49. Telegram 83386 From the Department of State to the Embassy in Libya1
83386. Subject: Libyan Diplomatic Note on C–130s. Ref: Tripoli 454.
1. The following diplomatic note was presented to Department (NEA/AFN) April 1 by Libyan Second Secretary Gaddour:
Begin text
The Embassy of the Libyan Arab Republic presents its compliments to the Department of State and has the honor to request complete details concerning commissions and bribes paid to Libyans and non-Libyans in connection with the deal of C–130’s bought by the Libyan Arab Republic from Lockheed, as detailed in the report prepared by the Congressional Committee headed by Senator Frank Church.
Also, requested, assurances that the C–130’s to be delivered to Egypt are not from the Libyan C–130’s.
The Embassy of the Libyan Arab Republic considers this request as of great urgency and importance, and thus would very much appreciate a prompt reply.
The Embassy of the Libyan Arab Republic avails itself of this opportunity to renew to the Department of State the assurances of its highest consideration.
End text.
2. Dept replied that requests would be considered and official response would be forthcoming. On the surface, however, it would appear that LARG need not fear that its aircraft would be diverted to Egypt: The C–130s here are Libyan not USG property. Gaddour repeated that LARG desired official USG assurances on matter.
3. DeptOff took opportunity to refer to series of speeches being made by Chairman Qadhafi which contained highly derogatory refer [Page 130] ences to USG. Gaddour seemed unfamiliar with speeches or events occurring in Libya, Egypt, and Tunisia. DeptOff gave March 30 speech as an example.
4. FYI: Dept has not yet decided how to respond to LARG request for Lockheed information. At Department’s request Justice is assisting responsible law enforcement authorities in some countries, such as Japan and Italy, to obtain information relevant to ongoing investigations in those countries. In such cases, formal judicial assistance agreement has been negotiated between Justice and its counterparts. One condition in agreements is that any information supplied by Justice be kept confidential until such time as recipient government concludes its investigation and decides use of information essential to law enforcement proceeding. Justice, however, has declined to screen raw Lockheed documents for governments (such as LARG) which have come in with vague request for any information which might exist relating to possible bribery of their nationals. In Justice’s view, they should assist only in instances where foreign government already has sufficient information to commence responsible criminal investigation.
5. Given Background Of LARG Request in reftel, we do not believe it will qualify for Justice Department assistance. Possible alternative is to suggest LARG Embassy communicate directly with Church subcommittee. This option remains under consideration.
6. LARG note also requested assurance Libyan C–130’s would not be transferred to Egypt. Since LARG holds title to C–130’s they cannot be transferred to any other party without LARG consent (unless, conceivably, effort was made by private parties in U.S. to attach aircraft as part of lawsuit against LARG for money damages). End FYI.
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Summary: The Department transmitted the text of a diplomatic note from Libya, requesting information on the status of C–130s purchased from Lockheed. Chargé Robert Carle was informed of Department efforts to address Libyan concerns.
Source: Ford Library, National Security Adviser, National Security Council Operations Staff for the Middle East and South Asian Affairs, Box 18, Country File, Libya (1). Confidential; Priority. Repeated priority to Cairo and Tunis. Drafted by Marguerite C. King in NEA/AFN, and James A. Rohwer in L/NEA; and approved by Wieslogel. The reference to bribes presumably refers to an investigation of Lockheed and other corporations by the Senate Foreign Relations Subcommittee on Multinational Corporations in May 1975. On August 1, Lockheed acknowledged that since 1970, it had paid more than $22 million to foreign officials and political organizations to promote business. Congress approved the sale of six C–130 transport planes for Egypt in April 1976.
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