WASHINGTON, 25 April 2004 — Signaling that it believes Libya is upholding its pledge to abandon its nuclear, chemical and biological weapons program, the Bush administration said Friday it was lifting many of the sanctions it had used to pressure the North African nation and was increasing diplomatic contact.
As a result, the White House said, most commerce will be allowed between US companies and Libya.
The United States, Britain and Libya announced on Dec. 19, 2003, that Col. Moammar Qadhafi’s weapons programs would be shut down and international inspectors would be admitted, as part of Libya’s effort to end its status in the West as a pariah nation.
Libya under Qadhafi had been considered an outlaw regime at least since the 1980s for promoting terrorist attacks on Western targets. Economic sanctions were imposed against Libya after the Libyan-led bombing of Pan Am Flight 103 over Lockerbie, Scotland, in 1988.
Though the relaxation was expected, it nonetheless represented an important move toward normalization for two countries that have been at odds for decades. It was also intended as an important signal to other countries with weapons programs — notably Iran, North Korea and Syria — that they, too, can win economic benefits by giving up their unconventional arsenals.
“US companies will be able to buy or invest in Libyan oil and products. US commercial banks and other financial service providers will be able to participate in and support these transactions,” White House press secretary Scott McClellan said in a written statement.
At the same time, he said, because Libya remains on the administration’s list of nations considered sponsors of terrorism, US companies will be restricted from exporting equipment with potential military uses, including those that could be used in the development of weapons of mass destruction and missiles.
In addition, the White House spokesman said, direct air service between the United States and Libya has not been authorized, and Libyan government assets that have been frozen by the United States are not being released.
But the White House also said that the two countries will begin discussing trade and investment prospects, and economic reform, and the United States would encourage “Libya’s reintegration with the global market.” On the diplomatic front, the United States, which has no embassy in Tripoli, would establish a liaison office there, the administration said.
