WESTERN EUROPE AND CANADA: ECONOMIC LINKS WITH LIBYA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86T01017R000303250001-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 78
• Document Creation Date: December 22, 2016
• Document Release Date: March 10, 2011
• Sequence Number: 1
• Publication Date: January 13, 1986
• Content Type: REPORT

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Western Europe and Canada: Economic Links with Libya
Country Sections
SO ueL'~(~
DATE
( 3 $
DOC NO Fire E-ZWO 1
13
P&PD I
EUR M86-20001
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Canada
Economic Relations with Libya
Canada's total trade with Libya (exports plus imports) has
averaged only US $110 million annually over the last four-years--
less than 0.1 percent of overall Canadian trade. Exports fell
from $96 million in 1982 to an estimated $56 million in 1985,
while imports rose from $18 million to $56 million. Canada's
primary exports are wheat--accounting for 35 percent of Libyan
wheat imports in the past three years--evaporated milk, and
machinery used in the energy sector. Oil accounts for virtually
all of Canada's imports from Libya, but this oil supplies less
than I percent of Canadian oil consumption and could easily be
replaced by domestic supplies. The vast majority of the
approximately 1300 Canadians in Libya are oil workers from the
province of Alberta--where US companies frequently recruit for
operations in Libya
Over recent years, Ottawa has sought to keep Libya at arm's ?
length. It has no permanent diplomatic presence in Libya--
Canada's ambassador to Tunisia is also accredited to Libya.
Moreover, it has refused to permit the opening of a student
liaison office to serve the several hundred Libyan students
attending school in Canada. Furthermore, no flight service
between Canada and Libya exists, and there is already a quota on
the number of Libyan students allowed in Canada. Canada also has
imposed controls that prohibit the export of all military goods
as well as such strategic equipment as civilian aircraft.
Canadian Support for US Sanctions
Following President Reagan's announcement of economic
sanctions against Libya, an unauthorized statement by a spokesman
for Canada's External Affairs Ministry indicated that Ottawa
would not join in an economic boycott because Canada's economic
stake in Libya was so small that it would have little leverage to
exercise through economic sanctions. External Affairs officials,
however, did ask firms operating in Libya not to replace
departing US personnel.
On 10 January, Prime Minister Mulroney announced new
measures after a Cabinet meeting. He stressed that they were
Canada's response to a moral issue and were not linked to
President Reagan's request. The measures include the following:
-- All government aid to Canadian firms doing business in
Libya will be cut off.
-- No insurance coverage will be provided by the Export
Development Corporation on new business activities of
Canadian companies in Libya.
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-- Libya will be subject to special export control
legislation, which will stop new contracts for the
export of oil drilling equipment containing unique
Western technology. Other products to be covered by
this legislation will be determined in consultation with
the Allies.
Mulroney again urged Canadians not to fill jobs vacated by
departing Americans. External Affairs Minister Clark estimated
the measures could lose Canadian firms some $14 million in Libyan
business.
These steps represent a substantial improvement over
Gttawa's initial reaction to US sanctions. We think Canada will
be reluctant to take further steps,
In fact, Mulroney, emphasized that further steps mus
be broadly based and coordinated among the Allies.
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Canada
Exports to Libya
1981
1985
Value, $million
Percent of total exports
Commodity Composition - 1984
61
.13
56
.07
Share of
Value
ota %)
Total Exports
56
.07
Agriculture
30
.32
Raw Materials
0
.02
Fuels
0
.01
Manufactures
26
.06
Chemicals
0
.00
Semi-Finished Goods
0
.00
Machinery
23
.29
Transport Equipment
3
.01
Consumer Goods
1
.02
Other
0
.01
Imports of Oil from Libyal
1981
1985
Gross value, $ million
125
40
Net
volume, 1,000
b/d
7
5
Net
imports as a
share
of
total oil consumption (%)
0.4
0.4
Workers in Libya
Number: 1,300
Job Categories: Almost all are oil workers.
1 See note at end.
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Canada
(Data Sheet continued)
Arms Deliveries to Libya
1981
1985
Value, $million 5
Investment in Libya
No specific information, probably very small, if any.
Libyan Investment in Canada
No information
Libyan Debt Owed Canada
No information
Major Companies Operating in Libya
No Canadian oil companies are operating in Libya.
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United Kingdom
Economic Relations with Libya
Total British trade with Libya is relatively small--about
$600 million in 1985. Britain's main import from Libya is a
small amount of oil--about 3 percent of total UK consumption in
1985--which Britain could easily replace from alternative Middle
East suppliers. Although London broke diplomatic ties with
Tripoli in 1984, imports of Libyan oil doubled last year to about
50,000 b/d. According to the British press, much of this oil is
being refined in Britain and re-exported to the US. British 25X1
exports to Libya have fallen continuously since 1981 and consist
mainly of machinery used in oil production. Since April 1984,
the Export Credit Guarantee Department has refused to provide
insurance for major new contracts in Libya. There currently are
approximately 5,000 British nationals working in Libya, mainly in
the oil industry.
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United Kingdom
Data Sheet
Exports to Libya
1981
1985
Value, $million 1.067
Percent of total exports 1.04
Commodity Composition - 1984
281
.29
Share of
Value
Total %)
Total Exports 330
.35
Agriculture 21
.32
Raw Materials 1
.02
Fuels 2
.01
Manufactures 303
.50
Chemicals 54
.49
Semi-Finished Goods 59
.61
Machinery 133
.22
Transport Equipment 35
.43
Consumer Goods 22
.22
Other 3
.15
Imports of Oil from Libyal
1981
1985
Gross value, $ million 133
500
Net
volume, 1,000
b/d
9
51
Net
imports as a
share
of
total oil consumption (%)
.6
3.0
Workers in Libya
Number: 5,000
Job Categories: Mostly oil and construction workers.
1 See note at end.
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United Kingdom
(Data Sheet continued)
Arms Deliveries to Libya
1981 1985
Value, $million 0 0
London banned new defense sales to Libya in 1984.
Investment in Libya
Most direct investment ended when British Petroleum and
other British oil companies left the country in 1969.
Libyan Investment in the United Kingdom
The state-owned Wahda Bank, through its small interest in an
Arab bank, owns 29 percent of a British brokerage house.
That share will rise to 100 percent next March when new
regulations take effect.
Libyan Debt Owed the United Kingdom
About $200 million in outstanding debt. Libya has begun to
pay off outstanding bills in the UK owed to commercial
firms, hospitals, and universities.
MajoP Companies Operating in Libya
British companies have been awarded about half of the
consultancy contracts for Libya's major civil engineering
projects.
Company Activity
John Brown Offshore Project manager for Libya's
offshore Bouri oil field
The Weir Group Ltd. Engineering firm; in 1984
Brown and Root, UK
sold hydraulic pumps and
associated equipment worth
more than $1 million to
Libya.
Provides project management
services for the Great Man-
made River water pipeline.
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United Kingdom
(Data Sheet continued)
Motherwell Bridge In 1984, was awarded.Ltwo
Constructors contracts involving storage
tank projects; work to be
carried out by Motherwell's
Geneva-based sister company,
Cepco.
Tilden Industries
In 1984, was negotiating a
$15.2 million contract to
supply prefabricated housing
equipment to a West German
firm operating in Libya.
Occidential Oil and UK subsidiaries of the
Continental Oil American firms have provided
services related to the Oasis
project for their parent
companies.
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Belgium-Luxembourg
Economic Relations with Libya
Belgian-Libyan economic relations are insignificant at the
present time. The value of Belgian-Luxembourg exports to-Libya
has fallen off substantially since the early 1980s and amounted
to only about $68 million last year--about 0.1 percent of total
exports. Preliminary data indicate that Belgium also
dramatically cut back its oil imports from Libya last year, and
relied on Libya for less than 1 percent of its oil consumption.
Although an economic, industrial rand teciinological
cooperation agreement was signed last May, Brussels is still at
loggerheads with Tripoli over a section of the agreement calling
for increased bilateral nuclear cooperation, especially in
constructuring two nuclear reactors. Qadhafi has threatened to
cancel the entire agreement unless Brussels ratifies the nuclear
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Belgium-Luxembourg
Exports to Libya
1981
1985
Value, $million
Percent of total exports
Commodity Composition - 1984
383
1.36
68
.44
Share of
Value
Total %
Total Exports
104
.20
Agriculture
23
.14
Raw Materials
1
.03
Fuels
10
.24
Manufactures
69
.19
Chemicals
8
.11
Semi-Finished Goods
26
.21
Machinery
17
.37
Transport Equipment
18
.30
Consumer Goods
17
.37
Other
2
.05
Imports of Oil from Libyal
1981
1985
Gross value, $ million
101
20
Net
volume, 1,000
b/d
2
3
Net
imports as a
share
of
total oil consumption (X)
.5
.6
Workers in Libya
Number: negligible
Job Categories: NA
1 See note at end.
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Belgium-Luxembourg
(Data Sheet continued)
Arms Deliveries to Libya
1981
Value, $million 0
Investment in Libya
Ne information
Libyan Investment in Belgium-Luxembourg
No information
Libyan Debt Owed Belgium-Luxembourg
No information
Major Companies Operating in Libya
Company Activity
Belgonucleaire Aided in supplying radiation
monitoring unit (1983).
Furnished the Tajura Nuclear
Research Center Library
(1982). Negotiations for
supply of nuclear power station
(1984).
Agfa-Gevaert NV Supplies scientific equipment
for nuclear program.
Philip's Industrie NV Technical assistance for
electronics R&D Center.
Prodemco Ltd. Consulting for military
Tractionel Electrobel
Engineering
projects.
Has projects for power station
reservoir and pumping station
projects.
1985
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The Netherlands
Economic Relations with Libya
Dutch-Libyan economic relations are limited. Dutch exports
to Libya have dropped since 1983 to about $140 million last year,
or 2 percent of total Dutch exports. Exports consist mainly of
agricultural products and technology, construction materials, and
chemicals. Primary Dutch imports from Libya are oil and oil
products, amounting to roughly $500 million in 1985. Dutch
dependence on Libyan oil peaked in 1983 at 14 percent of total
oil consumption and fell to 8 percent in 1985. Several Dutch oil
companies--including Royal Dutch Shell--currently operate in
Libya, employing about 400 Dutch citizens involved in services
related to energy exploration.
Prior to the recent bombings in Vienna and Rome, the US
Embassy reported that the Dutch were negotiating an agreement
with Libya on trade and investment which The Hague hoped to sign
early this year. The agreement is part of an ongoing effort by
The Hague to normalize its relations with the Arab world which
were disrupted by the 1973-74 embargo.
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Netherlands
Data Sheet
Exports to Libya
1981
1985
Value, $million
Percent of total exports
Commodity Composition - 1984
267
.39
143
.22
Share of
Value
Total %)
Total Exports
186
.28
Agriculture
103
.77
Raw Materials
1
.03
Fuels
8
.06
Manufactures
54
.16
Chemicals
17
.15
Semi-Finished Goods
11
.17
Machinery
13
.16
Transport Equipment
6
.28
Consumer Goods
7
.16
Other
19
5.30
Imports of Oil from Libyal
1981
1985
Gross value, $ million
232
500
Net
volume, 1,000
b/d
18
49
Net
imports as a
share
of
total oil consumption (%)
2.6
8.5
Workers in Libya
Number: 400
Job Categories: Most are probably oil workers.
1 See note at end.
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Netherlands
(Data Sheet continued)
Arms Deliveries to Libya
1981 1985
Value, $million 0 0
Investment in Libya
No information
Libyan Investment in the Netherlands
No information
Libyan Debt Owed the Netherlands
Outstanding loans and unpaid bills probably total at least
$40 million
Major Companies Operating in Libya
Company
Royal Dutch Shell
-Thyssen (subsidiary of
Thyssen Brennkraft, GMBH, West
Germany)
Activity
Oil exploration.
Oil equipment Sales
Klockner-Humbold & Deputy Oil exploration
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France
Economic Relations with Libya
In France's view, the main threat from Libya is Qadhafi's
meddling in Chad, not terrorism. Since the Libyan invasion of
Chad in 1983, France--while not willing to cut off economic
relations entirely--has reduced its economic ties with Libya to
the point where they are of minimal importance to the French
economy. French officials doubt the utility of economic
sanctions and probably want to maintain some access to the Libyan
market, both for commercial reas ns and to try to preserve some
form of influence over Tripoli.
Last year only about 0.2 percent of French exports went to
Libya. On the other hand, France is still Libya's sixth largest
supplier, down from third place five years ago. France provides
equipment and servicing for oil production and large Libyan
public works projects such as irrigation and building
construction. Approximately 1200 French nationals, including
dependents, live in Libya. In 1983 Paris banned further sales of ?
offensive weapons to Tripoli, but continues to fulfill existing
contracts for military-related equipment, primarily spare parts
and training equipment. French imports from Libya consist almost
entirely of petroleum, although this represents less than 3
percent of French oil consumption. French investment in Libya is
minuscule, but Libyan arrearages on past contracts total between
$65 and $130 million.
Possible Concessions
French officials are unlikely to be moved by US appeals for
support in economic sanctions. Quite apart from France's
perceptions of its own interests in the Middle East, the
important elections due in March have made independence in
foreign policy even more of a political touchstone than usual in
France. We discount the possibility of trance participating in a
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France
Exports to Libya
1981
1985
Value, $million
Percent of total exports
Commodity Composition - 1984
907
.85
220
.23
Share of
Value
Total X
Total Exports
211
.23
Agriculture
8
.05
Raw Materials
1
.02
Fuels
8
.24
Manufactures
193
.40
Chemicals
26
.20
Semi-Finished
Goods
53
.31
Machinery
73
.41
Transport Equipment 29
.21
Consumer Goods 12
.16
Other
0
.05
Imports of Oil from Libyal
1981
1985
Gross value, $ million 502
600
Net volume, 1,000 b/d 33
63
Net imports as a share
of total oil consumption (X) 1.6
3.7
Workers in Libya
Number: 1200 (includes family members).
Job Categories: Mostly sales personnel and oil workers.
1 See note at end.
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France
(Data Sheet continued)
Arms Deliveries to Libya
Value, $million
1985
1981
Investment in Libya
No information
Libyan Investment in France
No specific information, but probably very small.
Libyan Debt Owed France
Arrearages probably equal $55 million.
We estimate that the total outstanding debt to France
(arrearages, commercial debt) amounts to more than $1
billion.
Major Companies Operating in Libya
Company
Usinor
EMH
Bouygues
Air France
Spie Batignolles
Activity
Fabricating steel parts for
irrigation project.
Subcontractor to Italian firm
building mooring terminal.
University dormitory
construction.
Services aircraft in France.
Construction.
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France
(Data Sheet continued)
Societe Internationale Desalination.
de Dessalement
Elf Aquitaine Oil services (exploration
activities abandoned in 1984).
BBC Brown Boveri-France Telecommunications.
Dassault Aircraft parts.
SNECMA Aircraft parts.
Thomson Military training equipment.
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West Germany
Economic Relations with Libya
West Germany is the second largest West European exporter to
Libya, but its sales represent only about 0.3 percent of-total
West German exports. At least 30 large West German firms, plus
many smaller ones, are known to be dealing with Libya. In
addition to merchandise trade, there are press reports citing
about $800 million in construction projects currently underway by
West German firms.
Libya is West Germany's third largest oil supplier,
providing 14 percent of total oil imports. `two-thirds of the
Libyan oil is purchased indirectly, however, either on the
Rotterdam spot market or from US firms. West Germany would have
little difficulty acquiring the oil it needs from other
sources. On the other hand, most of West Germany's estimated
$110 million in investment in Libya is concentrated in the oil
industry. Three West German oil companies operate in Libya; one -
of them, VEBA, owns 17.5 percent of the former Mobil Oil
concession. Most of the 1.500 West Germans in Libya are working
for oil firms.
Payments to West German suppliers have slowed because of
Libyan financial difficulties, and official export-insurance
coverage is strictly limited for West German firms selling to
equipment deliveries--very sma
blocked.
Possible Concessions
Bonn's response to the US decision to impose sanctions on
Libya has not been encouraging, although the government's press
spokesman commented that the West Germans support the US morally,
favor increasing cooperation to combat terrorism, and will
discourage West German firms from trying to gain commercial
advantage from the US actions. The Kohl government, however, is
undoubtedly aware that Washington will expect something more from
Bonn, and it will be wary of seeming obstructionist on a matter
of such importance to Washington. Moreover, the US Embassy
reports a "surprising amount" of public pressure to "do
something" about Libya, a tone reflected in much of the press
commentary we have seen. In light of this, Bonn may consider
taking action in several areas:
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Military
ew years--are now
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West Germany
Exports to Libya
1981
1985
Value, $million
1,486
538
Percent of total exports
.84
.34
Commodity Composition - 1984
Share of
Value
ota %)
Total Exports
804
.47
Agriculture
46
.48
Raw Materials
3
.06
Fuels
1
.02
Manufactures
576
.40
Chemicals
40
.17
Semi-Finished
Goods
168
.56
Machinery
263
.59
Transport Equipment 86
.27
Consumer Goods 19
.13
1781 3.23
Imports of Oil from Libya2
1981
1985
Gross value, $ million
3,291
2,100
Net
volume, 1,000
b/d
216
203
Net
imports as a
share
of
total oil consumption (%) 9.2
9.2
Workers in Libya
Number: 1,500
Job Categories: Mostly oil workers
Some construction workers
1 Of this amount, $173 million is classified in the original German
data as "electro-technical products."
2 See note at end.
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West Germany
(Data Sheet continued)
Arms Deliveries to Libya
1981 1985
Value, $million 15
Investment in Libya
economics Ministry estimates about %110 million; mostly'oil
investments.
Libyan Investment in West Germany
No important Libyan investment in West Germany although some
banking interests.
Libyan Debt Owed West Germany
About $3 billion in outstanding official export insurance.
Unpaid bills are a major problem for West German firms
dealing with Libya and probably total at least $300 million.
Major Companies Operating in Libya
Company
Siemens
Blohm and Voss
AEG-Kanis
Mannesmann
Activity
Owns 17.5 percent of former
Mobil Oil concession.
Has contract with Tripoli to
explore for oil.
Oil production.
Installed computer equipment at
Tagura nuclear research
facility and provided computer
training for Libyans in West
Germany as well as in Libya.
Floating dry dock.
Power plant projects.
Engineering for gas pipeline.
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West Germany
(Data Sheet continued)
MAN Bus assembly plant.
Philipp Holzmann Desalination plant.
Salzgitter Industriebau Chemical project.
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Italy
Economic Relations with Libya
Not surprisingly, Italy's economic ties with its former
colony are far more significant than those of any other West
European country. Although Italy has taken some encouraging
steps this week, its close ties with Libya will be a strong
disincentive against full-fledged sanctions.
-- Although trade between the two countries has dropped
sharply since 1981, total trade amounted to $4.3 billion
in 1985 and Libya was Italy's ninth largest trading
partner. Libya prvov'ides about f5 percent of Italy's oil
imports.
-- About 150 Italian companies, many of them government-
controlled, have invested in Libya; they are led by the
state-owned oil firm, AGIP, whose stake was estimated at
$700 million in 1984. Last year the company increased
its interest in the Libyan oil industry by purchasing a
19-percent interest in the Bauri offshore oilfield.
-- Libya also has invested heavily in Italy: the Libyan
Arab Foreign Investment bank owns 13.8 percent of Fiat,
worth an estimated $225 million, and Libya has recently
bought the Tamoil Oil Refinery in northern Italy;
Libyans own large amounts of real estate in Italy.
-- Over 15,000 Italians in Libya provide important
technical support for Qadhafi's oil industry, harbor
construction projects, and military training. Italian
firms have done billions of dollars worth of
construction work in Libya over the past few years.
Italy has also been a major supplier of arms to Libya in the
past but embargoed new military contracts for "dangerous" arms in
1981. In response to the terrorist attacks on the Rome and
Vienna airports in December, the Italian Cabinet announced on 9
January "more strict criteria" for selling military supplies to
Libya. And on 10 January, Prime Minister Craxi's diplomatic
advisor told the US Embassy that this will mean an across-the-
board halt to arms deliveries. He also said that Italy would act
strongly against firms that sought to undercut the US by
providing replacement services; state owned companies will be
ordered not to will be subjected to
moral suasion.
From the Italian perspective, one of the
aspects of the bilateral relationship is that
million in arrears to Italian companies since
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most
important
Libya
has been $800
early
1982. Italy
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has reluctantly agreed to accept payment in oil, but Tripoli is
holding up shipments in an effort to force Rome to buy even more
Libyan oil and gas. Nonpayment of this money could cause serious
financial problems for several small Italian manufacturing and
F_ I
construction firms, and perhaps for some banks.
Political Considerations
Rome's significant economic investment in Libya, the 15,000
Italians living in Libya, and the perception that Italy is highly
vulnerable to terrorist attacks will tend to discourage any high
profile response to Libyan terrorism. So far, Prime Minister
Craxi has insisted that Italy will only endorse sanctions in
concert with other members of the AFC and called for a sdpecial
meeting of EC ministers to discuss Libya.
The five-party coalition government is probably divided on
these issues. Foreign Minister Andreotti, who is closely
identified with the policy of maintaining close relations with
the PLO and business as usual with Qadhafi, is most resistant to
change
Craxi is caught in the middle but seems to be leaning more
toward Spadolini's position. The Prime Minister will travel to
Egypt on 14 January, in part at least, to sound out the Egyptian
position on Libya. Egyptian (or any other Arab) support for
sanctions would make it much easier for Craxi to further toughen
his stand.
In the meantime, there are a number of signs that the attack
on Rome airport has severely shaken the government's Middle East
policy. The Cabinet statement on 9 January noted the persistence
of grave suspicions about Libyan support for terrorist
organizations and the difficulties this creates for bilateral
relations, announced further restrictions on military sales to
Libya, and declared that economic relations between the two
countries were "entirely unsatisfactory"--the strongest public
F_ I
stand Italy has ever taken against Qadhafi.
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Italy is already in the process of cracking down on visa
requirements for Libyans, and we think Rome is likely to keep
much closer tabs on resident Libyans from now on. The Italians
are unlikely, however, to cut back representation in the People's
Bureau because this would almost certainly mean a reduction in
their own mission in Tripoli.
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Italy
Data Sheet
Exports to Libya
1981
1985
Value, $million
4,297
1,293
Percent of total exports
5.71
1.74
Commodity Composition - 1984
Share of
Value
ota %)
Total Exports
1,660
2.26
Agriculture
137
2.71
Raw Materials
26
1.73
Fuels
326
9.81
Manufactures
1,171
1.86
Chemicals
194
3.08
Semi-Finished Goods
292
1.74
Machinery
221
1.37
Transport Equipment
249
4.03
Consumer Goods
215
1.23
0
.02
Imports of Oil from Libyal
1981
1985
Gross value, $ million
3,225
2,700
Net volume, 1,000 b/d
214
256
Net imports as a share
of total oil consumption (X)
11.2
15.1
Workers in Libya
Number: 15,000
Job Categories: Mostly manufacturing and construction
workers.
Many oil workers.
Some miliary technicians.
1 See note at end.
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Italy
(Data Sheet continued)
Arms Deliveries to Libya
1981
1985
Value, $million
190
235
Investment in Libya
AGIP operates joint company AGIP N.A.M.E. (North Africa
Middle East) on a 50-50 basis with Libyan National Oil
- Company, operates one oilfield at Bu-Attifl; also owns 19
percent interest in the Bauri offshore Oilfield.
Fiat owns 25 percent interest in a heavy vehicle
manufacturing plant at Tajoura.
Calabrese Vehicoli Industriali owns a 25 percent interest
in a truck body and trailer manufacturing plant; original
1981 investment was $6.5 million.
Libyan Investment in Italy
Libyan-Arab Foreign Investment Bank owns 13.8 percent stock
of Fiat valued at about $225 million.
Libya Arab Foreign Investment Bank purchased 70 percent of
the Tamoil Oil Refinery in Cremona and 1,000 service
stations in November 1985 for a reported $100 million.
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Italy
(Data Sheet continued)
Reported significant industrial and real estate investment
in southern Italy and Sicily.
Libyan Debt Owed to Italy
Since 1982 has owed $800 million to about 100 mostly small
and medium-sized Italian firms.
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Some Italian Companies owed money are as follows:
Siai Marchetti, Oto Melara, Pirelli, CSO-Cogefur
Construction, Delmar Machine Co., GECO Electronics Co.,
Monfedi-Alsaldi Construction Co., Montubi Assembly Co.,
CEIB, Itaco, and IPC.
Major Companies Operating in Libya
Company
AGIP (Subsidiary of ENI)
Activity
Oil exploration and
development; ENI oversees
the purchase of Libyan
crude oil.
SNAM (Subsidiary of ENI) Responsible for purchasing
Libyan LNG, presently
negotiating the renewal of
a long-term LNG contract
with Libya.
Snamprogetti (Subsidiary of ENI) Oil engineering and
Micoperi-Belleli
services; has signed letter
of intent for $270 million
fertilizer plant.
Construction and
engineering, oilfield
equipment; contract to
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Italy
(Data Sheet continued)
build two platforms. for the
second phase of the. Ras
Lanuf oil refinery
Construction and
engineering; contract for
$85 million for the Ras
Lnuf oil refinery.
Steel and construction;
negotiating contracts for a
$600 million desalinization
plant in Tripoli.
Pirelli/CEAT/Telettra/SIRTA Telephone systems; $542
Montubi
Riva/Mariani
million contract in 1979
and $520 million contract
in 1983 for intercity
telephone systems in major
cities, SIRTE contract in
1985 for telephone link to
new military base at Hun.
Construction; $128 million
contract for the Wawai West
Libyan Pipeline; $106
million in construction
contracts at four Libyan
airports; contract to
construct a large portable
cement unloading barge for
Tripoli harbor.
Insulation and accoustical
work; contract to work on
Ras Lanuf oil refinery.
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Greece
Economic Relations with Libya
Greek economic relations with Libya are relatively modest,
apart from the imports of oil which account for about 27-percent
of domestic consumption. Despite Papandreou's efforts to promote
trade with Libya and the Middle East in general, trade with Libya
accounted only for an estimated 1.2 percent of Greek exports in
1985, down from 5.2 percent in 1981. Papandreou's visit to Libya
in September 1984 led to the announcement of a highly touted "one
billion dollar deal," which was actually just the sum total of
existing economic agreements over three years. The two countries
did sign in 1985 a $500 million military sales agreement, which
called for sales of Greek light arms, ammunition. uniforms
personnel carriers, and anti-tank weapons.
Possible Concessions
In view of its stake in improving political and economic
ties with the Arab world, Athens is unlikely to agree to public
condemnation of Libya or to economic or political sanctions.
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Greece
Data Sheet
Exports to Libya
1981
1985
Value, $million
220
53
Percent of total exports
5.17
1.20
Commodity Composition - 1984
Share of
Value
Total %)
Total Exports
89
1.82
Agriculture
30
2.03
Raw Materials
5
.94
Fuels
0
.04
Manufactures
54
2.27
Chemicals
6
2.76
Semi-Finished Goods
30
2.35
Machinery
3
3.28
Transport Equipment
0
.22
Consumer Goods
14
1.91
Other
0
.00
Imports of Oil from Libyal
1981
1985
Gross value, $ million
321
600
Net volume, 1,000 b/d
65
63
Net imports as a share
of total oil consumption (%)
27.3
27.0
Workers in Libya
Number: 2,000
Job Categories: Mostly construction workers.
1 See note at end.
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Greece
(Data Sheet continued)
Arms Deliveries to Libya
1981 1985
Value, $million 0 0
Investment in Libya
No information
Libyan Investment in Greece
Investments by Libya in Greece are mainly in the industrial
sector and are implemented through LIBECO, a joint Libya-
Greek investment company. Libya owns 60 percent of the firm
and the Hellenic Industrial Development Bank (ETBA) owns 40
percent. As of June 1984, the Libyans were involved in 9
projects in Greece, including:
LIRA SA - manufactures children's toys and games.
METALCO SA - produces printed circuits.
GEVI SA - agricultural company involved in canned fruits
and vegetables.
KIM SA - produces electric dynamos, water pumps and
adaptors.
Asteris Co. - food products.
Panvetti SA - produces metallic and wood office
furniture.
Libyan Debt Owed Greece
Unpaid bills - unknown
Arrears - approximately $40 million
Major Companies Operating in Libya
Company Activity
Metal Construction of
Greece (METKA)
Supply of steel for military
projects.
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Greece
(Data Sheet continued)
EDOC-ETER
HEL-ARAB
Agricultural services,
Dock construction.
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Turkey
Economic Relations with Libya
Turkish economic relations with Libya are significant, but
have been declining since 1981. The number of Turkish workers in
Libya has dropped from 120,000 in 1982 to approximately 14,000
today. Libya's slowness to pay its debts is the chief factor
behind the slump in economic relations--the Libyans owe Turkish
firms approximately $400 million. On the trade side, Turkish
exports to Libya peaked in 1981 at $442 million (9.4 percent of
total exports) and have fallen steadily since then, now
accounting for just 1.6 percent of total exports. Turkey imports
approximately 15 percent sf its oil from Libya, with half of
these imports tied to paying arrears owed Turkish contractors.
Turkey has a longstanding military relationship with Libya
dating back to 1974.
Possible Concessions
Ankara is unlikely to take any public actions against
Qadhafi, such as a direct condemnation or imposing sanctions.
Prime Minister Ozal on 9 January publicly reaffirmed Turkey's
ties to Libya, and Turkey has not specifically objected to an
Organization of Islamic Countries resolution condemning the US
embargo effort as an "imperialist-Zionist threat" aimed at
Islamic countries.
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Turkey
Data Sheet
Exports to Libya
1981
1985
Value, $million
Percent of total exports
Commodity Composition - 1984
442
9.40
120
1.60
Share of
Value
Total %)
Total Exports
142
1.99
Agriculture
39
1.76
Raw Materials
4
.60
Fuels
0
.02
Manufactures
100
2.56
Chemicals
2
1.01
Semi-Finished Goods
52
2.65
Machinery
5
2.18
Transport Equipment
14
11.06
Consumer Goods
27
1.96
Other
0
1.70
Imports of Oil from Libyal
1981
1985
Gross value, $ million
778
500
Net volume, 1,000 b/d
53
52
Net imports as a share
of total oil consumption (%)
17.1
15.0
Workers in Libya
Number: 14,000
Job Categories: Almost all construction workers.
1 See note at end.
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Turkey
(Data Sheet continued)
Arms Deliveries to Libya
1981 1985
Value, $million 13
Investment in Libya
No information
Libyan Investment in Turkey
At least $28 million
Libyan Debt Owed Turkey
Debt probably amounts to $3 billion
Arrears equal approximately $400 million.
Major Companies Operating in Libya
Company
Aryapi Ltd.
B.T.K. AS
_Baytur Insaat AS
Dogus Insaat AS
Ece Insaat AS
ENKA Insaat AS
Goktas AS
Libas AS
Metis-Mesa AS
Mimtas
Activity
Construction.
Construction.
Construction.
Construction.
Construction.
Construction.
Construction.
Construction.
Construction.
Construction.
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Note on Oil Import Data
Differences in the behavior of the oil value and volume data
between 1981 and 1985 can have several causes. The principal
factor is that the volume series gives net figures (imports of
crude and products from Libya minus exports of products to Libya)
while the value series gives the gross value of imports of Libyan
crude and products. In addition, the official price of Libyan
oil fell by 24 percent between 1981 and 1985. The decline in
actual sales prices may have been even greater and may have
varied among importers. Finally, there is a special problem with
the value data for Greece in that it excludes oil, imports that
are paid for with any kind of barter arrangement.
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Distribution: Western . Europe and Canada:
1 - Ambassad~ar Ridgway, State
1 - Ambassador Oakley, State
1 - Dean,:Curran,. State
1 - Jerry Kahane, State
1 - DDI.
1 - NIO/OounterterrorisEn
1 - NIO,4gE
1 - D/EURA
2 - EURA Production
4 - IN-/CB
2 - WE Division
DDI/AMVIM/FO OJan86
Eoonanic Links With Libya
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Central Intelligence Agency
Office of the Deputy Director for Intelligence
9 January 1986
NOTE TO: The Honorable John C. Whitehead
Deputy Secretary of State
Per your request for data on West European
economic dealings with Libya, we have produced
the attached typescript, Western Europe: Economic
Links with Libya. In addition to the textual
h
discussion of the economic relationship, Le
paper includes numerous tables detailin
country-by-country dealings with Libya.
If you have any questions or comments,
please call irector,
Office of European Ana is
77
I n
'r.
14
Robert M. Gates
Deputy Director for Intelligence
Attachment:
As Stated
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Memorandum for: Ambassador Rozanne L. Ridgway
Assistant Secretary
Bureau of European Affairs
As promised in our telephone conversation late
yesterday, attached is the material we've pulled
b
a
together on West European economic ties to Li
The staff sincerely appreciated your thank-you
call yesterday. It was just further proof that
a "gentlewoman" is doing a highly effective job.
us know it we can help u .
Attachment:
as stated
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Director, _
EURA
Office of European Analysis
Directorate of Intelligence
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Memorandum for:
9 January 1986
Director,
Per your request for
information on West European economic relations with
Libya, we are forwarding the attached typescript,
Western Europe: Economic Links with Lib a. We
l-ive also sent a copy of t i 'typescript directly
to john Whitehead. If we can be of any further
;assistance, please call me
Att:
as stated
Mr. Richard A. Clark
Deputy Assistant Secretary
for Regional Analysis
Bureau of Intelligence and
Research
EURA
Office of European Analysis
Directorate of Intelligence
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Memorandum for: Mr. Dean Curran
Special Assistant to
the Under Secretary for
Political Affairs
Department of State
Here's the paper I mentioned to you on the
phone last night. A copy is also going to
Whitehead's office, along with one for
Ambassador Ridgway. Let me know anytime if
we can help.
Regards,
41 John 'McLaughlin
9 January 1986
EURA
Office of European Analysis
Directorate of Intelligence
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Distribution:
1 - The Hon. John C. Whitehead
1 - Amb. Rozanne Ridgway
1 - Dep. Asst. Sec. Clark
1 - Mr. Dean Curran, State
1 - DDI
1 - NI0/Counterterrorism
1 - NIO/WE
1 - D/EURA
2 - EURA/Production
4 - IMC/CB
2 - WE/Division
DDI/EURA/WE/FO/ ~9 Jan '86)
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Central Intelligence Agency
Washington. D. C. 20505
9 January 1986
Western Europe: Economic Links with Libya
Summary
Western Europe's well-known reluctance to
impose sanctions against Libya is only partly due
to economic considerations because overall
economic relations with Libya are relatively
small. Exports to Libya dropped to an estimated
$3.2 billion last year, less than one-third of the
1981 figure and equal to only 0.4 percent of total
exports. Although imports of Libyan oil have
fallen less sharply, to about 820,000 b/d last
year, they only cover about 7 percent of Western
Europe's oil consumption--an insignificant share
given the glut in the world oil market. We
calculate that even a total cutoff of EC exports
to Libya would have only a minimal impact on West
European economies. In addition to trade
considerations, the West Europeans also fear the
loss of perhaps several billion dollars of
outstanding loans and unpaid bills owed by
Libya. West European unwillingness to apply
sanctions against Libya probably is driven more by
fear of Libyan reprisals--in Western Europe or
against West Europeans working in Libya--as well
as by the desire to maintain good relations with
other Arab countries. They also continue to
believe that sanctions would be ineffective and
might set an unwelcome precedent.
is.memorandum was prepared by Office of European
Analysis. Questions and comments are we co a an may be addressed to
Chief, West European Division,
EUR M86-20001
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Declining Exports
The decline in West European exports to Libya during the
past few years is almost entirely due to Libya's financial
difficulties, rather than any European effort to restrict
exports. Italy remains by far the largest exporter, with
estimated sales of $1.3 billion last year--41 percent of the West
European total; West Germany is a distant second with sales of
about $600 million. Not surprisingly, West European exports to
Libya are dominated by manufactured products--more than two-
thirds of the total as of 1984--with machinery and semi-finished
goods constituting the two largest sub-categories.
Libya's share of West European exports has dropped from 1.4
percent in 1981 to a minuscule 0.4 percent in 1985. Italy is the
country most dependent on the Libyan market, with 1.7 percent of
its exports going there last year--but this share is down from
5.7 percent in 1981. Only two other West European countries sent
more than 1 percent of their exports to Libya last year: Turkey,
with about 1.6 percent (down from 9.4 percent in 1981) and Greese
with an estimated 1.2 percent (down from 5.2 percent in 1981).
Oil Dependency
Over the last decade or so Libyan oil has typically covered
about 7 percent of Western Europe's total oil consumption. Net
oil import volume has fallen somewhat from about 910,000 b/d in
1983 to about 820,000 during first-half 1985. Since 1983 Italy
has been the largest single West European importer of Libyan oil,
followed closely by West Germany; prior to 1983 the positions of
the two countries were reversed. Italy and West Germany together
account for more than half of Western Europe's oil imports from
Libya.
Greece is most dependent on Libyan oil, which covered 27
percent of Greece's total oil consumption in first-half 1985.
Following Greece were Turkey and Italy (15 percent each),
Switzerland (11 percent) and Austria and West Germany (9 percent
each). West European vulnerability to a Libyan oil embargo is
presumably less than these figures suggest, however, because of
the world oil glut--total West European imports of Libyan oil are
small in relation to the spare production capacity in other OPEC
countries.
Arms Sales
Libya, which gets almost three-quarters of its military
assistance from the Soviet Bloc, is a relatively small and
declining arms market for Western Europe. After averaging $588
million annually during 1980-1982, West European arms deliveries
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to Libya fell to $388 million in 1983 and $228 million in 1984.
Moreover, only $107 million in new arms agreements were signed
during 1983-1984, almost all of this coming in a single deal with
Italy. With French deliveries falling off sharply. Italy became
the largest West European arms supplier in 1984.
In 1985, the value of West European arms sales agreements
with Libya rose considerably, primarily because of a $500 million
Greek arrangement which calls for future deliveries of
ammunition, small arms, and various military equipment, including
personnel carriers and anti-tank weapons. In addition, Italy
signed a $422 million deal, mainly for the delivery of
unassembled trucks, while France signed $250 million worth of
contracts for the provision of spare parts, a naval simulator,
and a facility to produce tools and spare parts. We do not
believe this increase in agreements, however, will result in an
appreciable jump in annual military deliveries to Libya, in part
because the deliveries will be spread out over several years.
Furthermore, while the French and Italian deals seem fairly
solid, the Greek deal is only an agreement in principle and
Athens is cautious about going ahead for fear that the United
States would respond by curtailing arms sales to Greece,
including F-16s. Moreover, all major West European countries
have curbed sales of lethal weapons to Libya in light of Libya's
occupation of Chad and the terrorist incident at the Libyan
Embassy in London.
Workers in Libya
Information on the number of West European workers in Libya
is fragmentary but the total appears to be about 60,000 to
70,000. Turkey clearly heads the list with about 35,000 workers,
followed by Italy (16,000) and the United Kingdom (5,000). The
Turks are mainly construction workers involved in a variety of
projects contracted for by Tripoli. Their numbers have fallen
sharply over the last several years and their difficulties in
remitting their earnings to Turkey have been a source of great
concern to Ankara. Many of the workers from other West European
countries are technicians who play a key role in Libya's oil
industry.
Investment and Debt
Libyan investment in
Western Europe appears to be concentrated in Italy. Libya's
investments in industrial and commercial firms are mainly held by
the Libyan-Arab Foreign Investment Bank. According to press
reports, the Bank is worth $6 billion and has investments in 94
companies, 27 of which are in Western Europe. It now owns 14.5
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percent of Fiat's stock--worth about $145 million--but the
Agnelli family maintains controlling interest in the company.
Last November the Bank purchased a 70-percent interest in Italy's
100,000 b/d Tamoil oil refinery, including about 1,000 service
stations. Libya has banking interests in a number of West
European countries, including West Germany, France, Italy, and
Spain.
West European investment in Libya is concentrated in the oil
industry. Three West German oil firms--VEBA, Wintershall, and
Deminix--operate in Libya, two with Libyan partners. West German
investment in Libya totaled $107 million in 1983. Italy's
national energy corporation, ENI, has substantial investments in
Libya, and AGIP, an ENI subsidiary, is a large oil producing
company in the country. The French firm Elf also is engaged in
oil exploration and production in Libya. Austria's state oil
company, OMV, agreed last June to acquire 12.5 percent of Libya's
largest crude producer. The United Kingdom has not had
significant investments in Libya since British Petroleum pulled
out in 1969.
Libya may have as much as several billion dollars worth of
debts and unpaid bills outstanding to Western Europe, with Italy
probably being the largest creditor. The arrearages reportedly
total about $800 million for Italy, $400 million for Turkey, $125
million for France, $80 million for Spain, and $40 million for
Greece. In January 1985, Italy began taking 40,000 b/d of oil as
payment but Libya halted the oil shipments in August when Rome
refused to renew a long-term LNG contract. Mainly as a result of
these payments problems, West Germany and Italy have curtailed
export guarantees for goods going to Libya and Italy has also cut
off suppliers' credits to Libya.
Impact on Western Europe of Imposing Sanctions on Libya
Imposing economic sanctions on Libya would have little
impact on economic growth in Western Europe, although it might
put at risk the West Europeans' investments in Libya as well as
their financial claims against Tripoli. Using our Linked Policy
Impact Model we analyzed a rather extreme case--a total embargo
on EC exports to Libya--and found that real GDP growth in the
Community would be lowered by only 0.2 percentage point in the
first year and 0.1 point in the second year; the impact on the
unemployment rate for the region as a whole would be
insignificant. The Italian economy would be hardest hit with a
first-year GDP loss of 0.5 percentage point and a 0.1 percentage
point rise in unemployment.
While Western Europe's overall economic loss from sanctions
would be small, specific firms and regions could suffer
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substantially. Exporters to Libya--led by Fiat--probably would
be the bi e t losers.
A cutoff of Libyan payments would also cause serious
financial problems for several small Italian manufacturing and
construction firms, and perhaps for some banks as well. And of
course the oil companies operating in Libya could be hurt by a
Libyan seizure of their assets there. All of these affected
groups, along with West European arms producers, undoubtedly
would lobby hard for a quick end to the sanctions.
Implications
We believe the West Europeans' reluctance to impose
sanctions is not primarily driven by their economic ties to
Libya. In our view, it is more a reflection of West European
governments' concern about possible reprisals against their
citizens in Libya and about increased Libyan-sponsored terrorism
at home. Given Libya's support within the Arab League, the West
Europeans may also fear that sanctions would endanger their more
extensive economic relations with other Arab countries. Finally,
the West Europeans remain convinced that economic sanctions
rarely are effective and are concerned that imposing sanctions
this case might set an unwelcome precedent for the future.
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Table 1
Western Europe:
Value of Exports To Libya, 1976-1985
(million US dollars)
1976
1977
1978
1979
1980
1981
1982
1983
1984
19851
Western Europe
2909
3424
3870
5287
6689
10151
5567
5019
4158
3180
European Community 22503
3075
3463
4804
5918
8781
4704
4238
3450
2690
Belgium/Luxembourg
142
231
135
130
279
383
108
81
104
68
Denmark
18
19
17
21
31
55
33
51
27
16
France
350
398
533
650
671
907
428
334
212
220
Ireland
21
32
34
84
138
100
57
61
41
33
Italy
997
1225
1304
1926
2545
4297
2141
2104
1660
1293
Netherlands
82
92
90
122
166
267
192
246
185
143
United Kingdom
242
303
412
528
670
1067
460
417
328
281
Germany
522
650
822
1177
1251
1486
1173
841
804
583
Greece
130
125
114
166
168
220
113
102
89
53
Other West
European Countries
406
349
407
483
771
1371
863
781
708
490
Austria
43
51
62
91
122
149
121
107
97
68
Finland
19
10
11
39
54
65
49
30
28
17
Norway
4
5
8
9
10
7
9
7
3
3
Portugal
6
6
1
4
5
5
2
2
2
3
Spain
129
160
125
174
358
427
267
276
267
151
Sweden
117
23
47
69
76
177
94
76
71
55
Switzerland
78
80
104
54
86
99
86
99
100
73
Turkey
10
14
50
43
60
442
235
184
142
120
1Estimate
2Excluding Spain and Portugal
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Table 2
Western Europe: Share of Exports To Libya, 1976-1985
(percent of total exports;
1976
1977
1978
1979
1980
1981
1982
1983
1984
198:
Western Europe 0.73
0.74
0.70
0.76
0.83
1.36
0.77
0.71
0.57
0.44
European Community20.76
0.80
0.75
0.83
0.89
1.43
0.80
0.74
0.59
0.46
Belgium/Luxembourg 0.43
0.61
0.30
0.23
0.43
0.69
0.21
0.16
0.20
0.14
Denmark 0.20
0.19
0.15
0.14
0.18
0.34
0.22
0.32
0.17
0.10
France 0.61
0.61
0.67
0.65
0.58
0.85
0.44
0.35
0.22
0.23
Ireland 0.63
0.73
0.60
1.17
1.62
1.30
0.70
0.71
0.43
0.34
Italy 2.68
2.70
2.33
2.67
3.28
5.71
2.91
2.89
2.26
1.74
Netherlands 0.21
0.21
0.18
0.19
0.22
0.39
0.29
0.38
0.28
0.22
United Kingdom 0.53
0.54
0.61
0.61
0.61
1.04
0.47
0.45
0.35
0.29
Germany 0.51
0.55
0.58
0.68
0.65
0.84
0.66
0.50
0.47
0.34
Greece 5.07
4.54
3.38
4.29
3.25
5.17
2.62
2.30
1.86
1.20
Other West
European Countries 0.59
0.45
0.43
0.41
0.55
1.03
0.67
0.61
0.51
0.35
Austria
0.50
0.53
0.51
0.59
0.70
0.94
0.78
0.70
0.61
0.43
Finland
0.30
0.13
0.13
0.35
0.38
0.46
0.37
0.24
0.20
0.14
Norway
0.05
0.06
0.08
0.07
0.05
0.04
0.05
0.04
0.02
0.02
Portugal
0.33
0.31
0.02
0.10
0.11
0.11
0.05
0.04
0.03
0.01
Spain
1.48
1.57
0.96
0.95
1.73
2.10
1.30
1.40
1.13
0.67
Sweden
0.63
0.12
0.21
0.25
0.25
0.62
0.35
0.28
0.24
0.19
Switzerland
0.53
0.45
0.44
0.21
0.29
0.37
0.33
0.39
- 0.39
0.29
Turkey
0.50
0.77
2.17
1.91
2.07
9.40
4.07
3.22
1.99
1.60
lEstimate
2Excluding Spain and Portugal
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Western Europe: Net Imports of Libyan Oil by Volume, 1976-19851
(1,000 b/d)
1976
1977
1978
1979
1980
1981
1982
1983
1984
19852
Western Europe
1110
982
936
997
896
733
907
912
830
818
European Community3 943
815
756
819
687
557
692
705
636
661
Belgium/Luxembourg
0
0
3
10
5
2
61
47
31
3
Denmark
1
1
0
0
0
0
0
1
0
0
France
63
57
68
83
41
33
51
63
74
48
West Germany
423
395
307
358
312
216
226
212
195
204
Greece
38
9
5
24
56
65
50
52
49
63
Ireland
0
0
0
0
0
0
0
0
0
0
Italy
343
280
304
306
252
214
219
218
227
248
Netherlands
19
23
39
24
19
18
38
82
38
47
United Kingdom
55
49
30
15
3
9
46
30
23
49
Other West
European Countries
168
168
180
178
209
176
215
207
194
157
Austria
20
15
18
19
22
15
23
13
20
18
Finland
0
0
0
0
0
0
0
0
0
0
Norway
11
7
8
4
1
1
0
0
0
0
Portugal
3
0
0
0
0
0
2
3
0
0
Spain
103
116
114
111
97
92
80
79
79
59
Sweden
10
8
8
13
19
3
23
16
0
1
Switzerland
7
7
20
20
22
12
19
35
40
27
Turkey
13
15
12
11
48
53
68
61
54
52
llmports from Libya of crude and products minus exports to Libya of products.
2Estimate
3Excluding Spain and Portugal
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Table 4
Western Europe: Net imports of Libyan oil
as a share of total oil consumption, 1976-1985
(percent)
1976
1977
1978
1979
1980
1931
1982
1983
1984
19851
Western Europe
8.0
7.2
6.7
7.0
6.7
5.9
7.7
8.0
7.2
7.2
European Community28.6 7.6
8.0
7.1
7.6
Qelgium/Luxembourg
0
0
0.6
1.7
0.9
0.5
13.0
11.2
7.5
0.6
Denmark
0.3
0.4
0
0
0.1
0
0
0.6
0
0
France
2.6
2.5
2.9
3.5
1.9
1.6
2.8
3.5
4.3
2.8
West Germany
15.2
14.4
10.8
12.2
11.9
9.2
10.1
9.6
8.8
9.2
Greece
18.0
4.2
2.0
9.7
22.5
27.3
21.1
22.7
20.8
27.0
Ireland
0
0
0
0
0
0
0
0
0
0
Italy
17.4
14.6
15.2
14.8
12.9
11.2
12.1
12.2
13.4
14.6
Netherlands
2.4
3.0
5.0
2.9
2.4
2.6
6.2
14.1
6.6
8.2
United Kingdom
3.0
2.7
1.6
0.8
0.2
0.6
3.1
2.1
1.3
3.0
Other West
European Countries 5.7 5.9
6.3
6.0
7.1
6.3
7.9
7.8
7.6
6.1
Austria
8.5
6.7
7.6
7.7
8.8
7.0
10.9
6.4
10.1
9.1
Finland
0
0
0
0
0
0
0
0
0
0
Norway
6.4
3.7
4.5
1.9
0.6
0.9
0.2
0
0
0.1
Portugal
1.9
0
0.2
0.2
0.2
0
1.0
1.4
0.2
0.1
Spain
10.7
12.8
12.3
11.3
9.3
9.1
8.4
8.3
9.0
6.7
Sweden
1.8
1.5
1.4
2.3
3.8
0.8
5.3
4.4
0
0.4
Switzerland
2.8
2.6
7.4
7.6
8.6
5.0
8.6
14.3
16.8
11.4
Turkey
4.2
4.5
3.8
3.9
16.2
17.1
20.6
18.8
15.8
15.0
lEstimate
2Excluding Spain and Portugal
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Table 5
Western Europe:
Military Assistance To Libya*, 1980-1984
A = AGREEMENTS
D = DELIVERIES
(million US dollars)
1980
1981
1982
1983
1984
1985
A
D
A
D
A
D
A
D
A
D
A
D
365
668
106
544
193
553
1
388
106
228
1172
243
Austria
--
--
NEGL
NEGL
--
Belgium
277
93
--
216
--
NEGL
Finland
--
5
--
5
--
5
France
56
104
--
97
--
395
180
--
60
250
--
Germany
1
302
72
15
5
37
8
20
--
8
Greece
NA
--
500
--
Italy
NEGL
110
3
190
183
108
NEGL
176
97
147
422
235
Netherlands
18
18
30
8
--
--
30
--
--
--
--
Spain
NEGL
NEGL
--
NA
--
1
1
1
1
--
--
Sweden
Switzerland
-
--
1
Turkey
5
3
--
13
--
3
NA
NEGL
United Kingdom
8
33
1
--
4
*DIA Estimates
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Western Europe: Workers Currently in Libya
Turkey 35,000
Italy 16,000
United Kingdom 5,000
Greece 2,000
Portugal 1,700
Germany 1,500
France 1,200
Ireland 1,000
Netherlands 450
Austria 200
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Western Europe: Selected Companies Dealing with Libya
Manufacturing and Service Companies
West Germany
BASF
Brown Boveri & Compagnie
Buckau-Walther AG.
Detecon
Kloeckner-Humboldt-Deutz
Kutluat
Liquid Gas Anlagen
Siemens
Thyssen Engineering
VEBA
France
Air France
BBC Brown
Bouygues
EMH
Societe Internationale de Dessalement
Societe Nationale Elf Aquitaine (Elf)
Sofrerail
Spie Batignolles
USINOR
United Kingdom
Barkley Bank
Brown & Root
Brush Transformers
Cubitt & Partners
Imperial Chemical Industries (ICI)
John Brown Offshore
Motherwell Bridge
Tilden Industries
Transmark
Weir Group
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Manufacturing and Service Companies (continued)
Italy
AGIP North Africa & Middle East (Subsidiary of ENI)
Belleli
Fasano
Fiat
Micoperi
SNAM (Societa Nazionale Metandotti) (Subsidiary of ENI)
Snamprogetti (Subsidiary of ENI)
Technimont
Transmediterranea di Navigazione
Spain
Construcciones Internacionales
Ferrovial
Foster Wheeler Iberia
Huarte
Page Iberia, S.A.
Netherlands
Royal Boscalis Westminster
Switzerland
Geos Ingenieur-Conseil
Marc Rich Co. AG
Sulzer Escher Wyss
Unibuild
Belgium
Ateliers de Constructions Electriques de Charleroi
Belgonucleaire
Cockerill
Electrobel
Electrobel Engineering International
Fabricom
Tractionel
Austria
Voest-Alpine
Norway
Aircontact
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Manufacturing and Service Companies (continued)
Turkey
Dogus Construction
ENKA
Temel Investigation
Luxembourg
TRATCO
Defense Industries
France
Aerospatiale
Construction Mecaniques de Normandie
Dassault
Electronique Marcel Dassault
Engins Matra
Matra SA
Thomson-CSF
TRT
United Kingdom
Alvis
British Aerospace Dynamic Group
Daimler Company
Augusta Bell
Fiat
Oto Melara Spa
Siai-Machetti
Financial Institutions
West Germany
Commerzbank
Deutsche Bank
Dresdner Bank
France
Banque de Paris
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Financial Institutions (continued)
United Kingdom
Barclay's Bank
Lloyds
Italy
Banca Nazionale del Lavoro
Banca di Roma
Netherlands
Algemene Bank
Austria
Austrian Central Bank
Creditanstalt Bankverein
Norway
Christiana Bank
Turkey
Akbank
Garanti Bankasi
Is Bankasi
Pamukbank
Ticaret Bankasi
Uluslararasi Bankasi
Vakiflar Bankasi
Yapi ve Kredi Bankasi
Greece
Bank of Greece
Malta
Central Bank of Malta
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Memorandum for: DDI
Here is the revised package we prepared for
Deputy Secretary Whitehead Friday. The main
changes i;ere to factor Ottawa into the over-
view paper and to add 9 separate country
annexes keyed to his stops. The latter task
involved more original work, mainly by
our WE Division, than I anticipated. when we
spoke Friday morning.
We are handcarrying the package Saturday
morning to Whitehead's office, along with
separate copies for Mike Armacost and
Ambassador Ridgway (both received the original
paper) and Ambassador Oakley, who tasked us
separately for the same material. A copy
also
Monona Monona
o E. McLaughlin
Deputy Director
0 Jan 86
EURA
Office of European Analysis
Directorate of Intelligence
25X1
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Central Intelligence Agency
10 January 1986
Western Europe and Canada: Economic Links with Libya
Summary
Western Europe's well-known reluctance to
impose sanctions against Libya is only partly due
to economic considerations because overall
economic relations with Libya'are relatively
small; this applies even more so to Canada. West
European exports to Libya dropped to an estimated
$3.2 billion last year, less than one-third of the
1981 figure and equal to only 0.4 percent of total
exports. Although imports of Libyan oil have
fallen less sharply, to about 840,000 b/d last
year, they only cover about 7 percent of Western
Europe's oil consumption--an insignificant share
given the glut in the world oil market. We
calculate that even a total cutoff of EC exports
to Libya would have only a minimal impact on West
European economies. As for Canada, Libya in 1985
took less than 0.1 percent of Canadian exports and
accounted for less than 1 percent of Canadian oil
consumption. In addition to trade considerations,
the West Europeans also fear the loss of perhaps
several billion dollars of outstanding loans and
unpaid bills owed by Libya. The Allies'
unwillingness to apply sanctions against Libya
probably is driven more by fear of Libyan
reprisals--at home or against their citizens in
Libya--as well as by the desire to maintain good
relations with other Arab countries. They also
continue to believe that sanctions would be
ineffective, and might set an unwelcome
precedent.
This memorandum was prepared by Office of European
Analysis. Questions and comments are welcome and may be addressed to
Chief, West European Division,
EUR M86-20001
25X1
25X1
25X1
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Declining Exports
The decline in West European and Canadian exports to Libya
during the past few years is almost entirely due to Libya's
financial difficulties, rather than any effort to restrict
exports. Italy remains by far the largest exporter, with
estimated sales of $1.3 billion last year--41 percent of the West
European total; West Germany is a distant second with sales of
about $600 million. Not surprisingly, exports to Libya are
dominated by manufactured products--more than two-thirds of the
total as of 1984--with machinery and semi-finished goods
constituting the two largest sub-categories.
Libya's share of West European exports has dropped from 1.4
percent in 1981 to 0.4 percent in 1985; for Canada it has never
exceeded 0.1 percent. Italy is the country most dependent on the
Libyan market, with 1.7 percent of its exports going there last
year--but this share is down from 5.7 percent in 1981. Only two
other West European countries sent more than 1 percent of their
exports to Libya last year: Turkey, with about 1.6 percent (down
from 9.4 percent in 1981) and Greece with an estimated 1.2
percent (down from 5.2 percent in 1981).
Oil Dependency
Over the last decade or so Libyan oil has typically covered
about 7 percent of Western Europe's total oil consumption and
less than 1 percent of Canada's--and in any event, Canada is a
net oil exporter. Net West European oil import volume from Libya
has fallen somewhat from about 910,000 b/d in 1983 to about
840,000 during January-September 1985. Since 1983 Italy has been
the largest single West European importer of Libyan oil, followed
closely by West Germany; prior to 1983 the positions of the two
countries were reversed. Italy and West Germany together account
for more than half of Western Europe's oil imports from Libya.
Greece is most dependent on Libyan oil, which covered 27
percent of Greece's total oil consumption during January-
September 1985. Following Greece were Turkey and Italy (15
percent each), Switzerland (11 percent) and Austria and West
Germany (9 percent each). West European vulnerability to a
Libyan oil embargo is presumably less than these figures suggest,
however, because of the world oil glut--total West European
imports of Libyan oil are small in relation to the spare
production capacity in other OPEC countries.
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 Declassified in Part - Sanitized Copy Approved for Release 2011/12/12 : CIA-RDP86T01017R000303250001-7
Arms Sales
Libya, which gets almost three-quarters of its military
assistance from the Soviet Bloc, is a relatively small and
declining arms market for Western Europe, and a tiny market for
Canada. After averaging $588 million annually during 1980-1982,
West European arms deliveries to Libya fell to $388 million in
1983 and $288 million in 1984. Moreover, only $314 million in
new arms agreements were signed during 1983-1984, almost all of
this coming in a single deal with Italy. With French deliveries
falling off sharply, Italy became the largest West European arms
supplier in 1984. Canadian arms deliveries totaled only $12
million during 1980-1984 and no new agreements were signed during
In 1985, the value of West European arms sales agreements
with Libya rose considerably, primarily because of a 3500 million
Greek arrangement which calls for future deliveries of
ammunition, small arms, and various military equipment, including
personnel carriers and anti-tank weapons. In addition, Italy
signed a $422 million deal, mainly for the delivery of
unassembled trucks, while France signed $250 million worth of
contracts for the provision of spare parts, a naval simulator,
and a facility to produce tools and spare parts. We do not
believe this increase in agreements, however, will result in an
appreciable jump in annual military deliveries to Libya, in part
because the deliveries will be spread out over several years.
Furthermore, while the French and Italian deals seem fairly
solid, the Greek deal is only an agreement in principle and
Athens is cautious about going ahead for fear that the United
States would respond by curtailing arms sales to Greece,
including F-16s. Moreover, all major West European countries
have curbed sales of lethal weapons to Libya in light of Libya's
occupation of Chad and the terrorist incident at the Libyan
Workers in Libya
Information on West European and Canadian workers in Libya
is fragmentary but the total number clearly has fallen sharply
over the last few years and probably is below 50,000. Turkey
alone had about 120,000 workers in Libya in 1981, almost all of
them involved in a wide variety of construction projects
undertaken by Turkish firms. By December 1985 the number had
plunged to about 14,000, according to the Turkish press, mainly
because of Libya's financial difficulties. Italy probably heads
the list now with about 15,000 workers, followed by Turkey and
the United Kingdom (5,000). Many of the workers from West
European countries and Canada are technicians who play a key role
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 Declassified in Part - Sanitized Copy Approved for Release 2011/12/12 : CIA-RDP86T01017R000303250001-7
Investment and Debt
Libyan investment in
Western Europe appears to be concentrated in Italy. Libya's
investments in industrial and commercial firms are mainly held by
the Libyan-Arab Foreign Investment Bank. According to press
reports, the Bank is worth $6 billion and has investments in 94
companies, 27 of which are in Western Europe. It now owns 13.8
percent of Fiat's stock--worth about $225 million--but the
Agnelli family maintains controlling interest in the company.
Last November the Bank purchased a 70-percent interest in Italy's
100,000 b/d Tamoil oil refinery, including about 1,000 service
stations. Libya has banking interests in a number of West
European countries including West Germany, France, Italy, and
West European investment in Libya is concentrated in the oil
industry. Three West German oil firms--VEBA, Wintershall, and
Deminix--operate in Libya, two with Libyan partners. West German
investment in Libya totaled $107 million in 1983. Italy's
national energy corporation, ENI, has substantial investments in
Libya, and AGIP, an ENI subsidiary, is a large oil producing
company in the country. Austria's state oil company, OMV,
agreed last June to acquire 12.5 percent of Libya's largest crude
producer. Embassy Paris reports that French investment in Libya
is minuscule with many firms having pulled out since 1981. The
United Kingdom has not had significant investments in Libya since
British Petroleum pulled out in 1969.
Libya may have as much as several billion dollars worth of
debts and unpaid bills outstanding to Western Europe, with Italy
probably being the largest creditor. The arrearages reportedly
total about $800 million for Italy, $400 million for Turkey, $80
million for Spain, $55 million for France, and $40 million for
Greece. In January 1985, Italy began taking 40,000 b/d of oil as
payment but Libya halted the oil shipments in August when Rome
refused to renew a long-term LNG contract. Mainly as a result of
these payments problems, West Germany and Italy have curtailed
export guarantees for goods going to Libya and Italy has also cut
off suppliers' credits to Libya.
Impact on Western Europe of Imposing Sanctions on Libya
Imposing economic sanctions on Libya would have little
impact on economic growth in Western Europe, although it might
put at risk the West Europeans' investments in Libya as well as
their financial claims against Tripoli. Using our Linked Policy
Impact Model we analyzed a rather extreme case--a total embargo
on EC exports to Libya--and found that real GDP growth in the
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 Declassified in Part - Sanitized Copy Approved for Release 2011/12/12 : CIA-RDP86TO1017R000303250001-7 25X1
Community would be lowered by only 0.2 percentage point in the
first year and 0.1 point in the second year; the impact on the
unemployment rate for the region as a whole would be
insignificant. The Italian economy would be hardest hit with a
first-year GDP loss of 0.5 percentage point and a 0.1 percentage
point rise in unemployment.
While Western Europe's overall economic loss from sanctions
would be small, specific firms and regions could suffer
substantially. Exporters to Libya--led by be the biggest losers.
cu o o i yan payments would also cause serious
financial problems for several small Italian manufacturing and
construction firms, and perhaps for some banks as well. And of
course the oil companies operating in Libya could be hurt by a
Libyan seizure of their assets there. All of these affected
groups, along with West European arms producers, undoubtedly
would lobby hard against the imposition of sanctions.
Implications
We believe West European and Canadian reluctance to impose
sanctions is not primarily driven by their economic ties to
Libya. In our view, it is more a reflection of concern about
possible reprisals against their citizens in Libya and about
increased Libyan-sponsored terrorism at home. Given Libya's
support within the Arab League, they may also fear that sanctions
would endanger their more extensive economic relations with other
The West Europeans also remain convinced that economic
sanctions rarely are effective and should be used only in the
most extraordinary circumstances. Both Fabius and Thatcher
recently have said that 100 percent effectiveness is necessary
for success and dismiss such a prospect as unrealistic. In the
past, the West Europeans have been reluctant to join US initiated
economic embargos, although they grudgingly sided with Thatcher
in 1982 over the Falklands (principally in the name of "EC
solidarity"). Most recently, though agreeing to some sanctions
on trade with South Africa, they have shied away from other than
largely symbolic or future constraints. That said, were a major
West European power to call for sanctions (as France did with
regard to South Africa), the EC would seek some accommodation of
the request. Unless the West Europeans become more open to
sanctions, we see no reason to expect that EC foreign ministers,
when they meet on 27 January or perhaps earlier, will agree to
implement broad economic measures against Libya.
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 Declassified in Part - Sanitized Copy Approved for Release 2011/12/12 : CIA-RDP86T01017R000303250001-7
Table 1
Western Europe and Canada:
Value of Exports To Libya, 1976-1985
(million US dollars)
1976
1977
1978
1979
1980
1981
1982
1983
1984
19851
Canada
11
18
18
32
61
93
96
62
60
56
Western Europe
2909
3424
3870
5287
6689
10151
5567
5019
4158
3180
European Community22503
3075
3463
4804
5918
8781
4704
4238
3450
2690
Belgium/Luxembourg
142
231
135
130
279
383
108
81
104
68
Denmark
18
19
17
21
31
55
33
51
27
16
France
350
398
533
650
671
907
428
334
212
220
Ireland
21
32
34
84
138
100
57
61
41
33
Italy
997
1225
1304
1926
2545
4297
2141
2104
1660
1293
Netherlands
82
92
90
122
166
267
192
246
185
143
United Kingdom
242
303
412
528
670
1067
460
417
328
281
Germany
522
650
822
1177
1251
1486
1173
841
804
583
Greece
130
125
114
166
168
220
113
102
89
53
Other West
European Countries
406
349
407
483
771
1371
863
781
708
490
Austria
43
51
62
91
122
149
121
107
97
68
Finland
19
10
11
39
54
65
49
30
28
17
Norway
4
5
8
9
10.
7
9
7
3
3
Portugal
6
6
1
4
5
5
2
2
2
3
Spain
129
160
125
174
358
427
267
276
267
151
Sweden
117
23
47
69
76
177
94
76
71
55
Switzerland
78
80
104
54
86
99
86
99
100
73
Turkey
10
14
50
43
60
442
235
184
142
120
lEstimate
2Excluding Spain and Portugal
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 Declassified in Part - Sanitized Copy Approved for Release 2011/12/12 : CIA-RDP86T01017R000303250001-7
Table 2
Western Europe and Canada: Share of Exports To Libya, 1976-1985
(percent of total exports)
1976
1977
1978
1979
1980
1981
1982
1983
1984
19851
Canada 0.03
0.04
0.04
0.05
0.09
0.13
0.13
0.08
0.07
0.06
Western Europe 0.73
0.74
0.70
0.76
0.83
1.36
0.77
0.71
0.57
0.44
European Community20.76
0.80
0.75
0.83
0.89
1.43
0.80
0.74
0.59
0.46
Belgium/Luxembourg 0.43
0.61
0.30
0.23
0.43
0.69
0.21
0.16
0.20
0.14
Denmark 0.20
0.19
0.15
0.14
0.18
0.34
0.22
0.32
0.17
0.10
France 0.61
0.61
0.67
0.65
0.58
0.85
0.44
0.35
0.22
0.23
Ireland 0.63
0.73
0.60
1.17
1.62
1.30
0.70
0.71
0.43
0.34
Italy 2.68
2.70
2.33
2.67
3.28
5.71
2.91
2.89
2.26
1.74
Netherlands 0.21
0.21
0.18
0.19
0.22
0.39
0.29
0.38
0.28
0.22
United Kingdom 0.53
0.54
0.61
0.61
0.61
1.04
0.47
0.45
0.35
0.29
Germany 0.51
0.55
0.58
0.68
0.65
0.84
0.66
0.50
0.47
0.34
Greece 5.07
4.54
3.38
4.29
3.25
5.17
2.62
2.30
1.86
1.20
Other West
European Countries 0.59
0.45
0.43
0.41
0.55
1.03
0.67
0.61
0.51
0.35
Austria
0.50
0.53
0.51
0.59
0.70
0.94
0.78
0.70
0.61
0.43
Finland
0.30
0.13
0.13
0.35
0.38
0.46
0.37
0.24
0.20
0.14
Norway
0.05
0.06
0.08
0.07
0.05
0.04
0.05
0.04
0.02
0.02
Portugal
0.33
0.31
0.02
0.10
0.11
0.11
0.05
0.04
0.03
0.01
Spain
1.48
1.57
0.96
0.95
1.73
2.10
1.30
1.40
1.13
0.67
Sweden
0.63
0.12
0.21
0.25
0.25
0.62
0.35
0.28
0.24
0.19
Switzerland
0.53
0.45
0.44
0.21
0.29
0.37
0.33
0.39
0.39
0.29
Turkey
0.50
0.77
2.17
1.91
2.07
9.40
4.07
3.22
1.99
1.60
lEstimate
2Excluding Spain and Portugal
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 Declassified in Part - Sanitized Copy Approved for Release 2011/12/12 : CIA-RDP86T01017R000303250001-7
Table 3
Western Europe and Canada: Net Imports of Libyan Oil by Volume, 1976-19851
(1,000 b/d)
1976
1977
1978
1979
1980
1981
1982
1983
1984
19852
Canada
20
0
5
7
5
7
1
5
5
5
Western Europe
1110
982
936
997
896
733
907
912
830
844
European Community3 943
815
756
819
687
557
692
705
636
687
Belgium/Luxembourg
0
0
3
10
5
2
61
47
31
2
Denmark
1
1
0
0
0
0
0
1
0
0
France
63
57
68
83
41
33
51
63
74
63
West Germany
423
395
307
358
312
216
226
212
195
203
Greece
38
9
5
24
56
65
50
52
49
63
Ireland
0
0
0
0
0
0
0
0
0
0
Italy
343
280
304
306
252
214
219
218
227
256
Netherlands
19
23
39
24
19
18
38
82
38
49
United Kingdom
55
49
30
15
3
9
46
30
23
51
Other West
European Countries
168
168
180
178
209
176
215
207
194
157
Austria
20
15
18
19
22
15
23
13
20
18
Finland
0
0
0
0
0
0
0
0
0
0
Norway
11
7
8
4
1
1
0
0
0
0
Portugal
3
0
0
0
0
0
2
3
0
0
Spain
103
116
114
111
97
92
80
79
79
59
Sweden
10
8
8
13
19
3
23
16
0
1
Switzerland
7
7
20
20
22
12
19
35
40
27
Turkey
13
15
12
11
48
53
68
61
54
52
lImports from Libya of crude and products minus exports to Libya of products.
2Estimate
3Excluding Spain and Portugal
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 Declassified in Part - Sanitized Copy Approved for Release 2011/12/12 : CIA-RDP86T01017R000303250001-7
Table 4
Western Europe and Canada: Net imports of Libyan oil
as a share of total oil consumption, 1976-1985
(percent)
1976
1977
1978
1979
1980
1981
1982
1983
1984
19851
Canada
1.1
0
0.3
0.4
'0.3
0.4
0.1
0.4
0.4
0.4
Western Europe
8.0
7.2
6.7
7.0
6.7
5.9
7.7
8.0
7.2
7.4
European Community28.6 7.6
6.8
7.2
6.6
5.8
7.7
8.0
7.1
7.9
Belgium/Luxembourg
0
0
0.6
1.7
0.9
0.5
13.0
11.2
7.5
0.6
Denmark
0.3
0.4
0
0
0.1
0
0
0.6
0
0
France
2.6
2.5
2.9
3.5
1.9
1.6
2.8
3.5
4.3
3.7
West Germany
15.2
14.4
10.8
12.2
11.9
9.2
10.1
9.6
8.8
9.2
Greece
18.0
4.2
2.0
9.7
22.5
27.3
21.1
22.7
20.8
27.0
Ireland
0
0
0
0
0
0
0
0
0
0
Italy
17.4
14.6
15.2
14.8
12.9
11.2
12.1
12.2
13.4
15.1
Netherlands
2.4
3.0
5.0
2.9
2.4
2.6
6.2
14.1
6.6
8.5
United Kingdom
3.0
2.7
1.6
0.8
0.2
0.6
3.1
2.1
1.3
3.0
Other West
European Countries 5.7 5.9
6.3
6.0
7.1
6.3
7.9
7.8
7.6
6.1
Austria 8.5 6.7
7.6
7.7
8.8
7.0
10.9
6.4
10.1
9.1
Finland 0 0
0
0
0
0
0
0
0
0
Norway 6.4. 3.7
4.5
1.9
0.6
0.9
0.2
0
0
0.1
Portugal 1.9 0
0.2
0.2
0.2
0
1.0
1.4
0.2
0.1
Spain 10.7 12.8
12.3
11.3
9.3
9.1
8.4
8.3
9.0
6.7
Sweden 1.8 1.5
1.4
2.3
3.8
0.8
5.3
4.4
0
0.4
Switzerland 2.8 2.6
7.4
7.6
8.6
5.0
8.6
14.3
16.8
11.4
Turkey 4.2 4.5
3.8
3.9
16.2
17.1
20.6
18.8
15.8
15.0
lEstimate
2Excluding Spain and Portugal
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 Declassified in Part - Sanitized Copy Approved for Release 2011/12/12 : CIA-RDP86TO1017R000303250001-7 '5X1
I I
Western Europe and Canada: Military Assistance To Libya*, 1980-1984
A = AGREEMENTS D = DELIVERIES
(million US dollars)
1980 1981 1982 1983 1984 1985
A D A D A D A D A D A D
Canada -- 5 -- 5 2
Western Europe 365 668 106 544 193 553 1 388 106 228 1172 243
Austria -- -- NEGL NEGL
Belgium 277 93 -- 216 -- NEGL
Finland -- 5 -- 5 -- 5
France 56 104 -- 97 -- 395 -- 180 -- 60 250 --
Germany 1 302 72 15 5 37 -- -- 8 20 -- 8
Greece -- -- -- -- -- -- -- -- NA -- 500
--
Italy NEGL 110 3 190 183 108 NEGL 176 97 147 422 235
Netherlands 18 18 30 8 -- -- -- 30 -- -- -- --
Spain NEGL NEGL -- NA -- -- 1 1 1 1 -- --
Sweden -- -- -- -- -- -- -- -- -- -- -- --
Switzerland -- -- -- -- 1 -- -- 1 -- -- -- --
Turkey 5 3 -- 13 -- 3 NA NEGL -- -- -- --
United Kingdom 8 33 1 -- 4 5 -- -- -- -- --
*DIA Estimates
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 Declassified in Part - Sanitized Copy Approved for Release 2011/12/12 : CIA-RDP86TO1017R000303250001-7 25X1
Western Europe and Canada: Workers Currently in Libya
Canada
Western Europe
1,300
42,000
Italy 15,000
Turkey 14,000
United Kingdom 5,000
Greece 2,000
Portugal 1,700
Germany 1,500
France 1,200
Ireland 1,000
Netherlands 400
Austria 200
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 Declassified in Part - Sanitized Copy Approved for Release 2011/12/12 : CIA-RDP86T01017R000303250001-7 25X1
Table 7
Western Europe: Selected Companies Dealing with Libya
Manufacturing and Service Companies
West Germany
BASF
Brown Boveri & Compagnie
Buckau-Walther AG.
Detecon
Kloeckner-Humboldt-Deutz
Kutluat
Liquid Gas Anlagen
Siemens
Thyssen Engineering
VEBA
France
Air France
BBC Brown
Bouygues
EMH
Societe Internationale de Dessalement
Societe Nationale Elf Aquitaine (Elf)
Sofrerail
Spie Batignolles
USINOR
United Kingdom
Barkley Bank
Brown & Root
Brush Transformers
Cubitt & Partners
Imperial Chemical Industries (ICI)
John Brown Offshore
Motherwell Bridge
Tilden Industries
Transmark
Weir Group
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 Declassified in Part - Sanitized Copy Approved for Release 2011/12/12 : CIA-RDP86T01017R000303250001-7
Manufacturing and Service Companies (continued)
Italy
AGIP North Africa & Middle East (Subsidiary of ENI)
Belleli
Fasano
Fiat
Micoperi
SNAM (Societa Nazionale Metandotti) (Subsidiary of ENI)
Snamprogetti (Subsidiary of ENI)
Technimont
Transmediterranea di Navigazione
Spain
Construcciones Internacionales
Ferrovial
Foster Wheeler Iberia
Huarte
Page Iberia, S.A.
Netherlands
Royal Boscalis Westminster
Switzerland
Geos Ingenieur-Conseil
Marc Rich Co. AG
Sulzer Escher Wyss
Unibuild
Belgium
Ateliers de Constructions Electriques de Charleroi
Belgonucleaire
Cockerill
Electrobel
Electrobel Engineering International
Fabricom
Tractionel
Austria
Voest-Alpine
Norway
Aircontact
13
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 Declassified in Part - Sanitized Copy Approved for Release 2011/12/12 : CIA-RDP86T01017R000303250001-7
Manufacturing and Service Companies (continued)
Turkey
Dogus Construction
ENKA
Temel Investigation
Luxembourg
TRATCO
Defense Industries
France
Aerospatiale
Construction Mecaniques de Normandie
Dassault
Electronique Marcel Dassault
Engins Matra
Matra SA
Thomson-CSF
TRT
United Kingdom
Alvis
British Aerospace Dynamic Group
It al
Augusta Bell
Fiat
Oto Melara Spa
Siai-Machetti
Financial Institutions
West Germany
Commerzbank
Deutsche Bank
Dresdner Bank
France
Banque de Paris
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 Declassified in Part - Sanitized Copy Approved for Release 2011/12/12 : CIA-RDP86T01017R000303250001-7
Financial Institutions (continued)
United Kingdom
Barclay's Bank
Lloyds
Italy
Banca Nazionale del Lavoro
Banca di Roma
Netherlands
Algemene Bank
Austria
Austrian Central Bank
Creditanstalt Bankverein
Norway
Christiana Bank
Turkey
Akbank
Garanti Bankasi
Is Bankasi
Pamukbank
Ticaret Bankasi
Uluslararasi Bankasi
Vakiflar Bankasi
Yapi ve Kredi Bankasi
Greece
Bank of Greece
Malta
Central Bank of Malta
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