Swiss, Libyan ministers meet to seek way out of visa spat

The foreign ministers of Libya and Switzerland met yesterday to seek an end to a diplomatic spat that is hitting relations with the European Union.

Hosting the talks in Madrid, Spain's Miguel Angel Moratinos tried to sound upbeat, but said big differences remained between the feuding countries.

"There has been progress and overall a will to find a solution, but I cannot hide the difficulty, the difficult situation which Libyan and Swiss authorities are in at the moment," Moratinos told a news conference during a pause in the talks.

Spain holds the rotating presidency of the EU which was dragged into the dispute this week when Libya stopped issuing visas to most EU nationals in retaliation for a Swiss travel ban on Libyan leader Muammar Gaddafi, his family and others.

The visa move risks harming the business reputation of oil exporter Libya which has been attracting growing foreign investment since it emerged from decades of isolation.

Although not in the EU, Switzerland is in the Schengen zone which allows border-free travel between 25 European countries. Libya's latest move has made it difficult for anyone from the Schengen countries to visit the country.

ARRESTS, OIL

The row dates back to July 2008 when Gaddafi's son Hannibal and his wife were arrested in Geneva on charges of mistreating domestic employees, a case which was later dropped.

In response, OPEC member Libya halted oil exports to Switzerland, withdrew $5 billion in assets from Swiss accounts and detained two Swiss businessmen in Libya, Max Goeldi and Rachid Hamdani, both of whom are still there.

Italian Foreign Minister Franco Frattini, who met Lbyan Foreign Minister Moussa Koussa on Wednesday with Maltese Foreign Minister Tonio Borg, said a "definitive agreement" was close.

Frattini said Tripoli would agree to release the two Swiss businessmen, provided Switzerland dropped its visa restrictions, and that Swiss authorities investigate how pictures of Hannibal Gaddafi in police custody were leaked to the press.

Although Swiss Foreign minister Micheline Calmy-Rey left the Madrid talks due to other commitments, Swiss diplomats were due to continuing negotiations with Libya Spain into the evening, Moratinos said.

She was quoted in Italian daily La Repubblica as saying: "Switzerland has always tried to find a diplomatic solution to resolve the dispute with Libya. For us, the problem lies with Tripoli not Berne."

GADDAFI'S VISIT TO MALTA IN THE BALANCE

Meanwhile, Switzerland’s decision to blacklist 186 Libyan nationals, including Col Gaddafi, could disrupt the Libyan leader’s planned visit to Malta unless a solution is found, according to government sources.

Two Maltese passengers, an Italian and a French traveller on board an Air Malta flight to Libya were yesterday stopped at Tripoli airport and refused entry.

The Foreign Affairs Ministry has reiterated its call for Maltese travellers to consult the Libyan Embassy in Malta before leaving for Tripoli.