Official Name: Great Socialist People's Libyan Arab Jamahiriya

PROFILE

Geography
Location: North Africa, bordering the Mediterranean Sea, between Egypt, Tunisia, and Algeria, southern
border with Chad, Niger, and Sudan.
Area: 1,759,540 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 2010 est.): 6,461,454.
Annual population growth rate (2010 est.): 2.117%. Birth rate (2010 est.)--24.58 births/1,000
population. Death rate (2010 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 (2010 est.): Infant mortality rate--20.87 deaths/1,000 live births. Life expectancy--total
population 77.47 yrs.; male 75.18 yrs.; female 79.88 yrs.
Work force (2010 est.): 1.686 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 on 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.): $85.04 billion.
GDP per capita (PPP, 2009 est.): $13,400.
Real GDP growth rate (2009 est.): -0.7%.
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 (2009 est.)--$34.24 billion: crude oil, refined petroleum products, natural gas,
chemicals. Major markets (2009 est.)--Italy (37.65%), Germany (10.11%), Spain (7.94%), France
(8.44%), Switzerland (5.93%), U.S. (5.27%). Imports (2009 est.)--$22.11 billion: machinery, transport
equipment, food, manufactured goods, consumer products, semi-finished goods. Major
suppliers (2009)--Italy (18.9%), China (10.54%), Turkey (9.92%), Germany (9.78%), Tunisia (5.25%),
South Korea (4.02%).

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'etat 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 Ali Mohamed 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.
Subsequently, Libya 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.

Nationwide political violence erupted in February 2011, following the Libyan Governments brutal
suppression of popular protests against Libyan leader Mu'ammar al-Qadhafi. Opposition forces quickly
seized control of Benghazi, Libyas second-largest city, as well as significant portions of eastern Libya
and some areas in western Libya. Drawing from the local opposition councils which formed the
backbone of the February 17 revolution, the Libyan opposition announced the formation of a
Transitional National Council (TNC) on February 27, 2011. The Council has stated its desire to remove
Qadhafi from power and establish a unified, democratic, and free Libya that respects universal human
rights principles.

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. During the first 7 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 Abdulati al-Obeidi was appointed to his position in March
2011, following the defection of his predecessor, Musa Kusa. 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. Qadhafis sons play an important role in government
circles. Qadhafis second son, Saif al-Islam al-Qadhafi, was previously viewed as a reformer but has
emerged as a strong defender of the regime following the outbreak of political violence. His Qadhafi
International Charity and Development Foundation (QDF) had served as a platform to advocate for
greater respect for human rights, civil society development, and political and economic reforms. The
QDF also 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.
Qadhafis younger sons, Khamis and Saadi, are commanding military units, while his fourth son,
Mutassim, had served as National Security Adviser and continues to be involved in security and
military relations.

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 Shari'a law.

The Libyan Transitional National Council has set up a rival government in Benghazi. The 45-member
Council includes representatives from throughout Libya and is headed by Chairman (and former
Qadhafi Minister of Justice) Mustafa Abdul Jalil. The Council acts as the oppositions legislative branch
and has appointed an executive committee, headed by Mahmoud Jibril, to oversee interim governance
issues. The TNC has stated repeatedly its desire to serve only as an interim body and has issued plans
to draft a constitution and hold nationwide elections as soon as Qadhafi is removed from power.

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)--Abdulati al-Obeidi

The Libyan Peoples Bureau (embassy-equivalent) is located at 2600 Virginia Avenue NW, Suite 705,
Washington DC 20037 (tel. 202-944-9601, fax 202-944-9603). However, it suspended operations on
March 16, 2011, at the behest of the U.S. State Department.

ECONOMY
The government dominates Libya's socialist-oriented economy through control of the country's oil
resources, which account for approximately 95% of export earnings, 75% of government receipts, and
25% of gross domestic product. Oil production, previously constant at just below Libyas Organization
of Petroleum Exporting Countries (OPEC) quota of 1.4 million barrels per day (bpd), ground to a halt
following the outbreak of political violence in February 2011. Oil revenues constitute the principal
source of foreign exchange. Much of the country's income over the years 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 have given
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.

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).
Under the 2004 order, U.S. persons were no longer prohibited from working in Libya, and many
American companies in diverse sectors actively sought 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 bpd to 3 million bpd by 2012, a target that the
National Oil Corporation later estimated would to slip to 2017. In February 2011, the U.S. and UN
imposed sanctions on Libya following the outbreak of political violence.
The government had been 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. Despite efforts to diversify the economy and encourage private
sector participation, extensive controls of prices, credit, trade, and foreign exchange have constrained
growth. Import restrictions and inefficient resource allocations have caused periodic shortages of basic
goods and foodstuffs, shortages that are worsening as the political unrest continues. Libya faces a long
road ahead in liberalizing the socialist-oriented economy and recovering from the losses of the ongoing
conflict, but initial steps, including applying for World Trade Organization (WTO) membership, reducing
some subsidies, and announcing plans for privatization, have laid 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 have been 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 sought to develop its relations with Sub-Saharan Africa,
leading to Libyan involvement in several internal African disputes in the Democratic Republic of the
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.

Following Libyas 2003 decision to dismantle its WMD programs and renounce terrorism, it 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 Agencys Board of Governors from 2007-2008. From 2008-2009, it served
a 2-year non-permanent tenure on the UN Security Council representing the Africa group. In 2009,
Libya became chair for 1 year of the African Union and played host to several AU summits. The same
year, it assumed the UN General Assembly presidency. Libya took over the Arab League presidency in
2010 and hosted the March and October 2010 Arab League summits and an Arab-African summit in
October 2010.

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 countrys
speech. Qadhafis UNGA speech reinforced Libyas 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.

Libyas relations with the rest of the world deteriorated sharply following Qadhafis brutal suppression
of popular protests in February 2011. The UN quickly took action to try to end the violence, passing
UNSCR 1970 on February 26, which called for a referral to the International Criminal Court, an arms
embargo, a travel ban, an asset freeze, and sanctions. UNSCR 1973, adopted on March 17, authorized
member states to take military action to protect civilians and civilian populated areas under threat of
attack. Under the auspices of UNSCR 1973, the U.S., U.K., and France launched military action in Libya
on March 20; NATO continued these efforts as Operation Unified Protection.

Working through the international Contact Group on Libya, key members of the international
community, including the U.S., have joined together to increase pressure on the Qadhafi regime and
support the TNC. Several countries, including France, Italy, Qatar, and the U.K., have recognized the
TNC as Libyas governing authority; countless others, including the U.S., have identified the TNC as the
credible interlocutor of the Libyan people. More than 20 nations have diplomatic representation in
Benghazi.

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
Megrahis release where concurrently considered by Scottish Justice authorities: the first involved
Libyas request for Megrahis 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
Megrahis life expectancy was less than 3 months (thereby falling under compassionate release
guidelines), Scottish Justice Minister Kenny MacAskill granted Megrahis 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
heros 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 had 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 had 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 Abd al-Rahman 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
would 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 Libyas 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 Sharia 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, in which LIFGs
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. LIFGs revised ideology
and the subsequent release of many of its imprisoned members was due in large part to a 2-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.