US renews ties with Libya

UNITED STATES: The United States restored full diplomatic ties with Libya on Monday, rewarding the longtime pariah nation for scrapping its weapons of mass destruction programs and signaling incentives for Iran and North Korea if they do the same.

Culminating a years-long rapprochement with the OPEC member, Washington will reopen an embassy and remove Libya from a list of state sponsors of terrorism within 45 days.

U.S.-Libya relations turned around after Tripoli decided in December 2003 to give up its weapons program, and the two nations have repeatedly said since then they would work to restore ties as Libya followed through on its pledge.

"Just as 2003 marked a turning point for the Libyan people, so too could 2006 mark turning points for the peoples of Iran and North Korea," said Secretary of State Condoleezza Rice, who is leading international pressure on the two countries to limit their nuclear programs.

Libya, which is led by Muammar Gaddafi, badly needs foreign investment in its energy industry. Its Foreign Ministry called the U.S. move a "significant step" toward improving all areas of bilateral cooperation.

Ali Aujali, the Libyan Liaison Office chief in Washington, said the decision would benefit U.S. oil companies. "Now I think they can compete with the other companies and they can go ahead with their job in Libya," he said.

As ties warmed, U.S. companies such as Marathon Oil Corp., ConocoPhillips and Amerada Hess Corp. last year agreed to terms letting them resume oil and gas production in Libya after a 19-year absence.

A leading Democrat on U.S. foreign policy praised the decision to restore ties as signaling an incentive to Iran.

"In taking these actions, the United States dramatically demonstrates to the remaining rogue states - and particularly to Iran - that our country takes note of positive changes in behavior and is more than willing to reciprocate," said California Rep. Tom Lantos, the top Democrat on the House International Relations Committee.

Meanwhile Libya wants to work with the United States to spread democracy around the world after Washington restored full diplomatic ties with Tripoli, the head of Libya's de facto single ruling party said on Monday.

"We encourage America on the path of cooperation and we hope we will cooperate together through cultural debate to spread democracy around the world together," said Mustapha Zaidi, the top official of Libya's Revolutionary Committees.

Senior Libyan officials said a page had been turned in relations between the two countries and predicted an era of flourishing relations.

Tripoli, Tuesday, Reuters.