhafi International Association of Humanitarian Organizations said. The Web site carries telephone numbers, regular mail and e-mail addresses through which people can report violations.
'No more silence ... No more abuse against women ... No more torture ... And no more arrest without judicial permission,' said the site.

'Our hands are reaching out for you in order to cooperate for a better and more secure future and for fair and just trials,' it added.

Website: http://www.gaddaficharity.org/nedaaQaddafi.html

9/14/2005

Libya wants to restore ties with Saudi Arabia

Libya is ready to restore diplomatic ties with Saudi Arabia that were severed after the kingdom accused Tripoli of a plot to assassinate King Abdullah, then crown prince of the oil-rich kingdom.

"Libya has informed the Arab League that it is ready to order the return of its ambassador to Riyadh, to receive a Saudi ambassador in Tripoli and re-establish normal diplomatic relations between the two countries," Deputy Minister of Foreign Affairs Hasuna Shawsh said, according to AFP.

Last month, five Libyans were given an amnesty by the Saudi king after he became monarch on the death of his half-brother King Fahd. Although ties have been severed since December 2004, Libyan ruler Muammar Gaddafi declared three days of mourning after the demise of King Fahd last month.

Trying to save Libya's children

As the United Nations gathers to discuss anti-poverty measures, the BBC News website assesses how Africa could meet the Millennium Goals in 10 years' time. Here, Rana Jawad looks at what Libya is doing to reduce the rate of child death.

Libya is considered to be well ahead of many African countries in its education and health sectors, but all countries are expected to reduce their infant mortality rate by two-thirds by 2015.

Tripoli's public children's hospital, Jalah, is reported to offer the best child health care services in the country. One mother coming out of the hospital, who did not want to be named, said she was very satisfied with the treatment her son received. "In terms of the standard of health care, thank God, I didn't face any difficulties in this hospital. They treated my son and the service was good, there were no problems." At first glance, the mortality rate of children in Libya is low compared to other African countries.

According to the latest United Nations statistics, 13 children die for every 1,000 live births, making it Africa's best performer in this regard.

Dr Naheema Zgheir is the assistant coordinator at the high commission for children, an inter-governmental organisation in Tripoli. Dr Zgheir feels that one of the key formulas for maintaining low infant mortality rates in Libya is immunisation. "Families are very concerned with the issue of vaccination. But there was something missing. "This led the country to start a vaccination campaign that lasted from the beginning of this year until March. The goal was to vaccinate all the children in the country, both Libyans and non-Libyans alike." But she feels that more still needs to be done. "We need to raise awareness. There needs to be an education programme for mothers, to learn how to best to take care of their children from the day they are born, to prevent any death from occurring within the first year." One mother I spoke to applauded child health care services but felt that more specialised children's hospitals were needed. "Sometimes you feel they get overcrowded. For example, if you go into a room and find 10 sick children, and if they have transferable diseases, it worsens the problem rather than lessening it.

Cancer - there is a lack of data when it comes to identifying the leading causes of infant deaths, but there was one attempt in 1995 by Dr Adel Tajuri (photo), a paediatrician. His independent research showed that cancer and roadside accidents were the leading causes of death amongst children over one year of age in Benghazi, Libya's second largest city. But Dr Tajuri said the study was too small for the government to take any action as a result. "It was done only in one city and it was personal work. It was not really published or accepted by the government. So, there was really no action done according to this research. He also points out that reducing child mortality means involving more than the health ministry - it also covers the sectors of education, agriculture, and traffic. Despite Libya's relatively low infant mortality rate, the country's health sector needs a proper plan, to further reduce the rate, if it wants to meet its Millennium Development Goal.

Dr Tajuri says more planning is needed, or it will be hard to further reduce the numbers. "There are no specific programmes by the health sector itself setting out the priorities... and then to evaluate this a few years after, to see if the programme which has already been implemented was successful or not." Experts agree that the political commitment to educate women, and the wide distribution of health care facilities in urban and rural areas, led to a sharp fall in infant mortality since the 1970s. But statistics show the mortality rate of children under five has slightly increased since 1995. To reduce the rate even further, Libya's health sector will need to create programmes that identify and stamp out the causes of death.

Source: BBC

INFANT MORTALITY IN AFRICA
Libya: 13 deaths before age one per 1,000 live births
South Africa: 53
Zimbabwe: 78
Nigeria: 98
Ethiopia: 112
Niger: 154

Source: UNDP

LIBYAN CHILD HEALTH
7% of mothers received no health-care during pregnancy and delivery in 2002-2003
20.2% of married women are illiterate
Average number of births for woman: 5.2
44% of married women use family planning
71% of children, aged 12-23 months vaccinated
31 children per 1,000 live births die by the age of five

Source: Libyan Arab Multiple Indicator Cluster Survey, featuring 11142 households

9/13/2005

Aisha Gaddafi visits Flying Hospital

Aisha Gaddafi has visited the Flying Hospital of International NGO's Organization for Fighting Blindness and Ophthalmologic diseases currently visiting Libya upon an invitation from the Society.

She was received by the Head of the National Committee Fighting Blindness and Ophthalmology, the Director of Flying Hospital, Robert Douglas, the Medical Director of the Organization and the medical team of the Flying Hospital, as well as several doctors from different hospitals and medical centers in the Great Jamahiriya. The medical team introduced a present to Dr. Aisha symbolizing a prototype of the Flying an airbus plane carrying this team. Dr. Aisha thanked the medical team of the Flying Hospital and she wrote down in the visitors record: "It is a great and wonderful work and you deserve all respect and appreciation".

Source: Jana

UNDP hails Libya’s achievements

The Representative of United Nations Development Programme (UNDP) in Libya, has commended achievement realized by Libya in human development field, saying that it Libya deservedly occupied the first place at the level of the African continent and the countries with increasing growth.

Julio Grieco said at a presentation of UNDP’s 2005 Human Development Report (HDR) that Libya achieved a clear and remarkable progress in the millennium development which is covered by the report. He said the report on Libya prepared by several Libyan experts was ready and would be published and sent to the world soon.

Source: Jana

Libya's Structural Problems Hinder Economic Diversification

Serious questions remain, and after the excitement of the rapid and surprising changes following the rapprochement between Libya and the West in 2004, Libya needs to take care of the details, before it can be considered ready to sustain the foreign investment it wants to attract.

The questions, nevertheless, are mostly in relations to the economy as a whole, because the oil sector has always been run with a different and much more efficient approach. This suggests that while Prime Minister Shukry Ghanem promotes economic reforms aimed at generating a greater role for the private sector internally and attract foreign investors buyers for Libyan state owned enterprises, very basic issues remain that make Libya a difficult proposition. The issues raise doubts about the seriousness with which economic reforms are being pursued.

Algeria, which has also engaged in attracting foreign investors and deregulating the economy, has been doing a far better job to create the necessary conditions to support such investment. Like Libya, Algeria is dependent on oil and has benefited tremendously from the high oil prices in recent years. However, Algeria has been planning its reforms through a strong and, by regional standards, democratic mandate adding institutional strength and credibility. President Abdelaziz Bouteflika of Algeria has won 85% of the vote in recent elections suggesting that the population stands behind the economic reforms, while softening the entrenched opposition posed by the military and bureaucracy establishments. As the violence of the 90's fades, Algeria is on pace to gain access in the WTO and attract investment in non-oil areas of the economy.

The oil revenues are being used wisely to improve its' credit such that its foreign exchange reserves exceed its external debt by a significant margin, and it is leveraging the margin to pay its debts. Moreover, Algeria has been developing its banking sector, which is a crucial tool for economic development in emerging markets. Indeed, despite the recent fraud scandal involving the Khalifa Bank, the reform minded government is promoting the development of private banking and such financial mechanisms as credit cards and mortgages are already being adopted. Banks like Citigroup and Societé Generale of France are already actively pursuing the Algerian market. While these banks still play a minor role compared to state banks, and credit is still not given easily, the structures are in place to support their development. The financial de-regulation is being coupled with reforms in the legal mechanisms governing finance and foreign investments with the training of more magistrates and lawyers in finance law. Consequently, Algeria, which struggled through a bitter civil war, has been actively laying the institutional infrastructure to support the investment it wants. Algeria is serious about attracting investors and developing the private sector, and the United States have been paying attention with steadily increasing cooperation projects in energy as well as other sectors.

As for Libya, market reform remains a promise with no demonstrable progress. Unlike the political and institutional backing for reform enjoyed by Algeria, the face of the reform process has been Col. Qadhafi's son Muhammad. Muhammad, speaking at Davos in February, introduced the wonderful prospects that Libya's economy offers foreign investors. Muhammad does not have an institutional role, and officially, as he himself admits, he is not necessarily slated to inherit his father's role, as the Libyan Jamahiriya system does not envisage succession on that basis - or any other for that matter. Therefore, while Libya talks about being open for foreign direct investment (FDI), there are no structural policies to sustain it. In fact, it may be said that Libya is now competing for FDI with countries like Algeria, yet it faces the disadvantage of an idiosyncratic political institutions. Markets require a sophisticated institutional infrastructure and administration in order to function properly.
The mere modification, by decree, of state dirigisme, as occurred in Libya, is an adequate way of sustaining them.

One of the issues highlighting Libya's failure to ensure foreign investment in ventures beyond the carbon sector is the case involving five Bulgarian nurses and a Palestinian doctor charged with spreading AIDS in a Benghazi hospital in 1999 killing over 400 children. The medics have been sentenced to death and have had numerous postponements of their appeal. The European Union is particularly concerned. After the diplomatic breakthroughs of late 2003 and the frequent visits of European leaders to Tripoli, from Silvio Berlusconi, Tony Blair and Jacques Chirac it seemed as if Libya had succeeded in gaining access to all the privileges of an enhanced relationship with the international community after the obscure decade of sanctions that caused its oil production levels to decline. In the last few months, however, the thorny issue of the Bulgarian nurses, overshadowed by the novelty of recognizing that Libya and the United States had re-established diplomatic and oil industry links has steadily come to the fore. It is important for Libya's relations with the outside world and Europe in particular. The Bulgarian medics and a Palestinian doctor face death sentences by firing squad, even as their confessions were obtained under torture. The Supreme Court in Tripoli will give what could be the final ruling on the matter - lest the Qadhafi himself intervenes - in November. After a protracted diplomatic and humanitarian efforts by lawyers and calls to Libya from world leaders Bulgarian President Georgi Parvanov has strategically chosen to visit Muammar al Qadhafi for the final weekend prior to the Supreme Court's ruling. If Bulgaria might be dismissed before, it carries more diplomatic weight now, as in 2007 it is expected to join the European Union, which has already judged the Libyan verdicts over the medics as "unfair and absurd" insisting the charges be dropped. The EU does not accept the evidence under which the nurses were convicted on scientific grounds, and is opposed to the death penalty in all circumstances. Indeed, the EU External Relations Commissioner Benita Ferrero-Waldner flew to Tripoli before Parvanov's visit to discuss the case with Gaddafi and urge him to free the medical workers.

Where are the Institutions?
Libya has experimented on various occasion with the concept of privatization, most recently, prior to the fanfare of 2004, the solution was found in worker cooperatives known as tasharrukiyyat. These entailed a form of privatization that was adapted as best possible to the Green Book's economic ideology. These allow for the sale of state production assets to one or more individuals, who agree to share equally in the management and profits of their enterprise. Largely, this system has not enjoyed much success beyond the small service sector in such areas as appliance or automobile repair, hairdressing shops and photography laboratories where ownership is usually limited to single individuals. The program was not successful, and not only because the small scale production failed to achieve any meaningful diversification of the economy. Indeed, a fundamental pillar of a free market economy, and what Algeria has been working fast to establish, is that property rights were not guaranteed and privatization had not been officially sanctioned in law. There was no regulatory framework to support national markets and no financial, legal, and civil institutions in order to provide a free exchange of information and enforce contracts. Libya's Green Book based constitution remains the obstacle. It is an obstacle also because there is no real executive and the various members of the General People's Committees can override each other's decisions. Moreover, the Revolutionary Committees, which act as the guardians of the Revolution have an interest in maintaining the status quo and any serious attempt to liberalize the economy suggests that the institution of the Revolutionary Committees (RC) be scrapped. The fact that many of the members of the RC come from the Warfalla tribe, means that taking necessary institutional reforms disrupts the tribal balance that represents the heart of the Libyan system. As often said in other updates, the oil sector functions autonomously, and very efficiently, as it is vital. Therefore, until real institutional changes are made, the improved relations with the West will mean largely and exclusively, that investments will remain concentrated in the oil sector, where there is a growing competition building between Europe and America. In the 90's of the sanctions, European companies like Repsol, Total, and Agip were thriving in the absence of American oil companies, even as they recognized the competition they were to face if America returned to Libya...

Europe's Fears Were Right:
US oil companies won almost all the contracts in the first 2005 biding session last February. European oil majors are not willing to remain empty-handed, as it emerged in late June that BP CEO John Browne recently met the Libyan leader Muammar al Qadhafi. Browne discussed the possibility of landing a major, exclusive energy deal. BP was not enthusiastic about Middle Eastern oil in the recent past, but Browne was reportedly anxious to approach Libya, which produces some of the 'cleanest' oil in the world while having promising exploration opportunities.
Browne chose to meet the Libyan leader personally to avoid the competitive auctions for exploration rights. Indeed, BP submitted bids in the recent EPSA IV licensing round but failed to gain any rights. Browne's direct approach was well timed to take advantage of recent Libyan concerns that the EPSA IV terms may be too complex and deter investment, which suggests that Libya may work outside of EPSA to sign agreements with individual companies it is interested to keep in the country. EPSA or 'Exploration and Production Sharing Agreements' agreements provide for foreign oil companies to receive a fixed percentage of the output from the fields involved, negotiated on a case by case basis. EPSA I was the model used in 1974 and EPSA II was used in 1980s, EPSA III was used in early 1990s, and EPSA IV is the current mode. Libya has an ambitious plan to double production from the current 1.5 million bpd to 3 million bpd by 2015 - which is still lower than Libya's peak production rate of 3.28 million bpd in 1970. The US sanctions imposed in 1986 and the sanctions over the Lockerbie airliner crash imposed in 1992 caused Libyan oil production to drop by over 50% over the last decade. Libya needs investment in oil, also because its economy- despite officially stated efforts - has not diversified and the regime's own survival is rooted in additional oil production. Craig McMahon, a Wood Mackenzie energy analyst, in Edinburgh believes BP is pursuing a three-pronged strategy in Libya. BP would like to obtain an important exploration deal. BP might also want to redevelop former Libyan National Oil Company fields from the 1960's or early 1970's, and BP could be seeking access to explore Libyan gas reserves. Shell signed a deal with Libya a few months ago precisely for gas.

Author: Alessandro Bruno

A charity headed by Saif al Islam Gaddafi has called on the government to lift a 1970s ban on the registration of non-Arab names.

It follows a visit by Seif al-Islam Gaddafi to the minority Amazigh communities in the west of libya. They voiced their frustration to him at not being able to register traditional names at local municipalities.

The Amazigh in Libya have few rights and their language is not taught in state schools or used in the media. Tala, Mazir, Numdia and Manzoo are just a few examples of Amazigh names that are considered to be non-Arab and are banned under a law that came into existence in the 1970s.
The law, infringes on people's liberty and prevents them from choosing a name that reflects their cultural heritage, the Gaddafi Charity Foundation (GIFCA) says.

The Amazigh, who are also known as Berbers, make up more than 10% of the population and consider themselves to be Libyans, but not Arabs. Muammar al Gaddafi has long proclaimed that the Berbers are originally pure Arabs. But Berbers claim to have occupied the mountains and deserts of northern Africa before the Arabs arrived.

They take pride in their cultural identity and have a long tradition of rejecting cross-cultural marriages in an effort to protect their heritage. In neighbouring Algeria and Morocco, Berbers enjoy more rights, with their language being taught in schools and used in the media.
While Libyan Amazigh privately wish such practices would spill over to their country, they are, for now, only asking for the right to name their children in their own language.

Source: BBC

9/12/2005

Occidental, BP want full cooperation with Libya

Dr. Shokri Ghanem has held two separate meetings with officials from Occidental Petroleum Corporation and British Petroleum BP. In his meeting with Dr. Ray Irani, Chairman, President and Chief Executive Officer (CEO) of Occidental, both sides discussed the return of Occidental to Libyan market and resumption of its operations here, in addition to programmes and plans to be executed in Libya.

Dr. Shokri also met in his office in Tripoli with Tony Hayward, BP chief executive, Exploration and Production where they reviewed some problem facing oil production in Libya. Tony said that BP is looking for a full partnership with Libya’s National Oil Company NOC, and it is ready to offer the latest technologies in oil field. Dr. Shokri called for acceleration of negotiations between NOC and BP. He Called BP to invest in Libya’s TAMOIL by offering 60% of the company’s shares.

Meanwhile, the world's biggest energy companies, including Exxon Mobil Corp., BP Plc and Chevron Corp, are among the 62 corporations that may bid in Libya's second auction of oil drilling-rights next month. NOC said 12 companies from the United States have asked for bidding packages. Nineteen from Europe, 16 from Asia, five from the former Soviet Union, four from Canada, four from Australia, one from South America and one from Africa also requested packages. Libya will auction permits on Oct. 2 to search for oil and gas in 26 areas, covering about 100,000 square kilometers (38,600 square miles), nearly the size of the island of Cuba.

The list of likely bidders, obtained from National Oil in Tripoli, includes U.S. companies ConocoPhillips, Occidental Petroleum Corp, Marathon Oil Corp., Amerada Hess, Unocal Corp., Anadarko Petroleum Corp. and Kerr-McGee Corp, and Vintage Petroleum Inc. Occidental, Chevron and Hess won 11 of the 15 permits auctioned in January, in the first bidding round since oil was discovered in Libya in 1959.

Until then, the nation awarded blocks after talks with companies. Western European companies BP, Royal Dutch Shell Plc, Total SA, Eni Spa, Statoil ASA, Norsk Hydro ASA, Repsol YPF SA, RWE-DEA AG, BG Group Plc, Gaz de France, Wintershall AG, OMV AG and AP Moller-Maersk A/S were among the likely bidders.

No company from Europe won a permit in Libya's first bid round. Other possible bidders are Canada's Petro-Canada, Talisman Energy Inc., Nexen Inc. and Verenex Energy Inc., Australia's BHP Billiton Ltd., Woodside Petroleum Ltd. and Oil Search Ltd, Russia's OAO Gazprom, OAO Lukoil, OAO Tatneft and Itera Holding Ltd, and Ukraine's NAK Naftogaz Ukrainy. India's and China's largest oil companies, Oil and Natural Gas Corp. and China National Petroleum Corp., were among 16 Asian companies on the list, along with Malaysia's and Indonesia's state- oil groups, Petroliam Nasional Bhd and PT Pertamina respectively. Asian bidders also include Japan's two biggest oil explorers, Inpex Corp. and Japan Petroleum Exploration Corp.; its largest oil refiner, Nippon Oil Corp.; its second-biggest trading company, Mitsui & Co.; its biggest producer of natural gas from local fields, Teikoku Oil Ltd.; and its fourth-largest trading company, Itochu Corp. Algeria's state-owned group Sonatrach is the only company from Africa. Brazil's Petroleo Brasileiro SA may bid from South America.

Source: Jana

The Economist - Libya at Glance: 2005-06 - Report

Muammar Qadhafi’s position as head of state will be unchallenged, supported by his family and trusted aides. Economic reform, of which privatisation is claimed to be a central thread, will provide the focus of government policy, although there will be little change in the political environment. The reform process will be geared towards strengthening global economic ties and attracting more foreign direct investment, both of which have gained momentum since the lifting of US sanctions. Nevertheless, progress will be slow, constrained by bureaucracy and policy reversals. A two-speed reform process is likely to emerge, with the government prioritising the development of the hydrocarbons sector above other areas of the economy. Economic growth will remain strong and inflation, though rising, will stay low.

The political outlook is unchanged. Qadhafi will pursue his objective of greater international acceptance. With the lifting of US and EU sanctions, Libya’s political rehabilitation is almost complete, although the US has kept Libya on its list of state sponsors of terrorism.
Economic policy outlook.

The economic policy outlook has improved on the back of an upward revision to the Economist Intelligence Unit’s oil price forecast. The fiscal surplus will rise strongly in 2005, but fall in 2006, although it will remain healthy at over 14% of GDP. The government’s primary policy objective will remain focused on attracting foreign investment into all areas of the economy, and in particular the oil sector.

Libya’s economic outlook has improved owing to the upward revision to our oil price projection. Real GDP growth will average 8.1% over the forecast period and, after expanding rapidly in 2005, the current-account surplus will narrow in 2006, but still be equivalent to over 22% of GDP.


Outlook for 2005-06: Domestic politics
There is little risk of substantial change in the domestic political environment in 2005-06. Following staggered cabinet reshuffles during 2003 and early 2004, economic reform is—at least ostensibly—firmly at the top of the government agenda, championed by the prime minister, Shokri Ghanem. His authority, though tempered by the retention of some of the old guard within the cabinet, is buoyed by the presence of reformists in key ministerial roles. The reform process is designed to improve the investment environment in order to draw in much-needed capital and expertise from abroad. However, the process will be slow and will be characterised more by word than by deed, although progress, as evinced by recent moves to lift subsidies and customs tariffs, will be perceptible. More rapid development is likely to be hindered by policy reversals (the Libyan leader, Muammar Qadhafi, is notoriously capricious) and by bureaucratic bottlenecks. Entrenched attitudes within the establishment will also constrain the pace of policy implementation, frustrating many of Mr Ghanem’s efforts.
Whatever the extent and pace of economic reform, it will not be accompanied by political liberalisation. Qadhafi is highly unlikely to introduce any reforms that would compromise his hold on power; instead, any changes that do occur will be designed to further consolidate his own authority. Consequently, any periodic alterations to the cabinet will be so designed as to maintain Qadhafi’s control: policy will remain subordinate to this overarching goal. More specifically, his reshuffles will be shaped to ensure that no individual minister is able to build up a personal power base, as well as to balance the competing power structures within the political hierarchy.

General domestic dissent will remain at low levels, although the exiled opposition looks likely to grow more voluble. Internal threats to the regime—such as those posed by Islamists in the 1990s—should they emerge, will have to contend with a pervasive security apparatus and are unlikely to prove a danger. However, should the socioeconomic environment deteriorate, precipitated by reforms that could exacerbate unemployment and impact negatively upon standards of living, the government may be faced with spontaneous outbreaks of unrest, which could threaten to blow up into a more focused campaign.

Although there are no signs of an imminent handover of power, the Libyan leader appears to be preparing his children to play important roles in the running of the country, with the possibility that one of them will eventually succeed him. However, with no formal mechanism in place to ensure a smooth transition of power, whether this comes to pass remains moot. Indeed, it is highly likely that the immediate post-Qadhafi era will be characterised by political tension and uncertainty, with various sociopolitical forces vying for power.

Nonetheless, Saif al-Islam Qadhafi has already carved himself a commanding political niche and is viewed as the most likely of the Libyan leader’s offspring to succeed him. Despite apparently being keen to give the impression that his ambitions lie outside the political arena, he is playing more of a political role, both publicly and privately. Saif al-Islam has been an important influence on Libya’s policy shift and is a key supporter of economic reform. Indeed, his continued involvement in front-line politics should ensure that the economic reform programme does not stall. Importantly, his pivotal—and little publicised—role in the conduct of negotiations surrounding the Lockerbie bombing and Libya’s weapons of mass destruction (WMD) programme has provided Western democracies with a relatively broadminded interlocutor, whose authority is proven. By assuming an increasingly public role, Saif al-Islam is having some success in presenting a modern, outward-looking face of Libya. His profile—both domestically and internationally—will rise as Libya deepens its economic and diplomatic relations with the West.


Outlook for 2005-06: International relations
The government will attempt to consolidate its rehabilitation within the international community, which, with the removal of remaining US and EU sanctions—including the EU arms ban—on Libya towards the end of last year, is now well established. Tripoli has hosted most of Europe’s senior leaders and is frequently visited by key US politicians, further cementing Libya’s diplomatic and political gains. Libya’s rehabilitation was instigated by its government’s acceptance of "responsibility for the actions of its officials" over the 1988 Lockerbie bombing and the conclusion of a compensation settlement for the families of its victims. Of equal significance was the announcement in December 2003 that Libya would abandon its WMD programmes and accept more stringent weapons inspections than would ordinarily occur for a signatory state of the Nuclear Non-Proliferation Treaty (NPT).

With the country’s international relations much improved, Libya will seek to reap the greatest economic benefit from its new status. Commercial interest in Libya—notably in its hydrocarbons industry—has grown, as evidenced by strong recent competition for a number of oil exploration and production contracts on offer by Libya’s National Oil Corporation (NOC). Such activity gives a future indication of the dynamics of Libya’s international relations, which will be primarily conducted in the economic, rather than the political, arena.

Notwithstanding this, Qadhafi will persist in attempts to play a more high-profile role on the global political stage, although these efforts will amount to little more than rhetoric. This will be especially evident within Sub-Saharan Africa, where Libya will continue to be active, seeking to gain influence through financial and material beneficence. Its continued efforts to mediate over the crisis in Darfur exemplify this. However, Colonel Qadhafi’s Africa policy is unlikely to secure much reward, and will continue to be a point of contention with the larger Sub-Saharan states, such as Nigeria and South Africa, which do not look kindly on attempts to undermine their own authority in the region. The US will also remain concerned about Libya’s intentions in Africa, reinforced by lingering—albeit unsubstantiated—accusations of Tripoli’s involvement in a coup attempt in Mauritania last year (unrelated to the successful one this year), possibly one of a number of contributory factors in the delay in removing Libya from the US’s list of "state sponsors of terrorism".

Relations with Arab countries will continue to be strained. Tensions with Saudi Arabia over an alleged Libyan-backed plot to assassinate the then crown prince (now king), Abdullah bin Abdel-Aziz al-Saud, led to the two countries’ respective ambassadors being recalled. The situation has been calmed following Saudi Arabia’s pardoning of the alleged Libyan plotters, although relations still remain brittle. Further occasional bilateral disputes with other Arab states are likely. However, the risk of Libya’s total estrangement from its Arab partners is negligible, as Qadhafi is unlikely to alienate himself completely from his regional neighbours while he attempts to establish a position for himself on the wider political stage.


Outlook for 2005-06: Policy trends
The government consistently states that it is committed to a course of economic liberalisation and reform in a drive to attract greater levels of foreign investment into Libya. However, progress in most areas of the economy will continue to be tentative and subject to periodic reversals, as recently shown by Colonel Qadhafi’s reported decision to renounce plans to develop a nationwide rail network in favour of upgrading the road system. In particular, the government’s much-trumpeted privatisation programme has gained little momentum, although recent moves to ease subsidies and lift customs tariffs demonstrate that the reform agenda is ticking over.

A major obstacle in assessing the government’s attempts at reform is its lack of transparency and communication; more often than not measures undertaken are only publicised at the last minute, or indeed after the event, with details inevitably scant.

Nevertheless, the government appears committed to fast-track development in the hydrocarbons industry—from where the vast majority of its revenue accrues—in order to meet the official objective of raising oil production capacity to 3m barrels/day by 2015. This can only be achieved with considerable levels of foreign direct investment, with official estimates suggesting that the industry needs to attract US$30bn by 2010 in order to meet its development plans. The recent award of oil exploration and production contracts—with promises of more to come—are evidence of the government’s focus, although its preoccupation with the hydrocarbons sector could entail the emergence of a two-speed reform process, resulting in a two-tier economy.


Outlook for 2005-06: Fiscal policy
Libya will take advantage of historically high oil prices to boost spending over the forecast period. Despite a stronger US dollar in 2005, which will lead to cheaper euro-denominated imported goods (although this trend will reverse in 2006), government expenditure will nonetheless rise, as volumes of imported inputs for development projects increase considerably. In 2005 capital expenditure is expected to expand by almost 40% to LD7.9bn (US$6.1bn) as the development programme progresses. Recurrent spending will likewise increase, but by a smaller margin of 20% to LD12.2bn, as the government compensates for the easing of subsidies by raising salaries. This will lift total expenditure by 25% to LD20.1bn. This spending growth will be funded by increased revenue, which is further boosted by an upward revision to the Economist Intelligence Unit’s oil price forecast and expanding oil production. Consequently, a 47% rise in oil receipts in 2005 will drive a similar level of growth in overall revenue, which will reach almost LD32bn.

Spending growth in 2006 will slow as the government attempts to rein in expenditure in response to an expected drop in oil revenue. However, with its development programme gathering momentum and its wage bill remaining stubbornly high, the government’s success will be limited. Total expenditure is therefore expected to rise by 18% to LD23.8bn. Oil revenue is projected to drop by 5% in 2006 as oil prices fall, although receipts will still be almost 40% greater than those recorded in 2004. Despite the rise in non-oil earnings over the forecast period, in 2006 the fall in oil prices will negate these gains and total revenue is expected to decline by 2.5% to LD31.1bn. Overall, the budget surplus will widen to LD11.8bn (25.2% of GDP) in 2005, before contracting sharply in 2006 to just LD7.3bn—equivalent to a still healthy 14.3% of GDP.


Outlook for 2005-06: Monetary policy
Libya does not employ a particularly active monetary policy as part of its macroeconomic management. In March 2004 the discount rate was lowered to 4% from 5%—the first time it had been altered since 1998—illustrating an attempt by the Central Bank of Libya (CBL) to tighten the monetary environment. The interest rate shift was in line with recommendations advanced in the IMF’s 2004 Article IV report, which encouraged a more positive monetary stance by introducing a wider range of market-based instruments (such as Treasury bills). Libya has not made any further adjustments to its interest rates since then and it is unlikely that the authorities will move quickly to adopt any other monetary measures, ensuring that monetary policy remains largely unaltered over the forecast period.

After several years of strong expansion, the global economy is likely to be characterised by a gradual deceleration in output and demand growth over the forecast period. Indeed, growth is already slowing in some major economies, and the outlook for 2005-06 is for a more modest pace of economic expansion. World GDP growth (on a purchasing power parity basis) will slow from 5.1% in 2004 to 4.2% in 2005 and 4% in 2006.

Despite the slowdown in global growth, energy demand remains strong, forcing a further upward revision to our oil price forecasts. The benchmark dated Brent Blend is now projected to average a record US$53.3/barrel in 2005, declining to US$50.5/b in 2006. The average of US$52/b over the two-year period is more than US$27/b higher than the average over the previous ten years. The sustained high prices are a result of strengthening global demand and concerns over supply as OPEC, with its March decision to raise production, moves closer to output capacity. Recent data also suggest that non-OPEC production is not as strong as previously anticipated. Additionally, there remains a risk of global supply disruptions owing to geopolitical events. As a result of all these factors, oil futures prices are also rising, indicating that average oil prices, though easing from 2005 levels, will remain elevated well into the medium term.


Outlook for 2005-06: Economic growth
Despite oil output in 2005—and hence export volumes—expanding at a slower rate than in 2004, we expect real GDP growth to remain high at 8.5% as increased revenue from rising oil prices feeds through into stronger government spending and domestic demand. Economic growth levels in 2005 will also be supported by accelerating investment growth as the economy attracts reinvigorated commercial interest from abroad, with international companies keen to make the most of the opportunities provided by Libya’s dilapidated infrastructure. These factors will sustain domestic confidence into 2006, with both government and private consumption remaining strong. However, with oil output growth slowing again, as capacity constraints contain production expansion, and with Libya’s development programme demanding continued high volumes of imported industrial inputs, real growth will ease further in 2006, to a still high 7.6%.


Outlook for 2005-06: Inflation
Recent IMF data show that prices in Libya, as measured by the consumer price index (CPI), are still contracting. Previous Fund estimates indicated that prices have been rising since 2003. As a result of the new data, we believe that Libya will still experience deflation in 2005, although it will not be as marked as last year, when prices contracted by an estimated 3.4%. With strengthening domestic demand exerting upward pressure on consumer prices, we now expect deflation of around 1% in 2005.

In 2006 the full impact of the government’s easing of subsidies and lifting of customs tariffs is likely to be felt and prices are expected to increase, although it is difficult to gauge the extent of any rise, owing to the many rigid price controls likely to remain in place. However, we now envisage that consumer prices will increase by an average of 1.8%, the first price rise in seven years.

The relative stability of the Libyan dinar should prevent higher import costs from adding significantly to inflationary pressures, although these may be exacerbated by greater liquidity from expanding demand and investment, as demonstrated by sharp increases in money supply growth. If current levels of money supply growth continue into 2006, it is likely that upward pressure on consumer prices will build.


Outlook for 2005-06: Exchange rates
The Libyan dinar is pegged to the IMF’s special drawing rights (SDRs), and is managed through tight official controls. The country has ample foreign reserves to sustain this policy over the forecast period and beyond. The SDR is projected to weaken against the US dollar in 2005, but then strengthen again in 2006; consequently, the dinar will track these movements, averaging around LD1.31:US$1 in 2005 and LD1.29:US$1 in 2006. In July 2005 the dinar was trading at LD1.32:US$1. Libya’s massive stock of international reserves—US$29.8bn (an estimated 31 months of import cover) at end-May 2005—will ensure the continuation of a stable exchange-rate regime.


Outlook for 2005-06: External sector
Helped by a further upward revision to our oil price forecast and growing oil export volumes, Libya’s export receipts will rise by 45% in 2005. Total export revenue should therefore reach US$29.3bn. However, in 2006 export earnings will drop by around 4%, despite a small forecast rise in oil production, as oil prices are projected to fall, reducing overall revenue to US$28.3bn. With expectations that government expenditure on development projects will continue to rise, import spending will increase, and we forecast that the import bill will surge by 26% in 2005, to US$10.8bn. In 2006 spending will continue to increase firmly as domestic demand and development work on capital projects remain strong. The import bill is therefore expected to rise by a further 22%, to US$13.2bn. Overall, the trade surplus will rise by almost 60% in 2005, to US$18.5bn, before tumbling by 19% in 2006, to close the year at US$15.1bn.

The services and income balances will continue to run a combined deficit, however, as services costs associated with imports grow and foreign oil companies repatriate higher levels of profit. Additionally, Libya’s debt servicing will become more expensive in line with the rise in US and global interest rates. The current transfers account will stay in deficit as Libya’s expatriate community remains economically insignificant and the number of foreign workers in the country rises. The growing non-merchandise deficit will not be sufficient to undermine the trade surplus in 2005, ensuring that the current-account surplus expands to US$13bn (a massive 36% of GDP). It will narrow to US$8.8bn (22.1% of GDP) in 2006—a sharp fall, but a huge overall surplus nonetheless.

Source: The Economist, EIU