The U.S. has thwarted, at least for now, a move in the United Nations Security Council to lift economic sanctions against Libya.
The U.N. suspended the sanctions Apr. 5 after Libyan leader Muammar Gaddafi`s government surrendered two suspects in the 1988 bombing of Pan Am Flight 103 over Scotland.
Six developing countries later asked the Security Council to revoke the sanctions, but the U.S. objected.
In a compromise, the suspended sanctions were retained, but the council commended Libya for "positive developments" and said the bans would be lifted "as soon as possible in conformity with the relevant U.N. resolutions."
The U.S. argued the resolutions demand that Libya help with the investigation of the Pan Am bombing and subsequent trial, but its cooperation can`t be judged until after the trial. It is due to start in February before a special Scottish court sitting in the Netherlands.
Other U.N. resolutions require Libya to compensate the 270 victims` families, if warranted, and to prove it has renounced terrorism.
If the sanctions were lifted, it would be very hard to pass a U.N. resolution reimposing them.
Libyan oil potential
Although the U.K. recently resumed diplomatic relations with Libya, the U.S. is unlikely to do so soon.
The U.S. broke relations and imposed unilateral sanctions in 1981, charging that Libya supports international terrorism. Also, a 1996 law blocks most U.S. oil investments in Libya. It is due to expire in 2001, unless Congress renews it.
In April, Libyan Energy Minister Abdullah Salem al Badri said his country would welcome the return of U.S. oil firms to Libya. Later in April, several major U.S. oil companies attended a meeting in Switzerland to learn about Libyan prospects, in anticipation of eventual removal of U.S. sanctions.
Several European oil companies are active in Libya, producing a third of the nation`s 1.3 million b/d of oil. Half of the government`s revenue comes from oil exports, and after the recent drop in world crude prices, Libya vowed to boost capacity to 2 million b/d in case of future price declines.
In June, Libya announced that it will open more of its oil industry to foreign firms and that it will revise its energy laws to introduce an open bidding process similar to those used in other nations.
Afghanistan
Meanwhile, U.S. President Bill Clinton recently imposed financial and commercial sanctions against Afghanistan.
His executive order bans U.S. trade and investment in the 85% of Afghanistan controlled by the Taliban, an Islamic fundamentalist movement that rules the country. It also froze Taliban assets in the U.S.
The U.S. exported $7 million in goods to those regions in 1998 and imported $17 million worth.
The U.S. explained that the Taliban is hiding Osama bin Laden, who is wanted in connection with the bombings of U.S. embassies in Kenya and Tanzania last August that killed 224 persons.
The Taliban militia later acknowledged bin Laden is living in an area under its control.
The sanctions will bar U.S. firms from helping Afghanistan`s drive to reactivate its oil industry.
