Pan Am Flight 103 CIA Files.pdf - Paperless Archives
Pan Am Flight 103 CIA Files.pdf - Paperless Archives
Pan Am Flight 103 CIA Files.pdf - Paperless Archives
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libya's cash shortage has forced some of its East<br />
European creditors to accept payment in oil, and<br />
even then Tripoli bas been less than reliable in<br />
making deliveries.<br />
i·some East' European<br />
con<br />
difficulty ietiini Libya to deliver oil to settle debts.<br />
Recently. Romania blamed its inability to meet<br />
payments due to Western banks on Libya's failure<br />
to meet its commitment to deliver oil for resale.<br />
Even if this accusation is exaggerated, such bad<br />
experiences may induce Romania and other Bloc<br />
countries to 10 slowly on expanding trade ties.<br />
Libyan authorities are likely to continue to fa~r<br />
these firms over the East Europeans. By emplo)'ing<br />
Western firms, Qadbafi would not only receive<br />
better quality goods and services but also isolate<br />
the United States from its West European allies.<br />
As long as Eastern Europe faces such competition.<br />
its gains from increased commercial ties to Libya<br />
will be restricted .•<br />
-Outlook<br />
I<br />
Despite the risks, East European countries are<br />
likely to try to supply Libya with goods and services<br />
previously furnished by US firms. However, the<br />
region·s ability to do so is limited. Soviet demands<br />
I for oil and'ias equipment. coupled with its hard<br />
, currency shortages, could persuade the USSR to<br />
ii": look to its ~st EuroPean allies to replace Western<br />
• I ,', i ," equipment purchases. The nee~ to supply the Soviet<br />
':1 economy could leave little slack capacity to produce<br />
I • ; goods for the Libyans. _<br />
I.<br />
i<br />
, \ i •<br />
Furthermore. competition from West European<br />
.. and Asian firms also seeking to benefit from US<br />
!, sanctions 'willlilnit the Bloc's gains.<br />
est<br />
many<br />
ropean and Asian firms are interested inor<br />
have actually taken over-previous US contracts<br />
'I ., ,. for ci\;l en~iDeering and construction projects in<br />
, i 1\ : Libya; . i<br />
. " : I.' I . ~<br />
; , I ~<br />
. ~<br />
F[bU1J<br />
F[bU3]<br />
[S]<br />
I<br />
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19<br />
1'1 •<br />
. 1