Members of the committee, it's truly a great pleasure to meet with you today against the backdrop of a Libya that has seen tremendous changes in recent weeks. Most of the Libyan people, including those in Tripoli, are now freed from the control of the Gadhafi regime.
Despite this positive progress, there are still civilians under threat in a few cities in which the pro-Gadhafi forces are fiercely resisting the reality of the end of the regime. Fighting is still ongoing around Sirte and Bani Walid, where the pro-Gadhafi forces are making a stand.
Consequently, on September 21 NATO decided to extend its mission, Operation Unified Protector, for 90 days beyond the September 27 end date. Last week members of Parliament voted overwhelmingly in favour of continuing Canada's leadership role in that mission to protect Libyan civilians and help the Libyan transition to a post-Gadhafi era.
As the loyalist forces retreated over the summer, Canada has responded quickly with a number of steps to support the new Libya.
On August 25, Canada accredited the new Libyan chargé d'affaires appointed by the National Transitional Council (NTC) and committed to interact with the NTC as Lybia's government until an elected government is in place.
On September 1, Prime Minister Harper attended the Paris Friends of Libya Conference where he met with the chair of the executive board of the NTC, Mahmud Jibril, and informed him directly of the lifting of Canada's unilateral sanctions imposed on the Libyan government under the Special Economic Measures Act.
At the same time, Canada approached the United Nations for approval to make available to the Libyan authorities funds frozen under United Nations resolutions 1970 and 1973. After receiving the necessary approvals from the UN's sanctions committee, Minister Baird announced on September 13 that Canada would be unfreezing all Libyan assets held in Canada and Canadian institutions. This was worth approximately $2.2 billion.
The unfreezing is a complicated process because the funds are held in the U.K. branches of Canadian banks and are denominated in U.S. dollars. However, the steps necessary to release the funds are largely complete, and we are in discussions with the National Transitional Council about where they wish the funds to be directed.
Most recently, on September 20 the Prime Minister and the Minister of Foreign Affairs participated in a high-level meeting on Libya in New York, which was hosted by the United Nations Secretary General. This meeting was to coordinate international assistance to the Libyan-led transition. Minister Baird met with Mr. Jabril again at that time to discuss Canada's involvement.
As you may know, on September 16 the UN Security Council adopted resolution 2009, which establishes the United Nations support mission in Libya under the leadership of special representative of the Secretary General Ian Martin. The mission has been established for an initial three-month period to support Libyan efforts to, among other objectives, restore public security and order and promote the rule of law.
It also eased the sanctions imposed in UN Security Council resolutions 1970 and 1973, including easing the arms embargo to allow importation of items intended for security and disarmament assistance to the Libyan authorities, as well as of small arms and light weapons for the use of UN personnel, media, and development workers.
We are currently examining ways of supporting Libya's transition through targeted stabilization assistance. Consultations are under way with the UN and with the NTC to ensure that Canada's contribution is coordinated with international partners and responds to the needs identified by the Libyans themselves. Canada will align its support and assistance within the framework agreed with the NTC.
We have identified four areas where we believe we could have significant value added and will be developing programming: first, good governance and institution building; second, security and rule of law; third, economic development; and four, human rights and the role of women.
The UN will be leading a series of seven post-conflict needs assessment missions. Canada has expressed an interest in participating in a number of them, in particular those regarding public security and rule of law; disarmament, demobilization, and reintegration of former combatants; and possibly, electoral and constitutional needs.
In addition to the support for Libya and the implementation of the UN resolutions, the government is also working to return full services to Canadians in Libya through our embassy in Tripoli, including support for Canadian companies. On September 13, following an assessment mission undertaken in early September by the Department of Foreign Affairs and International Trade and the Department of National Defence, Minister Baird announced that Canada had re-established its diplomatic presence in Libya. This was six and a half months after evacuating all personnel and suspending operations. We deployed a skeleton team to liaise with the NTC and to prepare the way for more staff.
The embassy is currently operating from a temporary location while the chancery is restored for operations. There was no damage to the chancery, per se, but some work was needed and security measures had to be upgraded to enable operations to resume from that site.
The Canadian ambassador to Libya, Sandra McCardell, who I believe you've already met, has returned to Tripoli. As soon as an appropriate level of security is in place, the embassy will resume operations and will be able to provide services to Canadians.
Given Canada's role in liberating Libya and the ongoing need in Libya to restore the economy and to rebuild governance institutions for the new democratic Libya, the embassy complement will be expanded, at least for the immediate term. This will help to increase its capacity for political analysis, engagement with the NTC, and promotion of Canadian commercial interests.
Canadian officials are in regular contact with companies that were previously active in Libya or that have indicated an interest in becoming so to discuss how the Government of Canada can best support their interests.
Our embassy team in Tripoli has reported important changes on the ground. Traffic jams are back in Tripoli—a sign both that basic commodities like fuel are available and that people have the confidence to leave their homes. The overall atmosphere is almost festive, with the flags of the new Libya prominently displayed throughout the city, and children and adults alike dressed in T-shirts and ball caps of red, black and green stripes. Outside of specific areas where fierce fighting took place, such as Misrata, the infrastructure of Libya is largely intact.
In Tripoli, the precision of NATO strikes over the past months is evident. Some buildings are damaged, but little else. Libya is not a poor country. Its oil wealth is a foundation for the rebuilding that must take place. While there was some damage to oil facilities, repairs are already under way and production is being restored. It will take approximately a year for production to be restored to pre-revolution levels.
Despite these very positive signs, there are real challenges on the horizon. Many of the demands for a better quality of life that preceded the conflict--improved education, medical services, and employment--remain. Expectations for rapid improvement after four decades of stagnation are rising quickly.
The NTC, which has done a good job so far of maintaining order, is still in the process of restoring security forces and decommissioning various militias that had undertaken the fighting to free Libya. It's also in the difficult process of establishing an interim government. While it had ambitions of having this done last month, it has proven more challenging than anticipated. With Libya now free and with the shared goal of ridding the country of the Gadhafi regime, the NTC must develop cohesion among disparate political views and accommodate those with personal ambitions.
There have been ongoing efforts to broaden the membership of the executive council in order to make it more representative and inclusive; however, agreement has thus far proven elusive. Just yesterday the chairman of the NTC announced that its cabinet had been formed, but this was largely a confirmation of most of the individuals who had been in the previous cabinet.
According to local reporting and interviews with Mustafa Abdel-Jalil, the current chairman of the NTC, the formation of the new cabinet will now be postponed until after victory has been declared. Victory will likely be declared after the capture of Sirte and Bani Walid. Once this has happened, the current temporary government, the cabinet of which was just confirmed yesterday, will be dissolved and a new transitional government will be formed within a month.
In recent interviews Mr. Jalil has said that it is more important at this stage to have a competent cabinet that can quickly bring the country back to a more normal state. A representative cabinet will be formed after the elections are held. As the one current leader who seems to have the moral authority and leadership abilities that most Libyans seem to accept, his voice is probably the clearest indication of what shape the future political landscape will take.
Other challenges include ensuring respect for human rights and the rule of law in a country that has little experience of democracy; reconciling diverse elements and preventing retaliatory attacks so that all find their future in the new Libya; and thirdly, gaining control of the many thousands of weapons now circulating in the country and the young men who carry them.
And of course, Gadhafi remains at large with an unknown degree of influence. These are significant hurdles to overcome. How these challenges are addressed will establish the country's path for the months and years to come.
In closing, I'd like to share that there's a good amount of good will toward Canada in Libya as a result of our decisive action within the NATO mission. The chairman of the NTC, Mustafa Abdel-Jalil, in his first public address on his return to Tripoli thanked Canada specifically for its assistance. Given the overwhelming support in Parliament for Canada's continued participation in Operation Unified Protector, Canada will continue to play a key role in protecting civilians in Libya as the Libyan people work together to rebuild their new country.
The team and I would be very happy to respond to your questions.