Americans ordered to stop Libyan deals

Press, 9 January 1986, Page 6

Americans ordered to stop Libyan deals

NZPA-AP Washington President Ronald Reagan yesterday ordered all United States citizens and companies to quit doing business with Libya, and pledged that unspecified ’‘further steps” would be taken if its leader, Colonel Muammar Gadaffi, did not end his “longstanding involvement in terrorism.” Mr Reagan, cited but did not specify “irrefutable evidence” that Libya was involved in the Palestinian guerrillas’ December bombings of Israeli check-in counters at Rome and Vienna airports. “Gadaffi deserves to be treated as a pariah in the world community,” he said.” Again he appealed to his European allies to impose sanctions of their own. Aides conceded that without such support, the United States sanctions might have little effect. Mr Reagan prohibited United States citizens from granting or extending credits or loans to the Libyan Government, banned transactions relating to commercial and other activities in Libya, including travel, and ordered home

immediately the 1500 Americans in Libya. Those breaching the order would be subject to criminal prosecution. “If these steps do not end Gadaffi’s terrorism, I promise you that further steps will be taken,” he told his frist news conference in almost four months. Several companies including Occidental Petroleum and Oasis, have continued to do business in Libya since 1981 when imports of its oil were banned. Retaliatory threats against America by Colonel Gaddafi, who has said he will order suicide raids inside the United States if his nation is attacked, had to be taken seriously. “How can you not take seriously a man who has proven he is as irrational as he has?” Mr Reagan asked. “I think he is not only a barbarian but he is flaky.” The only exceptions made to the ban on transactions from February 1 were for those necessary to wind up such dealings and for activities connected with journalism. United States officials have blamed the airport

attacks on guerrillas of the radical Palestinian leader, Abu Nidal, who they say maintains training bases in Libya. Colonel Gaddafi’s denials of any connection with the airport attacks, were dismissed by Mr Reagan. “I don’t think he is capable of telling the truth.”

The United States had evidence of guerrilla training camps in Libya, he said. Mr Reagan resisted any suggestion that his Administration was not tough enough on world terror. He officially disclosed that the United States had “aborted 126 terrorist missions” inside and outside the United States last year. He refused to go into detail.

“Americans will not understand other nations moving into Libya to take commercial advantage of our departure,” he cautioned. Washington has had little success so far in raising any enthusiasm for sanctions among its European allies. Although condemning terrorism and its backers, the Europeans are worried that growing pressure on Tripoli, including hints of

military-action, might set them in opposition to Washington and Israel. “We could not possibly support action in our own backyard which could unleash a chain of reactions in the Mediterranean highly detrimental to European Community interests,” one senior diplomat said. Mr Reagan’s sanctions would make Colonel Gadaffi more popular in the Islamic world, said the president of the Arab-American Relations Committee. “President Reagan’s orders and measures will not hurt Gadaffi economically, rather they will increase his popularity from Jakarta in Indonesia to Casablanca in Morocco,” said Dr Mohammed Mehdi, whose organisation has 20,000 members. Foreign Ministers of the 45-member Islamic Conference Organisation yesterday supported Libya which is seeking backing against what it perceives is a United States-Israeli threat against its territory. Peking and the Soviet Union have also warned against action.