A NEW US RELATIONSHIP
WITH LIBYA
   
US Libya Foreign Policy in focus, by Ronald Bruce, writer and foreign policy expert
Following decades of conflict, Libya and the United States took major steps to improve their bilateral relationship in the closing months of the Bush administration. In September 2008, Condoleezza Rice visited Libya, the first secretary of State to do so since John Foster Dulles in 1953. In November, two weeks after Libya contributed US$1.5 bn to a newly created Humanitarian Settlement Fund intended to resolve outstanding lawsuits by American victims of Libyan terrorism, President George W. Bush telephoned the Libyan leader, Muammar al-Qaddafi, and voiced his satisfaction with the settlement. In December 2008, Gene A. Cretz took up his position as U.S. ambassador to Libya, the first since 1972.

The importance of these events cannot be overestimated. The real question now, however, is where does the Obama administration go from here with Libya?

A normal relationship at last
Following centuries of colonial rule, Libya declared independence on December 24, 1951. An ambivalent supporter of Libyan independence, the United States throughout the 1950s viewed Libya less as an independent state and more as a strategic airbase. With the discovery of oil in 1959, the focus of interests changed as officials began to see Libya mostly as an inexpensive petrol pump.

In the decade after Qaddafi seized power on September 1, 1969, Libya became for the United States a source of regional instability. It was, for instance, on the original list of State Sponsors of Terrorism in 1979. In the 1980s, the Reagan administration treated Libya as a global terrorist organization, and US officials continued to characterize it as such throughout the 1990s. In short, for the first 50 years of Libyan independence, the United States routinely failed to treat Libya as an independent state, due the recognition accorded to any other state.

Reflecting both historical circumstance and personal ego, Libyan leader Qaddafi doggedly pursued the respect of the US government from the outset of the Libyan revolution.

In this sense, Rice’s brief visit to Libya in September 2008 was historic, not just because it was the first such visit in more than 50 years, but also because it symbolized the US recognition that Libya had sought for so many years. In December 2008, Ambassador C. David Welch, Assistant Secretary of State for Near Eastern Affairs, told the Reuters news agency that the claims settlement with Libya opened “the horizon to a normal relationship of the kind we might have with any country.” His remarks marked the first time an American official had stated publicly the possibility of a normal relationship with Libya since Qaddafi came to power in 1969.

Permanent Interests
As for the next steps in this bilateral relationship, it isn’t enough for the United States simply to talk about what’s wrong with Libya, or to ask what Libya needs to say or do differently, as successive US governments have done in the past. Instead, the Obama administration must focus on what it wants from its relationship with Libya. In so doing, it should begin by recognizing that Libya is as important to the United States as

Muammar al-Gaddafi, known as Colonel Gaddafi has been the leader of Libya since a 1969 coup
the United States is to Libya. Moreover, it should also recognize that there are real limits to the ability of the US to change Libya. What it can do more readily is to change its own attitudes and policies toward Libya.

Lord Palmerston (1784-1865), Britain’s foreign secretary and prime minister for many years, once observed that “nations have no permanent friends or allies, they only have permanent interests.” In private and public statements, including a conversation with the author at the State Department in mid-December 2008, former

Secretary of State Rice repeated his injunction, arguing that Libya and the United States shared “permanent interests.” Those interests include counterterrorism, trade, nuclear proliferation, Africa, cultural and other initiatives, human rights, and democracy.

Counterterrorism, Energy, and Trade
Counterterrorism remains an obvious area of bilateral cooperation. Long a target of fundamental Islamist groups, Libyan leader Qaddafi in the wake of the 9/11 terrorist attacks rushed to support the Bush administration’s war on terror. Since that time, US intelligence officials have conducted information-sharing sessions with their Libyan counterparts on a regular basis. These should continue with the Obama administration.

At present, Libya oil reserves are estimated to be 41.46 billion barrels with gas reserves at 1.419 trillion cubic meters. With four rounds of exploration agreements completed since 2004, experts believe proven reserves will double or even triple in future years. Libya exported some oil to the United States in the 1970s, but Europe remains its primary market. Nevertheless, Libyan oil and gas reserves are of direct interest to the United States because they ease production pressures on its traditional suppliers.

Outside the energy sector, the United States has never been the major trade or investment partner with Libya. Given Libya’s small population of just over six million people, future trade opportunities for U.S. exporters, with a few exceptions, will remain relatively small. New investment opportunities exist in areas like tourism and infrastructure development, but the current political and legal systems in place make it difficult for most US companies, outside the energy sector, to pursue them.

Official US trade interests may fall more in the area of what other countries sell to Libya as opposed to what Americans supply. In the early 1980s, Libya had the highest ratio of military equipment to manpower in the Third World. Based on recent talks with France, Russia, and other states, the Qaddafi regime looks set once more to reward support from the armed forces with sophisticated new armaments. continue >>