On The Shores Of Tripoli
TRIPOLI, LIBYA--To the great relief of American oil companies, President Bush last week eased sanctions that have barred virtually all trade with and investment in Libya. Look for the hunt for new oil and gas deposits in Libya's trackless but promising desert to begin soon. Americans will also be able to trade with Libya, though deals in transportation and dual-use technology will still require special licenses. The government will also set up an official liaison office in Tripoli and lift visa restrictions that keep Libyans from attending American universities. U.S. officials call the moves a reward for Muammar Qadhafi's decision to give up his nuclear and chemical weapons programs. Says a U.S. official, "It signals that the souk is open for business."
What's unclear is whether this will open the way for the second of three Libyan payments, totaling $10 million, to families of those killed in the bombing of Pan Am 103 over Lockerbie, Scotland, in December 1988--an act of terrorism tied to Libyan agents. Some victim's families are upset. "I think it stinks," says Stephanie Bernstein, whose husband, Michael, a Justice Department official, was on Pan Am 103. "This is an effort by Bush to justify the war in Iraq and to reward the oil companies."
Libyan officials and business people, by contrast, are eager for the return of U.S. firms, which they need to restore Libya's oil production to presanctions levels. The country has considerable reserves and the potential for big discoveries, but sanctions have been effective. "The sanctions hurt a lot," says Mohamed Elmansori, who runs a Tripoli-based construction company and investment Web site. "When they lift sanctions, we can do a lot of business with the American people." Prime Minister Shokri Ghanem, in an interview with U.S. News, called the entry of U.S. companies a "win-win situation. . . . We stand--both parties--to gain a lot." -Thomas Omestad
This story appears in the May 3, 2004 print edition of U.S. News & World Report.