Tripoli/Bern - Libya has shocked Swiss officials by announcing plans to reduce its economic ties to Switzerland, apparently in continued protest over the brief arrest in July of the son of Libyan leader Moamer Gadaffi.

Measures announced Thursday night by the state-run JANA news agency include the withdrawal of 7 billion dollars of government funds from Swiss banks, the cessation of multiple economic cooperation projects between the two countries, and a cutoff of Libyan oil exports to Switzerland.

The move was to protest "the poor treatment of several Libyan diplomats and businessmen by the police of the Canton of Geneva."

Hannibal, Gadaffi's youngest son, was arrested by Swiss authorities in July, along with his pregnant wife Aline. The two were held for two days on charges of abusing two household employees from Tunisia and Morocco.

The charges were dropped and Gaddafi's son and daughter-in-law returned to Libya.

The Libyan actions were met with surprise in Switzerland, since the charges have long since been dropped. Swiss President Pascal Couchepin said on Swiss TV Friday that his government sees no need to enter into negotiations with Libya over the latest move.

"We always regret it when a country takes measures against Switzerland," he said. "But in this case, we can calmly accept it."

Experts say Switzerland should have no problem finding other sources of oil, given the relaxed state of the oil market. Libya also cut off its flow of oil to Switzerland in the summer, a move which had little impact on the European country.

Currently, Switzerland receives about half of its oil from Libya.

Swiss media have reported that deliveries of Libyan oil have already stopped, primarily affecting about 320 Tamoil gas stations. The Libyan government owns that chain of gas stations. (dpa)