91. Telegram From the Department of State to the Embassy in Libya1

42713. Subject: Sale of U.S. Aircraft and Services to Libya.

1. Dept made following decisions February 16:

A. To inform Lockheed the Dept will not authorize the overhaul of Libya’s C–130s in the U.S.

B. To turn down future munitions control license applications for the overhaul of Libya’s C–130s abroad.

C. To turn down continued supply spare parts and continued onsite maintenance of the aircraft.

D. To inform Lockheed the Dept will recommend to Commerce approval for the export of Jet Star to Libya.

E. To inform Commerce that Dept is not in favor of approving issuance of a license permitting sale of two Boeing 727s to Libyan Arab Airlines.

2. Department understands Senator Case’s office has learned of Department’s decision and plans make public announcement at 1500 hours Washington time. Lockheed concerned about safety its personnel in Libya and unable to contact Team Chief West. Please inform West of impending announcement, as well as heads of other American companies, if you believe Libyan reaction might be violent and Americans should be cautioned. In meanwhile, Department attempting to persuade Case’s office to delay press announcement.

Vance
  1. Source: Carter Library, National Security Affairs, Staff Material Middle East, Subject File, Box 61, Libya: 2/77–12/78. Confidential; Niact Immediate. Sent for information Priority to London and Rome. Printed from a copy that was received in the White House Situation Room. Drafted by Bergstrom; cleared in NEA/RA, D, NEA/AFN, and H; approved by Draper. (National Archives, RG 59, Central Foreign Policy File, D780074–0628)