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U.S.-Libyan Relations - 1969-1980 - Qadhafi's Early Years

On September 1, 1969, a group of Libyan Army officers called the Revolutionary Command Council (RCC) overthrew King Idris, and U.S.-Libyan relations began to sour. The United States recognized the new government, but the RCC's initial assurances that foreign property and existing treaties would be respected did not survive the emergence of Colonel Mu'ammar al-Qadhafi as leader of the RCC. Qadhafi soon called for the "liquidation" of U.S. and British military bases in Libya and, on October 19, he demanded the evacuation of the Wheelus Airfield; this was completed in June 1970. Qadhafi then began nationalizing majority shares of foreign oil companies and negotiating increases in the price of oil.

During a speech in 1972, Qadhafi urged Muslims to fight the United States and Great Britain and announced his support for black revolutionaries in the United States, revolutionaries in Ireland, and Arabs desiring to join the struggle to liberate Palestine. U.S. Ambassador Joseph Palmer Jr., and his British counterpart walked out in protest. Qadhafi allowed five members of Black September who had died during the kidnapping and killing of the Israeli Olympic team in Munich to be buried in Libya. When President Richard Nixon announced a $2.2 billion aid package to Israel during the 1973 Arab-Israeli War, Qadhafi embargoed all oil exports to the United States, an action that was followed the next day by Saudi Arabia and other Arab oil-producing nations, starting the 1973-1974 Oil Embargo.

Domestically, Qadhafi initiated his revolution. In 1973, he announced a "cultural revolution" in Libya and proclaimed his "Third International Theory," which presented his blend of nationalism and Islam as an alternative to capitalism and communism. In 1975, Qadhafi published his first essay -- part of what would become The Green Book, detailing his ideology and system of people's congresses as the ultimate in direct democracy. In 1977, Libya changed its official name to the Socialist People's Libyan Arab Jamahiriya ("state of the masses"). Libya renamed its embassies "People's Bureaus" in 1979.

The 1979 Iranian seizure of the U.S. Embassy in Tehran and the hostage crisis that followed also marked a turning point in U.S.-Libyan relations, ultimately leading to the suspension of formal diplomatic ties. Qadhafi issued a statement urging the release of the hostages on November 22, 1979 and offered his assistance to President Carter on November 29. However, on December 2, a mob demonstrating Libyan solidarity with the Iranian Revolution attacked and burned the U.S. Embassy in Tripoli. The Embassy staff escaped harm, but operations were suspended and Chargé d'Affaires William L. Eagleton was temporarily recalled. The United States asked Libya to accept responsibility for protection of the Embassy and its staff, and to agree to provide compensation for damages. On December 22, the United States designated Libya as a state sponsor of terrorism. Then, on February 7, 1980, after a mob attacked the French Embassy in Tripoli, the United States reduced its embassy staff to two and permanently recalled Eagleton. On May 2, 1980, after the Government of Libya announced a campaign to assassinate dissidents abroad, the United States expelled four Libyan diplomats, recalled its last two diplomats from Tripoli, and closed the Embassy.

The administration of President Jimmy Carter was also embarrassed by ties between the President's brother, Billy, and Libya. Libya encouraged visits by private citizens in 1978, and one such visit included Billy Carter. Libyan delegations in turn visited the United States in 1979. Billy Carter later admitted that Libya had funded his 1978 visit. He denied having made any business deals with Colonel Qadhafi, but hoped that his visit would promote U.S.-Libyan trade. Billy Carter registered as a foreign agent for Libya with the U.S. Department of Justice in 1980, and admitted to receiving $220,000 from the Government of Libya. The U.S. Senate convened a subcommittee to investigate Billy Carter's dealings with Libya. In November 1980, the subcommittee reported that there was no wrongdoing, but Billy Carter's activities were described as "contrary to the interests of the President and the United States."