Geneva  - Switzerland's government said Thursday it was disappointed with "the systematic refusal" of Libya to cooperate on an agreement signed two months ago to restore diplomatic relations between the countries and return two detained Swiss nationals.

"The problem is not with Switzerland, the problem is with Libya," said Micheline Calmy-Rey, the Swiss foreign minister, at a press conference.

She and Swiss Finance Minister Hans Rudolph Merz implied Bern might alter its strategy, but gave no further details.

In August, Merz, who also holds the rotating presidency, traveled to Libya and signed an agreement to restart diplomatic ties. But, although the two-month deadline passed this week, no tangible progress has been made.

Two Swiss nationals remain detained in Libya, unable to return home, sparking popular discontent with Tripoli among Swiss citizens. The concern has grown in recent weeks, as it was revealed that the government no longer had contact with them.

Calmy-Rey has described their situation as being "kidnapped."

She and Merz said that while Switzerland was being "constructive," Libya apparently had little interest in standardizing relations.

The row started last summer, when the Geneva police arrested Hannibal Gaddafi and his wife. The couple were accused of beating their servants at a high class hotel.

Gaddafi, the son of the Libyan leader Muammar Gaddafi, was released back to Tripoli two days later. But trade between the two countries dwindled to a trickle, flights were canceled and generally bad relations ensued.

Merz's trip in August, in which he apologized to Libya for the arrest - causing an uproar at home - was meant to lead to the restoration of full diplomatic ties and the return of the detained Swiss.(dpa)