Background Note: Libya

Background Notes : Libya (02/10)

Background Note: Libya

PROFILE

OFFICIAL NAME:
Great Socialist People's Libyan Arab Jamahiriya

Geography
Location: North Africa, bordering the Mediterranean Sea, between Egypt, Tunisia, and Algeria, southern border with Chad, Niger, and Sudan.
Area: 1,759,540 million sq. km.
Cities: Tripoli (capital), Benghazi.
Terrain: Mostly barren, flat to undulating plains, plateaus, depressions.
Climate: Mediterranean along coast; dry, extreme desert interior.
Land use: Arable land--1.03%; permanent crops--0.19%; other--98.78%.

People
Nationality: Noun and adjective--Libyan(s).
Population (July 2009 est.): 6,310,434 (includes 349,040 non-nationals).
Annual growth rate (2009 est.): 2.17%. Birth rate (2009 est.)--25.15 births/1,000 population. Death rate (2009 est.)--3.45 deaths/1,000 population.
Ethnic groups: Berber and Arab 97%; other 3% (includes Greeks, Maltese, Italians, Egyptians, Pakistanis, Turks, Indians, and Tunisians).
Religion: Sunni Muslim 97%, other 3%.
Languages: Arabic is the primary language. English and Italian are understood in major cities.
Education: Years compulsory--9. Attendance--90%. Literacy (age 15 and over who can read and write)--total population 82.6%; male 92.4%; female 72% (2003 est.).
Health (2009 est.): Infant mortality rate--21.05 deaths/1,000 live births. Life expectancy--total population 77.26 yrs.; male 74.98 yrs.; female 79.65 yrs.
Work force (2009 est.): 1.64 million.

Government
Official name: Great Socialist People's Libyan Arab Jamahiriya.
Type: "Jamahiriya" is a term Col. Mu'ammar al-Qadhafi coined and which he defines as a "state of the masses" governed by the populace through local councils. In practice, Libya is an authoritarian state.
Independence: Libya declared independence on December 24, 1951.
Revolution Day: September 1, 1969.
Constitution: No formal document. Revolutionary edicts establishing a government structure were issued December 11, 1969 and amended March 2, 1977 to establish popular congresses and people's committees that constitute the Jamahiriya system.
Administrative divisions: 32 municipalities (singular--"shabiya", plural--"shabiyat"): Butnan, Darnah, Gubba, al-Jebal al-Akhdar, Marj, al-Jebal al-Hezam, Benghazi, Ajdabiya, Wahat, Kufra, Surt, Al Jufrah, Misurata, Murgub, Bani-Walid, Tarhuna and Msallata, Tripoli, Jfara, Zawiya, Sabratha and Surman, An Nuqat al-Khams, Gharyan, Mezda, Nalut, Ghadames, Yefren, Wadi Alhaya, Ghat, Sabha, Wadi Shati, Murzuq, Tajura and an-Nuwaha al-Arba'a.
Political system: Political parties are banned. According to the political theory of Col. Mu'ammar al-Qadhafi, multi-layered popular assemblies (people's congresses) with executive institutions (people's committees) are guided by political cadres (revolutionary committees).
Suffrage: 18 years of age; universal and compulsory.

Economy
Real GDP (2009 est.): $89.92 billion.
GDP per capita (PPP, 2009 est.): $14,200.
Real GDP growth rate (2009 est.): 5.9%.
Natural resources: Petroleum, natural gas, gypsum.
Agriculture: Products--wheat, barley, olives, dates, citrus, vegetables, peanuts, soybeans; cattle; approximately 75% of Libya's food is imported.
Industry: Types--petroleum, food processing, textiles, handicrafts, cement.
Trade: Exports (2008 est.)--$64.5 billion f.o.b.: crude oil, refined petroleum products Major markets (2008)--Italy (38%), Germany (12%), Spain (6.9%), France (7.4%), U.S. (6.4%), Switzerland 4.6%. Imports (2008 est.)--$26.55 billion f.o.b.: machinery, transport equipment, food, manufactured goods. Major suppliers (2008)--Italy (22.2%), Germany (8.6%), Tunisia (5.8%), Turkey (6.1%), France (4.1%), South Korea (4.7%), China (9.3%).

PEOPLE
Libya has a small population in a large land area. Population density is about 50 persons per sq. km. (80/sq. mi.) in the two northern regions of Tripolitania and Cyrenaica, but falls to less than one person per sq. km. (1.6/sq. mi.) elsewhere. Ninety percent of the people live in less than 10% of the area, primarily along the coast. More than half the population is urban, mostly concentrated in the two largest cities, Tripoli and Benghazi. Thirty-three percent of the population is estimated to be under age 15.

Native Libyans are primarily a mixture of Arabs and Berbers. Small Tebou and Tuareg tribal groups in southern Libya are nomadic or semi-nomadic. Among foreign residents, the largest groups are citizens of other African nations, including North Africans (primarily Egyptians and Tunisians), West Africans, and other Sub-Saharan Africans.

HISTORY
For most of their history, the peoples of Libya have been subjected to varying degrees of foreign control. The Phoenicians, Carthaginians, Greeks, Romans, Vandals, and Byzantines ruled all or parts of Libya. Although the Greeks and Romans left impressive ruins at Cyrene, Leptis Magna, and Sabratha, little else remains today to testify to the presence of these ancient cultures.

The Arabs conquered Libya in the seventh century A.D. In the following centuries, most of the indigenous peoples adopted Islam and the Arabic language and culture. The Ottoman Turks conquered the country in the mid-16th century. Libya remained part of their empire, although at times virtually autonomous, until Italy invaded in 1911 and, in the face of years of resistance, made Libya a colony.

In 1934, Italy adopted the name "Libya" (used by the Greeks for all of North Africa, except Egypt) as the official name of the colony, which consisted of the Provinces of Cyrenaica, Tripolitania, and Fezzan. King Idris I, Emir of Cyrenaica, led Libyan resistance to Italian occupation between the two world wars. Allied forces removed Axis powers from Libya in February 1943. Tripolitania and Cyrenaica came under separate British administration, while the French controlled Fezzan. In 1944, Idris returned from exile in Cairo but declined to resume permanent residence in Cyrenaica until the removal in 1947 of some aspects of foreign control. Under the terms of the 1947 peace treaty with the Allies, Italy relinquished all claims to Libya.

On November 21, 1949, the UN General Assembly passed a resolution stating that Libya should become independent before January 1, 1952. King Idris I represented Libya in the subsequent UN negotiations. When Libya declared its independence on December 24, 1951, it was the first country to achieve independence through the United Nations and one of the first former European possessions in Africa to gain independence. Libya was proclaimed a constitutional and a hereditary monarchy under King Idris.

The discovery of significant oil reserves in 1959 and the subsequent income from petroleum sales enabled what had been one of the world's poorest countries to become extremely wealthy, as measured by per capita GDP. Although oil drastically improved Libya's finances, popular resentment grew as wealth was increasingly concentrated in the hands of the elite This discontent continued to mount with the rise throughout the Arab world of Nasserism and the idea of Arab unity.

On September 1, 1969, a small group of military officers led by then 28-year-old army officer Mu'ammar Abu Minyar al-Qadhafi staged a coup d'état against King Idris, who was subsequently exiled to Egypt. The new regime, headed by the Revolutionary Command Council (RCC), abolished the monarchy and proclaimed the new Libyan Arab Republic. Qadhafi emerged as leader of the RCC and eventually as de facto head of state, a political role he still plays. The Libyan Government asserts that Qadhafi currently holds no official position, although he is referred to in government statements and the official press as the "Brother Leader and Guide of the Revolution," among other honorifics.

The new RCC's motto became "freedom, socialism, and unity" It pledged itself to remedy "backwardness," take an active role in the Palestinian cause, promote Arab unity, and encourage domestic policies based on social justice, non-exploitation, and an equitable distribution of wealth.

An early objective of the new government was withdrawal of all foreign military installations from Libya. Following negotiations, British military installations at Tobruk and nearby El Adem were closed in March 1970, and U.S. facilities at Wheelus Air Force Base near Tripoli were closed in June 1970. That July, the Libyan Government ordered the expulsion of several thousand Italian residents. By 1971, libraries and cultural centers operated by foreign governments were ordered closed.

In the 1970s, Libya claimed leadership of Arab and African revolutionary forces and sought active roles in international organizations. Late in the 1970s, Libyan embassies were re-designated as "people's bureaus," as Qadhafi sought to portray Libyan foreign policy as an expression of the popular will. The people's bureaus, aided by Libyan religious, political, educational, and business institutions overseas, attempted to export Qadhafi's revolutionary philosophy abroad.

Qadhafi's confrontational foreign policies and use of terrorism, as well as Libya's growing friendship with the U.S.S.R., led to increased tensions with the West in the 1980s. Following a terrorist bombing at a discotheque in West Berlin frequented by American military personnel, in 1986 the U.S. retaliated militarily against targets in Libya, and imposed broad unilateral economic sanctions.

After Libya was implicated in the 1988 bombing of Pan Am flight 103 over Lockerbie, Scotland, UN sanctions were imposed in 1992. UN Security Council resolutions (UNSCRs) passed in 1992 and 1993 obliged Libya to fulfill requirements related to the Pan Am 103 bombing before sanctions could be lifted. Qadhafi initially refused to comply with these requirements, leading to Libya's political and economic isolation for most of the 1990s.

In 1999, Libya fulfilled one of the UNSCR requirements by surrendering two Libyans who were suspected to have been involved with the bombing for trial before a Scottish court in the Netherlands. One of these suspects, Abdel Basset al-Megrahi, was found guilty; the other was acquitted. Al-Megrahi's conviction was upheld on appeal in 2002. On August 19, 2009, al-Megrahi was released from Scottish prison on compassionate grounds due to a terminal illness and returned to Libya. In August 2003, Libya fulfilled the remaining UNSCR requirements, including acceptance of responsibility for the actions of its officials and payment of appropriate compensation to the victims' families. UN sanctions were lifted on September 12, 2003. U.S. International Emergency Economic Powers Act (IEEPA)-based sanctions were lifted September 20, 2004.

On December 19, 2003, Libya publicly announced its intention to rid itself of weapons of mass destruction (WMD) and Missile Technology Control Regime (MTCR)-class missile programs. Since that time, Libya has cooperated with the U.S., the U.K., the International Atomic Energy Agency, and the Organization for the Prohibition of Chemical Weapons toward these objectives. Libya has also signed the IAEA Additional Protocol and has become a State Party to the Chemical Weapons Convention. These were important steps toward full diplomatic relations between the U.S. and Libya.

GOVERNMENT AND POLITICAL CONDITIONS
Libya's political system is in theory based on the political philosophy in Qadhafi's Green Book, which combines socialist and Islamic theories and rejects parliamentary democracy and political parties. In reality, Qadhafi exercises near total control over major government decisions For the first seven years following the revolution, the Revolutionary Command Council, which included Colonel Qadhafi and 12 fellow army officers, began a complete overhaul of Libya's political system, society and economy. In 1973, Qadhafi announced the start of a "cultural revolution" in schools, businesses, industries, and public institutions to oversee administration of those organizations in the public interest On March 2, 1977, Qadhafi convened a General People's Congress (GPC) to proclaim the establishment of "people's power," change the country's name to the Socialist People's Libyan Arab Jamahiriya, and to vest, theoretically, primary authority in the GPC.

The GPC is the legislative forum that interacts with the General People's Committee, whose members are secretaries of Libyan ministries. It serves as the intermediary between the masses and the leadership and is composed of the secretariats of some 600 local "basic popular congresses." The GPC secretariat and the cabinet secretaries are appointed by the GPC secretary general and confirmed by the annual GPC congress. These cabinet secretaries are responsible for the routine operation of their ministries, but Qadhafi exercises real authority directly or through manipulation of the peoples and revolutionary committees.

Qadhafi remained the de facto head of state and secretary general of the GPC until 1980, when he gave up his office. Although he holds no formal office, Qadhafi exercises power with the assistance of a small group of trusted advisers, who include relatives from his home base in the Sirte region, which lies between the traditional commercial and political power centers in Benghazi and Tripoli.

In the 1980s, competition grew between the official Libyan Government, military hierarchies, and the revolutionary committees. An abortive coup attempt in May 1984, apparently mounted by Libyan exiles with internal support, led to a short-lived reign of terror in which thousands were imprisoned and interrogated. An unknown number were executed. Qadhafi used the revolutionary committees to search out alleged internal opponents following the coup attempt, thereby accelerating the rise of more radical elements inside the Libyan power hierarchy.

In 1988, faced with rising public dissatisfaction with shortages in consumer goods and setbacks in Libya's war with Chad, Qadhafi began to curb the power of the revolutionary committees and to institute some domestic reforms. The regime released many political prisoners and eased restrictions on foreign travel by Libyans. Private businesses were again permitted to operate.

In the late 1980s, Qadhafi began to pursue an anti-Islamic fundamentalist policy domestically, viewing fundamentalism as a potential rallying point for opponents of the regime. Qadhafi's security forces launched a pre-emptive strike at alleged coup plotters in the military and among the Warfallah tribe in October 1993. Widespread arrests and government reshufflings followed, accompanied by public "confessions" from regime opponents and allegations of torture and executions. The military, once Qadhafi's strongest supporters, became a potential threat in the 1990s. In 1993, following a failed coup attempt that implicated senior military officers, Qadhafi began to purge the military periodically, eliminating potential rivals and inserting his own loyal followers in their place.

Qadhafi's strategy of frequent re-balancing of roles and responsibilities of his lieutenants makes it difficult for outsiders to understand Libyan politics. Several key political figures hold overlapping portfolios, and switch roles in a country where personalities and relationships often play more important roles than official titles. While high-ranking officials may have official portfolios, it is not uncommon for supposed subordinates to report directly to Qadhafi on issues thought to be within the purview of other officials. Foreign Minister Musa Kusa was nominated for his current position in March 2009 after having served as the chief of the External Security Organization (Libya’s intelligence service) for over a decade. Prime Minister al-Baghdadi al-Mahmoudi oversees the day-to-day operation of the Libyan cabinet, and plays a key role in setting financial, and regulatory affairs, as well as domestic policies. National Security Adviser Mutassim al-Qadhafi is the Libyan leader’s fourth son; his portfolio includes security and military relations, as well as foreign intelligence. Qadhafi called for his second son, Saif al-Islam, to take appointment as the “General Coordinator of the People's Social Leadership” in October 2009, although as of January 2010 the younger Qadhafi had yet to announce that he would accept the position. Saif al-Islam is seen by many Western observers as a reformer. His Qadhafi International Charity and Development Foundation (QDF) serves as a platform from which he applies pressure on government officials on issues such as human rights, civil society development, and political and economic reforms. The QDF played a key role in brokering dialogue with former Libyan Islamic Fighting Group members (LIFG), which led to their subsequent release from prison, and recantation of violence as a tool of jihad.

The Libyan court system consists of three levels: the courts of first instance; the courts of appeals; and the Supreme Court, which is the final appellate level. The GPC appoints justices to the Supreme Court. Special "revolutionary courts" and military courts operate outside the court system to try political offenses and crimes against the state. "People's courts," another example of extrajudicial authority, were abolished in January 2005. Libya's justice system is nominally based on Sharia law.

Principal Government Officials
De facto Head of State--Mu'ammar Abu Minyar al-Qadhafi ("the Brother Leader and Guide of the Revolution")
Secretary General of the General People's Committee (Prime Minister)--Al-Baghdadi Ali al-Mahmudi
Secretary of the General People's Committee for Foreign Liaison and International Cooperation (Foreign Minister)--Musa Kusa
National Security Advisor--Mutassim Billah al-Qadhafi
Ambassador--Ali Suleiman Aujali

The Libyan People’s Bureau (embassy-equivalent) is located at 2600 Virginia Avenue NW, Suite 705, Washington DC 20037 (tel. 202-944-9601, fax 202-944-9603).

ECONOMY
The government dominates Libya's socialist-oriented economy through complete control of the country's oil resources, which account for approximately 97% of export earnings, 75% of government receipts, and 54% of the gross domestic product. The severe drop in oil prices from peaks in late 2008 caused the government to abandon several economic reform projects and revise the budget downward. The expected weakness in world hydrocarbon prices throughout 2009 will constrain Libyan economic growth and further delay infrastructure development projects. Oil revenues constitute the principal source of foreign exchange. Much of the country's income has been lost to waste, corruption, conventional armaments purchases, and attempts to develop weapons of mass destruction, as well as to large donations made to developing countries in attempts to increase Qadhafi's influence in Africa and elsewhere. Although oil revenues and a small population give Libya one of the highest per capita GDPs in Africa, the government's mismanagement of the economy has led to high inflation and increased import prices. These factors resulted in a decline in the standard of living from the late 1990s through 2003, especially for lower and middle income strata of the Libyan society.

Despite efforts to diversify the economy and encourage private sector participation, extensive controls of prices, credit, trade, and foreign exchange constrain growth. Import restrictions and inefficient resource allocations have caused periodic shortages of basic goods and foodstuffs.

On September 20, 2004, President George W. Bush signed an Executive Order ending economic sanctions imposed under the authority of the International Emergency Economic Powers Act (IEEPA). U.S. persons are no longer prohibited from working in Libya, and many American companies in diverse sectors are actively seeking investment opportunities in Libya. In 2008, the government announced ambitious plans to increase foreign investment in the oil and gas sectors to significantly boost production capacity from 1.2 million barrels per day (bpd) to 3 million bpd by 2012, a target that the National Oil Corporation now expects to slip to 2017. The government is also pursuing a number of large-scale infrastructure development projects such as highways, railways, air and seaports, telecommunications, water works, public housing, medical centers, shopping centers, and hotels.

Libya faces a long road ahead in liberalizing the socialist-oriented economy, but initial steps, including applying for World Trade Organization (WTO) membership, reducing some subsidies, and announcing plans for privatization, are laying the groundwork for a transition to a more market-based economy. The non-oil manufacturing and construction sectors, which account for more than 20% of GDP, have expanded from processing mostly agricultural products to include the production of petrochemicals, iron, steel, and aluminum. Climatic conditions and poor soils severely limit agricultural output, and Libya imports about 75% of its food. Libya's primary agricultural water source remains the Great Manmade River Project, but significant resources are being invested in desalinization research to meet growing water demands. Government officials have also indicated interest in developing markets for alternative sources of energy, pharmaceuticals, health care services, and oil production byproducts.

FOREIGN RELATIONS
Since 1969, Qadhafi has determined Libya's foreign policy His principal foreign policy goals have been Arab unity, the incorporation of Israel and the Palestinian Territories into a single nation of "Isratine," advancement of Islam, support for Palestinians, elimination of outside, particularly Western, influence in the Middle East and Africa, and support for a range of "revolutionary" causes.

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. These ties significantly diminished after the imposition of UN sanctions in 1992. 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, which had been one of the fundamental tenets of his philosophy.

Instead, over the last decade, Libya pursued closer bilateral ties with North African neighbors Egypt, Tunisia, and Morocco, and greater Africa. It has also 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, Mauritania, Somalia, Central African Republic, Eritrea, and Ethiopia. Libya has also sought to expand its influence in Africa through financial assistance, granting aid donations to impoverished neighbors such as Niger and oil subsidies to Zimbabwe, and through participation in the African Union. 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 greeted with skepticism. In recent years, Libya has played a helpful role in facilitating the provision of humanitarian assistance to Darfur refugees in Chad, contributing to efforts to forge a ceasefire between Chad and Sudan, and bringing an end to the conflict in Darfur.

One of the longest-standing issues in Libya's relationship with the European Union and the international community was resolved in July 2007 with the release of five Bulgarian nurses and a Palestinian doctor who had been convicted in 1999 of deliberately infecting over 400 children in a Benghazi hospital with the HIV virus. The six medics were sentenced to death in 2004, a sentence that was upheld by the Libyan Supreme Court, but commuted in July 2007 by the Higher Judicial Council to life in prison. Under a previous agreement with the Bulgarian Government on the repatriation of prisoners, the medics were allowed to return to Bulgaria to finish their sentence, where upon arrival the Bulgarian president pardoned all six. The Benghazi International Fund, established by the United States and its European allies, raised $460 million to distribute to the families of the children infected with HIV, each of whom received $1 million.

Since Libya’s 2003 decision to dismantle its WMD programs and renounce terrorism, it has sought to actively reengage the international community through improved bilateral relations with the West, as well as seeking leadership positions within international organizations. Libya served on the International Atomic Energy Agency’s Board of Governors from 2007-2008. From 2008-2009, Libya served a two-year non-permanent tenure on the UN Security Council representing the Africa group. In 2009, Libya became chair for one year of the African Union and played host to several AU summits. In 2009, Libya assumed the UN General Assembly presidency. Libya will host the March 2010 Arab League summit in Tripoli and an Arab-African summit in late 2010, and will hold the Arab League presidency for 2010-2011.

After 40 years in power, Qadhafi made his first trip to the United States in September 2009 to participate in the United Nations General Assembly (UNGA) in New York City and deliver his country’s speech. Qadhafi’s UNGA speech reinforced Libya’s assimilation within the international community and its emerging importance on the African scene. The trip came on the heels of the release from Scotland and return to Libya of convicted Pan Am 103 bomber Abdel Basset Ali Mohamed al-Megrahi.

Terrorism
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 Ali al-Megrahi, guilty of murder in connection with the bombing, and acquitted the second suspect, Al-Amin Khalifa Fhima. Megrahi's conviction was upheld on March 14, 2002, but in October 2008 the Scottish High Court permitted Megrahi to appeal aspects of his case, formal hearings for which started in March 2009, when two separate requests for Megrahi’s release where concurrently considered by Scottish Justice authorities: the first involved Libya’s request for Megrahi’s transfer under the U.K.-Libya Prisoner Transfer Agreement, and the other for his release on compassionate grounds. After a Scottish medical committee announced that Megrahi’s life expectancy was less than three months (thereby falling under compassionate release guidelines), Scottish Justice Minister Kenny MacAskill granted Megrahi’s release from prison, and permitted him to return to Libya on August 20, 2009. The decision provoked widespread objections by the Lockerbie bombing victims’ families, who were particularly enraged by what appeared to be a “hero’s welcome” in Tripoli.

UN sanctions were lifted on September 12, 2003 following 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 paid 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 non-U.S. families of the victims in the bombing of UTA Flight 772. With the lifting of UN sanctions in September 2003, each of the families of the victims of Pan Am 103 received $4 million of a maximum $10 million in compensation. After the lifting of U.S. IEEPA-based sanctions on September 20, 2004, the families received a further $4 million.

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 two U.S. servicemen were killed. The court also established a connection to the Libyan Government. The German Government demanded that Libya accept responsibility for the La Belle bombing and pay appropriate compensation. A compensation deal for non-U.S. victims was agreed to in August 2004.

By 2003, Libya appeared to have curtailed its support for international terrorism, although it may have retained residual contacts with some of its former terrorist clients. In an August 2003 letter to the UN Security Council, Libya took significant steps to mend its international image and formally renounced terrorism. In August 2004, the Department of Justice entered into a plea agreement with Abdulrahman Alamoudi, in which he stated that he had been part of a 2003 plot to assassinate Saudi Crown Prince Abdallah (now King Abdallah) at the behest of Libyan Government officials. In 2005, the Saudi Government pardoned the individuals accused in the assassination plot.

During the 2005 UN General Assembly session, Libyan Foreign Minister Shalgam issued a statement that reaffirmed Libya's commitment to the statements made in its letter addressed to the Security Council on August 15, 2003, renouncing terrorism in all its forms and pledging that Libya will not support acts of international terrorism or other acts of violence targeting civilians, whatever their political views or positions. Libya also expressed its commitment to continue cooperating in the international fight against terrorism. On June 30, 2006, the U.S. rescinded Libya's designation as a state sponsor of terrorism.

In May 2008, the U.S. and Libya began negotiations on a comprehensive claims settlement agreement to resolve outstanding claims of American and Libyan nationals against each country in their respective courts. On August 4, 2008 President Bush signed into law the Libyan Claims Resolution Act, which Congress had passed on July 31. The act provided for the restoration of Libya’s sovereign, diplomatic, and official immunities before U.S. courts if the Secretary of State certified that the United States Government had received sufficient funds to resolve outstanding terrorism-related death and physical injury claims against Libya. Subsequently, both sides signed a comprehensive claims settlement agreement on August 14. On October 31, Secretary of State Condoleezza Rice certified to Congress that the United States had received $1.5 billion pursuant to the U.S.-Libya Claims Settlement Agreement. These funds were sufficient to provide the required compensation to victims of terrorism under the Libyan Claims Resolution Act. Concurrently, President Bush issued an executive order to implement the claims settlement agreement.

In September 2009, several leading members of the Libyan Islamic Fighting Group (LIFG) released a more than 400-page document in which they renounced violence and laid out what they claimed to be a clearer understanding of the ethics of Islamic Shari’a law and jihad, parting ways with Al-Qaeda and other terrorist groups whose violent methods they described as ignorant and illegitimate. The release of this revisionist manuscript shortly followed a public statement in August 2009, where LIFG’s leaders apologized to the Libyan leader for their violent acts and pledged to continue working toward a complete reconciliation with remaining elements of LIFG in Libya or abroad. LIFG’s revised ideology and the subsequent release of many of its imprisoned members is due in large part to a two-year initiative by Saif al-Islam al-Qadhafi, in his capacity as Chairman of the Qadhafi International Charity and Development Foundation, to broker the reconciliation between the Libyan Government and elements of LIFG leadership.

U.S.-LIBYAN RELATIONS
The United States supported the UN resolution providing for Libyan independence in 1951 and raised the status of its office in 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 designated 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 Lanuf petrochemical complex. In April 1985, all Export-Import Bank financing was prohibited.

Due to Libya's continuing support for terrorism, 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 two American servicemen, the United States responded by launching an aerial bombing attack against targets near Tripoli and Benghazi in April 1986. Subsequently, the United States maintained its trade and travel embargoes and brought diplomatic and economic pressure to bear against Libya. This pressure helped to bring about the Lockerbie settlement and Libya's renunciation of WMD and MTCR-class missiles.

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. UN sanctions were lifted on September 12, 2003, after Libya fulfilled all remaining UNSCR requirements, including renunciation of terrorism, acceptance of responsibility for the actions of its officials, and payment of appropriate compensation to the victims' families.

On December 19, 2003, Libya announced its intention to rid itself of WMD and MTCR-class missile programs. Since that time, it has cooperated with the U.S., the U.K., the International Atomic Energy Agency, and the Organization for the Prohibition of Chemical Weapons toward these objectives. Libya has also signed the IAEA Additional Protocol and has become a State Party to the Chemical Weapons Convention.

In recognition of these actions, the U.S. began the process of normalizing relations with Libya. The U.S. terminated the applicability of the Iran-Libya Sanctions Act to Libya and President Bush signed an Executive Order on September 20, 2004 terminating the national emergency with respect to Libya and ending IEEPA-based economic sanctions. This action had the effect of unblocking assets blocked under the Executive Order sanctions. Restrictions on cargo aviation and third-party code-sharing have been lifted, as have restrictions on passenger aviation. Certain export controls remain in place.

U.S. diplomatic personnel reopened the U.S. Interest Section in Tripoli on February 8, 2004. The mission was upgraded to a U.S. Liaison Office on June 28, 2004, and to a full embassy on May 31, 2006. The establishment in 2005 of an American School in Tripoli demonstrates the increased presence of Americans in Libya, and the continuing normalization of bilateral relations. Libya re-established its diplomatic presence in Washington with the opening of an Interest Section on July 8, 2004, which was subsequently upgraded to a Liaison Office in December 2004 and to a full embassy on May 31, 2006.

On May 15, 2006, the State Department announced its intention to rescind Libya's designation as a state sponsor of terrorism in recognition of the fact that Libya had met the statutory requirements for such a move: it had not provided any support for acts of international terrorism in the preceding six-month period, and had provided assurances that it would not do so in the future. On June 30, 2006, the U.S. rescinded Libya's designation as a state sponsor of terrorism.

In 2007, there were a series of senior-level meetings between U.S. and Libyan officials that focused on a broad array of issues, including regional security and counterterrorism cooperation. Secretary Rice, in her meeting with then-Foreign Minister Shalgam on the margins of the UN General Assembly, discussed the resolution of outstanding issues and charting a path for future cooperation. On July 11, President Bush nominated career diplomat Gene A. Cretz as U.S. Ambassador to Libya.

On January 3, 2008, then-Foreign Minister Shalgam made an official visit to Washington, the first official visit by a Libyan Foreign Minister since 1972. During that visit the United States and Libya signed the Science and Technology Cooperation Agreement, their first bilateral agreement since the downgrading of diplomatic relations.

In May 2008, the U.S. and Libya began negotiations on a comprehensive claims settlement agreement to resolve outstanding claims of American and Libyan nationals against each country in their respective courts. On August 4, 2008 President Bush signed into law the Libyan Claims Resolution Act, which Congress had passed on July 31. The act provided for the restoration of Libya’s sovereign, diplomatic, and official immunities before U.S. courts if the Secretary of State certified that the United States Government had received sufficient funds to resolve outstanding terrorism-related death and physical injury claims against Libya. Subsequently, both sides signed a comprehensive claims settlement agreement on August 14. On October 31, Secretary of State Condoleeza Rice certified to Congress that the United States had received $1.5 billion pursuant to the U.S.-Libya Claims Settlement Agreement. These funds were sufficient to provide the required compensation to victims of terrorism under the Libyan Claims Resolution Act. Concurrently, President Bush issued an executive order to implement the claims settlement agreement.

Resolution of outstanding claims permitted full normalization of ties and the exchange of ambassadors in January 2009 for the first time since 1973. U.S. Ambassador Gene A. Cretz was sworn in on December 17, 2008 and submitted his credentials to the General People’s Committee on January 11, 2009. Libyan Ambassador Ali Aujali submitted his credentials to President Bush on January 8, 2009.

The normalization of relations has provided the United States and Libya with increasing opportunities to push for progress in areas of mutual concern, such as nonproliferation, counterterrorism, trade and investment, human rights, and economic development. On January 16, 2009, the U.S. and Libya signed a Defense Contacts and Cooperation Memorandum of Understanding. On April 21, 2009, National Security Advisor Mutassim al-Qadhafi visited Washington, DC and met with Secretary of State Hillary Clinton, as well as other senior U.S. Government officials. In September 2009, Qadhafi visited the U.S. for the first time to participate in the UN General Assembly in New York.

Principal U.S. Official
Ambassador--Gene A. Cretz

The U.S. Embassy in Libya is located on Jeraba Street behind the Libyan British Clinic in Tripoli (tel. 218-91-220-3239). The Consular Section (office tel. +218 (0)91-379-4560, e-mail: TripoliConsular@state.gov) provides the full range of American citizen services. Appointments can be made online via the embassy website (http://libya.usembassy.gov). For American citizen emergencies, please call +218 (0)91 220-0125. The Consular Section processes all non-immigrant U.S. visa applications for residents of Libya. Applicants can find further information and the online application on the embassy website. Immigrant visa applicants must apply at the U.S. Embassy in Tunis.

TRAVEL AND BUSINESS INFORMATION
The U.S. Department of State's Consular Information Program advises Americans traveling and residing abroad through Country Specific Information, Travel Alerts, and Travel Warnings. Country Specific Information exists for all countries and includes information on entry and exit requirements, currency regulations, health conditions, safety and security, crime, political disturbances, and the addresses of the U.S. embassies and consulates abroad. Travel Alerts are issued to disseminate information quickly about terrorist threats and other relatively short-term conditions overseas that pose significant risks to the security of American travelers. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country because the situation is dangerous or unstable. For the latest security information, Americans living and traveling abroad should regularly monitor the Department's Bureau of Consular Affairs Internet web site at http://www.travel.state.gov, where the current Worldwide Caution, Travel Alerts, and Travel Warnings can be found. Consular Affairs Publications, which contain information on obtaining passports and planning a safe trip abroad, are also available at http://www.travel.state.gov. For additional information on international travel, see http://www.usa.gov/Citizen/Topics/Travel/International.shtml. The Department of State encourages all U.S. citizens traveling or residing abroad to register via the State Department's travel registration website or at the nearest U.S. embassy or consulate abroad. Registration will make your presence and whereabouts known in case it is necessary to contact you in an emergency and will enable you to receive up-to-date information on security conditions. Emergency information concerning Americans traveling abroad may be obtained by calling 1-888-407-4747 toll free in the U.S. and Canada or the regular toll line 1-202-501-4444 for callers outside the U.S. and Canada. The National Passport Information Center (NPIC) is the U.S. Department of State's single, centralized public contact center for U.S. passport information. Telephone: 1-877-4-USA-PPT (1-877-487-2778); TDD/TTY: 1-888-874-7793. Passport information is available 24 hours, 7 days a week. You may speak with a representative Monday-Friday, 8 a.m. to 10 p.m., Eastern Time, excluding federal holidays. Travelers can check the latest health information with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at 800-CDC-INFO (800-232-4636) and a web site at http://wwwn.cdc.gov/travel/default.aspx give the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. The CDC publication "Health Information for International Travel" can be found at http://wwwn.cdc.gov/travel/contentYellowBook.aspx. Further Electronic Information
Department of State Web Site. Available on the Internet at http://www.state.gov, the Department of State web site provides timely, global access to official U.S. foreign policy information, including Background Notes and daily press briefings along with the directory of key officers of Foreign Service posts and more. The Overseas Security Advisory Council (OSAC) provides security information and regional news that impact U.S. companies working abroad through its website http://www.osac.gov Export.gov provides a portal to all export-related assistance and market information offered by the federal government and provides trade leads, free export counseling, help with the export process, and more. STAT-USA/Internet, a service of the U.S. Department of Commerce, provides authoritative economic, business, and international trade information from the Federal government. The site includes current and historical trade-related releases, international market research, trade opportunities, and country analysis and provides access to the National Trade Data Bank.

The Office of Electronic Information, Bureau of Public Affairs, manages this site as a portal for information from the U.S. State Department.
External links to other Internet sites should not be construed as an endorsement of the views or privacy policies contained therein.

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