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US lifts trade embargo on libya { September 21 2004 } Original Source Link: (May no longer be active)
http://www.nytimes.com/2004/09/21/politics/21libya.htmlhttp://www.nytimes.com/2004/09/21/politics/21libya.html
September 21, 2004
U.S. Lifts Trade Embargo on Libya in Return for Promise on Arms
By STEVEN R. WEISMAN
WASHINGTON, Sept. 20 - President Bush revoked the United States trade embargo on Libya on Monday and took other steps aimed at eventually establishing normal relations with the government of Col. Muammar el-Qaddafi in return for its keeping a promise to give up nuclear, chemical and biological weapons.
Libya, however, remains on the American list of states that sponsor terrorism. The Bush administration said specifically that it remained "seriously concerned" about allegations of Libyan involvement in an attempt to assassinate Crown Prince Abdullah of Saudi Arabia.
Libya's listing as a sponsor of terrorism bars the restoration for now of full diplomatic relations and means that some restrictions on commercial activity, like the export of items with military and security applications, will be maintained. Mr. Bush's action is a significant step in a process that began last year, when it was announced that Libya had agreed to abandon its weapons programs on a phased basis. The steps taken Monday were the results of a decision announced in April to suspend most remaining sanctions.
"At the beginning of this process, the president committed to respond to concrete Libyan actions in good faith," said Scott McClellan, the White House spokesman, noting that Mr. Bush had promised last year to work with Libya so that it could "regain a secure and respected place among the nations and, over time, better relations with the United States."
Among the steps taken by Mr. Bush were the removal of economic restrictions on aviation services, permitting direct flights between the United States and Libya; unfreezing $1.3 billion in assets; and providing what Mr. McClellan said would be "a level playing field for U.S. businesses in Libya" by allowing them to secure American economic benefits for foreign investment.
The American action clears the way for additional compensation payments from Libya to the families of 270 people killed when Libyan terrorists blew up Pan Am Flight 103 over Lockerbie, Scotland, in 1988.
Most of the families have been pressing the administration to meet the deadlines of their agreement on compensation with the Libyan government, which had agreed to make the payments and dismantle its banned weapons programs as long as the United States reciprocated by lifting its sanctions by Sept. 22.
The White House announcement of the Libya steps was low key, issued in written statements. But administration spokesmen said Libya's agreement of last September to disarm in return for improved relations was an example of Mr. Bush's belief in diplomacy to solve problems.
"Looking back over those nine months, I think we've seen some significant actions taken," said Adam Ereli, a State Department spokesman. He cited steps including Libya's signing of various protocols on nuclear weapons and its destruction of munitions.
He said Libya had also pledged "to halt military trade with countries of proliferation concern and increased our understanding of the global black market in the world's most dangerous technologies."
Some administration officials say Libya's steps to help the United States investigate the black market in banned weapons and weapon materials have been the greatest dividend of its changed behavior. With Libya's help, the United States uncovered links among Pakistan, North Korea, Iran and other countries on unconventional arms.
With the lifting of most economic sanctions, the way is clear for American oil companies to try to secure contracts or to revive previous contracts for Libya's vast oil reserves.
Copyright 2004 The New York Times Company
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