After the 1969 coup, Qadhafi closed American and British bases on Libyan territory and partially nationalized all foreign oil and commercial interests in Libya. He also played a key role in promoting the use of oil embargoes as a political weapon for challenging the West, hoping that an oil price rise and embargo in 1973 would persuade the West--especially the United States--to end support for Israel. Qadhafi rejected both Soviet communism and Western capitalism and claimed he was charting a middle course.
Libya's relationship with the former Soviet Union involved massive Libyan arms purchases from the Soviet bloc and the presence of thousands of east bloc advisers. Libya's use--and heavy loss--of Soviet-supplied weaponry in its war with Chad was a notable breach of an apparent Soviet-Libyan understanding not to use the weapons for activities inconsistent with Soviet objectives. As a result, Soviet-Libyan relations reached a nadir in mid-1987.
After the fall of the Warsaw Pact and the Soviet Union, Libya concentrated on expanding diplomatic ties with Third World countries and increasing its commercial links with Europe and East Asia. Following the imposition of United Nations sanctions in 1992, these ties significantly diminished. Following a 1998 Arab League meeting in which fellow Arab states decided not to challenge UN sanctions, Qadhafi announced that he was turning his back on pan-Arab ideas, one of the fundamental tenets of his philosophy.
Instead, Libya pursued closer bilateral ties, particularly with North African neighbors Egypt, Tunisia, and Morocco. It also has sought to develop its relations with Sub-Saharan Africa, leading to Libyan involvement in several internal African disputes in the Democratic Republic of Congo, Sudan, Somalia, Central African Republic, Eritrea, and Ethiopia. Libya also has sought to expand its influence in Africa through financial assistance, ranging from aid donations to impoverished neighbors such as Niger to oil subsidies to Zimbabwe. Qadhafi has proposed a borderless "United States of Africa" to transform the continent into a single nation-state ruled by a single government. This plan has been moderately well received, although more powerful would-be participants such as Nigeria and South Africa are skeptical.
There have been no credible reports of Libyan involvement in terrorism since 1994, and Libya has taken significant steps to mend its international image. In 1999, the Libyan Government surrendered two Libyans suspected of involvement in the Pan Am 103 bombing, leading to the suspension of UN sanctions. On January 31, 2001, a Scottish court seated in the Netherlands found one of the suspects, Abdel Basset al-Megrahi, guilty of murder in connection with the bombing, and acquitted the second suspect, Al-Amin Kalifa Fhima. Megrahi has appealed his conviction; the appeal began on January 23, 2002.
Full lifting of UN sanctions is contingent on Libyan compliance with its remaining UNSCR requirements on Pan Am 103, including acceptance of responsibility for the actions of its officials and payment of appropriate compensation. Libya did pay compensation in 1999 for the death of British policewoman Yvonne Fletcher, a move that preceded the reopening of the British Embassy in Tripoli, and paid damages to the families of the victims in the bombing of UTA Flight UT-772.
On November 13, 2001, a German court found four persons, including a former employee of the Libyan Embassy in East Berlin, guilty in connection with the 1986 La Belle disco bombing, in which 229 people were injured and two U.S. servicemen were killed. The court also established a connection to the Libyan Government. The German Government has demanded that Libya accept responsibility for the La Belle bombing and pay appropriate compensation.
U.S.-Libyan relations
The United States supported the UN resolution providing for Libyan independence in 1951 and raised the status of its office at Tripoli from a consulate general to a legation. Libya opened a legation in Washington, DC, in 1954. Both countries subsequently raised their missions to embassy level.
After Qadhafi's 1969 coup, U.S.-Libyan relations became increasingly strained because of Libya's foreign policies supporting international terrorism and subversion against moderate Arab and African governments. In 1972, the United States withdrew its ambassador. Export controls on military equipment and civil aircraft were imposed during the 1970s, and U.S. embassy staff members were withdrawn from Tripoli after a mob attacked and set fire to the embassy in December 1979. The U.S. Government declared Libya a "state sponsor of terrorism" on December 29, 1979.
In May 1981, the U.S. Government closed the Libyan "people's bureau" (embassy) in Washington, DC, and expelled the Libyan staff in response to a general pattern of conduct by the people's bureau contrary to internationally accepted standards of diplomatic behavior.
In August 1981, two Libyan jets fired on U.S. aircraft participating in a routine naval exercise over international waters of the Mediterranean claimed by Libya. The U.S. planes returned fire and shot down the attacking Libyan aircraft. In December 1981, the State Department invalidated U.S. passports for travel to Libya and, for purposes of safety, advised all U.S. citizens in Libya to leave. In March 1982, the U.S. Government prohibited imports of Libyan crude oil into the United States and expanded the controls on U.S.-origin goods intended for export to Libya. Licenses were required for all transactions, except food and medicine. In March 1984, U.S. export controls were expanded to prohibit future exports to the Ras al-Enf petrochemical complex. In April 1985, all Export-Import Bank financing was prohibited.
The United States adopted additional economic sanctions against Libya in January 1986, including a total ban on direct import and export trade, commercial contracts, and travel-related activities. In addition, Libyan Government assets in the United States were frozen. When evidence of Libyan complicity was discovered in the Berlin discotheque terrorist bombing that killed an American serviceman, the United States responded by launching an aerial bombing attack against targets near Tripoli and Benghazi in April 1986. Since then, the United States has maintained its trade and travel embargoes and has sought to bring diplomatic and economic pressure to bear against Libya.
In 1988, Libya was found to be in the process of constructing a chemical weapons plant at Rabta, a plant which is now the largest such facility in the Third World. As of January 2002, Libya was constructing another chemical weapons production facility at Tarhunah. Citing Libya's support for terrorism and its past regional aggressions the United States voiced concern over this development. In cooperation with like-minded countries, the United States has since sought to bring a halt to the foreign technical assistance deemed essential to the completion of this facility.
In 1991, two Libyan intelligence agents were indicted by federal prosecutors in the U.S. and Scotland for their involvement in the December 1988 bombing of Pan Am flight 103. In January 1992, the UN Security Council approved Resolution 731 demanding that Libya surrender the suspects, cooperate with the Pan Am 103 and UTA 772 investigations, pay compensation to the victims' families, and cease all support for terrorism. Libya's refusal to comply led to the approval of UNSC Resolution 748 on March 31, 1992, imposing sanctions designed to bring about Libyan compliance. Continued Libyan defiance led to passage of UNSC Resolution 883--a limited assets freeze and an embargo on selected oil equipment--in November 1993.
Promulgated in 1996, the Iran and Libya Sanctions Act (ILSA) sought to penalize non-U.S. companies which invest more than $40 million in Libya's oil and gas sector in any one year. ILSA was renewed in 2001, and the investment cap lowered to $20 million.
Libya refused to comply with its UNSCR requirements on Pan Am 103 until 1999, when it turned over two suspects for trial by a Scottish court in Netherlands. UN sanctions were subsequently suspended. The United States has continued to call on Libya to comply with its remaining requirements, including acceptance of responsibility for the actions of its officials and payment of appropriate compensation.
Disputes - international
Maritime boundary dispute with Tunisia; Libya claims about 19,400 sq km in northern Niger and part of southeastern Algeria.