The United States on Friday announced in Washington the easing of the 18-year-old sanctions imposed on Libya in reward for its abandonment of weapons of mass destruction (WMD)programs.

The move cleared the way for US companies to resume most trade with Tripoli, buy Libyan oil and invest in the country.

"Since Dec. 19, Libya has taken significant steps eliminating WMD programs and longer range missiles, and has reiterated its pledge to halt all support for terrorism," White House spokesman Scott McClellan said in a statement.

"In the last two months, the government of Libya has removed virtually all elements of its declared nuclear weapons program, signed the International Atomic Energy Agency (IAEA) Additional Protocol, joined the Chemical Weapons Convention, destroyed all of its declared unfilled chemical munitions, secured its chemical agent pending destruction under international supervision, submitted a declaration of its chemical agents to the Organization for the Prevention of Chemical Weapons, eliminated its Scud-C missile force, and undertaken to modify its Scud-B missiles," McClellan said.

As a result, the United Stated decided to ease the sanctions on Libya "in recognition of the steps it (Libya) has taken over the last two months to repudiate WMD and to build the foundation for Libya's economic growth and reintegration with the international community," the spokesman said.

The easing of the sanctions, imposed in 1986 after a series of what the United States regarded as "terrorist" acts, terminates the application of the Iran-Libya Sanctions Act, which allowed the US president to punish non-US firms that invest more than 20 million US dollars a year in Libya's energy sector.

The move allows "the resumption of most commercial activities, financial transactions and investments" and "US companies will be able to buy or invest in Libyan oil and products."

In a further sign of detente between the two countries, McClellan said the United States will begin a dialogue on trade, investment and economic reform with Libya and will support Libya's accession into the World Trade Organization.

McClellan said the US State Department will also set up a liaison office in Tripoli to have direct diplomatic dealings with Libya. The United States severed its diplomatic ties with Libya in1981 after former US President Ronald Reagan ordered an air attack against Libya.

Washington has already lifted the travel ban to Tripoli in February.

The two counties have been at odds since Libyan leader Moammar Gadhafi took power in 1969. A further strain occurred in the early 1990's with the discovery that Libyan agents were involved in the 1988 Lockerbie bombing.

The move by Washington has been meant to reward Tripoli for itssurprise announcement on Dec. 19 last year that it would give up pursuit of the WMD.

However, Libyan government assets in the United States will remain frozen and Libya will also remain on the US list of "state sponsors of terrorism," which bars Libya from receiving US arms exports and controls sales of the "dual-use" items with military and civilian applications.

Earlier this year, Libya accepted responsibility for the Lockerbie bombing which killed 270 people and agreed to pay a compensation of 2.7 billion dollars to the families of the victims.

Libya paid 4 million dollars each last year to the families of the Lockerbie victims after the United Nations lifted its sanctions against the country.

Under the deal, the families of the victims can receive another4 million dollars each if the United States scraps its sanctions on Libya on the deadline of April 24 and 2 million dollars more ifthe United States drops Libya from the list of "state sponsors of terrorism."

Source: Xinhua