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From: wolda002@umn.edu
Date: Fri Jul 15 2011 - 00:24:23 EDT
War against Libya: an economic catastrophe for Africa and Europe
By Thierry Meyssan interview with Mohamed Siala
Voltaire Network
Thursday, Jul 7, 2011
*One of the motives for the war against Libya is to stop the development of
the black continent, to enable the setting up of an AfriCom military base in
Cyrenaica and to begin the colonial exploitation of Africa for the benefit
of the United States. In order to understand this hidden agenda, Voltaire
Network interviewed Mohamed Siala, Co-operation Minister and Manager of
Libya’s sovereign wealth fund.*
** **
*Voltaire Network*: *Your country is gas and oil rich. The Libyan Investment
Authority manages an accumulated capital estimated at 70 billion dollars.
What use are you making of this bonanza?*
*Mohamed Siala*: We possess a significant amount of resources, but they are
non renewable. We have therefore set up the Libyan Investment Authority to
protect the wealth of future generations, following Norway’s example. A
portion of these funds are dedicated to the development of Africa. This
means that 6 billion dollars have been invested in African development
shares, i.e. agriculture, tourism, commerce, mines, etc…
The remaining funds have been invested in various sectors, countries,
currencies all over the world, including the USA and Germany. This,
unfortunately, is what enabled them to freeze our assets.
*Voltaire Network*: *Technically, how was the freeze carried out?*
*Mohamed Siala*: The assets freeze is governed by the banking regulations of
the country where they are invested. The rule is that they block our bank
accounts, but we sometimes can get them unblocked if we take the litigation
to the UN Claims Committee and provided we can prove they were destined for
specific uses. For example, I have just pleaded for the unfreezing of funds
earmarked to pay scholarships to 1200 students that we sent to Malysia. We
are trying to do the same for everything that relates to social allowances
or the hospitalization expenses of our citizens abroad.
We are sometimes allowed to use funds to buy food or medicine. This is, in
principle, our right but many are refusing to unfreeze the necessary funds
or are dragging their feet. For example, the Italian State rejects any use
of our assets. In Germany, while the State authorizes their use for
humanitarian purposes, it is sometimes the banks that refuse to unfreeze the
necessary funds. The interpretations of the resolution are entirely
different depending on each State. What we demand is a clear rule: what is
permitted is authorised and what is not is forbidden. Right now, the
interpretation is political and might prevails over right.
*Voltaire Network* : *Is this the only problem your are facing in terms of
supplies?*
*Mohamed Siala* : We also have to face the maritime blockade put in place by
NATO with no legal basis. Supplies are forbidden or delayed, that includes
foodstuff. They are particularly intent on preventing our oil deliveries
even if this is not envisaged by the relevant UN resolutions. We’ve had an
oil tank stuck in Malta waiting for one month. For each ship, the double use
of its cargo is questioned. Oil is destined for civilian vehicles, but NATO
objects that it can also be used for army vehicles. We argue that they
cannot prohibit its use for ambulances, etc. Anyhow, since the beginning of
the conflict, they have prevented all oil deliveries. Now, we depend on
foreign refineries for about one third of our supplies. Hence, our present
shortage. Theoretically, they are only allowed to inspect the ships to make
sure they do not transport arms. In reality, what NATO is enacting is an
illegal maritime blockade.
Russian and Chinese ships have been ordered to make a U turn. Their
respective States must file a claim before the UN Sanctions Committee to
discuss the interpretation of the resolutions. It is an endless and
dissuasive procedure. No legal basis allows NATO to behave like this. It
abuses its authority, confident that it will go unpunished.
We, however, manage to supply ourselves by land, but this is laughable. It
takes one month to truck what can be unloaded in our harbours in one day.
*Voltaire Network*: *Your country has been heavily engaged in infrastructure
building, namely the colossal Man-Made River irrigation and water works.
Which projects do you currently have in the pipeline?*
*Mohammad Siala*: There is a railway running across the whole of North
Africa with the exception of Libya. We would like to complete it so as to
achieve a greater integration in the regional economy and energise it. The
Chinese are building the Tunisia-Syrte section. The Russians are in charge
of the Syrte-Benghazi stretch. Negotiations with Italy were underway for the
Benghazi-Egypt connection as well as for the locomotives. Also, we are
constructing a North-South transcontinental railroad, starting with the
Libya-Chad (N’Djamena) line. These are major investments with an
international scope. We thought the G8 would help. It had promised to do so,
but nothing came.
We are fierce when it comes to business, and we have used the bidding
process to oblige providers to bring down their prices. When Putin came
here, he agreed to align the rates of Russian enterprises on those of their
Chinese competitors, thus enabling us to diversify the our choice of
partners.
*Voltaire Network*: *Now that the country is at war, what is going to happen
to these projects ?*
All these projects have been interrupted with the freezing of our assets.
However, we are continuing with the bidding procedures for the construction
of railway lines as we are confident the war is temporary and that works
will start again. We are getting ready to proceed with the contracts
temporarily interrupted for reasons of "force majeure."
The war has brought desperation to our partners. The Chinese had signed up
for 20 billion worth of contracts here, the Turks 12 billion. Then, come the
Italians, the Russians and the French. It was not in their interest to let
this aggression take place, and even less to be part of it. Most likely,
some of them must have been bribed in compensation, but we don’t know much
about it. Some hope to make better profits by conquering our country and
helping themselves to reconstruction contracts.
*Voltaire Network*: *What are the consequences of your assets freeze for
Africa?*
*Mohammad Siala*: By freezing our assets, NATO also halted our development
activities in Africa. The continent can only export raw products. We are
investing in Africa so that these products can be processed in Africa and
commercialized by Africans. We want to create jobs and keep the surplus in
Africa. On one hand, Europeans applaud us as this policy dries out migration
fluxes. On the other hand, they are against it since it means having to give
up colonial exploitation.
The Westerners want to maintain Africa in a situation where it will only
export raw products and commodities.
For example, when the coffee grown in Uganda is exported to Germany where it
is marketed, the surplus remains in Germany. We have funded installations
for coffee roasting, grinding and packaging. The remuneration for Ugandans
went up from 20% to 80%. Needless to say, our policy is conflicting with
that of the Europeans. That is an understatement.
We are funding rice fields in Mozambique and Liberia, up to 32 million
dollars per project, creating each time 100,000 jobs. We focus on food
self-sufficiency for each African state first and on exportation markets
second. There is no doubt we are entering into conflict with those who
produce and export rice, especially if speculation is at stake.
We are also building roads, for example from Libya across Niger. We have
already linked Sudan to Eritrea thus changing drastically the regional
economy and opening new development opportunities. It is now possible to
ensure the transportation of goods by road and by sea.
*Voltaire Network*: *Can we say that Libya is short on diplomatic alliances
but that you have elaborated economic alliances that are protecting you? Can
we talk of investment diplomacy? *
*Mohammad Siala*: Yes.
For example, we are funding the construction by the Chinese companies of a
50 million-dollar, 32 Km, canal in Mali for the irrigation of agricultural
areas. The freeze of our assets halts important agricultural projects in
this country. If this goes on, a food problem will arise quickly and the
populations will revert to and speed up migration towards Europe. Finally,
Europeans cannot afford to stop our development efforts on the continent.
There is no alternative to our policy.
*Voltaire Network*: *Are you using a mechanism enabling you to pay for your
orders on the international market in spite of the freeze of your
assets?Your country is attacked; I am of course thinking of the purchase of
arms and munitions.*
*Mohammad Siala*: We have been resisting for four and a half months. We drew
the lessons from the embargo and were ready right from the first day. A lot
of States are observing us and are taking similar measures to also protect
themselves against imperialism.
*Source: **Voltaire
Network*<http://www.voltairenet.org/War-against-Libya-an-economic>
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