Libya: Background and U.S. Relations. September 2008 Page: 2 of 44
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Libya: Background and U.S. Relations
Summary
Libyan-U.S. rapprochement has unfolded gradually since 2003, when the Libyan
government accepted responsibility for the actions of its personnel in regard to the
1988 bombing of Pan Am Flight 103 and announced its decision to eliminate its
weapons of mass destruction and long-range missile programs. In response, U.S.
sanctions were gradually removed, and, 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. Full diplomatic relations were restored
on May 31, 2006 when the United States upgraded its Liaison Office in Tripoli to an
Embassy. Libya was removed from the list of state sponsors of terrorism and states
not fully cooperating with U.S. counterterrorism efforts in June 2006.
From June 2006 through July 2008, U.S.-Libyan re-engagement was hindered
by disagreements over outstanding legal claims related to U.S. citizens killed or
injured in past Libyan-sponsored or supported terrorist attacks. Administration
officials argued that broader normalization of U.S.-Libyan relations would provide
opportunities for the United States to address specific issues of potential concern to
Congress, including the outstanding legal claims, political and economic reform, the
development of Libyan energy resources, and human rights. However, Congress took
several steps to limit U.S.-Libyan re-engagement as a means of encouraging the
Libyan government to settle outstanding terrorism cases in good faith prior to further
normalization.
On May 29, 2008, the U.S. Department of State and the Libyan government
announced that they had begun negotiating the terms of a "claims settlement
agreement" for outstanding legal cases. In conjunction with apparent progress in
U.S.-Libyan negotiations, on July 31, Congress passed S. 3370, the Libyan Claims
Resolution Act, which authorizes the creation of an entity with legal immunity to
receive settlement funds from Libya and distribute them to U.S. plaintiffs. The
Administration's certification of the receipt of sufficient funds would result in the
rescission of the applicability of the provisions of Section 1083 of P.L. 110-181, the
National Defense Authorization Act for FY2008, to Libya. Section 1083 altered the
legal environment in which terrorism cases involving Libya are being considered by
amending the Foreign Sovereign Immunities Act (FSIA) (28 U.S.C. 1602-1611)
to make Libyan property subject to attachment in relation to damages awarded to
plaintiffs.
The subsequent signing on August 14, 2008 of a bilateral agreement to resolve
terrorism-related legal claims and the September 5 visit of U.S. Secretary of State
Condoleezza Rice to Tripoli appear to have cleared the way for the long-awaited
opening of a new chapter in U.S.-Libya relations.
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 to reflect major developments.
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Blanchard, Christopher M. Libya: Background and U.S. Relations. September 2008, report, September 17, 2008; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc817136/m1/2/: accessed April 25, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.