Libya also remains on the US list of state sponsors of terrorism. The State Department says Libya has curbed ties with some -- but not all -- terrorist groups. Officials says legal claims by Americans based on past terrorist acts are still pending.
Nations designated as terrorist states are barred from receiving US economic assistance or arms-related exports or sales of US origin. The US government also is barred from supporting loan requests from such countries in international lending institutions.
The US and Libya have been at odds since Gadhafi took power in 1969. President Ronald Reagan ordered air attacks against Libya in 1981 and 1986. A further strain occurred in the early 1990's with the discovery that Libyan officials had a hand in the 1988 Pan Am 103 bombing. For many years, Gadhafi also caused unease here by trying to destabilize pro-Western countries in Africa.
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