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Britain extends diplomatic recognition to Libya
By Trevor Johnson
10 December 1999
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Britain is to send an ambassador to Tripoli, Libya next month,
after 15 years without any diplomatic presence. This follows Libya's
payment of compensation to the family of the policewoman Yvonne
Fletcher, over accusations that the shot that killed her in 1984
during a demonstration outside the Libyan embassy in London had
come from a gunman inside the embassy.
Announcing this to the British parliament, Foreign Secretary
Robin Cook told MPs that an undisclosed sumsaid to have
been about £250,000was paid to Fletcher's family in
the summer. Cook made it clear that commercial interests were
behind the decision to send an ambassador, saying Britain must
promote our prosperity by widening our commercial links.
United Nations sanctions against Libya were suspended earlier
this year, after Libya handed over two suspects wanted for the
bombing of a Pan Am jet over Scotland in 1988.
Britain is hoping to gain in a number of ways, both commercial
and financial, by dropping its rhetoric about Libya's supposed
terrorism. Banking, engineering, oil and construction
companies are seeking contracts in Libya's planned $35 billion
post-sanctions investment plan, due to run from 2001 to 2005.
The UK Committee for Middle East Tradea body of industrialists
and officials that advises the UK governmentintends to create
a permanent UK-Libya business council. The sectors targeted for
investment include infrastructure, tourism and oil, in partnership
with Libyan and foreign private sector investors. Britain is also
hoping that sending an ambassador will ease the way to securing
repayment of $1.4 billion in debts owed by Libya to British and
foreign banks based in London.
The United States, however, has refused to alter its hostile
stance. It is maintaining sanctions intended to limit Libyan
access to funds and material for terrorist activities, weapons
of mass destruction programmes and other destabilising military
actions. An official announcement on November 23 stated
that it was still too soon to lift sanctions, and that Libya must
end its support for terrorism.
Acting only just before the deadline for a decision, Secretary
of State Madeleine Albright renewed a ban on the use of US passports
for travel to Libya. Albright contended there was a continuing
danger to US citizens from the regime, overruling the department
officials who had concluded that Americans choosing to visit Libya
would not be at risk. She sided with those arguing that the lifting
of restrictions would send the wrong signal to Libya. Even if
the ban had been allowed to lapse, other curbs on travel to Libya
would have remained in place, including a prohibition on the spending
of US dollars by Americans in that country.
The ban has been renewed annually since it was first imposed
by President Ronald Reagan in 1981. Although the annual renewals
usually attract little attention, this year the issue was more
contentious. Some US officials held that the ban should be allowed
to lapse. Libya criticised the decision by the US, saying that
US citizens would be safer in Libya than in most American cities,
while maintaining its hope that it could build a balanced
relationship with Washington. There are pressures from some influential
groups to widen US access to the Libyan market. Since restrictions
on exports of food to Libya have been eased, agricultural exports
such as wheat have increased, easing the glut in the US. Pressure
to allow other sectors of US business to follow suit can only
increase.
Playing down the decision of Britain and the European Union
to resume relations with Libya, State Department spokesman James
Rubin told a news briefing that the US would judge Libya on the
basis of whether it acted on its assurances. As far as the
British decision is concerned, that's really for the British government
to decide, he added.
The US stance gives their European rivals free reign to capitalise
on Colonel Muammar Gadhaffi's new policies to promote business.
The visit by Italian Prime Minister Massimo D'Alema to Libya at
the beginning of this month, becoming the first Western head of
government for 15 years to meet the Libyan leader, illustrates
the change that has taken place.
Libya will become Italy's bridge to Africa and Italy
will be for Libya its door into Europe, Gadhaffi was quoted
as telling Italian foreign minister Dini during an earlier meeting.
Italy was the prime mover in persuading members of the Euro-Mediterranean
Forum to admit Libya as an observer at a meeting in April. The
forum was set up in 1995 to promote security and trade ties between
the 15 member states of the European Union and countries bordering
the Mediterranean.
Italy is keen to ensure easy access to Libya for Italian companies,
notably the oil and gas concern Eni, which already has sizeable
investments in Libya. Italy imports around 30 percent of its oil
needs from Libya and provides 20 percent of Libya's imports. Eni
began operations in Libya in 1959 and currently operates oilfields
that in 1998 accounted for about 14 percent of Libya's total oil
production.
Britain's move to normalise relations with Libya is motivated
by similar concerns. John Shute, general manager for new business
at Enterprise Oil (formerly the oil exploration arm of the state-owned
British Gas), explained that when the US comes in it will
lead to an increase in competition and will tend to lead to a
tightening of terms. After months of British government
officials repeating the US position that normalising relations
with Libya would send the wrong signal, the pressure
from business to change eventually won out. As one official put
it during the summer, when the British government was equivocating
on the issue, European countries are falling over themselves
to do business with Libya while Britain is now in
danger of missing the boat.
See Also:
Libya's Colonel Gadhaffi--from
pariah to African "statesman"
[22 July 1999]
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