CBC: Canada tried to placate Gadhafi in 2009

[pampango]

Gadhafi was set to stop in St. John's to refuel his personal jet on his way back to Libya after addressing the UN General Assembly in New York. But he cancelled the trip after learning that then-Foreign Affairs minister Lawrence Cannon planned to meet with him and express Canada's displeasure over the hero's welcome Libya gave to the Libyan national convicted of the 1988 Lockerbie bombing.

Gadhafi threatened to seize billions in assets of Canadian companies, including Petro-Canada, if he didn't get an apology. "If there is no statement by the Canadian government by midnight Libyan time, Petro-Canada's operations will be shut tomorrow at 7 a.m." relayed a Canadian diplomatic official, according to government documents obtained by CBC News through access to information.

A flurry of emails that night led to Canada softening its wording about the bomber, only to discover that while Ghadafi didn't seize Petro-Canada, he cut its allowed oil production in half. Instead of delivering a dressing down, Ottawa resorted to quietly send Cannon to Tripoli to smooth things over. Cannon was advised to tell Libya that Canada regretted "any misunderstanding" and had supported its bid to join the World Trade Organization.

"Dealing with dictators is always a difficult dance. For them, every move is intensely personal and their reactions can have grave consequences," Smith said. Libya ultimately failed in its bids to get a seat on either world body.

http://www.cbc.ca/news/politics/story/2011/09/07/gadhafi-petro-canada.html?cmp=rss