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...Lockerbie trial may be over, but the standoff it was designed to resolve between Libya and the West continues. U.S. and British leaders responded to Wednesday's conviction of Libyan intelligence operative Abdel Basset Ali al-Megrahi for the bombing of Pan Am 103 by insisting that sanctions will not be lifted until the Libyan government accepts responsibility for the attack and pays compensation to the families of the victims. The response from Tripoli, in the words of its foreign minister: "Never." Well, never say never - Libya's ambassador to London hinted Thursday that Tripoli may indeed be prepared...

Author: /time Magazine | Title: Why the West Will Be in no Rush to Lift Libya Sanctions | 8/24/2009 | See Source »

...even though the culprit has now been proved to have been an active-duty Libyan intelligence operative, there's still no certainty in the Western intelligence community over whether the original decision to attack Pan Am 103 originated in Tripoli, or whether Libyan intelligence was subcontracting on behalf of Iran or a Syrian-backed Palestinian group...

Author: /time Magazine | Title: Why the West Will Be in no Rush to Lift Libya Sanctions | 8/24/2009 | See Source »

...anniversary of that apology - the two countries signed a friendship treaty involving $5 billion worth of infrastructure deals. And in 2007, while trying to negotiate a major deal to sell Libya French fighter jets, French president Nicolas Sarkozy secured the release of a group of Bulgarian nurses from a Libyan prison, where they were jailed for allegedly infecting patients with the HIV virus. When it comes to cutting deals with the former pariah state, "everyone is equally guilty," says Molly Tarhuni of Chatham House, adding that those countries with good relationships with Libya will reap large benefits. "There are enough...

Author: /time Magazine | Title: Was Oil Part of a Deal for the Lockerbie Bomber? | 8/22/2009 | See Source »

...Some oil analysts and Libya watchers on Friday said they suspected that British officials had tacitly made it known to Libyan officials that they would not object to Scotland releasing Megrahi - even if they stopped short of reassuring Libya that he would be freed. Scotland's Justice Minister Kenny MacAskill insists he made the decision alone, after meeting with Clinton and U.S. Attorney General Eric Holder, and holding a video conference with U.S. relatives. But the BBC reported last week that British business minister Peter Mandelson had held a brief conversation earlier this month with Seif Gaddafi, when...

Author: /time Magazine | Title: Was Oil Part of a Deal for the Lockerbie Bomber? | 8/22/2009 | See Source »

...Relations with London have also warmed. In 2007, former British Prime Minister Tony Blair held talks with Gaddafi in the Libyan leader's tent in Tripoli. Soon after, BP officials signed a $900-million exploration deal with Libya's state-run National Oil Company; BP believes the deal could ultimately earn it about $15 billion in oil revenues. But Blair has denied that there was ever a link between the deal and the release, telling CNN on Saturday that he didn't have the power to arrange Megrahi's release. "I wasn't in a position...

Author: /time Magazine | Title: Was Oil Part of a Deal for the Lockerbie Bomber? | 8/22/2009 | See Source »

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