WESTERN EUROPE AND CANADA: ACTIONS AFFECTING US SANCTIONS AGAINST LIBYA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86T01017R000303380001-3
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 23
• Document Creation Date: December 22, 2016
• Document Release Date: March 9, 2011
• Sequence Number: 1
• Publication Date: February 4, 1986
• Content Type: MEMO

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1~-FIfG r,~ I I 0
DATE g!o "ON2-
DOC No
OCR 3
P&PD
Central Intelligence Agency
Western Europe `and Canada: Actions Affecting US Sanctions
Against Libya
4 February 1986
This paper was prepared by the West European Division, Office of European
Analysis. Questions and comments are welcome and may be addressed to
Chief, West European Division
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AUSTRIA
Actions Supporting US Sanctions
--Vienna said it will advise Austrian firms not to undercut
--It also decided to require visas for holders of Tunisian
passports and_-- according to press reports -- possibly for
--It made demarches in Tripoli, Teheran and Damascus
requesting clarification of their possible support for
terrorism.
--In response to Libyan disclaimers of the Vienna and Rome
airport attacks and terrorism in general, Foreign Minister
Gratz said publicly that actions must now follow words.
Actions Undermining US Sanctions
--Vienna has refused to take part in the sanctions against
Libya, claiming that Austria, as a neutral, could only
participate in sanctions applied by the UN Security.
--Senior Austrian officials, especially Interior Minister
Blecha, have publicly said that interrogations of the
terrorists involved in the Vienna airport attack implicated
Syria and Iran, not Libya
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Actions Supporting US Sanctions
--Belgian officials have told US representatives they will
work in concert with the EC to fight terrorism and will
from Libya.
--The Belgian Foreign Ministry is considering a reduction in
the Libyan presence i russels to the level of Belgium's
in Tripoli.
--Brussels is also considering tightening control over the
movement of Libyan diplomats.
Actions Undermining US Sanctions
--Government officials have stated that Brussels will
continue to follow its traditional policy opposing economic
--Despite government calls to cancel its visit, a private
Belgian trade delegation last week visited Tripoli.
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Actions Supporting US Sanctions
--Ottawa has offered strong rhetorical support for US actions
and urged Canadian firms not to undercut sanctions; in
addition, it has called on Japan and the EC to be tougher
on Libya and decried "limp" European reaction.
--The government also has cancelled export insurance for
business with Libya and banned the export of some oil and
gas equipment
--Alberta's premier strongly supported US actions and urged
provincial workers not to replace Americans.
--Recent polls showed Canadians were in favor of Ottawa
implementing tougher economic sanctions. 25X1
Actions Undermining US Sanctions
--An employment agency in Calgary announced it was swamped
with calls asking for jobs in Libya, but the US Embassy in
Ottawa reports most of the applicants are unqualified.
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Actions Supporting US Sanctions
--Copenhagen favors strong international action against
Actions Undermining US Sanctions 25X1
--Foreign Minister Ellemann-Jensen has publicly said he
doubts the efficacy of economic sanctions.
--Denmark has indicated that it would only implement economic
sanctions as part of an EC-wide policy. 25X1
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FINLAND
Actions Supporting US Sanctions
--None
Actions Undermining US Sanctions 25X1
--Helsinki will not impose economic sanctions against Libya;
it would reconsider only if a wide international consensus
develops or if the UN Security Council recommends.
--Government officials have publicly rejected the use of
economic sanctions as means of dealing with terrorism.
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Actions Supporting US Sanctions
--In comments to reporters after his meeting with Deputy
Secretary Whitehead, Foreign Minister Dumas confirmed that
France would not try to benefit from the US withdrawal from
Libya. He also said that the EC was intent on "accentuated
cooperation" in the fight against terrorism. In addition,
Dumas said publicly on 26 January that France favors a
"merciless war against terrorism."
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Actions Supporting US Sanctions
--Athens has condemned terrorism in general terms.
--It has taken measures to prevent terrorist incidents in
Greece by reinforcing already-tight security measures at
Athens airport and expanding efforts to police the large
Arab community in Athens.
--At the request of the US, the Greeks have spoken w
Syrians about Abu Nidal's operations in Damascus.
--Foreign Minister Papoulias told US officials privately that
Greece is not no elling arms to Libya nor would it in the
future. I W~
Actions Undermining US Sanctions
--A Greek government spokesman, in response to press queries,
said publicly that Greece is "making full use" of its
economic agreement with Libya, including the possibilities
--Athens also has said publicly that it would not apply
economic sanctions against Libya.
--Greece -- in cooperation with Spain, France, and Italy
successfully blocked the inclusion of any specific
reference to Libya in the joint EC statement on
terrorism.
--Foreign Minister Papoulias, as well as Greek political
leaders, received the Libyan Deputy Foreign minister on 17
January.
--Foreign minister Papoulias stated publicly on 21 January
that no Greek government official recognizes the
involvement of Qadhafi in terrorist attacks. Moreover, he
claimed Greece had evidence that Qadhafi was not involved
in the terrorist attacks at the Rome and Vienna airports.
--Prime Minister Papandreou said in a news conference in New
Dehli on 27 January that Greece would not allow US bases in
Greece to be used in the event of a US attack against
Libya. He also reiterated his opposition to US sanctions
against Libya.
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ICELAND
Actions Supporting US Sanctions
--None
Actions Undermining US Sanctions
--The government rejected participation in trade sanctions
against Libya.
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Actions Supporting US Sanctions
--Dublin has made no official statements on US sanctions, but
has supported recent EC actions on terrorism.
Actions Undermining US Sanctions
--Opposition Fianna Fail Party leader and former Prime
Minister Haughey has publicly condemned US sanctions.
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ITALY
Actions Supporting US Sanctions
--Prime Minister Craxi extended a 1981 ban on new "dangerous"
arms sales to Libya to include all military ecruipment and
the completion of existing contracts.
--Craxi stated on 9 January that he will order Italian
public-sector companies not to step in behind vacating US
firms in Libya, and he will apply moral suasion to prevent
private firms from doing so.
--The Italian government initiated a study of its economic
and political ties with Libya with the declared aim of
gradually reducing those ties in the future.
--Craxi made a firm statement condemning state-supported
terrorism on 28 January, specifically citing both Libya and
--Craxi has refused to assure Qadhafi that he will deny the
United States the use of Italian bases for a military
attack on Libya in return for Qadhafi's alleged promise to
dissuade other Arab nations from carrying out terrorist
acts in Italy. Craxi has also rejected Maltese offers to
arrange a meeting with Qadhafi.
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Actions Supporting US Sanctions
--Luxembourg called for the EC to specifically mention Libya
as a country that sponsors terrorism.
--The government sent a letter to the Luxembourg Chamber of
Commerce advising its members not to take advantage of
economic opportunities in Libya caused by departing US
Actions Undermining US Sarctickns
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Actions Supporting US Sanctions
--The Hague claims it is discouraging Dutch firms from
replacing US companies in Libya.
--The government also plans to use its EC presidency to lobby
for a community-wide arms embargo directed specifically
against Libya and to revive an EC working group on airport
security.
Actions Undermining US Sanctions
--Government officials have publicly said that economic
sanctions will not hurt the Libyan economy enough to alter
Qadhafi's support for terrorists.
--The Dutch Foreign Minister has been particularly outspoken
in his criticism about the lack of US consultations prior
to imposition of sanctions and has repeatedly expressed
fears that US sanctions might sour relations in the
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Actions Supporting US Sanctions
--Oslo has assured US officials that it will attempt to
persuade Norwegian businesses and technicians not to
replace Americans leaving Libya.
--The government has restated its long-standing ban on
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Actions Undermining US Sanctions
--Oslo has publicly questioned the effectiveness of economic
sanctions and has refused to implement sanctions of its
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PORTUGAL
Actions Supporting US Sanctions
--Lisbon has publicly condemned "blind terrorism."
Actions Undermining US Sanctions
--Foreign Minister.Pires de Miranda publicly emphasized that
Portugal would support unified EC action, but would not act
alone. He argued that economic sanctions do not work, and
that Portugal is too small and vulnerable to be able to
take independent action.
--Pires de Miranda has clarified earlier confusion about the
use of Lajes Air Base and told US Embassy officials that
Portugal would not accept the use of Lajes by the US for
military action against Libya without Portuguese.
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Actions Supporting US Sanctions
--A Foreign Ministry official stated publicly on 8 January
that Spain is against terrorism as a matter of principle
and is willing to take any measures agreed upon by the
European Community
--Another Foreign Ministry official stated publicly on 11
January that movements of Libyans in Spain are being
closely watched. Spain now requires visas for Libyans
entering the country.
Actions Undermining US Sanctions
--Foreign Minister Fernandez Ordonez has stated publicly that
Spain is "in principle and as a general rule" opposed to
embargoes and economic sanctions due to their
ineffectiveness.
--Madrid opposed the inclusion of a reference to Libya in the
EC declaration on terrorism that resulted from the EC
Council of Ministers meeting 20-21 January 1986.
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Actions Supporting US Sanctions
--Stockholm will continue to prohibit arms exports to the
reg ion.
Actions Undermining US Sanctions
--The government has publicly said that, as a neutral
country, Sweden will not participate in economic sanctions
unless they are approved by the United Nations.
--Government officials have told US Embassy officers that
Stockholm lacks authority to prevent private Swedish firms
from filling in for departing US companies.
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Actions Supporting US Sanctions
--Bern has tightened border controls and visa requirements
for Libyans, and plans to limit the size and activities of
Libyan missions. It has also expressed willingness to
increase international cooperation against terrorism.
--Government officials claim they will try to stop Swiss
firms from filling in gaps created by US companies
departing from Libya.
--Bern has made public its already-existing policy of not
approving arms exports to Libya. 25X1
Actions Undermining US Sanctions
--Swiss officials have publicly said the government will not
apply economic sanctions.
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Actions Supporting US Sanctions
--A Turkish official claimed to US Embassy representatives in
Ankara on 14 January that Turkey has "quietly limited"
dealings with Libya by avoiding transfers of arms,
ammunition, high technology, and petroleum technology; it
is unclear what this implies for Turkish 'tary
construction projects in Libya.
--Ambassador Elekdag told Assistant Secretary Ridgeway that
Turkey's economic relations with Libya are declining and he
"believed" Turkey would not try to fill in for Americans
who leave Libya.
--Elekdag also said Turkish training of Libyan military
personnel is gradually being phased out, with no more
trainees to be accepted once 36 Libyan cadets finish
schooling at the Turkish naval academy.
Actions Undermining US Sanctions
--On the fringes of the Islamic Conference meeting in Morocco
on 8 January, Foreign Minister Halefoglu met with the
Libyan Foreign Minister, and according to a press report,
said that isolating Libya would be against the best
--Prime Minister Ozal told the press on 10 January that
Turkey would have to review President Reagan's request for
sanctions in the 1'ght of its own good relations with
Libya.
--President Evren's 16 January reply to President Reagan's
letter suggested that Turkey will not apply sanctions,
arguing that Turkey's current relationship with Libya is
mainly economic and does not involve weapons and ammunition
sales or petroleum technology exports.
--Following Deputy Secretary Whitehead's visit, Prime
Minister Ozal was quoted in the press as saying that Turkey
would not agree to a proposal to stop buying oil from Libya
because it is "unthinkable" for Turkey to sever its trade
relations with Libya. He said Turkey would trade with
everyone in accordance with Ataturk's principle of "peace
at home, peace in the world." Ozal also said it was not
true that there was agreement on the isolation of Libya, as
the Deputy Secretary reportedly claimed.
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Actions Supporting US Sanctions
--British diplomats reaffirmed to US officials their resolve
to fight terrorism and said London would encourage other
Allies to take steps similar to those taken by the UK after
the shooting at the Libyan Embassy in 1984.
--They also said London would discourage British companies
from replacing US firms and specialists.
--Finally, they said London will work for an EC-wide arms
embargo against Libya while expressing public support for
US efforts to oppose state-sponsored terrorism and
explicitly identify Libya as a guilty party.
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I I
Actions Supporting US Sanctions
--Bonn has said that it will not export arms to Libya and
that it will apply strict criteria to requests for licenses
to export Cocom items to Libya. On dual-use high
technology products, West German authorities have said they
will check carefully to ensure the primary use is not
military.
--Bonn claims it has undertaken intensive, high-level talks
with German industry to ensure that firms do not undercut
US sanctions.
--Bonn will provide export credit guarantees only to West
German companies that declare they are not filling in
behind US firms. In addition, the government will limit
future export credit guarantees to $7.5 million per
contract, and will not provide export credit guarantees for
US equipment included in German exports.
--Government officials have indicated that the Libyan
presence in Bonn is being more carefully monitored by
German authorities. Bonn also is more carefully reviewing
visa requests by Libyans.
Actions Undermining US Sanctions
--Various government officials have publicly stated their
belief that economic sanctions do not work and that West
Germany will not take part in them.
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EUROPEAN COMMUNITY
Actions Supporting US Sanctions
--EC Foreign Ministers decided to ban the export of arms or
other military equipment to countries which are clearly
i
li
d
mp
cate
in supporting terrorism.
--The Twelve resolved that their citizens and industry should
t t
k
no
a
e commercial advantage from measures implemented by
other states in reaction to terrorist attacks.
--The Twelve decided to strengthen cooperation to improve
their own defenses against terrorism in areas such as
security at airports, border controls, visa policies, and
the abuse of diplomatic immunity. The EC also has set up a
special terrorisr ing group to coordinate common
action.
Actions Undermining US Sanctions
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--The arms export ban and the other actions make no direct
reference to Libya or to US sanctions against Libya. 25X1
--EC member states are free to inter ret the meaning of the
arms ban as they see fit. 25X1
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SUBJECT: Western Europe and Canada: Actions Affecting
US Sanctions Against Libya
Distribution:
Original - Ms. Nancy DeGumbia
INR/EC
Department of State
1 - DDI (7E47)
1 - NIO/EUR (7E62)
1 - NIO/ECON (7E48)
1 - D/NESA (6G02)
1 - D/EURA
1 - DD/EURA
2 - EURA Production Staff
4 - IMC/CB (7G07)
1 - C/EI
1 - EI/EI
1 - C/WE
1 - nC /wE
1 -
1 -
1 -
1 -
1' -
WE BBC
WE/CM
WE/GN
WE/IA
EURA/WE/ I(3 February 1986)
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