US lifts some sanctions on Libya

The United States yesterday lifted a travel ban on Libya and will allow some US firms to negotiate deals in the country as it welcomed Tripoli's progress on getting rid of illicit weapons.

The Bush administration took the further step of allowing Libya to set up a diplomatic presence in Washington.

The moves came a day after Libya retracted statements by Libyan Prime Minister Shokri Ghanem, who had denied his country's guilt in the 1988 Lockerbie airliner bombing.

After Libyan leader Colonel Muammar Gaddafi in December pledged to disclose and dismantle all of his country's nuclear, chemical and biological programs, the United States has held out the prospect of fully normalized ties at some point. The comments from Ghanem had caused the announcement on the lifting of travel restrictions to be delayed by two days but the extent of the steps taken by the Bush administration showed the United States wants to respond in kind to the pace of Libyan efforts.

"Over the course of the last two months, Libya has taken significant steps in implementing its commitment to disclose and dismantle all weapons of mass destructions programmes," the White House said in a statement .

The United States said "more remains to be done" but it praised Libya's actions as "serious, credible and consistent" with Col. Gaddafi's pledges. Lifting the travel ban will allow US oil companies to travel to Tripoli to negotiate deals for the day that US trade sanctions are lifted. Libya is eager to bring US companies back, especially in the oil industry, its main source of foreign earnings.

Mr Ghanem had angered US officials by denying Libya's guilt in the 1988 Lockerbie airliner bombing and saying Tripoli had only agreed to pay damages to victims in order to buy peace.

Libya was forced to issue a retraction on Wednesday, reverting to their position as stated last August. At the time Libya had sent a letter to the United Nations saying Libya helped bring two suspects charged with the bombing to justice and "accepts responsibility for the actions of its officials."

"Libya's retraction yesterday clarified that their statement of August 15 still stands," said Sean McCormack, spokesman for the White House National Security Council.

But the clarification did little to soothe the anger of some of the families of the Lockerbie victims, who have been outraged by talk of normalising ties with Libya.

"For the Bush administration, Lockerbie is just an issue to get around. It is typical of the Libyans to say one thing one day and another the next," said Susan Cohen, whose daughter died in the bombing. She accused the administration of trying to "whitewash" Lockerbie and of making Col. Gaddafi into a hero.