President Bush has eased economic sanctions against Libya. A White House statement says U.S. companies will now be able to buy and invest in Libyan oil projects with the financial support of U.S. commercial banks.
Bush Administration officials will begin talks on trade, investment, and economic reforms with the opening of a U.S. Liaison Office in Tripoli. The White House will also drop its objections to Libya beginning talks on joining the World Trade Organization.
Libyan students will be eligible to study in the United States and a U-S delegation is to open talks on educational exchanges.
Restrictions remain in place on the export of items with potential military uses. Direct air service between the countries is not yet authorized, nor is the release of frozen Libyan government assets.
The statement recognizes what it calls Libya's last two months of progress in repudiating weapons of mass destruction and building the foundation for economic growth.
The easing of sanctions follows Libya's accepting responsibility for the deadly 1988 bombing of a U.S. commercial jet over Scotland.