Libya: Background and U.S. Relations
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Order Code RL33142 Libya: Background and U.S. Relations Updated July 30, 2007 Christopher M. Blanchard Analyst in Middle Eastern Affairs Foreign Affairs, Defense, and Trade Division Libya: Background and U.S. Relations Summary On May 15, 2006, the Bush Administration announced its intention to restore full diplomatic relations with Libya and to rescind Libya’s listing as a state sponsor of terrorism and a country not fully cooperating with U.S. counterterrorism efforts. Presidential Determination No. 2006-14 certified that the government of Libya had not provided any support for international terrorism during the preceding six months and had provided assurances that it would not support acts of international terrorism in the future. Full diplomatic relations were restored on May 31 when the United States upgraded its Liaison Office in Tripoli to an Embassy. A 45-day congressional notification period ended on June 29, and the Secretary of State removed Libya’s listings and ended the associated trade restrictions on June 30, without immediate public announcement. President Bush nominated a career diplomat, Gene Cretz, for the U.S. ambassadorship to Libya on July 11, 2007. The changes mark the culmination of an initial period of improvement and rapprochement in U.S.-Libyan relations that began in December 2003, when the Libyan government announced its decision to eliminate its weapons of mass destruction and long-range missile programs. Administration officials have stated that normalization of U.S.-Libyan relations will provide opportunities for the United States to address specific issues of potential concern to Congress such as political and economic reform, the development of energy resources, and human rights. Since the May 2006 announcement, some Members of Congress and family members of U.S. citizens killed and injured in Libyan-sponsored or supported terrorist attacks have expressed their opposition to changes in U.S. policy. Lawyers for the Libyan government and some victims’ families have held talks regarding financial claims arising from the bombings of Pan Am Flight 103, the LaBelle nightclub in Berlin, and other incidents. A Libyan legal team has asserted that it considers the Libyan government’s obligations under its original agreement with families of the Pan Am victims to have been fulfilled, but has pledged to “deal with these cases most transparently and in complete good faith.” A settlement between LaBelle victims and the Libyan government remains the subject of ongoing litigation. In the 110th Congress, Section 654 of the House version of the FY2008 State, Foreign Operations, and Related Agencies Appropriations bill (H.R. 2764), would prohibit the use of U.S. funds for “any diplomatic operations in Libya” until the Administration certifies Libyan steps to resolve claims related to the bombing of Pan Am Flight 103 and other attacks. Section 697 of the Senate version of H.R. 2764 would prohibit the use of appropriated funds for “construction of a new United States embassy in Libya; activities in Libya related to energy development; or activities in Libya which support investment in Libya’s hydrocarbon sector, including the processing of applications for dual-use export licenses.” This report provides background information on Libya and U.S.-Libyan relations; profiles Libyan leader Muammar al Qadhafi; discusses Libya’s political and economic reform efforts; and reviews current issues of potential congressional interest. It will be updated periodically to reflect important developments. Contents Recent Developments ..............................................1 Background and Recent History ......................................2 The Qadhafi Era...............................................3 The Green Book and Qadhafi’s Ideology .......................3 Terrorism and Confrontation with the United States...............4 Qadhafi’s Arab-Israeli Intransigence...........................4 International Isolation and Signs of Change .....................5 Current Issues in U.S.-Libyan Relations ................................5 Reestablishing Normal Bilateral Relations ..........................6 Compensation for U.S. Victims of Libyan-Sponsored Attacks ...........7 Pan Am Flight 103.........................................7 La Belle and Other Claims...................................8 Post-9/11 Counterterrorism Cooperation ............................9 Release of Accused Bulgarian Nurses.............................10 The Return of U.S. Oil Companies ...............................11 Current Congressional Issues....................................11 Legislative Efforts on Behalf of U.S. Terrorism Victims ..........12 New Embassy Construction and FY2008 Request ...............13 FY2008 Foreign Operations Request for Libya Programs ..........14 Political and Economic Profile ......................................14 Muammar al Qadhafi: A Profile .............................14 Political Dynamics ............................................15 Government Structure .........................................16 The “Authority of the People”...............................16 Opposition Groups ............................................17 Exiles..................................................17 The Muslim Brotherhood ...................................18 Libyan Islamic Fighting Group (LIFG) ........................18 Political Reform and Human Rights ..............................19 Legal and Institutional Reform ..............................20 Human Rights Monitoring..................................20 Fathi al Jahmi............................................21 Energy and the Libyan Economy .................................21 Economic Reform and Infrastructure Development ..............22 Oil Reserves and Production Capacity .........................23 New Exploration and Production-Sharing Agreements ............23 Natural Gas .............................................24 Military Profile and WMD Disarmament ..............................24 The Libyan Military ...........................................24 Structure, Training, and Equipment...........................24 Arms Sales..............................................25 WMD Programs and Disarmament...............................26 Nuclear, Chemical, and Ballistic Missile Programs ..............26 Termination of WMD and Missile Programs ...................27 Motives for Disarmament ..................................28 International Controls and Inspections ........................28 Further Reading and Historical Resources..............................30 Appendix A: Libya’s Pre-Qadhafi History .............................31 Libya’s Colonial Experience....................................31 The Ottoman Empire and Qaramanli Dynasty...................31 “The Shores of Tripoli”....................................31 Italian Annexation and Post War Uncertainty...................32 Independence and Monarchy, 1951-1969 ..........................32 List of Figures Figure 1. Map of Libya .............................................2 List of Tables Table 1. Libyan Military Personnel ...................................25 Libya: Background and U.S. Relations Recent Developments Following a 45-day congressional notification period that ended on June 29, 2006 the Secretary of State rescinded Libya’s listings as a state sponsor of terrorism and a country not fully cooperating with U.S. counterterrorism efforts. The rescission removed the final series of terrorism-related trade restrictions and the remaining legal obstacles to normal bilateral relations. The U.S. Liaison Office in Tripoli has been upgraded to Embassy status. President Bush nominated a career diplomat, Gene Cretz, for the U.S. ambassadorship to Libya on July 11, 2007. Since mid-2006, U.S.-Libyan rapprochement has remained largely stalled by unresolved claims of U.S. victims of Libyan sponsored terrorist attacks and, until late July 2007, Libya’s imprisonment of Bulgarian and Palestinian medics on charges of deliberately infecting Libyan children with HIV. Following a flurry of diplomatic activity involving the United States, the European Union (and individual member states), Qatar, and Libyan parties, the medics were released from Libyan custody on July 24, and were subsequently pardoned by the Bulgarian government. In exchange, various arrangements were made to provide financial support to the families of the infected children, to improve Libyan medical care, and to strengthen EU-Libya ties. The medics’ release has raised hopes among some observers that outstanding claims of U.S. victims also may be addressed in the near future. On June 25, 2006, the head of a legal team representing the Libyan government asserted that the team considers Libya’s obligations under its original agreement with families of the Pan Am Flight 103 victims to have been fulfilled, but pledged to “deal with these cases most transparently and in complete good faith.” Representatives of the Qadhafi Development Foundation conducted a follow up visit to the United States in April 2007 and discussed settlement terms with victims’ representatives. Enforcement of a 2006 settlement agreement between the Libyan government and the victims of the 1986 LaBelle discotheque bombing is subject to a civil suit in U.S. District Court. In the 110th Congress, Section 654 of the House version of the FY2008 State, Foreign Operations and Related Agencies Appropriations bill (H.R. 2764), would prohibit the use of U.S. funds for “any diplomatic operations