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The US announced on Monday it will restore full diplomatic relations with Libya and remove the country from its list of nations that sponsor terrorism.

 

Both US and Libyan officials welcomed the move. Libyan Foreign Minister Abdurrahman Shalgham said Monday in Tripoli that the move marks the "opening of a new era in US-Libyan relations that will benefit the interests of Americans and Libyans alike."

 

But the two sides differed on the cause for the improved relations, as Washington said the move was a reward for Libya's renunciation of its weapons of mass destruction, but Tripoli emphasized it was "a result of contacts and negotiation" and was driven by mutual interests.

 

US Secretary of State Condoleezza Rice said in a statement on Monday that the restoration of US-Libyan relations is in recognition of Libya's continued commitment to its renunciation of terrorism and its "excellent" cooperation with the US and other countries in the war on terrorism.

 

But Libyan Foreign Minister Abdurrahman Shalgham said on the same day in Tripoli that the restoration of full Libyan-US diplomatic relations "was a result of contacts and negotiations" rather than a reward for Libya's dismantling of its weapons of mass destruction.

 

Analysts in Tunis said the full restoration of US-Libyan diplomatic relations was a major US step in improving relations with Libya since the latter gave up its weapons of mass destruction in 2003.

 

The move also came at a time when the US is attempting to shore up relations with major oil producers because of high oil prices and shortage of supplies. Libya has substantial oil reserves.

 

Meanwhile, it is also a result of active efforts by Libya, which, to develop its domestic economy, is eager to improve its relations with Washington and the West to get access to foreign investment and advanced technologies, analysts said.

 

The two former antagonists have maintained no full diplomatic relations since 1980, although a thaw in long-standing hostility enabled Washington to open a diplomatic office in Libya in 2004.

 

Despite repeated Libyan calls for normal relations instead of liaison-level contacts, Washington had been demanding Tripoli make more anti-terror efforts, improve its human rights record, and halt verbal attacks on Washington.

 

This year, Libya took a more active approach in relations with the US, and had repeatedly reached out olive branches to Washington.

 

As part of efforts to warm up ties with Washington, Libya had allowed US companies to return to Libya, worked out a series of measures catering to US needs such as letting foreign banks open branches in Libya.

 

As ties thawed, US 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.

 

Libya's Foreign Ministry called the US move to normalize relations with Libya a "significant step" toward improving all areas of bilateral cooperation.

 

Though Washington's latest move is expected to remove remaining obstacles in US-Libyan relations, analysts warned that questions still remained.

 

Washington is still alert to possible changes of Tripoli's attitude toward the US, fearing that Libyan leader Muammar Gadhadfi may embarrass the US one day with something unexpected, they said.

 

On the other hand, Gadhadfi is worried about the prospect that Washington may attempt to control his country economically and politically, analysts said.

 

Libyan leaders have said on many occasions that they would not put all the eggs in one basket, which means that Libya would develop relations with all countries, instead of merely relying on relations with Washington.

 

(Xinhua News Agency May 17, 2006)